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I chose you to lead my people. - 2 Samuel 7:8

KMBI

communi-k VOL 6 NO 2

Features Leader’s Edge • Ang Doble-Kara ni Juan • Keeping the Right Staff

Organizational News • Negros expansion to operate ahead of schedule

ENTREP 101

• Making Sense on Cents: Savings & Investments

“...let us be examples not exceptions.”

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communi-k

communi-K • vol. 6 no.2

VOLUME 6 • NO 2 • 2ND QUARTER 2009

On the cover

Feature

The cover describes the spirit of a dynamic, forward-looking system that seeks excellence in delivering world-class goods and services. The well-defined strokes moving outwards and upwards reflect the pursuit of excellence and progressiveness, whilst developing oneself towards becoming effective agents of transformation.

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Transformed Lives

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Are we truly helping? Rural Poverty and the Impact of Microfinance on Rural Households in the Philippines

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Walking the Extra Mile The Edie Bensig Story (PA, Lapu-lapu Branch)

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Ang Doble-Kara ni Juan

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Making Sense on Cents: Savings and Investments

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Enhanced Branch Monitoring System

News

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Keeping the Right Staff

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Defending the poor against risk in death A Guide to Death Insurance and Burial Benefits Claims

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Comdev expands anew

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ISO Certification: HO conducts gap analysis

Pasig, Iriga treat 2,610 in D&M mission Pasig ministers to fire victims Central Cavite honors loyal members

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KILOS grants scholarship to PM’s kids Negros expansion to operate ahead of schedule KMBI gears up for 2009 ME Summit

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Summer Saya gathers 3,600 members

12  iLEaD!

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I chose you to lead my people. - 2 Samuel 7:8

editorial board Edgardo S. Mercedes Adviser

THE EXECUTIVE NOTE

Rizaldy R. Duque Editor-in-Chief Kris Joy G. Dalanon Editor Lea J. Gatpandan Associate Editor Harry D. Dalanon Cindy V. Escobin Enrique B. Maca Calvin V. Perez Contributors Anderson Co Keith Dador Dennis Navarro Photographers Hector H. Celajes Circulation For editorial, contributions, suggestions and inquiries, please contact: RM & C Department Kabalikat para sa Maunlad na Buhay, Inc. 12 San Francisco St., Karuhatan, Valenzuela City, 1441 Philippines Email: leagatpandan@kmbi.org.ph

ERRATUM On organizational performance, figures presented in Cost per Unit Lent and Cost per Loan Made were in Philippine Peso and not in US dollars, and the Value of Loans Made should be Php344,377,000. On “SAVING UP: A great weapon to counter financial crisis,” the discussion on “emergency fund” should be in “save up for retirement” stage.

“...let us be examples, not exceptions.” The severity of the global financial crisis is felt in both the financial market and real economy. In many countries, capability to support socio-economic programs including poverty reduction are threatened by skyrocketing cost of capital. The real economy on the other hand is experiencing serious drop in foreign trade particularly the export market, and thus shrinking the manufacturing sector, resulting to retrenchments and even bankruptcy. The financial turmoil has created significant challenges not only to the epicenter of the economic earthquake, the American and European countries, but also to emerging economies like ours. Despite the magnitude, we cannot allow the economic turbulence to stop KMBI in pursuing its promise land, the Goal 25.250. This global financial downturn is somehow prompting us to reflect on the need for personal and institutional reforms for us to fulfill our organizational mandates and face challenges confidently like the opening of 19 new branches this year. As an organization, expansion does not only mean meeting the numbers. It also means meeting new cultures, dialects, partners, friends, and the opportunities to serve Christ and facilitate holistic transformation in the lives of our program members. Our rich tradition of pursuing excellence to contribute meaningfully to the nation is continuous. For instance, certification to ISO is on-going and EISTOP is a work in progress to ensure the implementation of quality systems. In July, we sent a team to South Korea to expose and study one of their best agricultural microfinance system. Though trying times to many, these are exciting times for the organization and I encourage you all to participate in the pursuit of excellence. Be reminded that God chose us to lead His people and as leaders, let us be examples not exceptions. The organization needs staff who are willing to provide 100% commitment for the love of country, community, and people. Finally, let us develop characters that will empower us and the community toward having abundant lives - all for the glory of God!

Egay

Executive Director

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News Briefs

communi-K • vol. 6 no.2

Pasig, Iriga treat 2,610 in D&M mission

A volunteer dentist from Philippine Dental Association conducts simple tooth extraction to Pasig member.

Opening doors to serve members in the community, staff of Iriga and Pasig branches together with partner institutions organized medical and dental missions in their localities benefitting some 2,610 locales. The activities aimed at giving the community, who have limited medical and dental sources, access to the free services.

Central Cavite honors loyal members

These also sought to build partnerships with churches, private organizations and local government. “Aside from meeting the members’ needs for these services, these were done to support the missions and objectives of partner organizations,” said Glenn Parsacala, Pasig branch manager. Of 2,500 residents served in the activity in Iriga, 1,100 were program members. The branch formed partnership with Iriga Christian Fellowship, New Testament Baptist Church, the City Health Office, and 30 volunteer medical and dental practitioners. The activity was funded by JARS Ministries International and Grace Home Health Care based in Long Beach, California. On the other hand, in Pasig, 110 program members availed free dental services. The branch tapped the Center for Family Ministry (CEFAM) of Ateneo de Manila University and Philippine Dental Association (PDA) San Juan Chapter. Seven dentists from PDA together with CEFAM administrator Maila Domingo volunteered to do the dental procedures. CEFAM donated anesthesia, dental needles, toothpaste and medicine. Pasig branch conducted the said activity for two consecutive years in partnership with the said organizations.

Loyalty and support – these time-honored values brought 171 program members and 50 center leaders of Central Cavite branch in the limelight as they were honored during the sixth year anniversary celebration of the branch on May 16 in Dasmariñas, Cavite. Certificates of loyalty were given to members in their tenth loan cycle, while Outstanding Center Leader Awards were given to leaders who exhibited extra milestones in their respective ENTREP centers. “This recognition is our way of boosting the morale of our members,” said Ferdinand Baptista, branch manager. He also added that they did this so that other members will also aspire to attain such values. Over 300 program members witnessed and participated in activities during the said event. The celebration started with a praise and worship singing which according to Baptista was an act of thanksgiving to the Almighty God who blessed them during their six years of operation. Thereafter, the program members participated in the “Palarong Pinoy” followed by the search for Mrs. KMBI, sing and dance contest and the awarding ceremonies. Central Cavite branch was inaugurated on April 28, 2003 and is currently catering to over 3,000 microentrepreneurs in the area.

Pasig ministers to fire victims Ten program members of Pasig branch lost their homes due to huge fire. One of the affected clients died in the incident. The fire was reportedly caused by the explosion of a liquified petroleum gas in one of the residences. To assist the fire-stricken members and their families, Pasig branch distributed relief goods and encouraged clients in a short distribution activity. Some 50 pieces of galvanized iron sheets worth Php25,000.00 were also provided. Transformation Coordinator Charis Ken Layawan seized the opportunity by motivating the victims not to lose hope instead have faith in God through claiming

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His promise that “He will meet all your needs according to His glorious riches in Jesus Christ” (Philippians 4:19). Nemwell Arzaga, area manager of National Capital Region operations, also encouraged the victims to continue on with life despite the test. By the end of the program, the officers and staff prayed over the members and their families. Beneficiaries were grateful for the help extended. Nemwell Arzaga, NCR area manager, together with Pasig branch staff praying for the fire victims and their families.


Organizational News

I chose you to lead my people. - 2 Samuel 7:8

Negros expansion to operate ahead of schedule

Edgardo Mercedes, KMBI executive director, discusses his analysis of target expansion areas with the operations team.

Among the 19 new branches to open this year, Negros area shall be opened first. Operations manager for microfinance, Carmela Porras, disclosed that due to the demands from prospective clients in the area, they opted to push the opening as early as July instead of the original plan in August. “Inaugurations of Kabangkalan, Silay and Bacold will be on July 27, 28 and 29, respectively,” Porras added. Roselyn Embac, Negros area manager, said, “The branches and staff are now prepared for its operation though we

faced a lot of struggles during setting up of branches. Prayers sustained and helped us during hard times. Currently, we are doing the logistics for the inauguration. ” Negros area will be serving cities of Bacolod, Kabangkalan, Himamaylan, Hinigaran, Binalbagan, Silay and Talisay as well as the municipalities of Murcia, Manapla, and Ilog with a target client outreach of 12,600 in its 11th month of operation. The massive branch opening this year is KMBI’s proactive response to fight deeplyrooted poverty through the empowerment of more women microentrepreneurs.

KILOS grants scholarship to PM’s kids Four children of program members were recently accepted at the Knowledge for Inspiring Leadership Opportunity and Spirituality (KILOS) Scholarship program facilitated by the Alliance of Philippine Partners in Enterprise Development, Inc. (APPEND) for the school year 2009 to 2010. Jouvy Anne Color, Sam Quiniquini, Marvin Belina and Sarah Jane Tabarina from Calamba, Lower Cavite, Upper Cavite and Lucena branches, respectively, passed the requirements and series of examinations and interviews, which qualified them as new KMBI batch of KILOS scholars. Currently, Color and Tabarina are enrolled at Far Eastern University, taking up Mass Communications and Nursing, respectively. On the other hand, Quiniquini and Belina are enrolled at University of the East, both taking up Accountancy. The scholarship program is not only applicable in universities in the Philippines. “Currently, we have two scholars in Ohio Wesleyan University (OWU) taking up their senior years and we are planning to send another scholar this year,” said Noel Embing, APPEND KILOS Scholarship program director. Before sending scholars to Ohio, they are monitored and selected according to their behaviour, adaptability, academic preparedness, and socialization skills. “Their course should also match the specialization of OWU,” he added. APPEND started the qualifying examinations for all partner organizations in January 2008. The KILOS scholarship program is sponsored by the Gordon V. and Helen C. Smith Foundation.

KMBI gears up for 2009 ME Summit As early as second quarter of the year, summit committees are already busy for the preparations of the 2009 Microentrepreneurs’ (ME) Summit to be held on October 24 at the Quezon Convention Center, Lucena City. Some 4,500 program members from nearby areas are expected to participate in the said event. The P9 million budgeted summit has

the theme “ENTREP Asenso: Diyos, Pamilya, Bayan.” It will carry KMBI’s 2009 theme verse, “I chose you to lead my people,” from 2 Samuel 7:8. According to Liza Eco, summit director, “This ME Summit will be different from the previous ones. This will be more of forum type where speakers will share their experiences as entrepreneurs.” Topics to be discussed in the forum include

achieving entrepreneurial growth, financial management, business diversification, and family life and work balance. “Participants will be given time to raise questions to the guest speakers to make it more interactive and well-appreciated by them,” added Eco. “Also, aside from ENTREP forum, there will be a praise and worship KMBI/6

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Organizational News

communi-K • vol. 6 no.2

Summer Saya gathers 3,600 members

Photos left to right: Daet, Naga and Gumaca program members having fun and demonstrating unity and sportsmanship during their Summer Saya activity.

About 3,600 program members, families, and staff in Daet, Gumaca, Naga, and San Pablo beat the summer heat for fun and recreation during the Summer Saya activities. The activities enjoyed by staff, program members and their families was a mixture of fun games; recognition of outstanding centers and members; and praise and worship to God. Among the invited guest speakers were Pastor Jay Morelo of Jesus Lord of the Nations Church, who gave an inspirational message from the passage in 2 Samuel 7:8, “I chose you to lead my people” for the Gumaca participants; Pastor Regalado Almanza of Cathedral of Faith, who shared short reflection on Matthew 22:14, “For many are invited, but few

are chosen,” for San Pablo participants; Greenhills Christian Fellowship Senior Coordinator Janet Sroyalde and Pasacao Academy Principal Romy Bicomong who delivered back to back talks on character building and values formation, and importance of parenting and its impact to the community to Naga participants; and Pastor Jimmy Pajarillo of Bible Church International, who talked on leadership and submission to Almighty God to Daet participants. Daet Mayor Tito Sarion graced the activity as well and acknowledged that KMBI is the only microfinance institution in their area exerting effort in conducting activities focused on the social growth of its members. It was also reported that Bicol area

manager Ian Villacruz personally promoted KMBI and the said activity through radio a guesting at Bay Radio, a local radio station in Daet. “This Summer Saya had drawn delightfulness to our program members and we believe that this event has left a great impact in their lives,” Victor Palce, Naga branch manager, said. The Summer Saya activity is a branch initiative which started in Mindanao in the late 1900s to promote camaraderie and provide non-financial services to staff and clients. Several branches replicated the initiative as it created positive impact in the communities. The organization is currently studying the possibility of institutionalizing it.

KMBI...p.5 celebration for the participants to experience dwelling in God’s presence through music,” she said. During the summit, “Piliin Produktong Pinoy,” an advocacy to patronize Filipino-made products will be launched, and KMBI Entrepreneurs of the Year will be recognized to celebrate outstanding women in the microenterprise industry. Another highlight of the summit is the Tulong sa Negosyo (TSN) raffle, which aims to assist clients grow their businesses through cash prizes and skills

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enhancement activities like coaching and mentoring, networking and partnership with government and private institutions. Through the summit, KMBI aims to strengthen its advocacy for the protection of the environment by allocating Php1 from every TSN ticket sold. The total amount shall be donated to the chosen environmental organization for the program members to have the opportunity to help fund such advocacy. Summit committee visits Quezon Convention Center for ocular inspection.


I chose you to lead my people. - 2 Samuel 7:8

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ince most of the participants of this year’s summit have businesses with secondary and short life span, ENTREP ASENSO was chosen to spur the clients’ “progressive” bone to action. With 90% of them into retail trade, it is but apt to move them to work towards business growth and development, rejecting the age-old mindset of business maintenance. This is to promote Christian/Kingdom mindset, which is about expansion not limitation, increase not shrinkage, growth not decline and hope not despair. The tagline explicitly expresses the organization’s determination and truthfulness to its mission of transformation, as underlying meaning of “ASENSO” or success in a holistic sense. This aims to challenge and declare success for their undertakings. ENTREP pertains to the organization’s program, i.e. Entrepreneurial Nurturing through Transformation, Reformation and Empowerment. By incorporating this in the tagline, the participants will associate themselves as ENTREP members or ENTREPs, a distinguishing mark of KMBI micro-entrepreneurs. The sub-title “Diyos, Pamilya at Bayan” is arranged according to importance. This emphasizes that the thrust for every successful entrepreneurial undertaking should firstly be for God, for the family (as immediate circle of influence) and then the nation.

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Cover Story

communi-K • vol. 6 no.2

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s I reflect on the lectures I heard from the “Transforming Lives, Transforming Nations: The Strategy of National Transformational Saturation Church Planting Movements” training, I ask myself how I could possibly apply these learning and how we as an organization could be part of God’s Great Commission (Matthew 28: 19-20). I believe that KMBI is responding to the call of God to transform nations. As we look at KMBI’s vision and mission statement, the goal of holistic transformation in the four facets of man’s life - spiritual, economic, environmental and social - is clearly stated. Therefore, every employee of KMBI must be an “agent of transformation” (AOT). To become an AOT, first and foremostly, the leader must have a genuine relationship with our Lord and Savior Jesus Christ. This is because real transformation comes only from God alone and through His divine working in one’s life. Secondly, this leader must think and take action

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Cover Story

I chose you to lead my people. - 2 Samuel 7:8

A reflection on the lectures during the Global Transformational Leadership Institute XII conducted by DAWN Ministries.

By Harry Dalanon

holistically. The AOT is the catalyst to transform lives that eventually will lead to a transformed nation. Every employee of KMBI can begin by asking these questions – “What will happen to a community five years from now or more because we established a branch?” or “What will happen to this barangay five years from now or more because we opened an ENTREP Center?” Do we really have a foresight or a vision that is truly for the overall welfare of a soul – that’s our clients (staff and program members)? These questions may lead us to reflect on the real intentions of our every action or perhaps help us to evaluate and rethink the things we are currently doing. This would also remind us of what God wants us to do and how we could accomplish every task and responsibility entrusted to us. Is our personal vision or goal related to the vision of KMBI? Are we working or doing our task to fulfill God’s mission for our clients and the nation? Are we working to see lives transformed

or our nation to be transformed? Is our Christian influence increasing? Is economic sufficiency, peace, justice and righteousness evident in our lives, in the places where we live or work, or with the clients we are serving? Lastly, the AOT must work towards multiplying his influence. In his pathbreaking book Leadership, Pulitzer Prize winner James Macgregor Burns stresses the moral character of leadership, saying, (transforming) leadership occurs when one or more persons engage with others in such a way that leaders and followers (or influenced individuals) raise one another to higher levels of motivation and morality. This type of leadership is dynamic in the sense that the AOTs throw themselves into a relationship with followers, i.e. staff and program members, who will feel ‘elevated’ by it and often become more active themselves, thereby creating new cadres of leaders. By this, followers will become new AOTs, hence

multiplying the transformational work. Essential to developing relationship with followers is trust. Said Burns, trust is the emotional glue that binds followers and leaders together. Trust cannot be mandated or purchased; it must be earned. To enhance trust, the leader’s vision of the organization must be clear, attractive and attainable, and the leader’s position (stand) must be clear. When an environment of trust is established, the collective capacities of both leaders can affect significant change and propel not only the institution forward, but also the communities directly affected, and thereby, the nation. Discipling or facilitating transformation is truly a big task but we could do something and trust God with the result. We do not need to start big or need large amount of funds to start, but we could start through sharing what we have through the small or little acts of service done in love and real concern for others. It is in doing our small or maybe

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communi-K • vol. 6 no.2

big assignments or tasks with passion and great excellence. It is not in the amount of money or increment of loan amounts we give to our clients but in the way we help and serve them, in the way we deal with them, showing them our genuine concern for their businesses, their families and their overall welfare. It is in the way we will perform our duties, the way we lead and serve our subordinates and people under us in a Christ-like way of serving. It is also in the

way we submit and obey our superiors and employers. It is in the way we deal with anyone. This must be done with respect, honesty and complete integrity. Truly, we could be agents to transformed lives and we can a make a difference in whatever we do and wherever places we go. Through this little acts and little seeds we sow everyday, real transformation can happen in every home and community. A transformed and Christ-dependent life is the key to a nation’s transformation.

Are we working or doing our task to fulfill God’s mission for our clients and the nation?

Excerpt from the GTLI X11 by Dr. Jun Vencer, DAWN Asia/Oceania Regional Director

The whole course is about a way of understanding and doing the Great Commission when Jesus commanded His disciples to “make disciples of all nations” (Matt. 28:19). The disciples represented the Church that was to be birthed at Pentecost (Acts 2). The command then of making disciples or transforming nations was intended for the Church, which signifies a body of Christians. Christians today continue the task and will do so until Jesus returns as He promised (John 14:3; Acts 1:11). The mission involves leavening change in every nation based on the teaching and the correlative demand that His Church “obey(s) everything that I (Jesus) commanded” (Matt. 28:20). Central to Jesus’ teaching is the “gospel of the kingdom” that must be preached and practiced “in the whole world as a testimony to all nations, and then the end will come” (Matt. 24:14). This kingdom, which was the hope of the Old Testament, was announced by Jesus at the very start of His ministry and He personified its principles and power (Luke 4:18-21). The Great Commission to disciple the nations is a continuing command. In this sense, the phrases “discipling nations” or “transforming nations” are on-going processes that,

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although requiring human work, will not be realized until (Christ) comes (Revelation 21). When it does, it will also be a gift from God so that it is all by grace. So one may ask, “If it is not achievable through the labor of the Christians (Church), then why the great bother?” There are at least three reasons why Christians should engage in transforming nations: (1) It allows God’s creation (i.e. the whole world, and not only humans) to enjoy the kindness of the Creator; (2) It preserves life and is the necessary premise to the preaching of the gospel; and (3) It is participating in the work of God in transforming the world. Every Christian, then, must be a Great Commission disciple, and a distinct mark of discipleship is a transformational paradigm and a vision of the Kingdom (of God). The Kingdom of God is the analogical referent of how a discipled nation should look like. While the glory of the kingdom will escape human descriptions, and there is no nation one can point to as the embodiment of the kingdom, still we know that it is a kingdom where Jesus rules as a just and righteous King, resulting in a reign of sufficiency, joy, love and lasting peace. The DNA Vision provides five basic metrics of performance (of a transformed nation): growing Christian influence, economic sufficiency, social peace, public justice and national righteousness.

A QUICK LOOK AT A RESEARCH STUDY

Are we truly

Rural Poverty and the Impact of Microfinance on

By Cindy Escobin

Microfinance has its allies and enemies. But regardless, it has thrived by the notion that through a simple act of “helping the poor help themselves”, the Philippines could be helped out of poverty. Is microfinance truly reaping results? Poverty in the Philippines is mainly rural. In 2008, Rural Poverty Incidence was at 44.4 percent. Poor productivity growth in agriculture, under-investment in rural infrastructure, unequal land and income distribution, high population growth and the low quality of social services lie as base of such poverty. With these, microfinance is seen as a strategically critical element for an effective poverty reduction. Ideally, with improved access and efficient provision of savings, credit,


I chose you to lead my people. - 2 Samuel 7:8

y helping?

n Rural Households in the Philippines

and 38 microfinance institutions consisting of three types - banks, cooperatives, and non-government organization. On per capita income, expenditure, savings and food expenditure: The estimated parameter says availing of program loan means higher income by about PhP5,222 compared to those who have not availed of the loans. Considering that on the average households have availed a cumulative PhP70,000 in loans in six years or about PhP11,000 per year, this means that every PhP100 loan availed income increased by PhP47. Kondo, although finds it low, highlighted the significant probability (a significance level of 10 percent) that availing of program loans positively impacts per capita household income. The study shows that the average per person expenditures is also positively affected by a family’s access to program loans.

and insurance facilities in particular can enable the poor smoothen their consumption, manage their risks better, build their assets gradually, develop their microenterprises, enhance their income earning capacity, and enjoy an improved quality of life. From the study by Toshio Kondo on the Impact of Microfinance on Rural Households in 2008, the impact of microfinance could be traced on per capita income, expenditure, savings and food expenditure; loans and personal savings; number of enterprises and employment; assets and; human capital investment (education and health). Kondo’s survey study enumerated some 2,200 households divided evenly between treatment and comparison areas. It covered 116 villages spread throughout the three groups of islands (Luzon, Visayas, and Mindanao)

On loans and personal savings: Compared to those who are not program members as much as 23% more of those who have availed of program loans have maintained savings account. In terms of the amount of savings those with ten thousand or more is higher by nine percent compared to those who have not availed of program loans. Although no significant effect of program loans was seen on savings, there is a significant and positive effect (an extra amount of Php 1,333) on average per person expenditure on food. On number of enterprises and employment: There are about 93% of the existing client respondents who have household enterprises. There are about two enterprises among those who are owners. Most of them have a total of three employed people. Study shows that households with program clients have 20 percent more enterprises and 17 percent more employed persons than nonprogram households. On Assets: The assets include land, equipments, livestock and poultry and household amenities. From the study, the program does not show significant impact on total household assets.

On human capital investment: In the study’s estimation results showed that availing of program loans did not strongly affect either school attendance (among all age groups) or expenditures per school-attending child. Likewise, the estimates for health indicate that availing of program loans did not significantly affect the proportion of ill or injured family members, the proportion of those seeking treatment, the proportion of fully immunized children (0 to 5 years of age) or the household’s per capital medical expenditures. In general, the study revealed that the positive effect and very significant impact of microfinance can be felt on the capita household income and on the number of enterprises and employees of program members. These kinds of impact were manifested in the life of Hermelil, a microfinance client who says, “Before joining the program, I always stayed in my house. I never socialized. I thought that because my background was poor, the other women wouldn’t accept me. But they did. I know how to separate what I spend on my inventory from what I make in earnings. That way I can determine my profit. I even separate the cost of types of products so that I know which ones make the most money. I use my profits to pay the children’s school fees.” KMBI’s triple intervention through its Entrepreneurial Nurturing through Transformation, Reformation and Empowerment Program (ENTREP) may take months or even years to administer. But with sustainability, with steady access to the organization’s transformation agenda, with longer participation in the program, with careful adherence to strict systems and policies, significant results can truly be felt in the lives of those touched by it. References: Microcredit Summit Campaign. www. microcreditsummit.org http://www.adb.org/Documents/IES/PHI/IESPHI-Impact-of-Microfinance.pdf

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Highlight

communi-K • vol. 6 no.2

iLead! 12 |


I chose you to lead my people. - 2 Samuel 7:8

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Highlight

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MBI took another step in advocating godly leadership in its 663 staff through the Leadership Enhancement and Development Camp dubbed as “iLEaD!” with a theme verse “I chose you to lead my people” (2 Samuel 7:8.) On April 16 to 19 and May 2 to 5 regional leadership camps were held at the Oxford Hotel, Clark Pampanga fro Luzon staff, and Dynasty Court Hotel, Cagayan de Oro for Visayas and Mindanao staff. Emphasis on integrity and excellence, rooted in the Word of God and demonstrated by responsible stewardship as bases for godly leadership, was given as participants are considered as key agents towards nation-building. KMBI believes that calling for Godly leaders is a call of our generation, thus, topics and speakers were carefully picked to be able to move, inspire and instigate such leadership among the participants. The topics were Call of Leadership by Dr. Jun Vencer and Mr. Zaldy Barotil; Heart of a Leader by Dr. Philip Flores; and the Characteristics of a Godly Leader by Mr. Francis Kong and Mr. Pedro Cecilio. The Commitment Services were facilitated by Dr. Jonathan Exiomo and Dr. Vencer. Through the camp, attributes of true leadership including the organizations’ seven core values, i.e. respect, integrity, stewardship, commitment, discipline, innovation and excellence among others, were also instilled to the participants. Other highlights of the three-day event were praise and worship celebration, which engaged participants into solemnly praising God. This was followed by the Pinoy Night, a celebration the Filipino nationality, and the launching of the “Piliin Produktong Pinoy,” an advocacy to promote Filipino products and the ingenuity and innovativeness of the Filipino entrepreneur. Top performers and service awardees for 2008 were also recognized during the event. Calabarzon 2 area manager Ma. Margarita Robles, Kidapawan branch manager Rhodora Sabillo, San Pablo branch manager Michel Mondejar, Daet branch manager Roselyn Embac, Surigao branch manager Maulidan Tul, Koronadal branch manager Vanessa Espinosa, Tacurong branch manager Amelita Andilab, Butuan branch manager Charity Joy Mata, Koronadal branch program unit supervisor Jeanmar, Lower Cavite branch accountant, Maria Wilma Vellarde, and Koronadal branch program assistant Randy Initan were hailed as best staff in their respective fields. Over the past 22 years of KMBI’s existence, the organization sees its staff as Agents of Transformation, who continually strive to develop the character of godly leadership. As the organization and its leaders go hand and hand in helping the community to fight against poverty, the leaders of KMBI is unstoppable in learning vital lessons in leadership and life that emphasize the importance of the true character of godly leaders.

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Feature

communi-K • vol. 6 no.2

STORY OF EDIE BENSIG , Program Assistant of Lapu-lapu Branch

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luck, cluck, cluck…Big ones, small ones. The stones kept pressing hard on the surface, mercilessly beating the rubber until part of it delivered itself to the hot pavement. With every stride, stones stuck to the melted material, creating an unthinkable pseudo-base which made every step a statement of penitence. A huge hole was eventually created where none supposed to exist. This was the cruel plight of Edie Bensig’s shoes. But deep down in the soles of his shoes, a beautiful tale of love and sacrifice is hidden. Edie is a program assistant (PA) of Lapu-lapu branch. When he was first interviewed for KMBI, he walked approximately three kilometers, passing the old bridge from Lapu-lapu City to Mandaue branch to get to the appointment. Attempting to look handsome while donning one of his two precious long sleeve polos, branch officers noticed his shoes instead. They flipped open with his every stride. Edie seemed not to mind; the officers sensed his determination and need of a job. His credentials told of an unfinished nursing degree, and certificates show his track as production worker of noodle and bead companies. He relayed his experience seeing noodles day in and day out, and in another year, tumbling coco beads under the heat of the sun. Pay was very low; it was not enough to support his other siblings to school. So he walked to get to work to keep a portion for his family. The shoes served as memory of a supposed doorway to better life. Eldest in a brood of nine to farmer parents, Edie grew with the responsibility of contributing for the welfare of the family. With feeble hands, he would help toil the ground as young assistant to his father. He also helped in his father’s carpentry works, allowing him to earn a few pesos which he invested on a small sari-sari store in their home in Kamotes, a small island off the shores of Cebu City. His sandaled feet knew long hours of walk from school, and after classes in highschool, he would rush home to finish simple furniture projects while looking out the store. Despite harsh realities, Edie soon found his way to Danao City for college at nineteen. His aunt volunteered to pay for his tuition fees, which included the shoes as part of his uniform, in a local nursing school. He was all set to finish his degree, but, unfortunately, sustenance was cut during his junior year. His aunt needed to tighten her budget for her

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Feature

I chose you to lead my people. - 2 Samuel 7:8

own family’s burgeoning needs. Edie could have given up, but his parents encouraged him to continue on, saying the little store he left in Kamotes is earning enough for him to get through. However before the school year ended, earnings were depleted. He did not make it to final year and the shoes which should have had been with him til internship were now tucked away. Down but hopeful, he looked for work in local companies. He ended as production worker. There was no need to dress neatly, like in nursing school. He dressed simply and worked to the bones. Every hour translated monetary compensation for a family in need. His younger siblings were now schooling. So before long, he thought he needed to make the move and searched for a better job despite the weakness of his scholastic background. He submitted his resume at Public Employment Service Office (PESO), praying hard that the job would be better than what he left. It reached KMBI. The recruitment process in the organization took quite some time, and Edie, with resources depleting, had to rely on his brother, who was also a production worker. He scraped from what was available, walked kilometers to the office and attended series of interviews. The shoes, which was tucked away, was now used. However, with days of walking back and forth to the office, it gave up. This, however, did not cause frustration to this determined man. He had a goal. In fact, though the worn-out shoes made him a laughingstock, Edie continued on. His attitude gained him job. For his eleventh month now, Edie is taking care of seven ENTREP groups of enterprising women. His branch manager, Janet Subaldo, said, “He has a way with people. He can connect easily with them. In fact, he is one of those who can organize centers quickly.” And he frequents the communities where he is assigned by walking. Under the heat of the sun or the blaring howls of the wind, Edie crosses barrios to get to his members. He walks considerable distances for his morning sessions, and goes the extra mile in the afternoon visiting members in their homes. “I take time to visit my clients, especially those that are delinquent. Most of the time, I observe

that their delinquency is caused by family or marital problems. So I counsel both husband and wife. If members are confined in the hospital, I visit and give them fruits. I know that I just have to take care of them,” shares Edie. His supervisor, Marynel Junio, testifies Edie has already organized more than ten centers. But one of the barangays assigned to him was demolished. Prospective members were still interested to join the program after meeting Edie; he had to turn their requests down. In his free time, he goes to other barangays to gather contact persons so that other staff may complete the ten center requirement. “Perhaps God has given me the gift of organizing,” he said.

Though the wornout shoes made him a laughingstock, Edie continued on. His attitude gained him the job. “When I come to visit a barangay, I simply sit in the benches of sari-sari stores, and in a few minutes, microentrepreneurs would ask about what I am doing in their place. I simply tell them our program and they become interested to join.”

He bought a new pair of shoes in his ninth month in the job. “Actually, he bought those shoes for the Leadership Enhancement and Development Camp in Cagayan de Oro,” revealed Jojie Saz, Lapulapu branch accountant. When asked of his long-term goal, he said, “I do dream of having my own business someday. I still have the store (structure) in Kamotes, but I do not have the capital to start again. In the job, I know I just have to give my best. Being a PA is not an easy task. Many times I get carried away with my member’s problems; I look for my members when they are unable to attend the meetings. But I remind myself at the end of the day that this is just part of the job.” What affects him the most is when problems arise in the family. After sending one of his sisters to a vocational class, he learned that she has a lung problem. Recently, another sister was dragged by a rushing jeepney in their hometown. “I do get emotional about these happenings. But I know, with God, even the biggest problems have solutions,” said Edie. The shoes, he said, has sentimental value for him. His sister still keeps them for him. With its every mud stain, cracks and holes, a long and determined journey of a responsible son, loving brother, concerned citizen, and noteworthy staff is being told of a worn-out pair of shoes marked by a thousand “extra miles”.

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Leader’s Edge

communi-K • vol. 6 no.2

Ang Doble-Kara ni Juan (The backside of the English title ‘The Ambivalent Filipino Values System’) By Calvin Perez

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uring my early years, I got caught up to the so-called Filipino values such as bahala na, pakikisama, ningas cogon, hiya, mañana habit, etc. and as I move along with my life, what formed into my knowledge system was that those were pointed out to be the culprits, the scapegoat of the Filipino failures, or basically the weak characteristics of being Filipinos. On the other hand, I got to learn lessons that would inculcate the values

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of hard work and teamwork. However, it was distinctly used to prove that the aforementioned traits were the sole reason why our beloved country lagged behind more successful Asian neighbors. Are Filipino values really bad? If I may answer it, I’d say it has a potential for the good or bad, can be useful to assist or deter any personal or national development depending on how these values are comprehended, practiced or lived by individuals. This is where the ambivalence of our value system comes into play. There is the essence of ‘pakikisama’ (cooperation). It can either be for wrong means or for development. In our social system, positive values can take on negative and hideous appearances. The

‘utang na loob’ (gratitude from within) can lead to favours especially for employment and approval for something means. On a larger scale, it can lead to nepotism (for employment) and corruption (for approval). However, these negative results can only take place once they are willed to happen. The ‘utang na loob’ can be positively returning favors, e.g. the person is blessed financially and decided to help the needy. Another Filipino trait which excites me more to discuss is the ambivalence of one indecisive Filipino value, is the ‘bahala na’ (resignation) mentality that has dominated our culture for a long time and is very relevant until the present. The bad side were, for example, it meant a false sense


Leader’s Edge

I chose you to lead my people. - 2 Samuel 7:8

"Man should die for his duty and convictions. I maintain all ideas that I have espoused with regards to the status of and future of my country and I shall die willingly for her." Jose Rizal, 20 June 1892

of resignation, a superstitious belief (or to the extreme) a blind faith used to escape from the rigors of decision-making and one’s social responsibility. This unfortunate value was tagged as the root cause of the national apathy and collective paralysis of action to solve both domestic and national problems. It is short of saying that everything in life is pre-determined or fated to happen and we do not have to exert efforts in making

‘Bahala na’ stresses the positive meaning in both the collective human effort and divine providence. it happen. A sense of national frustration is happening, vulnerability, and anguish is seizing our nation and we never care as if to say, ’nothing is going to happen, bahala na, come what may’. The good side of it is that it is attached to the value of taking risk. This Filipino attitude could be the root of the positive value of entrepreneurship like being resilient. ‘Bahala na’ stresses the positive meaning in both the collective human effort and divine providence. An individual will to take chances and risks, no matter what difficulties, problems, and limitations the present and future entails, is necessary for that individual to succeed, help the nation achieve growth, and provide for a clear destiny. Take for instance, significant historical highlights that include our resistance from every government that took our nation into its firm grip, from the early Spanish to the infamous Marcos regime, where the most famous People’s Revolution took place. This and coupled with our genuine faith and trust in divine intervention made it successful in a way that we greatly acknowledged that we

could no longer rely on those regimes but only on ourselves and God. On the aspect of entrepreneurship, these qualities have clearly paved the way for our Filipino entrepreneurs to become resilient despite hardship. Filipinos can still smile and no amount of misfortune can rebuff the Filipino spirit. Pinoys will always rise no matter what. This ‘bahala na’ habit made Pinoys to become very creative and resourceful. Who would have thought that Pinoy craftsmen can make products out of trash? Bahala na, gagawin ko ‘to at kaya ko ‘to! (Come what may, I will do it. I can do it.) The resiliency habit of Pinoys is part of our system which turns out positively to achieve excellence in their products and have brought honour to our country. These crafty individuals never waver or admit defeat amidst the fact that as compared to westerners, our country is limited in terms of technology and resources. You cannot find a negative or defeatist thinking attitude in their whole personality because these entrepreneurs used the ‘bahala na’ value to embark on achieving excellence in creating products, putting their products at par with the best in the world. More so, they continue on dreaming of bigger things to achieve, perhaps dominating the competition in their chosen field. And in

this instance, we could be proud of our own kind, as they have shown how world-class our products can be even though in terms of technology and skills, we are by far, inferior to the rest of the world. And oh, by the way, the name ‘Juan’, more famous because it is used as a sort of official name that symbolizes a Filipino, is a Spanish name by itself. We are lost with the ambivalence of everything that even the

‘No amount of misfortune can rebuff the Filipino spirit. Pinoys will always rise no matter what.‘ selection of names to symbolize our country needs to be clarified once more. Why not try a more Filipino-ish term such as malikhain, masikap, or maparaan for a change? Well, it’s another interesting subject that can be discussed on another time and place. References: http://reyadel.wordpress.com/2009/03/28/thepositive-side-of-filipino-values/ http://www.silent-gardens.com/bahala-na.php http://j-rizal.blogspot.com/

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ENTREP 101

communi-K • vol. 6 no.2

Making Sense on Cents: Savings & Investments

Continuation of the Consumer Protection and Financial Literacy Seminar by Mr. Eduardo C. Jimenez which was published in the 2009 first quarter issue of Communi-K

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any Filipinos find it hard to save money for it involves cutting of expenses and luxury. Another factor that affects their saving habit is the incorrect mindset that savings is what is left from income after acquiring needs and wants. From the previous article, we pointed out that savings should be part of the budget regardless of the amount to save. Good financial planning or budgeting is the key in controlling a person’s financial success. If you are done with your financial budget and plan, it is about time that you understand the importance of savings and investments. Savings Savings is the money set aside for future use or is intended to manage future risks. The ability to save money is the way of building wealth. In order to do this, you need to spend less than you earn and keep the difference to meet future needs. Many people need to change their spending habits to begin saving and investing money. PAY YOURSELF FIRST! View your savings as a fixed expense to help you avoid going into debt if there is an unforeseen future expense. There are three options to save, i.e. informal, formal and semi-formal savings. The informal savings is the most prone to

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ENTREP 101

I chose you to lead my people. - 2 Samuel 7:8

risk of money loss because these are the savings that is inside the house and has no interest at all. The formal savings is done through establishing a savings account at your local bank. A savings account is the most convenient place to save money while the semi-formal saving is getting into lending, where you let others borrow your money for you to save. This is also prone to risk of money loss. Making your savings plan As mentioned in the previous article, planning is a simple tool that is useful to manage finances. Hence, making a savings plan would help any person to become effective in savings and securing his future. In making your savings plan, it is important to set a saving goal and target. Identifying your goal and target can help you determine the amount to save, over what period and the purpose of the savings. Upon identifying the goal, it is best to analyze the expenses to support your plan to reach the goal. You may list down these expenses and identify if these are needs or wants. Needs and wants are two different things. Needs is something that will affect your life if you forego the buying (e.g. food), while wants is something that you can forego without harming your life (e.g. additional mobile phone). From your wants and needs, you can decide what to set aside in order to save. Deciding where to save is also important and it depends on your needs. If it is an emergency fund and you want to have it available instantly when you need it, you can get a separate savings account for that. And for long-term goal savings, a time deposit savings is also another option. Regular monitoring of your progress towards your goal is essential for you to be guided on your savings. Investment Investment refers to the purchasing of a financial product or other related

item of value with an expected financial return asset. It is money that can be earning more money and in the case of business, buying something of value to the business in the hope of improving future businesses. The reason why people have to invest their money is to protect their funds against inflation and to enable funds to earn more money. There are five forms of investments, i.e. shares, bonds, mutual funds, pension and trust funds, and business capital. Investment may grow but that is not guaranteed for they could fall in value or you could lose your money altogether. Due to these risks it is important to consider getting financial advice before buying an investment. In determining what type of investment to go into, you should consider the protection and accessibility, regularity of income stream, and growth of the investment. If someone offered an investment, try to study the on-going interest rate of banking sector if it increases by 3 to 5 percent. That is a good indicator but not more than that percentage. The higher the return or interest rate, the higher the risk would be. Types of Investments There are five types of investments. First is stock, where an investor can put their money into a company who are selling shares of stocks. An investor can be a part owner of the company and earn dividend based on the stock market. Shares of stock can be sold later on by the investor. Second is bond. Unlike stocks, bonds have a fixed earning based on the agreement with the company where the money is invested regardless of the movements in the stock market. Third is mutual fund. This is through a company that brings together money from many people and invests it in stocks, bonds or other assets. Earnings will based on where the company invested the money. Fourth is pension and trust fund. The investor can put his money on a pension plan to receive pension benefits

later on. And fifth is business capital. By studying carefully any prospect business and other factors in business development, the investor’s business capital will surely grow. Relation of Savings and Investments Savings is the backbone of financial discipline. Hence, you cannot have a grown investment if you do not have financial discipline. By training yourself to put away something from every earning, you are giving your financial assets a chance to grow.

Savings Principles: 1. Save as you earn (regardless how much, what matter is discipline and developing habit to save). 2. Save as much and as soon as you can – if you have extra money better to save it. Look forward – calculate how your money can grow if you save regularly. Do not carry a lot of cash to avoid temptation to spend money. 3. Saving must be done with regularity. 4. Spend carefully and wisely. 5. Pay off your debts. 6. Keep emergency funds in a separate account – to avoid touching your savings it is best to create a separate account for emergency needs. 7. Keep 3 to 6 months of living expenses in an emergency fund all the time. 8. Find saving products that match your saving goals.

Investments Principles: 1. Start small – everyone should start small and for you to diversify your investment. 2. Diversify – do not put your money in one investment to avoid of the risk of loosing everything. One should diversify the investment. 3. Invest only excess funds – to avoid risk do not use any other funds except for your excess fund to invest.

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MF Index

communi-K • vol. 6 no.2

Enhanced Branch Monitoring System By Enrique Maca

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n these trying yet challenging times, the organization transcends borders to attain full impact in societies unthought-of of our reach in earlier years. Pushing to achieve the triple bottom line of outreach, sustainability and impact, the organization finds its potentials compounded but must in itself maintain a strong base to assure a sturdy progress. The competitive industry and changing business and economic trends indeed pose as challenges, but these are expected realities. The key to overcoming is to prepare, to be quick, responsible and wise by not settling with mere maintenance but move for continuous improvisation, especially of branch internal operations. Whether we belong to an old or newly opened branch, the goal remains to keep a healthy branch portfolio. One effective way to do this is through enhancing the branch’s monitoring system. Monitoring is very critical to achieving success in the operations. When done effectively, this assures correct implementation of the details of our operations especially when carried out according to standard. The Enhanced Branch Monitoring System (EBMS), as it is called, is actually not a new system but a new way of strengthening our operational control and implementation of the standard by following a work flow. In doing the EBMS, a review of the standard operating manual must be done to realign the current practices with the standard system. This is done through a workflow workshop. After the participating operations team has laid down their practices, a facilitator will guide them

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through the EBMS workflow. As output, the team will design monitoring tools for tracking of performance and for decision making purposes based on the standard operating system. Some of the tools, i.e. the center performance chart, treasurer’s logbook, center endorsement form, loan utilization visit report and business monitoring report, are already available. Generally, the EBMS has been devised for analysis and decisions to be translated to work processes that will be applied in the branches. For example, based on an analysis of a particular branch, a weakness on center discipline was identified as root cause of problems. The team will hence increase accountability by devising a monitoring system in order to administer the discipline. Essential to the success of EBMS is the team or implementing leaders. There must be clear understanding of the goals

of the EBMS. With these in place, the leaders must commit to implement the monitoring system to address operational performance gap. The team also commits to continuous monitoring, assessment and evaluation. To reinforce ownership on EBMS implementation, the team members sign a pledge of commitment. However, total accountability of the implementation rests on the branch manager. It is also his responsibility to reinforce competency of the staff towards ensuring quality center formation and center management. Increasing internal and external challenges can be effectively surpassed through implementing an intensified operation’s monitoring system done in adherence to operational standards. By doing so, improvisation of the operational and financial performance of the branch can be attained to contributing towards the advancement of the organization.


Leader’s Edge

I chose you to lead my people. - 2 Samuel 7:8

Keeping the Right Staff By Kris Dalanon

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hoosing and keeping the right talents for this kind of work is a common concern of microfinance providers worldwide. In KMBI alone, operations staff, particularly program assistants, need to have a good balance of knowledge on financial management, character building, spiritual matters, entrepreneurship, child rearing, social-political concerns, among others. This is indeed a humongous task. Not many survive long. In fact, during the first semester, 14.87% of the talent pool resigned, 88.15% of which is front line staff. That’s why on top of these, other microfinance institutions (MFI) attest that it is important to choose talents whose mindsets are “fitted to the organization’s mission.” Administration Manager Annalie Concepcion, KMBI ‘s longest staying staff, confirms that it is the organization’s vision that has caused her to be riveted to this form of work. “So long as the organization is driven by the same vision and mission, I will stay,” she said. The March 2008 issue of the Microfinance Insight (MI), a bimonthly publication printed in Mumbai, brought to light insights deemed apt and important to current human resource challenges of microfinance providers. From its selected articles, the following data and lessons were derived. Why do talents go? Among the contributory factors for high attrition among staff are ineffective or non-existent career paths, incrementally higher salary opportunities at other organizations, ineffective employee monitoring system caused by weak middle management, big gap of executive level and field staff, and poaching from within the sector. What makes them stay? The challenge in this increasingly competitive and rapidly growing

industry is to adapt whilst maintaining the cultural strength. Without both external and internal clients in the program for a considerable amount of time, program impact is poorly achieved. We open a few basic tips for retention. Mark out a career path for your staff. This does not only mean encouraging and effectively mentoring staff to go up the structural ladder, but also appraisals through exposures, skills training, knowledge or collaboration activities, etc. Creating an individual career development program can also be helpful. Strengthen monitoring. MI published that middle management need to reinforce the culture of the organization so that they can motivate staff. This form of monitoring and connection is “where the real retention takes place.” Both executive and branch officers need to cut the virtual divide through establishing connections or friendship with field staff. Also, commit to do the Enhanced Branch Monitoring System (EBMS) cited in the previous article. Involvement and participation. Involving staff in collaborative and decision-making responsibilities can boost their ownership of the program. Partner with the staff in planning and brainstorming for solutions to problems. Involvement and participation breed responsibility and enthusiasm. Set out clear goals. Outline concrete goals for your staff to attain and provide the resources and support to reach these goals. Monitor regularly and mentor unceasingly, especially with trainees. Realistic goal setting and ideals are great motivators to meet the standards of the rest of the company and excel within the framework. You can hardly expect someone to meet the goals when they don’t know the expected standards. Go the extra mile. Reach out through personal counseling or group bonding sessions. Take the time to listen and lend a

hand when in need. Show appreciation by sharing the staff’s accomplishments and best practices to the group. Be a learner to encourage learning and development in your staff. Set out to improve work-life balance to enhance the over-all quality experience. Such investments can lead to respect and loyalty. Check the pulse regularly. Even through informal and anonymous surveys, get the staff’s perception on leadership, compensations, communications and other systems on a regular basis. From the results, improve existing systems and processes. Corbus, a start-up business process outsourcing in India, has reduced attrition rates from 28 percent to eight percent in just one year by implementing new (HR) strategies in response to its bi-annual anonymous employee survey. Trust. The organization’s ability to establish and build trust, says MI, has long been thought to have an indispensable bearing on organizational success and managerial quality. Some organizations develop an “open-book management system,” where complete financial information including salary details is placed in the intranet. Though a line has to be drawn in such system, the trust factor should be established in the staff to set the style and structure. The right staff are already in your branches or departments. It would be a profound loss to see them go. Works Cited Banerjee, A. (2008). Sink or Swim: HR Lessons from those that Charted these Waters. Microfinance Insight , 12-15. bcjobs. (n.d.). Retrieved june 2009, from www. bcjobs.ca: www.bcjobs.ca/re/hr-resources/ human-resource-advice/recruitment-andretention/motivating-your-staff. Creado, J. (2008). Microfinance Insights Roundtable: Building Networks and Knowledge. Microfinance Insight , 57-58.

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Policy Review

communi-K • vol. 6 no.2

Defending the poor against risk in death A Guide to Death Insurance and Burial Benefits Claims By Lea Gatpandan Low income households normally face enormous barriers in gaining access to insurance services. One of the largest insurance company claimed that only 10% to 15% Filipinos are insured in the Philippines. Contributory to this is the difficulty of low income households to access such protection. Hence, in case of death, these households find it hard to cope with the circumstances brought about by death of a family member. Demand for microinsurance products is growing and both formal and informal microinsurance schemes have started to emerge to address this need. At KMBI, the burial benefit was added to the current program called Karamay sa Buhay program (KBP) to help its program members to access protection. What is Karamay sa Buhay Program? Beginning September 2008, KBP offered two types of benefits, such as death insurance and burial benefit. The said benefits provide program members and their families with financial assistance in case of death. Death insurance benefits range from Php25,000 to Php100,000, while burial benefit range from Php5,000 to Php20,000 depending on the dependents enrolled. This is made available to all clients aged 18 to 63. Those who are married have the privilege to enlist their legal spouse and up to three children, while single clients may include their parents as dependents. Beneficiary of insurance can be a family member or friend. The insurance coverage will start on the day of loan disbursement and expires a day before date of loan maturity. Application for membership must be done during every loan application. Program members who would like to enrol family members as dependents must submit marriage contract (if married), birth/baptismal certificate of member and dependents; and adoption papers (if the child is adopted). Who are the qualified dependents? Qualified as dependents are husbands, aged 18 to 63 years old, physically fit, and capable to do regular work; children, aged

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six months to 20 years old, unemployed or not involve in business, single without children, physically fit, and capable to do regular work; and parents, aged not more than 63 years old, physically fit, and capable to do regular work. Military, police, presidential security guard, security guards, or any work that is susceptible to life loss are not qualified as dependents. What are the Benefits? For death insurance benefit claims, once the member passed away, its qualified beneficiary is entitled to receive Php100,000. If the enrolled spouse passed away, beneficiary is entitled to receive Php50,000, while if the enrolled child or parent passed away, beneficiary is entitled to receive Php25,000. For burial benefits, once member passed away, beneficiary will receive Php20,000, and Php5,000 if the dependents passed away. These are subject to approval of insurance company. Conditions of Burial Benefit Members and dependents that are denied for death insurance claims will not automatically receive burial benefits for it is still subject to approval of insurance service provider. Burial benefits can be availed if members or dependents died within the loan cycle due to pre-existing sickness. For death of members not actively at work upon inception or not eligible for insurance, insurance premium for the current loan only will be returned. However, this does not apply for fraud applications (Section 81 of the Insurance Code). Common grounds for denial of claims For insurance benefit claims, denial is due to late submission of documents (three months after date of death); claimant is not enrolled as beneficiary; proven that death was due to pre-existing sickness, involvement in any war, riot, rally, insurrection or hostilities of any kind, involvement in extreme sports, and accident while under influence of alcohol or illegal drugs. Note that outstanding loan balance of member who passed away will be automatically deducted from the amount of claims. Release of any claims is subject to investigation and approval of the insurance service provider.

Process of Claims • Claimant must submit the complete requirements to the branch office; • Branch officer to submit claimant’s documents to KMBI head office microinsurance (MI) coordinator for initial evaluation. (Important note: Documents submitted by claimant must be carefully scrutinized by branch officer before submission to the head office to avoid delays of processing.) • MI coordinator will check the documents submitted by branch and submit to the insurance service provider. (In case of incomplete requirements or any discrepancies in documents submitted, MI coordinator will notify the branch for their immediate action.) • Insurance service provider will conduct investigation and other necessary actions that will help them decide whether to approve or deny any claims. • MI coordinator will be notified through letter by insurance service provider once claims was approved or denied. In case of denial, insurance service provider will include grounds of denial. Approval or denial of burial assistance will be also included. • MI coordinator will notify branch of the approval of denial of any claims through letter. • For approved claims, branch officer will process the release of claims (e.g. processing of cheque, etc.) The benefits will be given to the beneficiary ten (10) working days after its official application of claims given that documents are complete and authenticated. The documents must be submitted within three months after date of death. Please note that application for burial benefit is not separate from death insurance claim application. No separate claim applications will be accepted for any of the said claims. Claimants may receive only one of any of the said claims or may be denied for both claims.


Project Update

I chose you to lead my people. - 2 Samuel 7:8

COMDEV expands anew By Calvin Perez

Yolanda Tabingo, project management committee, Koronadal City Hall, discusses the proper way to put information on a ledger during the Financial Management Training.

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he COMDEV Unit started the field validation of four prospective communities endorsed for the possible community development implementation last May 31 to June 5 2009. The four communities are Barangay Alimsog, Legazpi City; Ilian Tribal Community in Camarines Norte; Barangay Sta. Cruz, Iriga, Camarines, and, Barangay Carolina, Naga City, Camarines Sur. The selection of Bicol region as the primary source of possible area of implementation was based on the 2000 Family Income and Expenditures Survey (FIES) Final Release on poverty. The said survey focused on the number of families that has a capacity to provide the normal three times a day meal, the increase in number of families who could not provide and the increasing number of families in the rural areas who qualified in the above description as compared to families in the urban areas. The Bicol region had the highest number in all categories, followed by Autonomous Region of Muslim Mindanao (ARMM). The initial implementation

of the COMDEV Program in the said region guarantees well to the objective of promoting the general welfare of the stakeholders. This is part of the recently approved KMBI Community Development Program that adheres to the organizations’ commitment to the poverty alleviation. CBEDP beneficiaries learns financial management An assessment of the current conditions of the ten local enterprises, created by the Community-Based Entreprise Development (CBED) project beneficiaries in the previous year, led to conducting a financial management training last May 22 at the SIMATIKU Training Center in Carpenter Hill, which was attended by 30 participants. This was done in order to reinforce the knowledge of the beneficiaries in administering their own finances as they prepare to manage their own this year. The design of the said training activity targeted select officers of each

enterprise that are directly involved in the management of finances. Presidents, treasurers and auditors/bookkeepers attended the said training. The resource speaker was Yolanda Tabingo, Project Management Office (PMO)-Chief of Korodanal’s local government unit. Jeanmar Labanero, Koronadal branch manager, delivered the welcome remarks, while Calvin Perez, unit head of the Enterprise Unit, acted as the emcee. Jollybelle Arogante, community development officer assigned at the project site, was the overall organizing committee together with some participants. Covered during the said training were the presentation of the personal values and good characteristics that an individual member should apply in an enterprise especially in the management of finances, various basic accounting terms and concepts, sources and usage of funds, internal controls for fund management, and workshops on journals, ledgers, and day books data encoding. After the training program, Arogante facilitated the evaluation. Perez then presented the procedures in the manner where the funds coming from the organization shall be disbursed to the beneficiaries. This was a necessary action that enables beneficiaries gain a better understanding of the internal controls of KMBI regarding fund management. The completion of the said training signals the commencement of the first batch of funds to be disbursed to each local enterprise. The third and last year of the CBEDP is focused on the implementation of the livelihood projects of these ten local enterprises. Each enterprise was assisted by the Community Development (Enterprise) Unit of the Entrepreneurship Development Department of KMBI to prepare its Program of Work and Project Proposal since these are the bases for the funding of the organization for their initial operations.

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Organizational Performance

As of 2nd Quarter 2009

Indicators

Efficiency

Loan Activity

Cost per Unit Lent (USD)**

.00413

Client Outreach

146, 399

Cost per Loan Made (USD)**

23.98

Loan Portfolio*

P404.99M

Financial Self-Sufficiency

98.47%

Value of Loans Made

P722.45M

Operational Self-Sufficiency

112.16%

Portfolio-at-Risk

4.65%

Ave. No. of Client per PA

245

MF Operations

942

No. of Loans Made

122,098

Support Group

80

Number of Staff

* Without Compostela Valley branch **USD 1.00 is equivalent to Php48.35 as of June 30, 2009

Project Update

ISO CERTIFICATION: HO conducts gap analysis

Vencent Abraham, quality management representative, (middle) facilitates the process of gap analysis session and its importance on the upcoming ISO certification process.

In preparation for KMBI’s certification to ISO 9001, a gap analysis of systems of major departments was conducted to assess the organization’s conformity to international standards. Consultant Carmina Espiron assisted heads and representatives of the human resource, operations, audit, administration, and finance and accounting departments through the analysis. Every representative discussed the work flow of their department to the consultant while the consultant verified it through asking questions to the representatives until gaps in the processes and procedures, key result areas, records and implementation, and monitoring and assessment procedures were identified. Initially, the consultant found that the monitoring and evaluation processes of the departments should be strengthened. “Generally, my assessment to the systems presented is positive, but there are still areas that need further improvement,” commented Espiron. The branches of Koronadal, Kidapawan, Metro Davao 2, Daet, and West Avenue will also undergo the said auditing to be able to qualify for the certification.

“The gap analysis activity is part of the preparation for ISO certification, and will enable us to measure if our target date for certification is feasible,” said Quality Management Representative Vencent Abraham. On October 2009, KMBI is expected to go through the certification audit to be conducted by TÜV Rheinland Philippines, Inc., a member of TÜV Rheinland Group, which is an independent testing and assessment service based in the United Kingdom. Prior to the gap analysis, an orientation on ISO 9001 was conducted in February and June for the head office department managers and representatives and the five branches, respectively. During the said orientations, overview in concept of ISO 9001, its benefits, processes and standard requirements were discussed. After the orientations and gap analysis, the organization will set quality policy, objectives, targets and programs. Then it will have its first internal audit, management review, precertification audit, certification audit, and post certification assistance.

Our 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”

Our Mission

“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 Filipino households on our 25th year”

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 http://www.kmbi.org.ph

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