Page 1

communi-k A quarterly publication

Year end 2007 . VOL 4 NO 3

Loan agreement signing with Land Bank of the Philippines. (Left to right:) Jennifer Tantan, LBP vice president for NCR-C; Dr. Amelia Gonzales, KMBI chaiman and president; Nenita Heran, LBP senior vice president; Edgardo Mercedes, KMBI executive director; Rizaldy Duque, KMBI resource mobilization manager; and Sancho Montaos II, KMBI finance and accounting manager.

KMBI signs P330M line CHAIRMAN and president Dr. Amelia Gonzales and executive director Edgardo Mercedes, representing KMBI, signed loan agreements with commercial and thrift banks, namely Bank of the Philippine Islands, Development Bank of the Philippines, Landbank of the Philippines, Planters Development Bank, and United Coconut Planters Bank. The total amount of obtained credit lines is Php280 million. Another agreement was signed with the Oikocredit EDCS UA, a private financial institution, for a Php50 million line. In these agreements, the banks will make the funds available for KMBI’s expansion and microfinance operations. “The resource mobilization activity was conducted in preparation for the expansion plan, which is targeted on the second quarter of 2008,” said resource mobilization manager Aldy Duque. A projected budget of Php176 million is alloted for the said plan, particularly for preoperating expenses and loan funds, according to Sancho Montaos II, finance and accounting manager. Php50 million

was drawn from Landbank which was used to fund the loans extended to clients from Calabarzon, Bicol and Davao operations. By signing loan agreements, KMBI is not only obtaining additional funds but also forging partnerships with the banks. Resource mobilization becomes a strategy therefore for KMBI to create partnerships, Duque said. This also proves that KMBI is able to attain a healthy financial status which is one of the requirements of the KMBI signs/9


“Partner for a Progressive Life”

Microentrepreneurs’ summit marks success KMBI marked its success for bringing together 9,200 program members (PMs) from Luzon operation on October 22, 2007 at the Araneta Coliseum. With the theme “BAGO: Babae, Negosyo at Pag-unlad,” the PMs were empowered through presentation of various topics such as “Why Women?”, “Gold Mine,” “Personal Financial Management,” Family Matters” and an exhortation on Ephesians 4:11-12. The resource speakers were Karen Davila, Francis Kong, Chinkee Tan, Rev. Clem Microentrepreneurs’ summit/2

Program members during the praise and worship celebration.

“Reaching out to 250,000 clients on our 25th year”

KMBI bank to rise in Manila and Calabarzon KMBI is completing the documentation needed to obtain authority to establish banks from the Bangko Sentral ng Pilipinas. Operationalizing the bank on the second quarter is pursuant to the institution’s fourth strategic direction, which is to “Establish a Bank and transfer sufficient and profitable portfolio from the NGO.” The direction was drafted primarily to enhance the institution’s financial interventions to the poor by making banking services more accessible. “Establishing a bank is a proactive step in aiming to graduate KMBI’s clients from being microentrepreneurs to small and medium entrepreneurs,” a KMBI senior manager said. Through it, KMBI can offer bigger loans


KMBI gears for 2008 In 2008, 2008 KMBI will take its second year journey towards Goal 25.250 thus bracing itself for bigger ventures, among which are expansion to eleven more branches in Luzon and Visayas, opening of training institute, holding the 2nd Microentrepreneurs’ Summit, computerization of its Management Information System (MIS), and organizing a leadership camp. For Luzon expansion, target urban areas include Malolos and Baliuag in Bulacan; Urdaneta, Dagupan, San Carlos and Alaminos in Pampanga; and Antipolo, Rizal. Branches will also be opened in Visayas particularly KMBI gears/6

2 | Communi-K | YEAR-END ISSUE 2007

which clients can use as additional capital to grow their businesses. The bank’s target prime market is the microenterprise sector but it will also cater to small and medium entrepreneurs. However, as the bank’s strategy to alleviate poverty, special effort will be given to reach out and assist microentrepreneurs. To supervise the establishment of the bank and ensure that the timeline set is strictly observed, the board of trustees (BOT) appointed an ad hoc committee composed of chairman and president Dr. Amelia Gonzales, Atty. Servillano Mendoza and Damiana Exiomo. The bank, being a separate entity from the microfinance operation of KMBI, will be managed independently. A holding institution on

the other hand shall be established to ensure that KMBI’s vision is enforced in both the NGO and the bank. Based on its plan, seven MFNGO branches shall be converted to bank offices, namely, Valenzuela as head office, Meycauayan and San Jose in Bulacan, Marikina and Central, Lower and Upper Cavite branches as bank offices. Incorporators are on the process of completing their requirements. The KMBI management is also on the process of identifying and recommending key officers. The BOT is working on the set of directors, which will be composed of representatives of prospective investing institutions such as the KMBI MF-NGO, 4HG MultiPurpose Cooperative, Land Bank of the Philippines and like-minded individuals.

New branches operate in NCR, Bulacan KMBI executive director Edgardo Mercedes and chairman and president Dr. Amelia Gonzales cut the ribbon during the San Jose branch inauguration on September 14.

Aiming to reach 250,000 program members (PMs) on its 25th year, KMBI established eight more branches in 2007, reaching to additional 15,984 PMs and disbursed some Php63.9 million as of December 2007. On the same month, KMBI marked a total of 126,294 client outreach. Last August, Valenzuela and Meycauayan branches were

inaugurated. Camarin, San Jose, Marikina, Tandang Sora, West Avenue and Pasig branches were inaugurated in September. The expansion led to establishment of two new areas of operation, the National Capital Region (NCR) and Bulacan. In 2008, KMBI will expand in Northern Luzon and Central Visayas with eleven more branches in 2008. KMBI plans to establish four branches in Cebu City, the biggest in Visayas area. By the end of 2008, KMBI is expected to have reached some 201,600 PMs. KMBI is reaching out to entrepreneurial poor through its 37 branches in Metro Manila, Bulacan, Calabarzon, Bicol, Davao, North and South Cotabato, and Caraga operation with 663 staff.

“N w these “N “Now thes hesse aare re the ggi re gifts ffts Ch C Christ ristt ggave ris aave vve to o th thee chur cchurch: hurch: c th ch the he aapostles, postle ppos tles,, the pproph prophets, phets ets,, the hee evang evangelists, gelists,, and and the pa pastors asto stors rs and te teach teachers.” acher ers.” ” (Ep (Ephes (Ephesians hes esian ianss 4:11 ian 44:11) :11 1 )

Microentrepreneurs’ Summit... from Page 1



2 4 5




Guillermo and Rev. Philip Tarroja. The topics were carefully selected to reinforce holistic transformation interventions. The summit was also conducted pursuant to the second strategic direction of the organization particularly on delivering demand-driven and sustainable non-financial services to the PMs. Another highlight of the event was the Pangkabuhayan raffle draw. The said draw was done in order to enjoin participation and support of the PMs, especially those in Bicol and Mindanao, and to provide business diversification opportunity to PMs through prizes. PMs who took home major prizes were Meluhmar Balasabas of General Santos branch, first prize winner of pangkabuhayan jeepney; Victoria Castillo of Kidapawan branch, second prize winner of tricycle; and Baldomera Templa of Digos branch, third prize winner of mini-grocery showcase. Three PMs were recognized during the summit as KMBI Entrepreneurs of the Year (KEY), namely, Anita Consuegra General off G o en e nerral ner a Santos San antos tos City, to Ciity, tyy, Gloria Glo Gl orria ria i Tagyubon Ta ag gy gyu yubo bon of of Butuan But utua an City City t and and d Adelfa A Ad del elfa a Santillan San anti anti ttill ill llan lan an of of Tagum Tag Tagu Ta gu um City. Ciity. C ty. Each ty Eac E Ea acch h of of the th he KEY KE EY awardees aw a war arde deess dees rreceived re rece eceiv ceiivved ce d cash cash assh price pric pr icce of of Php10,000 Php p10 10,0 ,000 ,0 00 0 and and an nd plaques pla laqu ques es of es of recognition. rre eco cogn cogn g it i ion. io on. KMBI K MBI is MB is brewing brre br ewi wing g for for o the the he second seccon nd microentrepreneurs’ m cr mi croe oen oent nttre repr prren p eneu eurs r ’ ssummit umm mmit it that tha at will willl bring wi briing g together tog o etthe her the the program th prog pr rog gram ra am members memb me m er ers of ers of Mindanao Mi M in nd da an n nao ao operations. ao ope ope pera era ati t on nss..

1. Participants raises their hands as they ey si sing inngg “An “A “Ang Angg gali ggaling alinng ali ng ng ng Pan P Panginoon” gin i oonn” (God is good); 2. Karen Davila in her ttalk a k oonn “W alk “Why Why Wom W Women?”; om meen en? n?” ”;; 33. Fra Franci F Francis anc nc s nc nci Kong Kon K ng iin ng n hhis i tal is talk alk oon al n “Gold Gol Go Gol old M Mine”; ine ; 4. 4. Re R Rev. ev. ev e P Philip hilip hil ip p Tarroj T Tar Tarroja arroj rroj rooja oon n his hiss exh exhor exhortation hortati oort rtati rt ation on on on Eph on Ephesians Ep ess ans esi an 4: 4:11-12; :11 111 12; 2 55. Re Rev. v Cle v. Clem leem Gu G Guillermo ui le uil lermo m oon n his h ta tal talk lk onn “Fa lk “Family am mil iily Matters”; Matter Mat ter e s”; 6. Chink Chinkee keee Tan in his ttalk alk on alk on “P “Pers “Personal er onaal Fina ers F Financial i nci ina ncciiall Ma Man M Management”; an anag aggeem ageme age meen men entt” t”; ”; 7 pparticipants 7. artic ticcipa ip p nts nt listenin listening nin i g too ddiscussions; isc sccuss ussion ion o s; an and nnd 8.. K KM KMBI MBI BI st ssta staff t ff ff aft af after f eerr the su ft summit. ummi mm m mi mit. t. Below: Bel o Pr P Program rogram rogr ogr gram m mem m members mber berss aand nd members nd mem mem mber beers of of the the h Board Bo rdd off Tr Bo Boa Tru T Trustees ru ruste ste tees te es participate paa tic ppar tiiicciip ipa ppaate te during duri dur urriing ng th tthe he prai ppraise raaissee aand rai anndd w wo worship r hip rsh ip time. tim i e


“Reaching out to 250,000 clients on our 25th year”

Australian and German partners visit Mindanao

Left Photo: Fifi Rashando (fourth from the left) of OIA dur during ring he ring her visit to General Santos branch; Right photo: W W.P. P Schmitz Stiftung representative Wolfgang Deppen joined a center meeting in Butuan City.

Two KMBI partners, Opportunity International Australia (OIA) and W.P. Schmitz Stiftung visited KMBI projects last November. OIA is funding the community-based enterprise development (CBED)

project in Koronadal City, while W.P. Schmitz Stiftung is funding the microfinance program in Butuan City. The OIA, through its project manager Fifi Rashando, had an

exposure visit to the CBED project in Koronadal City. The visit was facilitated in coordination with KMBI’s Enterprise Development Services Unit. Rashando joined the meeting of the expanded Barangay Carpenter Hill development council and staff devotion during her visit. She also toured the project site in Brgy. Carpenter Hill where she was introduced to the sub-village leaders. The visit from German partner W.P. Schmitz Stiftung was also facilitated with Wolfgang Deppen as its representative. Deppen was welcomed at KMBI head office for a meeting with deputy director Liza Eco, finance and accounting manager Sancho Montaos II, and resource mobilization and communications associate Kris Joy Guimary. Discussions focused Australian and German/9

SSG and R&D revisit system Support Services Group (SSG) in coordination with the Research and Development Department (R&D) revisited KMBI’s current system to identify strengths and weaknesses of the organization in terms of delivering services to its clients. The systems review and evaluation (SR&E) is a methodical process in gathering substantial information and documenting learning experiences of officers and staff of all the departments, both from the head and branch office. The first phase started on July 30 and went on until the third week of August with a series of workshops. The second phase involved members of the executive team who analyzed and interpreted the data focused on the programs and services of the departments of human 4 | Communi-K | YEAR-END ISSUE 2007

resource, administration, finance and accounting, microfinance operations, entrepreneurial development services and transformation. The recommendation from the team led to the following commitments: enhancement of KMBI’s organizational structure; increase efficiency in output delivery of all departments; reinforcement of communication and transfer of knowledge through all levels; development of the management information system; and refinement of programs and policies of the organization. The session resumed last November with an evaluation of KMBI’s accomplishments for 2007 against the targets identified in the organizational plan of action 2007-2011. Among the SR&E 2007 outputs are the departmental assumptions, general

plan of action and analysis of the current viability model. These became the basis for the management’s major decisions regarding KMBI’s direction for 2008. The R&D department is expected to release the consolidated departmental assumptions on February 2008 as reference for policy development.

Members of the management committee deliberating during phase four of the Systems Review and Evaluation (SR & E).

“Now these are the ggifts f Christ ggave to the church: the apostles, p , the pprophets, p , the evangelists, and the pastors and teachers.” (Ephesians 4:11)

Training Unit spends P3.1M in staff development Some Php3.1 million was spent for internal and external competency-based training of the board and staff during the third and fourth quarter of 2007. The training unit aims to prepare and equip officers and staff alongside the improvement of systems and programs. Prior to the deployment of new staff in the National Capital Region and Bulacan areas, two basic operations training were conducted in August and September. A new training offer, the Entrepreneurial and Community Organizing Workshop, was conducted on November 23 to 24 in Butuan branch to equip its staff in facilitating entrepreneurial development services in the communities. A technical writing Training unit/7

HRD decentralizes remittances of contributions In 2007, the management started the decentralization of remittances of contributions and payment to the government agencies. This is to harness the capacity of branches in processing the benefits of its staff. The decentralization was and employers to be secured in case implemented to familiarize branch of sickness, housing needs, calamity, personel on type of deductions in disability, retirement and death. their salaries, to easily disseminate Schedule of Remittances information to other staff, and to Due Type of Forms needed simplify posting of remittances date remittances to the respective government 4th • HDMF housing • statement of the amortization of payroll agencies. month deduction Aside from taxes, there are 10th • SSS contribution • Contribution three major deductions from staff’s of the payment return • SSS salary loan (R5) amortization monthly salary namely, Social month • Monthly loan • HDMF multiSecurity System (SSS), Philippine payment return purpose loan form (ML-1) amortization Health Insurance Corporation • Monthly • PHIC (PHIC) also known as Philhealth, remittance for contribution multi-purpose • BIR and Housing Development Mutual loan form (P2-4) Fund (HDMF) or Pag-ibig Fund. • payment return form (ME-5) This is mandated by law based on • 1601-C Form the labor code of the Philippines. 19th • HDMF • Membership/ These government agencies are of the contribution remittance form month (M1-1) designated to help both employees SSS Maternity/Sickness Benefit Important Reminders Type of claims Maternity/ Sickness Benefit

Reimbursement of Maternity/ Sickness Expenses

Top to bbottom: E T Executive i di director Ed Edgardo d M Mercedes d and d chairman and president Dr. Amelia Gonzales attended the 1st Asia-Pacific Housing Forum in Singapore; Carmela Porras, Luzon operation manager oriented the newly hired staff during the branch operation training in Cubao, Quezon City.



• SSS member should notify the SSS office by filing an SSS maternity/ sickness notification form.* Sickness notification should be filed 10 days from the start of confinement (5 days notification to employer and 5 days notification from employer to SSS) • Computation of advances will be prepared by branch accountant, checked by branch managers, noted by area managers, reviewed by human resource department, and approved by operations manager; and • Submit attachment to the nearest SSS office

• SSS maternity/sickness notification form received/approved by SSS office; • medical attachment for sickness claims; • pregnancy result for maternity claims; • copy of SSS digitized ID; and • two copies of specimen signature card (Form L-501)* • Original copy of maternity/sickness notification form; • computation of advances; • check voucher; • birth certificate of child for SSS maternity claims (certified true copy and original for comparison); • copy of L-501 form; • room operating record for cesarean delivery; • birth certificate of staff from national statistics office (NSO); and • copy of SSS digitized ID

*Forms are downloadable at KMBI | 5

“Reaching out to 250,000 clients on our 25th year”

KMBI gears... from Page 2 in the cities of Mandaue, Danao, Naga and Toledo in Cebu. Approximately 200 more new staff will be hired for the said expansion. A budget of Php100 million is alloted for the establishment of its training institute, which will then offer consultancy services and courses on microfinance, business management, research and related fields, locally and internationally. To fulfill its fourth strategic direction, KMBI will open a bank to enhance financial services to microentrepreneur graduates. This provision will convert seven NGO branches to banks. In terms of demand-driven and sustainable non-financial services for program members, educational facility, automated disbursement and other benefits such as SSS and Philhealth are lined-up for development. Also, a second microentrepreneurs’ summit is set in October in Davao City. Computerization of MIS is also a priority project for this year. The project aims to have a webbased system where the head office and all branches share common network. The computerization is expected to fast track recording and consolidation of data, enhance control and increase productivity. Further, staff will be provided additional benefits such as vehicle plan for key officers, birthday cash gift, health or accident insurance for family members, medicine expenses reimbursement, office uniform or clothing allowance, housing provision, anniversary bonus, educational benefits and transfer of equipment ownership.

6 | Communi-K | YEAR-END ISSUE 2007

4HG Cooperative soon to open

4HG Multi-Purpose Cooperative officers in one of their meetings. ngs. g

On November 29, 2007, 4HG MultiPurpose Cooperative or 4HG MPC, the organization’s employees cooperative, was officially registered to Cooperative Development Authority signaling its full operation in February 2008. 4HG MPC aims to promote Christian values and advance the personal, social and economic state of its members through the provision of need and growth-oriented products and services. Among these is the multipurpose loan which offers a minimum loanable amount of Php3,000 and maximum of Php100,000 applicable for business, personal development, vehicle maintenance, gadgets, wedding, travel, celebration and debt consolidation needs. Other products are emergency loan, special loan and petty cash loan. Emergency loan is intended to respond to immediate needs of members during calamity, death in the family, and hospitalization. Special loan on the other hand aims to promote education and home ownership among the members. An 4HG MPC officer said this objective is vital for the empowerment of its members. “4HG MPC is open to all employees of KMBI-NGO and its

future subsidiaries who have served six months and beyond,” junior auditor and coop interim general manager Jasper Nazarro said. “As stipulated in its by-laws, interested staff must also be of good standing in the organization, with 25 percent take-home pay of his/her salary after deduction of amortizations and paid the required paid up capital,” he added. The current multi-purpose loan facility of the organization is stopped since initially the organization do not have provisions for such; hence, the 4HG MPL is established to support such needs of staff. To date, the business permit from Valenzuela City, viability model and formulation of its operating system and transferring of records are being finalized. The cooperative has also opened a bank account in UCPB. “4HG MPC is also an avenue to generate funds for productive and provident purposes which would benefit its members,” Nazarro continued. “This also encourages capital build-up mobilizations among them. ” 4HG stands for “for His (God’s) glory,” referring to the organization’s intent to glorify God in everything it aims to accomplish.

“Now these are the ggifts f Christ ggave to the church: the apostles, p , the pprophets, p , the evangelists, and the pastors and teachers.� (Ephesians 4:11)

55 take scholarship exam

Children of KMBI program members and applicants from other organizations pause for a break after taking the the Gordon V. Smith Foundation Scholarship preliminary examination.

In partnership with the Alliance of Philippine Partners in Enterprise Development (APPEND), KMBI ushered children of program members (PMs) in the Gordon V Smith Foundation Scholarship program. Total of 55 students from Luzon and Mindanao took preliminary examinations on November 8 and January 4 in Cubao, Quezon City and Davao City, respectively. These students are children of active PM who are on fourth loan cycle or beyond. They belong to the top ten honor roll of the class since first year high school or with general weighted average (GWA) of no less than 85 since first year high school. Currently, six children of KMBI program members are granted with scholarship. They are now on their second and third year college in their chosen courses and universities like Mapua Institute of Technology, University of Sto. Tomas and Far Eastern University. Aside from the scholarship grant, scholars are also given opportunities to join conferences funded by the foundation. John Edison Manalo of Calamba branch joined a student leadership conference

in i New York City which was organized by Business Today. o Manalo topnotched the second M batch of scholarship preliminary b examination last year. e The program accepts application on a yearly basis. a Applicants undergo a screening A process facilitated by branch p managers and recommendations m are sent to the head office for official endorsement to APPEND.

Mass wedding program benefits 108 couples

Davao branch newly-wed couples drink wine to signify commitment to be together through good & bad times.

KMBI continues to become a vehicle in strengthening family ties as 108 program members were married to their partners through the mass wedding program of KMBI held last July and August. Some Php250 thousand was exhausted to facilitate the program. Of the beneficiaries, 64 were from Luzon operations, while 44 were from Mindanao. Mass wedding program is a regular annual project of KMBI to

lessen the number of program members engage in live-in relationships and to build stronger family relationships. Aside from leading program members to live morally upright life and to keep the sanctity of marriage and family life, the program seeks to establish or enhance partnership with government and like-minded churches, provide value-added non-financial services, and promote gender sensitivity. For 2008, the mass wedding program will continue to reach out to more lives and lead them to transformed life. The next mass wedding will be held in June.


Training unit

from page 5

and communications training were also conducted for Luzon and Mindanao managers and branch accountants to enhance the officer’s written communication skills. Members of the board of trustees and some senior managers were sent to external and international training on accounting and financial literacy, risk management, human resource development and communications. These included Micro-credit Summit in Canada, 1st Asia Pacific Housing Forum in Singapore, and 2nd World Congress on Agriculture and Rural Finance in Thailand. Two leadership summit were also attended by the members of the board, the management team and other officers, such as the Willow Creek Global Leadership Summit and the Philippine Leadership Summit (PLS). Opportunity International Australia organized and hosted the PLS for APPEND network members.

KMBI | 7

“Reaching out to 250,000 clients on our 25th year”

NORSOCO unleashes undiscovered personalities NORSOCO staff initiates activity to discover their personality differences and to be more effective in facilitating transformation.

With the theme, “Preparing the way for greater impact,” NORSOCO officers successfully held a worskshop on personality profile discovery and development in General Santos City on September 20 to 21, 2007. The workshop was conducted by Pastor Andoy Docena Jr., Senior Pastor of Dadiangas Baptist Church. The two-day seminar aimed to intensify the team’s commitment towards achieving the vision, mission, core values and goal of the organization, to embrace the value of learning the word of God, and to strengthen their relationship with God and with the team. The activity focused on discovering personality differences of staff for them to perform and adapt well in a service-oriented organization like KMBI. A staff said this seminar made him appreciate distinctive personalities of other staff and allowed him to determine areas to develop in his own personality. Tacurong branch manager Suzette Madayag added that after the workshop they can improve how they relate with people in the workplace and communities. 8 | Communi-K | YEAR-END ISSUE 2007

By the end of the activity, all participants affirmed their support to the organization’s direction especially on its continuous investment to the development of its human resources.

KMBI celebrates Christmas nationwide NCR and Bulacan areas together with 22 staff from the head office celebrated with 183 street children from Child Hope Philippines at the World Citi Colleges gymnasium in Caloocan City. Book of Hope Philippines was also invited to Streetchildren and orphans of Frontline Worship Center with Jollibee mascot during Calabarzon 2 Christmas celebration.

present an animated video on the story of Jesus. Parlor games, gift giving, tricks presentation from Ptr. Francis de Jesus and Jollibee mascot added to the excitement of the children. On the other hand, it was a joy to remember for Calabarzon 1 as they celebrated Christmas with 33 cancerstricken children patient of Pavilion 1 at the Atrium main building Philippine General Hospital (PGH) in Manila City. Calabarzon 2 experienced a Christmas with God’s glory together with 75 orphans, abused and street children at the Frontline Worship Center (FWC), San Pablo City. The highlight of the event was the presentation number from Biñan, Calamba, San Pablo and Sta. Cruz branches and FWC children. Calabarzon 3 organized a themed holiday gathering at Tarsesius bar and restaurant, Lucena City, while Bicol staff had a Greek-inspired party at Starmark Royale, Naga City. Mindanao operations organized a Hawaiian-inspired parties in all its areas. On December 21, 2007, a thanksgiving Christmas celebration was attended by the head office staff and officers at Maricopa Restaurant, Valenzuela City.

“Now these are the ggifts f Christ ggave to the church: the apostles, p , the pprophets, p , the evangelists, and the pastors and teachers.” (Ephesians 4:11)

Legazpi conducts health awareness activity Legazpi branch created an impact in Tabaco City as they conducted a Taebo Session prior to the disbursement of micro-insurance benefits on October


KMBI signs

13, 2007. It was attended by some 250 program members from the different barangays of Tabaco City. The pro-health activity was

from Page 1

Left photo: Ambassador Jesus P. Tambuting of Planters Development Bank signs the loan signing agreement with KMBI. Left photo: Adelaiba Guanzon, president, Development Bank of the Philippines seals the agreement with the hand-shake with KMBI.

wholesale loan providers, he added. Aside from using the loans as fund for its lending activities, it will also be used to finance some of its projects like housing, Management Information System (MIS) computerization, capacity building,

Australian and German


and asset acquisition. To further beef up its funding, KMBI is on the exploration stage with Citibank, HSBC, People’s Credit and Finance Corporation, and other foreign financial institutions.

from Page 4 Left Lef to right: W.P. Sch Schmitz Stiftung rep representative Wo Wolfgang Deppen wit Butuan branch with pro program members; Wo Wolfgang Deppen, dep director Liza deputy Eco finance and Eco, acc accounting manager San Sancho Montaos II dur during Deppen’s visit at K KMBI head office.

on project updates and current currrent movements of the organization were presented. On November 27, 2007, Deppen visited Butuan branch and joined a center meeting. Three client visits were conducted, including one of KMBI’s Entrepreneur of the Year (KEY) awardee Gloria Tagyubon’s tailoring and bag making business.

doing Two other program members mem their businesses in the bus terminal were also visited. It was followed by a branch visit where Deppen witnessed a disbursement process. Afterwards, branch performance and plans were presented to him. The project visit ended through a luncheon fellowship.

conducted to uplift the importance of physical, mental, emotional and spiritual health which is the goal of holistic transformation. On the same occassion, a microinsurance benefit amounting to 100,000 was given to the husband of the late Elsa Callos, Amador Callos by Tabaco City Mayor Krisel LamanLuistro and branch manager Frederick Siapno. Currently, Legaspi branch caters to 1,085 clients in 32 centers in Tabaco City, the branch aim to create more centers that will influence more lives to positive change.

B Batangas branch supports mangrove tree planting Batangas branch joined the Department of Environment and Natural Resources and Community Environment and Natural Resources Office mangrove tree planting at Calumpang river shore, Barangay Malitam III, Batangas City on September 21, 2007. The tree planting activity was participated by 15 program members of KMBI together with branch manager Ferdinand Baptista and a staff. The participants had fun and were fulfilled as they become part of reviving Calumpang river shore. “The local community use this river for fishing,” Baptista reported. “But with the help of Mangrove trees the river will be protected against flash floods and will become a good animal habitat,” he added. With Baptista’s leadership, all affirmed commitment to continue their support to the tree planting activity by making it a part of their yearlong plan of actions. KMBI | 9

“Reaching out to 250,000 clients on our 25th year”


ievements, a Man of God

Dr. Ricardo B. Jumawan with wife, Osita Rose


NTREPRENEUR, academician and leader to tested manager and turn-around executive with proven track record here and abroad - one may say KMBI Trustee Dr. Ricardo Benitez Jumawan has already done it all. Behind his achievements is a journey marked with commitment, optimism, discipline and most of all, obedience to higher calling. Born sixth of eleven siblings of a poor family in Santa Maria, Laguna, Ric longed to become a lawyer. However, fifteen years after finishing business administration in Jose Rizal College in Mandaluyong, Metro Manila, he founded and managed RBJ

10 | Communi-K | YEAR-END ISSUE 2007

Enterprises, a line of small family businesses ranging from a gasoline station, auto supply, restaurant, bakery, grocery store, student dormitories to commercial rental properties. He chose to maximize his skills in management and invested on these entrepreneurial activities while at the same time involved in various religious and non-religious organizations, among which were Far East Broadcasting Co. (FEBC), Summer Institute of Linguistics (SIL) and Petron Dealers Association. “I have been a workaholic all my life and I give the best of myself in whatever work I choose to do,” Ric revealed. With this, he developed a strong work ethic and personal discipline which helped him in expanding his involvements and investments all the more. In 1985, he moved together with his wife Osita Rose and three children, Joel (deceased), Raquel, and Benjamin, to Bay area in North California. There he founded six more small businesses like airport parking and shuttle, three quick print shops, and trading and freight forwarders. During that time, he served as founding chairman and deacon of Filipino-American churches. In January 1999, he came back to the Philippines and served as vice president for administration, finance, development

and communication at the Asian Theological Seminary (ATS). From February 2000 to February 2001, he was the executive director, president and chief executive officer (CEO) of Tulay sa Pag-unlad Inc. (TSPI) pioneer of microfinance in the Philippines. While serving in TSPI, he was invited to become one of KMBI’s trustees, an involvement which he says is a fulfillment of his calling to serve the Lord through serving the poor Filipino entrepreneurs to improve their status in life. On that same year, he became the founding chairman and CEO of the first microfinance thrift bank licensed by Bangko Sentral ng Pilipinas (BSP), the Opportunity Microfinance Bank (OMB). Then on August 2002 to 2006, he led the rehabilitation of Philippine Bible Society. “Adventure for me is conceiving a business plan and successfully implementing it,” he said. When he is not so busy, he spends time reading business books and the Bible. Now in his twilight years, he quietly struggles with a different kind of challenge – Parkinson’s disease and other aging problems. Despite this, the crisis manager is still grateful to God for everyday He gives for him to serve Him, live, love and serve his family, his church, and his community. He reflects, “I was born in a poor family and early in life I struggled hard to survive.” But what kept him going is the underlying motivation and compelling force to serve the Lord. He said, “The legacy I hope to leave for posterity and to my family is a personal belief and faith in a loving and just God who deeply cares for His children whether they are rich or poor and whom I serve with utmost integrity of my being.”

“Now these are the ggifts f Christ ggave to the church: the apostles, p , the pprophets, p , the evangelists, and the pastors and teachers.� (Ephesians 4:11)

Entrep 101 Enhancing Client Service: EDS and You Among the many changes that took place in the organization is the reformation of the Business Development Services (BDS) to Entrepreneurial Development Services (EDS). There are five reasons why this was done. First, at the onset of the loan the borrower tends to divert the funds to household expenditure. Second, there is an increasing trend of client fall-out from the first to the third loan cycle due to their inability to manage their capital wisely and sustain their enterprise profitability and growth. Third, about 83% of microentrepreneurs are into traditional buying and selling. Fourth, there is a call to deepen outreach to the lower levels of the poverty pyramid. Lastly, there is a need to expand market for microfinance products and services.

From BDS to EDS Corporately, BDS does only a limited scope of client work. This means it creates the organizational business plans, marketing and the selling of consumer products and services. The organization felt it needed to enhance the scope of the said work into a larger and more dynamic program which works beyond the microfinance program, hence the EDS program. The EDS includes non-financial activities aiming to increase the business skills and market access of resources of poor microentrepreneurs to improve their income generation and assetbuilding capacity. The desired end is a more vibrant enterprise environment in terms of increased profitability and productivity, increased ability to withstand market variability, thereby achieving faster

MF Index Five tips for client i t retention t ti The more program members (PMs) stay in the program, the more opportunities to facilitate holistic transformation in their lives. Here are five strategies to retain them: First, focus most of the time, more fun you can have while providing efforts, and resources on better strong outcomes, the longer your PMs serving existing PMs. Go deeper will stay. instead of wider, where deeper Fourth keep learning and means deeper communication and share resources. The more you focus relationship to convey the vision of on gaining new knowledge, new skills, the organization and achieve the and new experiences, the more you holistic transformation. have to offer your clients. The more Second, be consistent in you have to offer, the more they will your approach and interactions and benefit. The more they benefit, the follow through your commitments. longer they stay. Keep focused on your Treat program members with honesty, own professional growth and learning. humor, and respect -- and maintain Both you and your clients will benefit. this over time. If you are consistent Share resource: If you know of a good with them over time, they will see book that your clients might benefit you as dependable, credible, and from reading or a name of someone trustworthy. If you promise to send who could help a client move ahead information or to follow up, do it. You on a business plan, share it with them. will gain loyalty and trust by always Sharing resources is a terrific way to doing what you say you will do. build loyalty and satisfaction. Third, connect with your Lastly, ask for feedback and customers and have fun. Find out input. At some point in the working about their lives, their hopes, goals, relationship, solicit feedback. Ask and desired outcomes. Ask questions your clients how they feel about that encourage a deeper sense of working with you and ask if they shared understanding. The greater have suggestions for how the working the level of connection, the greater relationship or outcomes can be the mutual satisfaction. improved. Asking for their ideas shows PMs also want to work with that you care about their opinions and people who enjoy what they do. The value their contributions. SOURCE: 10 Tips for long term client retention by Dr. Rachna D. Jain,

growth. This includes a range of services, like entrepreneurial skills development, alternative livelihood skills development, community-based enterprise development, entrepreneur promotion, product brokerage, networking and linkaging.

Who will provide EDS? The EDS Unit basically has two

major programs and these are the entrepreneurial development and the community based enterprise development programs. These are implemented through joint participation of EDS, support and operations staff. The units holds ECOW to equip fellow implementors.

KMBI | 11

Organizational Performance Loan Activity

4th Quarter 2007

Human Resources

Client Outreach


Loan Portfolio (US$)


MF Operations


Value of Loans Made (US$)


Support Group


Ave. No. of Clients per PA


Portfolio at Risk


Number of Loans Made



Cost per Unit Lent (US$)


Cost per Loan Made (US$)


Sustainability and Profitability Operational Self-Sufficiency

Client Outreach 2007 140,000 120,000


Financial Self-Sufficiency

Total No. of Staff

131.12% 133.07%

(As of December 31, 2007, 1 USD is equivalent to Php41.28)

80,000 60,000 40,000




Our Mission

0 2nd Qtr

3rd Qtr

4th Qtr*

*50.52% of the target program members for Goal 25.250

Today’s culture shapes tomorrow’s leaders “A culture can only grow what it is…the way you think and act is influenced by your family, the community you grew up in and the nation you anchor your identity to. Culture can be your friend or your foe. It can either help build, develop and flourish the leader in you or it can suck the life out of you.” These powerful statements from Ptr. Jonathan Wilson woke the dreamer during the Philippine Leadership Summit on November 15, 2007 at the Manila Peninsula Hotel in Makati City. These put participants in a reflective mode, a moment to rethink the way they led their own lives. The speaker emphasized that the first step to shape culture is to learn to forget the deeply encoded lessons of the past. Tough as it may seem, it’s the decisive move from the past so the future can be inherited. Abraham, the Father of All Nations, went through this process. Three things he had to do: first he had to bury his father; someone had to die for him to move on. Second, he had to depart from Haran (Gen.12:4). Most people face the difficulty of leaving behind familiar things; they want to go out of their comfort zone but they’re not prepared to leave what they have. Third, Abraham separated from

his nephew, Lot (Gen. 13:6-7). There will always be a clash between the old culture and the new one; the land cannot support both of them. The second step is to fully understand the importance of transition from one generation to another because the culture people build today shapes the leaders of the future. Five things shape culture, namely language, food, music, custom and architecture. For language to shape culture one must learn to listen to words coming out from his mouth; how he speaks influence and affect people. Food is also another factor; whom you eat with and how you sit in the table forms an important part of your life. A culture is perpetuated by the custom that it keeps; it serves as the reinforcement. Culture is the train, custom is the railway. Architecture defines the culture of a generation. It is the way people build the structure of relationships, a choice between institutional connections and establishing genuine ties. The ultimate goal is to cultivate an environment that encourages the future generation to be leaders who will build the kingdom of God. “We need to be architects of culture, builders of culture that is friendly with God’s purpose,” Ptr. Wilson concluded.

Kabalikat para sa Maunlad na Buhay, Inc. Head Office: KMBI Bldg., 12 San Francisco St., Karuhatan, Valenzuela City Tel (02) 291.1484 to 86 l Fax (02) 292.2441 l

“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.”



1st Qtr

Our Vision

“KMBI is a Christ-centered development organization, existing to help transform the lives of its clients and develop its human resources who will provide sustainable microfinance, training and demand-driven non-financial services.”

Core Values Respect Integrity Stewardship Commitment to the Poor Discipline Innovation Excellence

Goal 25.250 Reaching out to 250,000 clients on our 25th year

editorial box Editorial Advisers: Eduardo C. Jimenez Edgardo S. Mercedes Liza D. Eco Editor: Kris Joy T. Guimary Assistant Editor: Lea J. Gatpandan Contributors: EDS, Ros Matienzo, Suzette Madayag, April Sadia

2007 Yearend Issue  
2007 Yearend Issue  

KMBI marked its success for bringing together 9,200 program members (PMs) from Luzon operation on October 22, 2007 at the Araneta Coliseum....