MFC Strategic Review

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Strategic Management for Improved Double Bottom
Line Results Facilitator Volodymyr Tounytsky
(Consultant, MFC) Panelists Seida Saric
(Executive Director, Zene za Zene, Bosnia and
Herzegovina), Mariam Yesayan (Executive Director,
Aregak, Armenia), Senad Sinanovic (Executive
Director, Partner, Bosnia and Herzegovina).
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How to achieve double bottom line results?

• Performance is not incidental - what is
  explicitly defined and measured is what is
  managed
• Need to define desired performance
• Need to communicate desired performance
• Need to measure against
• desired performance

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Why only 10 reach their results?

• 30
• of failures are result of poor strategy
• 70
• Of failures are result of poor strategy
  implementation

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Barriers to strategy execution
VISION BARRIER Only 5 of staff understands
the mission strategy
PEOPLE BARRIER Only 25 of managers have
incentives linked to the mission strategy
MANAGEMENT BARRIER 85 of executive teams
spend less than 1 h/month discussing mission and
strategy
RESOURCE BARRIER 60 of organizations dont
link budgets to strategy
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Strategic Management Toolkit

• Uses modern management methodology of Balanced
  Scorecard
• Applies approach that is
• Mission driven
• Practical
• Participatory and bottom-up
• Scalable and flexible
• Comprehensive
• Rooted in internal team work with input from
  external facilitator
• Tested in ECA and Latin America

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Balanced Scorecard tools

• You cannot measure what you cannot describe
  strategy map
• You value and manage what you measure Balanced
  Scorecard measurement
• You cannot manage what you cannot communicate
  change management plan

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BSC Measurement System
Change Management Plan
Strategy Map
Social results
Social perspective
Financial results
Financial perspective
Customer and stakeholder value proposition
Customer perspective
Operations management
Customer management
Internal perspective
Innovation
Regulatory and social
Information capital
Human capital
Learning and growth perspective
Organizational capital
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Improve well-being of poor families addressing
key risks income generating opportunities
Social perspective
Financial perspective
Maintain financial sustainability Maintain high
productivity Continue pro-poor
growth
Customer and stakeholder value proposition
Customer perspective
Fast simple Integrated
offering Quality customer service
Pro-poor image
Pro-poor image
Operations management
Customer management
Innovation
Regulatory and social
Internal perspective

• Fast cash disbursal
• Expand offices

• Standardize CS
• Improve targeting
• Cross-sell products

• New products in partnerships
• New technology for risk management

• Build strong brand
• Increase social and financial transparency

Information capital
Organizational capital
Human capital
Learning and growth perspective

• Social leadership
• Innovation culture

• Integrate poverty measurement

• New competencies in CS, MR, RD
• Pro-poor competence profile

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Example Balanced Scorecard
Financial and Social Performance Results
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Example Balanced Scorecard
Customer Partners Satisfaction
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Example Balanced Scorecard
Institutional Processes and Resources
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Management Cockpit
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Mission driven process
Preparation
Mission
Strategy as on-going process
Current Position
Change Management Plan
Key Issues Strategic Choices
BSC Measurement
Strategy Map
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Implementation
Toolkit Overview
Toolkit
Handbook Technical Resource for MFI Managers,
Facilitators
Facilitator's Guides Workshops Curriculum
for Facilitators
Implementation Process
Kick-off workshop
1st Learning Action Workshop
2nd Learning Action Workshop
Preparation
Learning Action Workshops
Secure buy-in Assemble the team Collect
strategic info
Review mission strategy Develop strategy map
measurement scorecard Develop communication plan
Review draft tools Develop change plan Integrate
to on-going activities
Review results Review tools Take actions
Review results Review tools Take actions
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Empowers your organization and staff