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“I chose you to lead my people” (2 Samuel 7:8)

communi-k VOL 6 NO 3


NEWS: P14M loan disbursed by expansion branches 05

ENTREP 101: It Pays to Think Rich 12

LEADERS’ EDGE: Marketplace and Ministry 14

MF INDEX: Foster Spirit |to 1 Maintain Success


Communi-K • vol. 6 no.3

contents VOLUME 6 • NO 3 • 3RD QUARTER 2009

News 4


Negros serves community before loan release


Marketplace and Ministry

Butuan es up with TESDA for client’s training


A Quick Look: Social Performance Management

Negros, San Pablo conduct teambuilding


Foster Spirit to Maintain Success The Role of the Manager in the EBMS


P14M loan disbursed by expansion branches KMBI to distribute 11,000 bibles to PMs


PCFC honors KMBI’s commitment


First phase of CBEDP slated for compleon before year ends

KMBI appoints division directors


ISO Cerficaon envisioned to materialize by 2010

P0.7M invested for ecumenical mass weddings


KMBI launches the Hope Fund campaign

Features 7

Rising through Crisis


Blessed Beyond Measure


Think, Buy & be Local


It Pays to Think Rich

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About the cover Business As Usual - The cover displays a keen sense of hope, creavity, and resiliency of Filipinos who, aer being seriously afflicted by typhoon Ondoy (internaonal name ‘Ketsana’), ingenuinely creates business out of the flood. This simply shows that even though slumped by crisis and incessant poverty, Filipinos have the ability to turn difficules to opportunies for service and survival.

“I chose you to lead my people” (2 Samuel 7:8)

editorial board Edgardo S. Mercedes Adviser


Rizaldy R. Duque Editor-in-Chief Kris Joy G. Dalanon Editor Lea J. Gatpandan Associate Editor Maylanie D. Apawan Cindy V. Escobin Enrique B. Maca Concepcion B. Parantar Calvin V. Perez Ma. Belen M. Sison Contributors Hector H. Celajes Circulaon For editorial, contribuons, suggesons and inquiries, please contact: RM & C Department Kabalikat para sa Maunlad na Buhay, Inc. 12 San Francisco St., Karuhatan Valenzuela City 1441 Philippines Email:

ERRATUM On the second quarter issue of Communi-K we wrote that, “Negros area is aiming to target 12,600 client outreach on its 11th month of operaon.” It should have been “Negros area is aiming to target 12,600 client outreach and is expecng to be viable on its 11th month of operaon.”

“This is about facing the he ne challenges of life as one country, one race. Wee must be united in the samee way we have shown courage ge and unity in the face of catastrophe.” September 26, 2009. We were all saddened when most parts of the greater Manila and nearby provinces were under water for days aer typhoon Ondoy (Internaonal name Ketsana) poured on for six hours. Men, women, children, including animals suffered during and aer the typhoon. Many were le homeless, with no food and no clothes. No words can describe the extent of the havoc that many of us experienced. Somehow, despite its being a horrible disaster, Ondoy le a posive impact to our society – it united Filipinos. It opened our eyes and made us do things that we never did before the typhoon. Parsanship was set aside. Blessings poured from inside and outside the country as aid to afflicted families. People showed incomparable generosity to those in need. The Filipino word for that is Bayanihan. What happened to us was a great reminder that we are accountable for whatever we do and to the people around us. It also made us realize that we can actually rise up from any crisis if we only stand up as naon. This is not just merely about prevenng calamies. This is about facing the challenges of life as one country, one race. We must be united in the same way we have shown courage and unity in the face of catastrophe. Leaders, the storm has ended and the best thing we could do now is to connue to help one another pick up the pieces and move on to a new beginning. Let us encourage, movate, and pray for our co-leaders and our program members. Let us remember that things happen with a purpose. Let the spirit of Bayanihan connue with or without adversity. Let us stand firm and face the bale by serving and helping people for the glory of God!


Edgardo S. Mercedes Execuve Director

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News Briefs

Communi-K • vol. 6 no.3

Negros serves community before loan release

Silay program members actively participate in the “Operation Linis Bayan” program of Negros area.

Since the opening of Negros area operaon in July, 9,349 members have already served six cies and seven municipalies through acvies like cleanup drive and food distribuon. Area manager Roselyn Embac requires members and staff to conduct community services prior to loan release. “We believe that by iniang such acvies, members and staff will develop unity, discipline, teamwork, concern, and good relaonship with each other. As agents of transformaon, we must help the community to progress as a whole,” said Embac.

On the fih day of every program orientaon, members and staff assess the need of their community and pool their own resources to serve neighbors. The cies and municipalies served were Bacolod, Himamaylan, Silay, Talisay and Victorias, and Manapla, Saravia, Murcia, Binalbagan, Ilog, Cauayan and Hinigaran Praccing community service is also a way of establishing the organizaon’s brand in the area. General Santos 1 branch is also beginning to adapt the same acvity for similar purposes, said its branch manager, Abelardo Tejada.

Butuan es up with TESDA for client’s training Butuan banch partnered with Technical Educaon and Skills Development Authority (TESDA) in providing free food processing training to 152 center leaders on September 5 at the Imadejas Funcon Hall, Butuan City. TESDA representaves demonstrated the processes of making tocino and longganisa, which the center leaders tried making aerwards. Branch manager Charity Joy Mata reported that the parcipants appreciated the said acvity, and some of them are now applying this new skill to boost their income generaon. The said leaders echoed the training workshop in their respecve ENTREP centers during the weekly meeng.

Butuan center leaders make their own tocino and longganisa during the training workshop.

Negros, San Pablo conduct team building Kabankalan, Silay, Bacolod and San Pablo branches conducted teambuilding acvies in July and August to enhance relaonship among the frontliners. Bacolod program assistant Joan Baradero reported that through these acvies the staff learned the importance of individual contribuon to the achievement of the goals of the team. In Kabankalan, program assistant Junel Lesno reminded his teammates to rise above difficules or discouragement by being commied to helping other people. On the other hand, Silay branch manager James Anthony Russel emphasized the importance of having a clear vision to fulfill and that a leader

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must see to it that this is understood by the members. Russel added that the leader must decide for the good of the people and not only of himself. San Pablo branch accounng assistant Amyrene Lat also reported that these allowed them to exercise selfcontrol, sensivity, obedience, mind-coordinaon, cooperaon, and paence, which for them are qualies essenal to their jobs. Kabankalan, Silay and Silay program assistant (PA) Junel Lestino shares his insights on Bacolod are among the 19 courage and commitment with fellow PA. branches established this year.

Organizaonal News

“I chose you to lead my people” (2 Samuel 7:8)

P14M loan disbursed by expansion branches

Baliwag branch program members attended the branch inauguration.

In July and August, over Php14 million worth of loans were disbursed to some 3,615 new program members during the inauguraons of the 19 branches in Central Mindanao, Visayas, and Central and Northern Luzon.

As spulated in the organizaon’s Entrepreneurial Nurturing through Transformaon, Reformaon and Empowerment Program, these loans are used as addional capital to help boost the microenterprises of these members, which

KMBI to distribute 11,000 bibles to PMs KMBI earmarked Php2.1 million for the reprint of 11,000 copies of bibles to be distributed to program members of its 61 branches by January 2010. This is in fulfillment of its Goal 25.250’s first strategic direcon, which is to acvely share Christ and promote Chrisan values. Each ENTREP center shall receive one bible in Tagalog Popular Version. These bibles will be used in the ENTREP groups’ regular Bible readings and studies during their weekly center meengs. According to Transformaon senior coordinator Concepcion Parantar, providing Bibles is envisioned by the organizaon to bring about changes in its members beliefs, values, atudes and acons in a holisc manner (Spiritual, Economic, Environment and Social). This is anchored on its flagship program, the ENTREP or Entrepreneurial

Nurturing through Transformaon, Reformaon, and Empowerment Program. Parantar added that KMBI as Christcentered development organizaon has seen the necessity to provide this vital tool to affect and influence program members towards Christ. “This project is geared towards equipping them with God’s Word to apply in their life’s journey,” she said. Parantar informed that due coordinaon and orientaon with the branch staff will be ensured in order that recipients will fully benefit from the material. This will be done once the producon is completed. Similarly, the organizaon gives bibles to its 1,067, staff which they use during their weekly accountability group meengs and monthly fellowships.

in turn will help li local economies. The new branches are situated in General Santos, Kabankalan, Silay, Bacolod, Cebu, Angono, Binangonan, Anpolo, Balayan, Sanago, Cauayan, Tuguegarao, Laoag, San Fernando, Olongapo, Capaz, Malolos, Baliuag, and Tarlac. Each branch is expected to have 4,200 program members. The organizaon now caters to 16 areas and is sll seeing the possibility of establishing new branches next year to serve more Filipino women microentrepreneurs and connue its fight against poverty. Area studies in provinces like Leyte, Bohol, Mindoro, Nueva Ecija, and Panay were conducted in September. “The plan to establish new branches next year is strategic for us to infiltrate areas where KMBI is not yet visible. This is also to maximize our opportunity to help the needy and to sustain our operaon,” said Carmela Porras, operaons director.

PCFC honors KMBI’s commitment

RM&C director Aldy Duque (rightmost) receives the award from PCFC given by its executive director Edgardo Generoso (middle).

KMBI was recognized by the People’s Credit and Finance Corporaon (PCFC) for its nine years of commitment, dedicaon and partnership in upliing the lives of the Filipino people during its 14th anniversary celebraon on September 11. PCFC president and CEO Edgar Generoso gave a silver award to the organizaon and to 59 other microfinance instuons.

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Organizaonal News

Communi-K • vol. 6 no.3

KMBI appoints division directors

The appointed directors during commissioning ceremony (left-right): Sancho Montaos II, finance & accounting director, Madelyn Frijillano, audit director, Rizaldy Duque, resource mobilization and communications director, Liza Eco, deputy executive director, Carmela Porras, operations director, Annalie Concepcion, administration director, and Vencent Abraham, quality management director.

KMBI board of trustees approved the organizaonal structure on February 13 which formulated major divisions of the organizaon beginning August 1 to focus and properly organize all the acvies

within the division area. The said divisions are the administraon, resource mobilizaon and communicaons, operaons, finance and management informaon system, quality

management, and audit. On the other hand, Liza Eco, former deputy director was inducted as deputy execuve director. The commissioning of the newly appointed directors was conducted on September 7 during the head office staff’s monthly devoon at the Alliance Gospel Church in Valenzuela City. Edgardo Mercedes, execuve director, anointed the directors with oil as symbol of the introducon of divine influence and as blessing for their leadership. Mercedes also reminded directors to keep their faith on the Almighty God in order to be prepared for greater responsibilies that they will be facing along the way. The appoinng of division directors is part of the organizaon’s strategy in promong leaders who are believed to be more effecve as they have deeper grasp of the organizaon’s history, values, and methodology to adapt to the growing organizaon.

P0.7M invested for ecumenical mass weddings

Program members from Calabarzon areas and Digos branch celebrate their blessed union.

Around Php0.7 million was invested for the ecumenical mass weddings that ed the knot of some 234 couples in different locaons in Naonal Capital Region, Northern and Southern Luzon, Mindanao,

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and Visayas areas from July to September this year. Ushering unmarried partners to legal union and blessed companionship is the organizaon’s program that aims to

strengthen family es, lead the program members in having a morally upright life, and promote sancty of marriage and family life. This is one of its value-added non-financial services that is implemented since 2006.

Cover Story

“ cchose “I hosee you hose ho you u to to lead l d my my people” people l ” (2 le” le 2 Samuel Sam amu uel 7:8) 7:8)) 7:

Rising Through Crisis By Aldy Duque


n our journey here on earth, the there will be a me that crisis will fall upon us whether we like it or not. All of o us will have to face it and there will be no when exempon just like what happened wh typhoons Ondoy and Pepeng wrought havoc way we in Luzon. The only difference is the wa respond to it. Crisis (or problem) is part and parcel of life and therefore th it is durin the me inevitable. No one can prevent it. It will happen during caugh fla ooted that it is least expected. When we are caught by it, the more impact it gets on us. So what do we need to do? Prepare and know how to deal with it so that when it comes, we can migate its impact on us and resolve it in the soonest m me possible. Wikipedia defines ‘crisis’ as a tes tesng me or emergency event. It further characterizes charac ‘crisis’ as an event that is specific, unexpected, unex non-roune or uncertain, and a threat or perceived threat to high priority goals. The first three t of characteriscs argue that “crisis is a process pr transformaon where the old system can ca no longer be maintained.” Therefore, crisis calls th the need for change. However, change is not possible if we do not know how to face or deal with crisis crisis. Here are some principles to observe. Have a posive outlook. It is a common reacon that when crisis comes, we deny it because it hurts do not like or simply, we d dealing with it because uncomfortable. The it’s uncom

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Cover Story

apostle James said, “My brethren, count it all joy when you fall into various trials, knowing that the tesng of your faith produces paence” (James 1:2,3). Let us welcome trials (I am not saying invite). This is what the apostle is saying. Seldom we see that crisis is an avenue for growth and character molding. When a problem (trial or tesng or difficules) comes, be reminded that God allows it because He wants us to emerge as far beer persons than we were before. By welcoming crisis, we can easily recognize its reality, which is a crucial step before problems can be solved. Obviously we cannot solve problems if we do not acknowledge their existence. Once there is recognion, it will be easier for us to determine the truth as to who failed and caused the crisis, and what really transpired. Somemes, our own misgivings bring crisis but we find it difficult to accept the truth. This is why we cannot come up with soluons. These things are important in addressing crisis. Formulate appropriate soluon. In managing crisis, our foremost goal should be to prevent it from escalang into a disaster and thus we need to find short-term fixes. However, it does not stop there. Long-term soluons should be formed as well otherwise we will wind up back in the same predicament. Short-

Communi-K Comm Co mm mun ni--K •• vol. vol. vo ol. 66 no.3 no.3 no. o3 Communi-K

term fixes are intended to put a halt on the crisis, while the long-term ones are to prevent it from occurring again. Shortterm fixes respond to the effect, while long-term fixes work on the cause. For instance, clients may have failed to remit their loan payments. The short-term fix

If we fall, the proper response is to rise. If we fall again, then let us rise again. Proverbs 24:16 says, “Though a righteous man falls seven mes, he rises again.” should be on making them pay the past due but the long-term should be able to address the root cause of why they failed in reming their loan payments on me. Just a cauon: it is important that our response fits the crisis we are facing,

otherwise we are inving another crisis. Act on it immediately. Somemes, what makes us fail in rising through crisis is our inability to move on and act immediately. Some problems are huge that we are somemes paralyzed by it. But we should be aware that an unaddressed problem can escalate into a bigger problem and therefore we cannot really afford to be passive. Crisis or problem should not control our response. If we fall, the proper response is to rise. If we fall again, then let us rise again. Proverbs 24:16 says, “Though a righteous man falls seven mes, he rises again.” Others, in contrast, try to carry the weight of the world on their shoulders. They go into isolaon, and think they can solve the problem themselves. In reality, we must have the help of other people to devise soluons and actualize them. This means asking people for help and ideas. King Solomon once said, “Two hands are beer than one…” (Ecclesiastes 4:9). Finally, for all the principles menoned, be effecve. Do not forget to rely on what God can do to us and through us. Remember that our God is sovereign and powerful. He is far bigger than any trial or obstacle we can encounter. With Him, we can always rise through crisis

(Left to right) KMBI staff volunteers met at West Avenue branch to pack relief goods for program members affected by typhoon Ondoy; Metro Manila South branch distributed relief goods to its program members.

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“I chose you to lead my people” (2 Samuel 7:8)

Blessed Beyond Measure Dalton Gamao’s experience after Ondoy By Lea Gatpandan


sak Dinesen, a Danish writer once wrote, “Difficult mes have helped me to understand beer than before, how infinitely rich and beauful life is in every way, and that so many things that one goes worrying about are of no importance whatsoever.” This quotaon best describes the realizaon of Gabriel Dalton Gamao, program assistant of Tandang Sora branch, aer the tropical storm Ondoy.

On that fateful Saturday, September 26, many parts of the greater Manila area and provinces in North and Central Luzon were submerged in floodwaters brought by tropical storm Ondoy with internaonal name “Ketsana.” Over 12,000 staff and program members were highly affected. Dalton’s program members and himself were not spared. In Dalton’s place in Tandang Sora, Quezon City, water rose to the second floor where his room was located. Together with his dorm mates, he evacuated the place and decided to stay in a nearby drugstore unl floodwaters abated. That me, he could not stop himself from worrying about his program members, especially those who were living in low areas. Water rose to about 20 feet high in some places, and without no intervenons, nobody would have possibly survived. His prayers for each of the members and their families became all the more fervent as the rain poured. As expected, members of three of his centers and their families were much

affected by the deluge. “From Tuesday to Thursday, I kept on monitoring their situaon. I heard they were scaered in several evacuaon centers, while others were sll nowhere to be found. I visited their places, but wasn’t able to reach those in remote areas due to the flood,” he related. Many of the vicms had to rely on relief goods and used clothing distributed by the government and other instuons, including KMBI. They lost the homes they have established for many years. Their children’s books and other stuff were either covered in mud or washed away by the rushing floodwaters. Though he himself was affected by the flood, he realized his predicament was nothing compared to theirs. “The effect of the storm was terrible, but all I could do was assure them of my help,” Dalton shared. “I knew what they were going through and what they needed was someone who would understand them. So instead of worrying, I constantly got in touch with them,” he added.

At ten o’clock in the morning that Tuesday, the members begun texng that they could not pay the weekly collecon. Dalton, though saddened by the fact, was amazed how they could sll think of their weekly obligaons even at dismal situaons. KMBI lied the collecon for those who were affected by the calamity, notwithstanding this announcement, the members sll insisted to pay. “I think that simply showed they understood their responsibility and accountability as members of KMBI,” said Dalton. Aer a week, they doubled their payments to cover for the previous week’s missed payments. “The other members who were able to recover fast helped comembers,” shared Dalton. “This makes me grateful to think that the members stood by what they promised in the beginning; even in the midst of difficulty, they lived up to their word. They explained to me that in the end they will sll have to pay for their loans. It was also good that their


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Communi-K • vol. 6 no.3

Think, Buy & be Local By Calvin Perez


e have heard and indulged on some of the ďŹ nest local foods such as adobo, sinigang, and kare-kare, enjoyed wearing those dresses made by some of the most notable Filipino designers. We also fully appreciated well-craed Filipino movies, music and dance that have decorated many generaons 10 |

of enthusiasts of local arts. All of these can go head to head with the most excellent counterparts around the world and some have outclassed them in terms of quality and uniqueness in design. But why the emphasis on patronizing locally independently-owned products when there is an abundance of internaonally known and dependable products? Or if foreign made, contains substanal internally made components? It is not much related to the adherence to our local holiday of independence nor was it by choice being

a naonalisc person. It is in the following causes below that would surely make it even more understandable to not just think local, but to buy and be an advocate of our own locally made products.

Buy local and support others There are accounts showing where the money ows when you buy products from locally owned businesses rather than those naonally owned companies. Considerably, these local businesses buy from service providers, local suppliers and farms to sustain


“I chose you to lead my people” (2 Samuel 7:8)

their operaon. This paves the way for a strengthened economic base of the local community. Also, when we buy products from locally owned businesses, some poron of the proceeds is given by our naonal government to non-profit organizaons.

Enhance community imagery Wherever we buy foods to eat or dress to wear, the image of the community where we embark on doing these gets enhanced. The uniqueness of the products being peddled in a certain community is almost always associated to the general characteriscs of the said locale and so the enhanced imagery. This is one way of promong the tourism business of the community. A clear example is the Island Souvenir clothing shops wherein it sells apparels and accessories that projects a certain province where it has its branch. The said shop promotes in its designs the disnct characteriscs of the province. This enhances its image thus, promong whatever viable tourism desnaon that province has.

Diminish environmental impact

Investment in local community When we connually support local businesses, we indirectly put premium to the sustainability of the community since the local businesses where these products came from are owned by people who live at the said locality. These people are less likely to leave town and are more inclined to invest not only for the future of their businesses and also to the community where they belong to.

Buy what you want and not by the dictates of big business There is a large difference when local products sold and those that are being adversed by big businesses. Local products offer the smallest price, guarantees a broad range of choices and can fit to the needs and wants of customers. And in the longterm, it ensures innovaon and stability of price ranges than the products being sold by large businesses.

skilled workers employed shall invest and live in the local community where the said business is operang. The favourable situaon shall negate posive impacts on the economy and well as the socio-polical aspect of the said community. More small businesses shall open and investments coming from the adjacent communies shall come to the said locality. The idea here is not only to buy local products, but to inculcate in our minds what this act shall posively provide to us and to the community where they are produced. It is the mind seng that comes first and aer it goes the buying local products when one can. The conjuncon of the two can bring about a symbolic change in our behavioural system. The total acceptance of supporng local products is essenal to the overall economic stability of country and its inhabitants

Persuade local prosperity Local products being sold by locally owned small businesses increases the likelihood that owners and

A very disnct advantage that locally owned business has over large businesses is that it uses primarily local and indigenous raw materials that require less travel and thus lower emission of polluon. Also, these small businesses generally set up shops or outlets within the confines of the community and it means less contribuon to sprawl or the covering of land masses for development, congeson, habitat loss and polluon.

Create more local jobs As we patronize local products, the demand increases. This creates a very large smulus for local employment.

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Communi-K • vol. 6 no.3

It pays to

Think Rich By Ma. Belen Sison


e all want to be rich, don’t we? Looking at the typical definion of rich as having plenty, in abundance and of course, wealth, we might conclude that this is expressed in terms of financial gain that can be seen with the house and lot that we own, the car that we drive, the appliances and equipment that gives us pleasure, the signature clothing that we wear and other similar things that give us some form of temporal sasfacon. Beyond this definion, being rich can be a state of one’s mind specifically in terms of outlook regardless of the situaon that we are in.

Thinking rich has been a common byword in the academe, in the corporate set-up and even among entrepreneurs. This mindset is something that needs support starng from the core which is our own family down to our peers. It entails the ability to differenate a mindset of rich and a mindset of poor.  Rich people believe “I create my life.” Poor people believe “Life happens to me.” This is called “playing the vicm.” The poor mindset person is very good at it. The rich are never vicms. They control their own desny, and stuff that happens along the way are merely opportunies to take advantage of or obstacles to overcome.

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 Rich people think big. Poor people think small. Thinking big starts with having a dream, and subsequently taking acons that lead to big results.  Rich people focus on opportunies. Poor people focus on obstacles. People tend to easily start a business/ job, work on it for a short me, then suddenly makes a halt at the slightest snag caused by external factors. Eventually, these persons are out of business/job. If we’re thinking rich, we don’t allow an obstacle to stop us. Rather, we ask ourselves, “How will I make it work?” Successful people look at obstacles as opportunies but not

necessarily overlook the dangers that go with it.  Rich people admire and associate themselves with rich and successful people. Poor people resent and disassociate themselves with rich and successful people. There is nothing wrong with being “rich” but what is more important is being able to think rich without oppressing people. Rich people did not become rich overnight. They admired successful people and even learned from the challenges that they have gone through.  Rich people act in spite of fear. Poor people let fear stop them.


“I chose you to lead my people” (2 Samuel 7:8)

Fear is the number one cause of failure. In fact, the majority of people will take a look at an opportunity, but never take acon to do it because they fear they might fail. As result, they never succeed at anything. Remember, courage is not the lack of fear. It’s acng despite of fear, and this is something that a person with a rich mindset excels at.  Rich people constantly learn and grow. Poor people think they already know. In learning, there is no saturaon point. We can learn from both formal and informal schooling. Learning comes in three ways – learn new ideas/things, re-learn what we’ve learned before and unlearn ideas/things that we thought before as good. We come across so many things daily but at the end of the day, there is sll a need to have a balance of everything to achieve richness in life. According to T. Harv Eker in his book “Peak Potenals,” we need to work on ourselves and examine

our minds. The best way to do it is to discover our limitaons that we might have imposed on ourselves since childhood. These limitaons have been programmed in our minds that limits the acons. Let’s try to re-program our mindsets with beliefs that can be affirmed and visualized. This helps us turn our negave thoughts to something posive. Prayer is the biggest weapon that we can bring with us. Connue to build our mindsets with posive thinking. Things might not turn out as expected but failure is not an opon in life; there is only delayed success. Along the way, we may encounter difficules we have learned from situaons you have looked at these difficules as challenges and opportunies to move forward. Bear in mind that anyone can do it, but we can do it beer than others. From building a posive mindset, we may connue to have an atude of gratude. Start to be grateful for the things that happened in the past and how

we are able to face the present, and look forward to the future with opmism. In looking forward, lets be clear of what we want in life and plan carefully. We can control our desnies and define our own future, we have to believe in ourselves, but foremostly, we have to increase our faith in God. James 2:17 states, “Faith without acon is dead.” Thinking rich in its enrety is not the be all and end all because it is sll God who is in control of our lives. Can we sll have the “riches” without foregoing our spiritual belief? Yes, we can have both. We can live fulfilling spiritual lives and be financially successful at the same me. Aer all, it is what we are born for. “But son, do not forget my teaching, but keep my commandments in your heart, for they will prolong your life many years and bring you prosperity” (Proverbs 3:1-2 NIV) References: T. Harv Eker. Peak Potenals David Michael Ferruolo. Connecng with the Bliss of Life hp://www.

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Leader’s Edge

Communi-K • vol. 6 no.3

Marketplace and Ministry By Connie Parantar


make God known throughout the ave you ever world, and this means including wondered why we call our jobs in KMBI the marketplace. The marketplace, a combinaon of a ministry? What is a ministry, business, educaon, and government, is anyway? Somemes we think of any sphere considered as a place where ministry as church-like acvies ideas, thoughts, arsc creaons, and other elements compete for recognion. such as leading praise and Today, about 97% of Chrisan’s will work worship singing or facilitang in the marketplace compared to the 3% Bible studies. But doing ministry that will be vocaonal priests, pastors is not limited to those acvies. or missionaries. Calling themselves “marketplace Chrisans,” they use their When we look at the meaning secular careers as educators, lawyers, of the word, it simply means doctors, farmers, entrepreneurs, the act of serving. This could be accountants, development workers to through creave and performing “spread the Word” to mainstream society. This is through integrang their faith with arts, community service and their careers. This issue goes beyond outreach, and also sacramental being gracious with co-workers and fair with employees, but finding something service. For Chrisans, this that is inherently godly about the work service or ministry is done with itself and bring to bear values based on a purpose. And this purpose is to their faith. Like for example, arsts being carry forth Christ’s mission, i.e. to truthful about the commercials they make,

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microentrepreneurs showing honest scales, or employees serving diligently during work hours. In so doing, these Chrisans are impacng posively. Former Naonal Director of Philippine Navigators Ministry, Dr. Phillip C. Flores once said, “For you to make impact in your own world, let your work be an expression of your service to God”. The act of serving for a greater purpose is hence not confined or limited by the kind of occupaon that one has. Yet on the contrary, that occupaon, whether a white or blue collar job, must be the means to fulfill that purpose. Managers, supervisors and assistants can truly make Christ known through their line of work. This can be through the words that are uered, deeds shown, or values professed. In his book “Lambs among Wolves,” Bob Briner writes, “Our job as Chrisans is not to take over the various communies in our world; it is, however, to penetrate them, to be present, to provide God’s alternave to evil, to demonstrate Christ’s relevance there.” It is unfortunate, however, that many

Leader’s Edge

“I chose you to lead my people” (2 Samuel 7:8)

A Quick Look:

Social Performance Management By Cindy Escobin

Chrisans feel like second class cizens when compared to those who serve in a church or missionary context. They oen fail to rise to their God appointed posion because they are derided as “untrained and uneducated.” This is not a new thing. The disciples Peter and John would say, “Welcome to the club.” Now there’s no wonder why we call our jobs ministry. By being Chrisans in the marketplace, specifically in the microfinance industry, we go beyond serving the poor by affecng and influencing them for Christ. Regardless of posion, we are doing a great task for the Lord. We have a very strategic posion as MTM (More Than Microfinance) players to influence our fellowmen to live life to the fullest as what God has so designed. Hence, let us not allow ourselves to be disqualified in serving God on the account of our occupaon. Keep to mind this quote, “Do not let your occupaon block your desny but instead let your desny shape your occupaon by turning it into your ministry.” Also, let us remind ourselves that there is a purpose and a desny for us here in KMBI. We are part of a movement designed by God to bring His kingdom to the heart of the city because the God of ministry is also the God of business! Reference: Silvoso, Ed, Annointed for Business Sarris, C. (1999). Online Thoughts. Retrieved November 2009, from Online Thoughts Revealing the Character of God: hp:// marketplace_chrisanity.htm Tapia, A. (n.d.). God’s World: Reflecons. Retrieved November 2009, from Urbana.Org: hp://www.urbana. org/whole-life-stewardship-reflecons/beyond-theballot-box-marketplace-chrisans-set-sights-on-secularprofessions The American Heritage Diconary of the English Language, F. E. (2009). Diconary. Retrieved November 2009, from, An Service: hp://diconary.


he desire to help the world’s vulnerable or the poor communies is the primary reason for the birth of the microfinance industry. However in the passing of years, with the increase in compeon, commercializaon, social investment and calls for transparency, some within the MF industry have diverted too far towards the commercial side making most microfinance instuons (MFIs) to become detached from their social roots which is to alleviate the condion of the poor. Mission dri, which is becoming a phenomenon, happens as they move away from serving their poorer clients in pursuit of commercial viability.

With the emergence of SPM or Social Performance Management as a tool to help microfinance, these deviaons from the social goals can be prevented. This is done through monitoring of the dual mission of an MFI which include not just the Financial Sustainability but also the provision of banking services to micro-enterprises and low-income families and other services to alleviate their condion. Social Performance from the internaonal definion is defined as the effecve translaon of a microfinance instuon’s mission into pracce in line with commonly accepted social values that relate but not limited to: • Reaching poorer and excluded clients; • Improving the lives of clients and their families; and • Widening the range of opportunies for communies. SPM is a praccal approach for MFIs to achieve their social goals and be socially responsible. It has three components: • Seng clear social objecves and creang a deliberate strategy to achieve them; • Monitoring and assessing progress towards achieving social objecves; and • Using social performance informaon to improve overall organizaonal performance

Thus, the framework used for achieving social objecves would be as follows: • INTENT and DESIGN: What does the MFI seek to achieve? How are services and performance objecves designed towards this end? • ACTIVITIES: How will services be provided to target clients through a specific organizaonal structure, and be designed to reach organizaonal objecves? • OUTPUT: What services are delivered and to whom (breadth and depth of outreach)? What is the quality of service? Are they sustainable? • OUTCOME/IMPACT: What changes result from the services provided, e.g. business growth, increased income, and new skills? What are the longer term sustainable changes produced by these outcomes, e.g. poverty reducon? What are the unintended consequences? The ulmate purpose of SPM is to beer serve clients. By monitoring progress towards social objecves, an MFI will know where it stands and where it has to go References: Social Performance Management in MicrofinanceGuidelines. Imp-act with collaboraon with Mcrofinance Centre. Instute of Development Studies at the University of Sussex Brighton BNE 9RE, UK

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MF Index

Communi-K • vol. 6 no.3

Foster Spirit to Maintain Success The Role of the Manager in the Enhanced Branch Monitoring System By Enrique Maca


ll too frequently, unsuccessful branch operaons are caused by either over-managed or under led workforce. Effecve and quality implementaon requires leadership - people to set direcons for the organizaon or group, share vision, and then translate the vision into reality. Under the enhanced branch monitoring system (EBMS), such implementaon is the over-all responsibility of the branch manager, not the program assistants (PA). Contrary to popular understanding, the PAs are but the distribuon channel toward maximum producvity. It is the manager who sets the culture, the vision and goals of the organizaon or group. Hence, the manager must live up to the leadership required of such system. One of the branch manager’s roles is to preside over the niy-griy processes of operaons. He must not merely organize work and wait for results. He must scrunize if processes have been implemented properly based on gathered facts from the field. This includes rao analysis, highs and lows of performance indicators, and feedback from customers. Yes, you heard it right. The manager should either formally or informally conduct focused group discussions with members or staff on a regular basis. He must dig into the details, work the problem from day to day, and lead by example, not tle or posion. The Four As approach in conducng performance gap analysis is also very helpful in evaluang the operaons. This approach aims to address problems

16 |

appropriately and thereby improve branch performance. Since branches have varying dynamics, it is important to deal with challenges based on idenfied performance gaps and solve these with appropriate measures. If the branch performance does not improve, then soluons applied are inappropriate. With this, the manager should diagnose further using the approach. However, the work does not end here. Aer the tedious diagnosis and planning, the manager and his team must act using the soluons set. It is observed that many managers do not care so much on the outcome. Hence they act on solving problems at snail’s pace, especially regarding financial viability of the branches. The manager must not procrasnate. Many think me is on their side, but later on they find out, everything’s too late. Managing me is a skill that the manager’s should master. He can do this by not just racing with me, but he must take the me to step back, and think about where his branch performance

is at the present, where he wants it to go, what improvement measures should be taken and then measure the progress of the strategies on a regular basis. Now, problems are solvable. The manager must not find fault on his subordinates but must find remedy. The issue here is not on the problem but on how he handles problems. Other leaders are being directed by emoons, anger, worry and doubt that in the end lead to the worsening of issues. For example, somemes a manager gets irritated when his field staff does not perform well, he just reacts to a parcular situaon instead of seng intervenons. He must therefore focus on addressing the problem and not put the blame on the staff. To empower the subordinate, the manager can guide the staff to create intervenons or soluons to the problem. The success and failure of the branch operaons lies heavily on the manager. In taking charge, he must always ask wisdom from God who always gives us strength to lead for His glory!

“I chose you to lead my people” (2 Samuel 7:8)

Blessed beyond...from p.9

husbands have jobs to cover the expenses of the family during those hard mes,” added Dalton. That me it dawned upon him how blessed he was beyond measure for having such people in his fold. Dalton explained that perhaps his good relaonship with them has helped develop that resoluteness in them. “I absolutely knew none of these members when I first met them. But over me, I got their trust. I kept on reminding them that the trust I give them is not from me, but from the enre organizaon. Maybe they do not want to lose that trust,” Dalton explained. As program assistant, he is to take good care of his members. “They should

not be treated as ordinary clients but as friends,” he quipped. And what he does to build trust is to constantly communicate with them. “The job is not about collecng payments, but of showing concern. Once program members feel the sincerity, they will not let us down. If we will not have that good foundaon, these relaonships that we’ve worked on will be easily destroyed,” he added. Dalton reaped peace and gratefulness in the midst of these difficult mes. He has maintained his good standing by having ten centers without por olio at risk. Now, members of two of his centers have fully recovered, while one is sll in the process of rehabilitaon. “I connually movate all of them to keep on with life and living, whether there’s calamity or not. I always remind them to keep on praying

and that God always provides,” he said. From the members and from the tragedy, Dalton learned that it is beer to see difficult situaons in a posive light, to uphold sincerity above despair, to be thankful to God who has guided him to perservere over arduous days of winning the members’ hearts, and to understand that the pey things most people go on worrying about pale in comparsion to the wondrous and infinitely rich life that God has made

We’d love to hear from you! Please take a moment to give us your comments and suggesons on arcles presented on this issue. You may email: or visit our official website at or our other web accounts at the following:




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Communi-K • vol. 6 no.3

First phase of CBEDP slated for compleon before year ends By Calvin Perez

headquarters wherein it shall also serve as a holding area from where the dispersal of chickens to idenfied beneficiaries shall be held. Moreover, they said quarter shall store pernent documents of all of its officers The rehabilitated demo farm site of the FAITH Gardening Association. The small nipa and member/ hut serves as the resting area of care taker and for storage of files of its members. beneficiaries for consolidaon and he first phase of Communitybasis for monitoring and evaluaon Based Enterprise Development Another enterprise, the Carpenter Project (CBEDP) implementaon Hill Plant Propagaon and Nursery at Carpenter Hill, Koronadal City, South Management, enhanced its area by Cotabato is target to finish by October this conducng seed bed preparaons and year. CBEDP is on-going for compleon of filling up vacant space with cacao, coconut the process idenfied on the first phase of and coffee seedlings. The said enterprise the project proposal, i.e. rehabilitaon and also mounted its own water system to expansion of the demonstraon sites and cater to the daily maintenance needs of its construcon of display centers provided enterprise as well as the others occupying for the beneficiaries of the said program. it. The FAITH or Food Always In The Home Currently, the Kabalikat para sa Maunlad Gardening Associaon has rehabilitated na Buhay, Inc. (KMBI) spent around its showcase area by conducng plowing, Php555,000 for the said project. culvaon and other gardening acvies. The said enterprise also constructed a small Rehabilitaon and Expansion of hut to serve as resng area and storage Demonstraon Site of files of its members. The Vermi Culture Part of the first phase of the project and Compost Producon Associaon have is the rehabilitaon and expansions rehabilitated its showcase area by periodic work at the demonstraon site located cleaning and also maintained a handful of at Guadalupe, Carpenter Hill, Koronadal African night crawler in its worm bins. City, South Cotabato. The Carpenter Hill Nave Chicken Growers Associaon have Construcon of Display Centers expanded its area by construcng its Two display centers were strategically


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constructed near the Carpenter Hill Elementary School along Naonal Highway and Brgy. Sto. Niño in Koronadal City. Display centers will be used by the beneficiaries to showcase their products and skills. Currently, there are five local enterprises housed in the display center along Naonal highway, i.e. Carpenter Hill Alternave Therapeuc Massage Associaon, Food Always In the Home (FAITH) Gardening Associaon, Carpenter Hill Waste Recycling Associaon, Carpenter Hill Beaucian Associaon, and the BCH Integrated Floral Entrepreneurs. On the other hand, Carpenter Hill Talipapa Associaon has just started the construcon of the display center in Brgy. Sto. Niño. It was noted that the said enterprise put emphasis on the selecon of a site near a densely populated subdivision so as to aract a large segment of market or consumers who will patronize various goods to be put up by the said enterprise. Other acvies The Carpenter Hill Alternave Therapeuc Massage Associaon embarked on a one day licensure review to eleven of its members in an effort to prepare them to take the NC2 Licensure Examinaons and make them legal praconers of their cra. The move is necessary to empower the members since they can use the skills that they have acquired during the training caravan to earn a decent living and make them compeve in the industry. Moreover, they shall also serve as trainers to other interested beneficiaries of the community. Results of the said examinaon shall be revealed in the next issue of this publicaon


“I chose you to lead my people” (2 Samuel 7:8)

ISO Cerficaon envisioned to materialize by 2010 By Maylanie Apawan


ll efforts for the cerficaon of KMBI to ISO on January 2010 are in full swing.

Currently, as part of KMBI’s preparaon for cerficaon under ISO 9001:2008, the Quality Management Department spearheads the training of head office personnel coming from Training, Human Resource Development and Administraon, Operaons, Audit, Administraon, Finance and Accounng (FAD)and Resource Mobilizaon and Communicaons (RM&C) department on Quality Management Systems Internal Audit (QMSIAT) as well as the documentaon of KMBI processes, procedures and policies in me for the scheduled independent audit for ISO compliance before the year ends. Quality Management Systems Internal Audit Training (QMSIAT) is a course that is intended for professionals aiming to build on the knowledge of ISO 9001 and evaluate the effecveness of the quality management system in the organizaon. It is an intensive three-day course that teaches the principles and pracces of effecve quality management systems process audits in accordance with the ISO 9001 series of standards. The training guided the parcipants in the internal audit process, from planning an audit to reporng on audit results and following up on correcve acons. KMBI hopes to develop a pool of internal auditors who will be adept on the requirements of ISO 9001:2008. Also in preparaon to the Documentaon Audit of all processes, procedures and policies implemented by the organizaon, KMBI Organizaonal Manual and Branch Operang Manual

have already been updated to include all policies, procedures and processes not yet incorporated in the 2006 edion of these documents. All concerned departments (Audit, HR, Admin, Operaons and FAD) have updated their respecve processes in line with the requirements of ISO 9001:2008. A Summary of Quality Manual has also been draed outlining the quality policy statement, quality objecves and the general principles of quality to be adhered in all areas of KMBI operaon. Together with the Organizaonal Manual and Branch Operang Manual, these documents will be subjected to independent audit to be conducted by TUV Rheinland, one of the respected ISO accredited cerfying body in the Philippines. Orientaon of the forthcoming ISO cerfied audit will be cascaded to the branches of Daet, West Avenue, Metro Davao II, Kidapawan and Koronadal. The orientaon of these branches will be conducted by QM department beginning the last quarter of 2009 in preparaon to the scheduled independent audit which covers all aspects of KMBI operaons in these areas. The cerficaon of the head office and the inial five KMBI branches under ISO 9001:2008 will prelude the cerficaon of the projected 61 KMBI branches comes 2010. KMBI cerficaon under ISO 9001:2008 is indeed a realizaon of one of the organizaon core values of connuously achieving excellence in all our works and pursuits. ISO 9001:2008 are set of internaonally recognized principles governing quality management standard. In line with the purpose of connuously improving customer sasfacon, service

and customer oriented industries in the Philippines are now standardizing the quality of services and products being offered to its clientele. Be it in the industry of banking, manufacturing, educaon among others, ISO 9001:2008 finds applicaon in ensuring that the processes, procedures, and policies of these industries are in tuned with an internaonally recognized standard and quality. Accreditaon by an internaonally recognized independent cerfying body, such as the Internaonal Organizaon for Standard will vouch the quality of services and programs of being implemented by an accredited organizaon to be at par with what is internaonally recognized standard and requirements. In microfinance sector, specifically the MFI providers in the Philippines, are not immune to the current internaonal trend. A number of MFI providers in the Philippines have responded to the current call for ISO Cerficaon. KMBI, as one of the leaders in providing quality and holisc microfinance services in the Philippines, has responded to this challenge. Beginning this year, KMBI has outlined a year-long plan for ISO Cerficaon of its inial branches and head office operaon. The move will put the organizaon in the advantage of being one of the pioneers in the MFI industry in the Philippines to be ISO cerfied. And thus, vouch the highest quality of services and products we are offering to our clients and partners

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Organizational Performance

Communi-K • vol. 6 no.3 3rd Quarter 2009



Loan Acvity

Cost per Unit Lent (USD)*


Client Outreach


Cost per Loan Made (USD)*


Loan Por olio


Financial Self-Sufficiency


Value of Loans Made


Operaonal Self-Sufficiency


Por olio-at-Risk


Ave. No. of Client per PA


MF Operaons


No. of Loan Made


Support Group


Number of Staff

* USD 1.00 is equivalent to Php47.700 as of October 30, 2009

KMBI launches the HOPE FUND campaign


he recent tragedies brought about by Typhoon Ondoy and Typhoon Pepeng both on the lives and welfare of KMBI’s staff and clients, as well as its accompanying effect on its operaon surfaced quesons of our readiness to handle such large scale incidences. With more than 12,000 program members and staff directly affected by the recent events, we ask ourselves, how do we act on such occasions, and how do we migate losses both in lives, property and investments? How do we do it in a consistent developmental approach as to avoid dependency and mismanagement of resources? From such gut wrenching situaons, the HOPE FUND was established, primarily with the sole intenon of immediately responding in mes of calamies. It aims to provide immediate relief services to affected program members and staff (since the primary need is survival and damage migaon for the first week), and a long term rehabilitaon program, which aims to assist microentrepreneurs in restructung their current loans and restart their businesses. The HOPE FUND is a standby mechanism both funded by a poron of our Transformaon budget (or 10% of the Transformaon allocaon, which comes from 10% of the gross annual income), and grants and donaons by partners and friends. HOPE Relief iniaves shall be taken from the Transformaon allocaon, while HOPE Rehabilitaon shall be used to restructure exisng loans of affected members and allow them to avail of regular loans.

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Among the supporters of the campaign include the Alliance of Philippine Partners in Enterprise Development (APPEND), Opportunity Internaonal Germany and Grameen Foundaon. We are sll looking for donors and partners in ensuring that we are prepared and able to respond in cases like typhoons, landslides, and fires wherein KMBI branches operate. Your donaons shall be treated with utmost sense of stewardship. Corresponding official receipt, cerficates of donaon for corporaons (for tax credit purposes), ulizaon reports shall be provided for donors. You can deposit yor cash or cheque donaons at the account listed below. For cheque donaons, kindly write KABALIKAT PARA SA MAUNLAD NA BUHAY, INC. as payee. Aer deposing the cash or cheque, please inform us of the pledge at FOR PESO DONATIONS: Account Name: Kabalikat para sa Maunlad na Buhay, Inc. Bank: Banco de Oro (BDO) Branch: SM Super Center Valenzuela City Swi Code: BNORPHMM Savings Account No.: 209019913-6 FOR DOLLAR DONATIONS: Account Name: Kabalikat para sa Maunlad na Buhay, Inc. Bank: Bank of the Philippine Islands (BPI) Branch: Marulas, Valenzuela City Swi Code: BOPIPHMM Savings Account No.: 0194009917

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

communi-k 3rd quarter 2009  
communi-k 3rd quarter 2009  

Rising through crisis brought about the recent typhoons that ravaged the Philippines.