Building Effective Leaders in Microfinance

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Building Effective Leaders in Microfinance

• Deborah Burand, Esq.
• President and co-founder, WAM International
• www.wam-international.org
• May 2008

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This session will cover

• How is the gender of leadership in microfinance
  changing? Should we care?
• Becoming a more effective leader
• Grooming others to become effective leaders
• Where to go from here

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Gender of senior leadership in microfinance is
changing.

• Percentage of females in senior management
  positions in microfinance appears to be dropping
  fast with one notable exception -- MENA/Europe
• Region 2003 2006
• LAC 86 60
• Africa 60 50
• Asia 58 46
• MENA/Europe 52 61
• Data is based on the more than 50 microfinance
  institutions and banks in 29 countries that are
  network members of Womens World Banking (WWB).
  (Source Microfinance Insights, March 2008)

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Should we care?

• 85 of the poorest clients served by
  microfinance are women
• (Source Microcredit Summit Campaign Report
  2007)
• SECTOR TARGETS A MAJORITY OF WOMEN, EMPLOYS A
  MINORITY
• (Headline Microfinance Insights, March 2008)
• To advance and support womens leadership in the
  microfinance industry through education and
  training, by promoting leadership opportunities,
  and by increasing visibility of their
  participation and talent while maintaining a
  work/life balance.
• (Excerpt from WAM International Mission)

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Part 1 Becoming a More Effective Leader

• Part 2
• Grooming Leaders for the Future

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Part 1 Becoming a More Effective Leader
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What is the difference between effective
leadership and effective management?

• An effective _________ organizes people and
  resources towards the effective and efficient
  pursuit of predetermined objectives.
• 2. An effective _______ catalyzes commitment and
  rigorous pursuit of a clear and compelling vision.

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Leadership Myths Which of these are true? Which
are false?

• 1. Everyone can be a leader
• 2. Leaders deliver business results
• 3. People who reach the top are leaders
• 4. Leaders are great coaches
• 5. Leaders are everywhere in organizations, not
  only at the top
• 6. Leaders are contagious
• 7. Leaders are made, not born

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Common Leadership Styles

• Dictator Do what I say
• Team Builder Come with me
• Relater People come first
• Democrat Lets decide together
• Coach Try this
• Analyzer Lets evaluate all options
• WHICH OF ABOVE DESCRIBES
• YOUR LEADERSHIP STYLES?

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Role Play of Leadership Styles

• Six board members of Gud Kredit, a microfinance
  NGO, meet to discuss whether Gud Kredit should
  transform into a formal financial institution.
• Identify which leadership style each board member
  represents.

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Part 2 Grooming Leaders for the Future
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The Study of Leadership

• What Makes an Outstanding Leader?
• How to Recognize and Mentor Leadership Potential

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Effective leaders are alike in one crucial way
they all have a high degree of Emotional
Intelligence. Emotional intelligence can be
learned. The process is not easy. It takes time
and commitment. Daniel Goleman, HBR OnPoint
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Recognizing and grooming leadership potential in
others

• Look for and nurture characteristics of emotional
  intelligence in potential leaders
• Self-aware job candidates will be frank in
  admitting to failure--and will often tell their
  tales with a smile.
• Daniel Goleman, HBR OnPoint

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What are defining qualities of leaders with
Emotional Intelligence?

• Self-aware
• Self-regulate
• Highly motivated/motivating
• Empathetic
• Strong social skills

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Finding and investing in strengths rather than
fixing weaknesses

• Talent X Investment Strength
• If your manager primarily Chances of
  disengagement
• Ignores you 40
• Focuses on your weaknesses 22
• Focuses on your strengths 1
• Source Strengths Finder 2.0 by Tom Rath

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Another tool Mentoring

• What is Mentoring?
• A process of building a beneficial partnership
  to help develop the insights, skills, and
  behaviors to reach the partners goals.

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Speed Mentoring Round One

• Help to identify your partners priority goal by
  nurturing insight
• Ask questions like
• What is your priority goal?
• Why is it important to you to achieve this goal?
• How will your life and/or life of your
  organization change if this goal is achieved (or
  not achieved)?

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Speed Mentoring Round Two

• Help to identify strategies for reaching that
  goal by nurturing self-awareness and advancing an
  action agenda
• Ask questions like
• What have been key drivers of your prior
  successes? Can any of that be replicated here?
• What additional resources do you need?
• What can you do . tomorrow . to move toward
  your priority goal?

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Conclusion

• Sharing what you learned