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BRAC Institutional Assessments

Assessing operational performance in three important international markets outside Bangladesh


YEARS

2012

CLIENT DESCRIPTION

BRAC is the world's largest development organisation, whose efforts to alleviate poverty touch the lives of 135 million people in 11 countries in Asia, Africa and the Caribbean. Since 2008, it expanded its microfinance program into several countries, including Uganda, Tanzania and Pakistan. In all countries, the focus has been on more rural areas.

CLIENT'S OBJECTIVE

Increase the organization's efficiency in delivering credit in Pakistan, Uganda and Tanzania

Results

BUSINESS RESULTS

Operational efficiencies are being achieved in the relevant country branches.

The assessment results are being used in the context of BRAC’s relationships with its funders, including transaction terms.

The assessment results will inform investor outreach for further capital to support BRAC’s growth in each country.

SOCIAL & ENVIRONMENTAL OUTCOMES:

BRAC’s village organization members are receiving credit more expeditiously, while maintaining appropriately-sized loans.

More female staff are being promoted to senior branch manager positions as a result of changes in Human Resources policies deriving from the assessment.

Activities

Assessed the governance, management structure, systems, policies, procedures, and products in place.

Conducted a detailed review of risk management, internal audit, human resources, finance, and accounting functions.

Reviewed the credit operations and distribution network of branches and sub-branches.

Analysed the loan portfolio and calculated Operational Self Sufficiency and Financial Self Sufficiency indices to determine portfolio health and efficiency.

Collected client feedback on service quality and needs.

LEARNINGS

BRAC’s highly effective method of replicating its operations ensures rapid, low-cost, predictable expansion. Some modifications were necessary, however, to increase the organization’s effectiveness and efficiency in serving borrowers and managing local staff. Finding the optimal balance between highly systemized approaches and making accommodations for local opportunities, constraints and cultures is a challenge faced by most global institutions.