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Improving Decision Making Quality Audit Tool in Strategic Planning Process Kasia Pawlak. Bern, Switzerland, June 2010. QAT: strengths and weaknesses of an MFI. Intent and design Are there social goals and objectives in place? How clear are they?
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Improving Decision Making Quality Audit Tool in Strategic Planning Process Kasia Pawlak Bern, Switzerland, June 2010
QAT: strengths and weaknesses of an MFI • Intent and design • Are there social goals and objectives in place? How clear are they? • Is there a strategy supporting realization of social goals and objectives in place? How consistent is it? • Information systems • Does IS support achieving social objectives? How effectively? • Is SP information in available? How reliable & relevant is it? • Management systems • Do all levels of MFI make decisions using SP information? How effective is decision-making for improving SP? • Are there internal systems supporting setting and achieving social objectives in place? How effective are they?
QAT for strategic planning (1) QAT findings Strategicissues • Mission clarity and commitment across MFI [strategic goals] • Lack of SMART objectives for outreach [strategic goals] • Ineffective outreach strategy limited to geographical targeting resulting in low target market penetration [market strategy] Strategic goals & marketstrategy • depth vs. breath of outreach targets • selection of targeting strategies: product, geographical, direct
QAT for strategic planning (2) QAT findings Strategic issues • Regular client feedback research for product development [marketing, information system] • New products development skewed towards meeting short-term financial targets [decision-making, marketing] Product strategy profitability vs. other goals mix of performance criteria for new products
QAT for strategic planning (3) QAT findings Strategic issues • LOs targeting driven by financially skewed Staff Incentive System [HR system, market strategy] • Recruiting practices for Los unsupportive to social mission [HR systems] Aligning HR systems Aligning incentives and recruitment criteria to support market strategy
QAT for strategic planning • Identification of strengths and weaknesses -> SWOT • goals, strategy and systems alignment to fulfill mission • Influence on strategic decision-making: • market and product strategies • growth strategies • competitive strategies • operational changes to better support double/tripple bottom line strategy
Microfinance Centre Koszykowa 60/62 m. 52 00-673 Warsaw, Poland Tel.: +48 22 622 34 65 Fax: +48 22 622 34 85 www.mfc.org.pl kasia@mfc.org.pl Thank you!