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2nd Quarter 2006

Kabalikat para sa Maunlad na Buhay, Inc. “Partner for a Progressive Life”

Head Office: KMBI Bldg., 12 San Francisco St., Valenzuela City |  (02) 291.1484 to 86 | Fax: (02) 292.2441 |

Luzon staff say “Yes, Lord!” Some 260 staff from Luzon area gathered in Batangas Country Club, Batangas City for the Annual Staff Retreat on June 17 to 18 to affirm their commitment for “HIS Cause: Our Purpose, HIS Call: Our Focus.” The event highlighted leadership concepts from Bruce H. Wilkinson’s book, The Vision of the Leader, through Rev. Philip Tarroja and Ptr. Mike Meñez of the WordTeach Ministry.

See p. 4

Client’s son attains scholarship Jimson Alfabete, son of Melodina Alfabete, client of KMBI Lower Cavite branch, gave his best during the Smith Foundation’s University Scholarship Program screening and elimination process. However, he landed on the eleventh spot when only ten were accepted. Despite this circumstance, Jimson gathered his wits and applied for a tuition fee subsidy offered by the local government of Cavite. He was supposed to enroll in Cavite State University last summer. Yet, by some miracle, one grantee of the Smith scholarship backed out, and Jimson got in.

See p. 9

Kidapawan retains top spot Once again, Kidapawan bags the top spot in terms of branch performance. It continues to soar high with an outreach of 4,506 clients, average of 322 clients per program assistant, loan portfolio of Php 13.8 M and zero portfolio-at-risk. The branch garnered a total weighted score of 11.65 points.

See p. 12

Vol. 3 No. 2

Leading the way


midst ongoing operations in 24 branches all over Southern Luzon and Mindanao, KMBI gears up for more action under the leadership of Edgardo Mercedes, newly installed executive director. He succeeds Rosemarie Castro, who headed the organization for the past five years.

The succession took place on June 27, during a ceremony h e l d at the residence o f Board Member Damiana Exiomo in Valenzuela City. Staff from the head office as well as the Board of Trustees attended the event. A certificate of appreciation was awarded to Ms Castro; commissioning of the new executive director transpired afterwards. In response to a formal charge posed by Dr. Amelia Gonzales, Board Chairwoman, Mercedes vowed his commitment to lead KMBI, with a total reliance on God. “I affirm my faith in Him and seek His wisdom and guidance in the task with which He has entrusted to me,” he stated. He also commited to pray for and support the KMBI family, as it continues to pursue its vision and mission. Mercedes first joined the organization in 1991, as a program assistant. Since then, he held various posts, including Research and Development Head and Operations Head. In 1998, he worked with People’s Credit and Finance Corporation (PCFC). Armed with an accounting

degree and extensive experience in microfinance, he implemented, monitored and evaluated PCFC’s nationwide retail microfinance program. In 2002, KMBI acquired his services once again as a consultant. Eventually, he was appointed as the permanent Head for Operations, leading both Southern Luzon and Southern Mindanao. His main assignment then involved the preparation of staff and clients who were transferred to the Opportunity Microfinance Bank (OMB). In 2005, he was assigned as the Deputy Director for Operations, together with Liza Eco, the Deputy Director for Support Services. Together with the Board and Management, the new executive faces the challenge of guiding the team this year.

2nd QUARTER 2006

Empowering the team...

Towards greater impact

strength from God, believing that understanding KMBI’s work would be the only way to sustain our commitment.” Enrique Maca, area manager of Bicol, added that a leader must confront the big lies which stop him from excelling in everything. He said, “Leadership is not a matter of intelligence but a matter of deep character. The leader’s capacity to influence change is all because of God’s grace.”

Key officers join APPEND’s Summer Leadership Camp in Pattaya, Thailand.

Seeking to magnify KMBI’s impact to the poor, key officers and members of the Board of Trustees (BOT) attended two major international events. APPEND LEADERSHIP CAMP From May 16 to 20, key officers and BOT members joined the 2006 Alliance of Philippine Partners in Enterprise Development (APPEND) Leadership Camp in Pattaya, Thailand. The leadership camp was geared to refocus, recharge and renew leaders of APPEND’s member organizations in the Philippines. APPEND said it was a time for these leaders to “fellowship and see how God would unleash His great wisdom and direction as all work together for the advancement of His Kingdom.” In the camp, delegates engaged in lively discussions with top presenters including David Bussau, Cofounder of Opportunity International


(OI), David Cohen, National Director of Christian Nationals Evangelism Council (CNEC)/Partners International (PI) , and Rev. Philip Tarroja, National Director of WorldTeach Ministries. KMBI representatives were also given the privilege to lead the praise and worship singing. Aside from this, they also marketed KMBI to other organizations through the “Up Close and Unbound,” a display area where participants creatively displayed products, pamphlets, or brochures that told of their organization’s history, current involvements and future directions. Rhany Barrera, area manager of Caraga, shared about his experience in the camp. “The strength of the organization lies on its people,” he said. “As we (KMBI staff ) profess ourselves as agents of change in the lives of less fortunate brethren, we need to draw

EDS & TRANSFORMATION FORUM From June 9 to 12, Executive Director Edgardo S. Mercedes, Transformation Manager Rizaldy Duque and BDS Head Hazel Christine Rosacia took part in the first Asia Enterprise Development Services (EDS) and Transformation Forum in Bali, Indonesia. Facilitated by Opportunity International Australia Programs Team, the forum coursed the participants through a peer learning of innovative EDS and Transformation initiatives towards a collaboration among Asian partners. Microfinance practitioners from Indonesia, India and the Philippines were the speakers on the said forum. From Indonesia, the Dian Mandiri (DIMAN) Foundation shared about the necessity of building developmental bridges between Muslims and Christians. Meanwhile, the International Medical Education Directory (IMED) related its experience in designing and implementing EDS in response to the tsunami in India. Philippine MFIs like Alalay sa Kaunlaran, Inc. (ASKI), Tulay sa Pag-unlad, Inc. (TSPI), and Taytay sa Kauswagan, Inc. (TSKI) imparted experience on character development integration to spiritual transformational program, business diagnostic and advisory for advanced clients,

Communi-K community organizing and community based enterprise development. Other topics tackled during the Indonesia forum centered on the biblical foundations of mission work and the importance of intercession. The International Finance Corporation (IFC), a private sector of the World Bank, also shared about a range of enterprise development services. Likewise, there were also topics on rural micro development, including case studies on seaweed cultivation and cow fattening, and post conflict / post disaster enterprise development. Through these exposures, Hazel Rosacia reflected on three major lessons. First, she shared that an organization must focus on the integration of efforts of mainstream operations. In order to fulfill this, she said the second step is to clarify directions of the organization’s specific units through capacity assessment. Rosacia stated, “We need to pin down the strengths so that we can deepen our impact towards our clients.” Finally, she pointed out that forming and maximizing strategic partnerships with other nongovernment organizations, training providers in EDS, Christian Leadership Development and other transformation services can further strengthen KMBI.

On the final day of the forum, Edgardo Mercedes and BOT Chairwoman Amelia Gonzales joined a strategic planning workshop, along with other Asian partners of OI in the Grand Bali Hotel. APPEND and Opportunity International are comprised of a network of microfinance organizations working towards poverty alleviation. Currently, APPEND is assisting more than 500,000 poor microentrepreneurs in the Philippines through its eleven partner organizations. On the other hand, OI extends its global ministry to Africa, Asia, Eastern Europe and Latin America. KMBI is an active partner of this worldwide network.

Top (from right): Executive Director Edgardo Mercedes with Aurelio C. Llenado, Jr. and Emmanual de Guzman, BOT officers, and Hazel Rosacia at the Asian exposure. Left:Nemwell Arzaga, area manager of Southern Mindanao, and other officers show Thailand’s skycraper.

Staff Training

GRANT WRITING To provide tips on clear and effective writing, a Grant Writing Workshop was held at the Museum of the Filipino People in Metro Manila on April 29. It was facilitated by a renowned advocacy writer, John Silva. Among its attendees were KMBI’s Executive Secretary Angeli Villamor and R&D Associate Louise Anne Porciuncula. INFORMATION TECHNOLOGY S1 Technologies conducted its 8th Information Technology Convention from June 23 to 25 at Nasugbu, Batangas. MIS Officer Ronel Castor and Administration Assistant Hector H. Celajes, Jr. were among those who participated. They learned about the latest trends on printers, laptops, personal computers, cameras, audio-visual recorders, uninterrupted power supply, liquid crystal display and digital light processing. SAVINGS & MICROINSURANCE Social Enterprise Development Partnerships, Inc. (SEDPI), in coordination with the Ateneo Development Studies -- Microfinance Capacity Building Services, facilitated a seminar - workshop entitled “Designing and Implementing Microinsurance and Savings Products” on June 22 to 24 at the Ateneo de Manila University. Area Manager Vencent Abraham, Branch Accounting Head Harry Dalanon and R&D Associate Louise Porciuncula attended its activities which delved into the principles, issues and challenges of microinsurance. It also taught them how to design savings products. The guest speakers included: Fermin Gonzales, President and CEO of Coop Life Insurance Mutual Benefit System; Lolita Roque, Regional Manager of Cooperative Insurance System of the Philippines; and Insurance Commissioner Evangeline Escobillo. It was attended by 24 participants from MFIs, rural banks and other NGOs all over the country.


2nd QUARTER 2006

LUZON STAFF SAY, “YES, LORD!” to His cause: Our Purpose, His Call: Our Focus

Clockwise: Ptr. Mike Meñez of the WordTeach Ministry teaches on “The Power of Knowing God” to Bicol and Calabarzon 2 branch heads; Luzon staff shouts “Yes, Lord. Yes, Yes, Lord!” during the praise & worship singing; Program assistants join efforts while enjoying the series of teambuilding activities set in the retreat grounds.

Some 260 staff from Luzon area gathered in Batangas Country Club, Batangas City for the Annual Staff Retreat on June 17 to 18 to affirm their commitment for “HIS Cause: Our Purpose, HIS Call: Our Focus.” The event highlighted leadership concepts from Bruce H. Wilkinson’s book, The Vision of the Leader, through Rev. Philip Tarroja and Ptr. Mike Meñez of the WordTeach Ministry. The first day centered on serious deliberation of the book’s topics about “The Birth of the Vision” and “The Power of the Vision.” BOT member Ed Jimenez commenced the day with a reflection citing personality, assumption, communication and transparency as essential factors that an organization must consider for it to progress and expand. As the day continued, more lectures were delivered. Taking a glimpse of those sessions, Tarroja expounded Wilkinson’s book saying the initial “intentional sympathy” that touched the


leader’s heart when he caught sight of the poor Filipino’s plight is the vision. “This is what the God of purpose wants the leader to pursue,” he continued. Having this in heart, he said the leader will have an “instinctive bonding to the need,”“intensifying burden for the need,” “intuitive belief that he could meet the need,” have an “internal accountability for the need,” and “take the initial action to meet the need.” Subsequently, Meñez took over in this team teaching. The series of discussions was concluded with “The Validation and Testing of the Vision” which was presented during the afternoon. The break-out sessions for branch heads and team development activities for all program assistants followed suit. Calabarzon 1 branch heads convened together with Ptr. Tarroja to hear more on Leadership Integrity. Simultaneously, the Bicol and Calabarzon 2 branch heads met with Ptr. Meñez to listen about “The Power

of Knowing God (session 2).” While they strained their minds on these spiritual inputs, the program assistants went through taxing yet fun teambuilding activities set in the retreat grounds. That night, every participant danced and sang to the groove of praise and worship songs led by Edgardo Mercedes, Executive Director, and the worship team. They also learned new songs, and sang “Friends” while joining hands to signify unity of purpose. The following day, another of the intensified praise and worship got the participants thumping in euphoria, before they uttered and prayed over their commitments with God. Rev. Tarroja and the Board of Trustees extended their blessings to all the staff. Myla Idaloy, accounting assistant of Gumaca branch, later contemplated that “all that’s happening in (her) life is God’s will and plan, “ and her decision is to “succumb to the will of God.” Rosary Padia, program assistant of Calamba Branch said, “I learned that despite my smallness, my effort and actions count and contribute significantly to my work, family and community. I will strive to do things on a higher level this time.” The event was closed with a challenge by Dr. Amelia L. Gonzales.

Top: Participants on a spiritual high during one of the praise and worship “babad.”


Plugging into God’s power The ‘educate’ phase of the Leadership Enrichment and Development (LEaD) program continues through two “Power of Knowing God” sessions delivered by Rev. Philip Tarroja at the head office on April 25 and May 24 respectively. Attended by some members of the BOT, key officers, area managers, branch managers of Calabarzon 1 and 2, and the support staff, these sessions posed a challenge for them not to be satisfied with being mere facilitators of transformation, but to be leaders who have the power of knowing of God. The first PKG session brought to light the trend of many contemporary leaders. Tarroja said these leaders see wealth, might and knowledge as the defining principles of power. He clarified by citing Daniel 11: 32b-33a that only a founded knowledge of God can make a leader truly powerful. On the succeeding session, Tarroja shared the Seven Realities of Experiencing God. Through this, he emphasized that power starts with an intimacy with God. He further noted that this intimacy does not promise an all time high, but sends the leader through a test of fire that challenges both his faith and obedience.

Highlighting Romans 8:28 to 29, Tarroja further expressed that God permits both the good and unpleasant things to happen to a leader. Since God’s goodness is never dwindled despite the sway of circumstance, he encouraged the participants to perceive God’s hand. He said, “If (the leader) does not perceive God’s Hand at work in his life, he’ll have trouble knowing His will and fulfilling His ways in his life.” Transformation Manager Rizaldy Duque, in coordination with Human Resource Training Unit, pressed the importance of these sessions to materialize holistic transformation firstly in the staff. The LEaD program envisions that through these continuous lessons, a Biblical leadership paradigm will be established in order for the staff to work pro-actively in pursuing the mission and vision of the organization. The LEaD program follows a three-point cycle. First is the Educate phase. Next is the Application phase, where the staff puts his learning into use. Then comes the Mentor phase, where the staff passes on on his learning to his sphere of influence. Currently, these lessons are cascaded to the branches through the managers.

Key points from LEaD session Seven Realities of Experiencing God: 1. God is always at work around you. 2. God pursues a love relationship with you that is real and personal. 3. God invites you to become involved with Him in His work. 4. God speaks by the Holy Spirit through the Bible, prayer, circumstance and the church to reveal Himself, His purpose and His ways. 5. God’s invitation for you to work with Him always leads you to a crisis of belief that requires faith and action. 6. You must make major adjustments in your life to join God is what He is doing. 7. You come to know God by experience as you obey Him and He accomplishes His work through you.

Perceiving God’s hand through your circumstance

In your quiet time, ponder on Romans 8:28-29, and reflect on the following questions. • How is God working in your circumstance today to make you more like Him? • Can you trust God completely in your circumstance? • Can God trust you completely?

L-R: Rev. Philip Tarroja sits in the front row before the PKG session starts; Transformation Manager Rizaldy Duque involves the participants in an ice breaker.


2nd QUARTER 2006

International MFIs consult KMBI

(Top) HR Training Head Arthur Gonzaga accompanies AGAPE representatives to a center meeting.

KMBI shares its best practices to three international microfinance companies early this year. HOPE International, Associacion General Para Asesorar Pequeñas Empresas (AGAPE) of Colombia, and Dian Mandiri (DIMAN) Foundation of Indonesia were lead through KMBI’s Branch Scale-Up Model on January 26 to 30, February 27 to March 1 and May 29 to June 2, respectively. Aiming to strengthen microfinance set-ups in their respective contexts, the representatives from these organizations came to the Philippines because they saw that KMBI has proven the effectiveness of this model in terms of outreach, efficiency and transformational impact. The representatives from HOPE International were Sarah Haig, Katheryn Santos and Mulanie. Jorge Pacheco and Alberto Andres were sent by AGAPE. Dino Hagarati and Esther Metti represented DIMAN Foundation. HOPE and DIMAN Foundation representatives visited Metro Manila South B1 and Metro Manila South B2 branches and selected Success Centers, while AGAPE went to Lower Cavite and San Pablo branches and some centers. During their exposure trips, they came to know KMBI’s goals and directions, learn the support system at the Head Office, and understand branch operations.


They were also shown the how-to’s in setting up a strategic branch office location, the criteria of a program member, and the process of forming them into a SUCCESS center. Moreover, they identified the different phases of processing of loans from evaluation to monitoring phase, and learned the different reports generated in the branch. Aside from these learnings, Metti of DIMAN Foundation noticed how clients interact with each other during the center meetings. She said it would be wonderful if their meetings in Indonesia are as affective as KMBI’s, even if religious barriers are evident in their Trust Banks. KMBI shares its expertise in the microfinance field since it is an active partner and member of an international network of microfinance orgranizations. The members of this network provide each other with extensive resources in training, field methodologies, exchange of experiences, documentation and access to funding.

Dutch intern learns about microfinance Gerbrand Haverkamp is a student from the Practical University Van Hall Larenstein in Wageningen, Netherlands, taking up Regional Development and Innovation. With a keen interest in microfinance, he decided to learn more about it through an internship with microfinance practitioners in the country. “I chose the Philippines because people here are fluent in English,” he explained. He learned about KMBI through Oikocredit Philippines, whose main office is based in the Netherlands. Oikocredit is an international organization that

provides financial support to microfinance companies worldwide. From May to early June, Gerbrand took post as trainee for the Business Development Services (BDS) unit, headed by Hazel Christine Rosacia. His major tasks involved putting together the BDS Manual, proposal writing and visits to branches and centers. As a course requirement, he also completed a placement report for his school, narrating all his activities and learning experiences. He recalls a visit to Lipa, amazed by what he saw: women sewing clothes, a pepper plantation, rabbits up for sale. “It’s inspiring to see people, regardless of their situation, involve in many different things,” he noted. In his final report, he described that he gained a wider understanding of poverty and its consequences. Aside from learning about microfinance, he appreciates his “firsthand experience” in the Filipino culture, from eating balut to traveling to different parts of the city and nearby provinces. “The people are very hospitable,” he shared. “I observed that Filipinos are also very expressive of their emotions.” At present, Gerbrand is working on agricultural loans with the Alalay sa Kaunlaran, Inc. (ASKI), another microfinance institution in Cabanatuan City. He will finish the rest of his internship in this organization.

Gerbrand Haverkamp stands tall in a picture with the staff of San Pablo branch.


MF campaign features KMBI and partners As part of HSBC’s preparation for an information campaign on microfinance, the Master’s Lighthouse Foundation paid a visit to KMBI on June 6. Armed with a video camera and microphone, the team travelled to the Metro Manila South 1 branch to interview staff and program members. Together with Branch Manager Randy Bautista and Program Unit Supervisor Ronald Laureno, they walked through the crowded streets of Pasay City, stopping by to observe an ongoing SUCCESS Center meeting. Excitedly, the group posed for the camera as they carried out their lively

discussion. Outside, onlookers watched as the “shooting” went on. Soon afterwards, the team went to the houses of Tita Malayao and Delma Laporga, program members of KMBI. Tita runs a sari-sari store, while Delma’s specialty is pizza-making. They shared their stories on how they came to join KMBI, how it has helped their respective businesses, and how the program has benefited them and their families. The video is set to come out this July, as part of an ongoing campaign that includes not just KMBI, but other microfinance partners as well.

Master’s Lighthouse’s cameraman zooms in on Tita Malayao, KMBI program member.

f.y.i. Knowing more about the Branch Scale Up Model KMBI uses the Branch Scale-Up Benefits of Trust Banks • Model also known as the Trust • Cost Effectiveness. Loan officers deals Bank Method. This methodology is a with the group as a whole instead of crossbreed variant of the Grameen and several other microfinance apporoaches. It is a group-lending methodology which target poorer clients than those typically reached through individual loans. •

Core Model of the Trust Bank 1. Borrowers are organanized into group • structures defined by co-guarantee in relationships and managed by democratically elected leaders. 2. Very small, short term loans are • extended in the form of continuous, gradually increasing line of credit to Trust Bank members. 3. Savings are mobilized within the Trust Banks. 4. Trust Banks hold regular meetings to monitor repayments and to pursue other social, economic and spiritual goals.

monitoring individuals. It allows the organization to significantly decrease operating expenses and achieve program viability. High repayment rate. Once solid Trust Banks have been established, repayment rates are generally reported above 95%. Group lending is effective. It provides clients with a support system and networking structure, which helps to ensure business success. High security of group guarantees and effective testing of clients reliability. Based on members’ trust in one another through self-selected groups, mutual gurantees offer a much higher security for small loans than individual guarantees. Group repayment practices determine each member’s access to future loans, thereby employing group or peer pressure to ensure timely repayments.

Group lending develops local selfreliance, building local leadership and collective ownership. Group lending strengthens the community, and may be a context for spiritual growth and values transformation.

History The Model sprang after the success of one of KMBI’s first projects in 1991. This project was the Ugnayan ng mga Kristiyanong Mangangalakal (UKMA), wherein microfinance clients were grouped together and given spiritual and leadership trainings. This program became the precursor of the Trust Bank (Branch Scale-up) Method, which is now being replicated in 40 countries worldwide.The concept was for “one person after another to begin to reverse the downward spiral of poverty and become providers for their families and leaders in their communities through small loans and business training.”

F.Y.I. Sources: www.;;


2nd QUARTER 2006

Coming together at the Waterfront

Managers and key officers convened for the first quarterly meeting and Annual General Meeting at the Waterfront Insular Hotel in Davao City, from April 19 to 22. Also present were the Board of Trustees (BOT) and branch managers from Southern Mindanao and Caraga areas. The first two days spanned the quarterly meeting, wherein managers and key officers from the Head Office discussed organizational learning and recommendations. Transformation Manager Rizaldy Duque commenced the activity with a short reflection about sharing one’s faith, inspired by Philemon 4-7. “Philemon’s faith was obvious,” he said. “If our faith is true, we should not keep it to ourselves. We must share it with others.” Likewise, former Executive Director Rosemarie Castro spoke of how an organization can last and leave a legacy. She emphasized the importance of succession, citing that “lasting the distance


STAFF TRAININGS Back at the Insular, participants attended training on Managing Transition, led by Lilian Visco, a private consultant. Her topic, “Dealing with the Challenge of Change,”focused mainly on the importance of organizational development. “Many decisions and some strategies depend heavily on change management skills,” she explained. She highlighted the significant role of Human Resource Management in mentoring, attending to health and safety of employees, among others. A session on Board Governance was held in the afternoon with the BOT, facilitated by Pastor Philip Tarroja, Clockwise, from left: Managers discuss during Regional Director for WorldTeach and the Managing Transition training session; Board Member of APPEND. The following BOT members convene for a Board meeting; Corporate Treasurer Aurelio day, he also conducted the first educate Llenado with BSP Monetary Board Member session of the Leadership Enrichment Juanita Amatong. and Development (LEad) program with Caraga and Southern Mindanao branch means handling it over to a successor in managers. at least the same health.” Discussions progressed into planning of activities for ANNUAL GENERAL MEETING the rest of the year. The four-day event culminated into the Annual General Meeting held on VISIT FROM BSP April 22. Dr. Amelia Gonzales, Chairwoman On April 21, visitors from the of the Board, introduced officers and Microfinance Committee of the Bangko members of the BOT. Afterwards, Metro Sentral ng Pilipinas (BSP) arrived. They Davao Branch clients gracefully performed were headed by Monetary Board Member the ethnic dances of Mindanao. Ms Castro Juanita Amatong. Other visitors were: then presented highlights of the past year Managing Director Corazon Guerrero; in her Annual Report. Directors Fernando Caballa, Rolando Four staff members were given Agustin and Leilani Canullas; and Pia special awards for rendering five years Roman, Bank Officer III of the BSP of service to KMBI, namely: Michelle Microfinance Unity. They traveled to see Orodio, HR Training Associate; Concepcion KMBI SUCCESS Centers in Davao, together Parantar, HR-Admin Officer; Grace Asedillo, with BOT members; Rosemarie Castro; Branch Manager and Jocelyn de la Cruz, Edgardo Mercedes, executive director; Liza Senior Accounting Associate (General Eco, Deputy Director - Support Services; Santos Branch). Finally, Board Member Nemwell Arzaga, Southern Mindanao Eduardo Jimenez gave the closing remarks, Area Manager; and Grace Bautista, Metro followed by a prayer led by Emmanuel de Davao Branch Manager. Guzman, BOT Vice Chairman.


In pursuit of his dreams...

Client’s son attains scholarship mind, he knows education is the key to fulfilling his dreams. His four older siblings could of KMBI clients of Alfabete , children son Jim d an up have had their college degrees lac Catherine Sa Cavite branches Lower and Upper and became professionals themselves, but weren’t able to because Jimson L. Alfabete, son of Melodina of financial constraints. He recalled seeing Alfabete, a client of KMBI Lower Cavite how much his mother has done to find a branch, gave his best during the Gordon scholarship for him. Melodina, his mother, first heard V. and Helen C. Smith Foundation Program’s about the Gordon V. and Helen C. Smith University Scholarship screening and elimination process. Foundation scholarship during one of However, he landed on the eleventh the center meetings. She immediately enlisted her son. From his initial written spot when only ten were accepted. Despite this circumstance, examination at the KMBI head office all Jimson gathered his wits and applied for the way to panel interviews and screening a tuition fee subsidy offered by the local at various venues in Manila, Melodina was government of Cavite. He was supposed very supportive to her son. Out of about 140 applicants to enroll in Cavite State University last summer. Yet, by some miracle, one grantee from partner organizations of APPEND, of the Smith scholarship backed out, and it narrowed to 20 students vying for ten coveted slots during the final phase. “This Jimson got in. Overjoyed, Jimson immediately was a highly competitive educational grant went to the Alliance of Philippine Partners and we hope to recruit the best students in Enterprise Development (APPEND) in its initial implementation,” said APPEND office in slippers. Indeed, scholarship President and CEO Constancia Z. Rosacia. program manager Noel Embing was Jimson and the rest of the 20 were ranked already processing his enrolment at according to their general weighted MAPUA Institute of Technology College average, university entrance examination of Engineering. His face was beaming for score, and final interview. Christine Joy now he is on his way “to be a professional,” Jeresano, daughter of Asuncion Jeresano of Lower Cavite branch made it to the top which is his greatest dream. Jimson has a fisherman for a ten. However, she backed out and her father and a seamstress for a mother. Born slot was awarded to Jimson instead. The program, also called the amidst poverty yet gifted with a brilliant

“Knowledge for Inspiring Leadership, Opportunities and Spirituality” or KILOS project, will cover the scholars’ school expenses like tuition fees, examination fees, laboratory fees and other related school fees. It will also provide for their board and lodging, transportation, books, uniform, shoes, health and life insurance and other incidental allowances. Required of them are to maintain a general weighted average of 2.0 every semester, i.e. without any failing grade, render community service at least 40 hours per semester, and participate in the monthly fellowship and activities set by the program. Catherine Salacup, daughter of Marites Salacup, a KMBI client of Upper Cavite branch, also made it to the program. Taking up BS Nursing in Far Eastern University, she is enjoying the same privileges as Jimson.

Top: The ten Gordon V. and Helen Smith Foundation scholars. They are children of clients from partner organizations of APPEND.


2nd QUARTER 2006

BDS Corner by Hazel Christine Z. Rosacia

Studies and experiences of MFI practitioners reveal that during the first up to the third loan cycle, clients tend to diversify their loans to household expenditures and not d iligently use them to grow their enterprises as they declare in their loan utilization plan. It is also during these cycles that clients test the waters, meaning, they explore a number of MF providers. They try which one best suits their tastes and needs. In turn, their businesses fold-up and they fail to sustain paying-off their obligations. This is one of the most common reasons why clients drop out during these cycles. Once a client reaches the 4th loan cycle, it is only when she begins to establish loyalty to the MFI. Generally, on the 5th loan cycle, the client begins to pick-up and breaks even from her loan by means of having a more stable enterprise. At the 6th loan cycle, the MFI starts to break even from its costs in administering loan and maintaining a client. This is also usually the time when the client begins to create impact to her community through employing and

generating significant income, among others. Did you know that currently, about 85% of our clients are in their 1st to 3rd loan cycle? This implies that both the clients and the institution are not on a win-win situation. As constituents of KMBI, we can do something and we must do something. We don’t need to be technically equipped in terms of Business Management to help them. However, we must begin encouraging and educating our clients with extra strength, using these three simple tips:


Pay them a visit. It is crucial that we get to visit two to three clients in a day to see if their businesses and household are actually improving. By this they will know that we are sincere about helping them and that we are serious with our business, thus, this will make them want to stick it out with us.


Give them simple helpful business tips. Clients at the early stages

wouldn’t be able to chew sophisticated training inputs. Rather, they would appreciate you giving them practical tips. Ask them to prepare three cash boxes (even made of paper or used tin cans). Tell them to label one cash box with a capital letter B, the other one with E, and another with S. Whatever money they intend to roll back to their business, They have to put in cash box B, for household expenditures to cash box, and savings to cash box S. By this way, they would be able to budget and set aside their cash accordingly.


Open their eyes to opportunities. Inspire them to exercise their creativity. Our clients are very talented and creative. For example, ask them to try out making banana burgers out of boiled banana peelings by simply adding flour, pepper, salt, sugar, and egg. It is human nature that we tend to take foregranted whatever is abundant in our area. Encourage them to maximize the resources God has given them.


Creating fun and lively center meetings You do not have to play the clown’s role to keep your program members riveted to the topics being discussed. Here are some tips you might enjoy while having your weekly center meeting: Tip 1: Game Ka Na Ba! Group the clients into two to four teams, and play a little quiz show with them. Read the topic the night before and prepare simple questions they might


answer. Prepare a fake gift check worth crown can be old cardboard you’ve Php1 Million or award a key to a new cut, and the cape can be any red cloth “Innova” for the winners. you can find. Tip 2: Mrs. Universe! If your topic is dressing right in any occasion, your warm-up can be a mini-pageant in your centerhouse. Anybody can join and the effects need not be elaborate. Simple make-up, some classy scarf, a gumamela plucked from someone’s garden, and a chick strut will work wonders. The

Tip 3: Friends’ Spa! It might have been ages ago since these members have had a good massage after a back-breaking washing of clothes. Let them grab a pair, and take turns in massaging each other’s back. This could not only ease them off from back pains, but it could also be a way to deepen their friendship.


Words that inspire... Intelligently crafted plans will have lasting impact if executed by men and women of exemplary character. Today the world is crying out for such people, for many have taken the pedestal only to devour those who are below. May it be that we learn from past (and present) injustices, and answer the call of the world.

The World Needs Men... [and I might add women]

who cannot be bought; whose word is their bond; who put character above wealth; who possess opinions and a will; who are larger than their vocations; who do not hesitate to take chances; who will not lose their individuality in a crowd; who will be as honest in small things as in great things; who will make no compromise with wrong; whose ambitions are not confined to their own selfish desires; who will not say they do it “because everybody else does it”; who are true to their friends through good report and evil report, in adversity as well as in prosperity; who do not believe that shrewdness, cunning and hardheadedness are the best qualities for winning success; who are not ashamed or afraid to stand for the truth when it is unpopular; who say “no” with emphasis, although the rest of the world says “yes.” - Ted Engstrom, The Making of a Christian Leader


It is the job of a leader to make it easy for people to do the right thing, difficult to do the wrong thing. There is a difference between wanting a good salary and wanting to earn a good salary. A man of stature doesn’t need status. Anger is only one letter short of DANGER. It is not who is right, but what is right, that is of importance. If you have everything except Christ, you have nothing. If you have nothing except Christ, you have everything.

A Supervisor’s Prayer Dear Lord, please help me To accept human beings as they are Not yearn for perfect creatures; To recognize ability - and encourage it To understand shortcomings And make allowance for them; To work patiently for improvement And not expect too much too quickly; To appreciate what people do right Not just criticize what they do wrong; To be slow to anger and hard to discourage; To have the hide of an elephant and The patience of Job; In short, Lord, please make me a better boss!


PERFORMANCE AT A GLANCE 2nd Quarter 2006 Kidapawan retains... (cont’d from p.1) Kidapawan branch is followed by San Pablo (10.1), Davao Province (9.95), Metro Davao (9.8) and Central Cavite (9.5) branches, respectively.






COR (active)


(Php Million)










Cal 2












PAR (%)

CTO (%)

FSS (%)







































Cal 1

























Cal 1







































Cal 1










VISION “To see people in communities live in abundance with strengthened faith in God and in right relationship with their fellowmen and the rest of creation.”

MISSION “KMBI is a Christ-centered development organization, existing to help in transforming the lives of the poor by providing opportunities through sustainable microfinance, training and demand-driven non-financial services.”

CORE VALUES Respect Integrity Stewardship Commitment to the Poor Discipline Innovation Excellence

Abbreviations: COR - Client Outreach; ACP - Average Clients per PA; LP - Loan Portfolio; CTO - Client Turn-over; FSS - Financial Self Sufficiency; FPA - File and Policy Administration; TRANS - Transformation



“To reach 150,000 Filipino families in 2006.”

(As of June 30, 2006)


83,392 308 22.71% Php 251 M 4.06%

 Call for writers


158.43% 160.86% 464 425 39

Do you love to write? If you are an aspiring writer with a passion for conveying news, feature stories and literary compositions, Communi-K needs you! Join us in spreading the inspiring work of KMBI through news updates, success stories, essays, poems and other articles. You may send through fax at (02) 292 – 2441 or email to

Communi-K Editorial Adviser: Eduardo C. Jimenez Board Member Edgardo S. Mercedes Executive Director Editorial Consultants: Liza D. Eco Annalie D. Concepcion Rizaldy R. Duque Hazel Christine Z. Rosacia Editors: Louise Anne P. Porciuncula Kris Joy T. Guimary Contributors: Hazel Christine Z. Rosacia, BDS Unit Head; Emmanuel de Guzman, BOT Vice Chairman

2006 2nd_Issue  

Luzon staff say “Yes, Lord!” Some 260 staff from Luzon area gathered in Batangas Country Club, Batangas City for the Annual Staff Retreat on...