Location: Iraq
Organization: Global Communities
Job Level: Mid-level
Background:
CHF International’s Access to Credit Services Initiative (ACSI) is the largest microfinance service provider in Iraq. Since 2003, it has built a portfolio of $45 million serving over 20,000 active clients. Over the next five years, ACSI anticipates to grow its portfolio by an additional $40 million. This type of growth requires the adaptation of its structures, procedures, systems, controls, risk management and products to its future needs.
Presently, CHF ACSI’s decision-making is highly centralized in most aspects of the business. No credit approvals are made at the branch level. Branch managers have no check signing authority. Petty cash is tightly controlled by the head office. Department heads and to some degree senior management remain involved in branch-level decision making. The result is that management staff capacity is stretched, and little time is available strategic adjustments and innovation. The present structures ensure sufficient controls for CHF ACSI’s present size, but will become significant bottlenecks to growth if not addressed.
Over the past year, CHF ACSI has deliberate efforts to decentralize authorities to department heads including budgeting, signing authority and staffing decisions. This process has been successful, as it was coupled with strong coaching, revision of procedures and controls, and support of the new human resource department head.
ACSI is seeking a consultant to support its present efforts to delegate authority to the departments, and to tackle decentralization to the branches. The ultimate goal of CHF ACSI is to shift its branches from cost centers to profit centers. This implies significant strengthening of branch management structures to move from ensuring implementation of procedures to making decisions, being involved in planning, taking responsibility for ensuring that not only credit targets are met, but also branch-level profit, exposure and other qualitative goals are achieved. The decentralization of decision making implies a need to revise both procedures and controls. It also implies training and possibly recruiting staff to take on the new responsibilities.
Objectives and overall scope
The overall goal of the consultancy is to provide capacity building to CHF ACSI management which enables it to effectively decentralize decision-making and responsibilities to the branches within a 12 month period. To achieve this, specific objectives include:
- Determine the specific authorities and activities which need to be delegated to branches in order to ensure effective growth and efficient operations
- Provide specific policy and procedure recommendations
- Identify capacity building requirements and make recommendations as to how to address (ie training, coaching, recruitment, etc)
- Support the piloting of recommendations in two branches
- Offer needed training to management and branch level staff
Description of Services
Over the period of assignment, the consultant will fulfill the following activities.
Determine the specific authorities and activities which need to be delegated
Conduct an on-site assessment of each department and at least two branches to map the present state of operations, decision-making and controls in the key areas of credit operations, portfolio management and reporting, accounting, human resources, procurement and facilities.
Provide specific policy and procedure recommendations
- Based on assessment, work with the branch managers, department heads and co-Directors of CHF ACSI to develop a decentralization plan for each critical aspect.
- Adjust authority matrix to reflect proposed changes with input from CHF ACSI staff and management
- Work with department heads to revise procedures for each affected department to ensure sufficient internal controls, with focus on newly delegated authorities.
- Based on the assessment, outline capacity gaps
- Working with management staff, determine the most effective way to address the capacity gaps (ie through training, recruitment, coaching, other).
- Support CHF ACSI management to develop a capacity building plan
- Liaise with a local designer and relevant department heads to develop a branch design, taking into account require changes to the office infrastructure and presentation.
- Support CHF ACSI management to identify two pilot branches to test the decentralization plans.
- Work with ACSI management to develop a pilot planning template with clear targets, and a timeline for roll-out of each. This template should ensure that all critical indicators are prioritized, measured and analyzed prior to roll-out.
- Provide guidance on pilot launching
- Check in at regularly scheduled interviews throughout the pilot to monitor progress and provide advice to needed adjustments
- Support ACSI management in reviewing the final results of the pilot
- Based on the capacity building plan, provide technical support to CHF ACSI management and branch staff throughout the pilot
- Based on the pilot assessment, assist ACSI management to develop a training plan for branches during roll-out.
- Assessment Report with recommendations
- Branch Restructuring Plan (with organizational chart, revised job descriptions, revised policies
and procedures, authority matrix, new internal control mechanisms, process maps, etc.) - Pilot plan template
- Branch pilot review report with recommendations
- Training/support to relevant Branch and HQ staff in new policies and procedures
- Quarterly briefs (reports) on roll out of recommendations through training/capacity building activities.
- Final Report on implementation of decentralization, with any pending recommendations
Minimum Requirements and Qualifications
This assignment may be carried out by an individual, firm or team of individuals, able to demonstrate the following qualifications.
- Bachelors of Science in Finance, Banking, Accounting or related field. (Masters a plus)
- At least ten years of experience in the field of banking and/or microfinance
- Experience managing microfinance operations, particularly relating to decentralized operations and branch structures, segregation of duties and internal controls.
- Demonstrated capacity to provide suitable training and performance improvement, including development of policies and procedures.
- Past references testifying that the consultant had performed similar tasks/consultancies for the benefit of reputable Microfinance or SME lending institutions.
- Strong verbal and written communication skills
- Fluency in English; Arabic preferred if possible
- Level of Effort: The consultancy will be for a maximum of 35 days, of which no less than 20 working days are on-site in Lebanon and Iraq.
- Period: March 2013 – June 2013 (initial on-site work) to June 2013 – March 2014 (off-site support and one follow-on training/assessment visit)
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