kenya teachers sacco association limited
TRANSCRIPT
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KENYA TEACHERS SACCO ASSOCIATION
LIMITED
P.O Box 871-00900
KIAMBU
STRATEGIC PLAN REVIEW REPORT © 2019
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Table of Contents STRATEGIC PLAN REVIEW REPORT .................................................................................................. 1
1.0 KETSA STRATEGIC PLAN REVIEW ........................................................................................... 3
1.1 Vision ........................................................................................................................................... 3
1.2 Mission Statement ...................................................................................................................... 3
1.3 Motto/Slogan ............................................................................................................................. 3
1.4 Post Review SWOT Analysis ................................................................................................... 4
2.0 SCOPE OF THE STRATEGIC PLAN REVIEW ............................................................................ 6
2.1 Kenya Teachers SACCOs Association Synopsis .................................................................... 7
3.0 STRATEGIC PRIORITIES AND OBJECTIVES ............................................................................ 8
Pillar 1: Membership Growth .............................................................................................................. 8
Pillar 2: Capacity strengthening and learning ................................................................................... 9
Pillar 3: Deposits and Investments growth ........................................................................................ 9
Pillar 4: Partnership, Research and Advocacy ................................................................................... 9
Pillar 5: Policy framework and operational efficiency .................................................................... 10
4.0 KETSA Strategic Objectives Implementation Matrix .................................................................... 11
5.0 MONITORING AND EVALUATION .......................................................................................... 18
5.1 Introduction ...................................................................................................................................... 18
5.2 Monitoring and Evaluation Strategies ............................................................................................. 18
5.3 Content of the Monitoring Report .................................................................................................... 19
5.4 Evaluation Framework ...................................................................................................................... 19
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1.0 KETSA STRATEGIC PLAN REVIEW
The future of any organization is governed by its vision, mission and values. In order to better
understand organization clarity of its mandate and strategic direction, its vision, mission and
values have to be well defined.
Setting the vision, mission, Motto and Core Values is a very important thing a leader does for an
organization.
1.1 Vision
A vision specifies what an organization wants to be in the future. It provides inspiration and
motivation for the organization. The Vision of KETSA is:
‘To be the leading Association in Kenya championing Sacco growth’
This vision implies that KETSA shall:
Continuously benchmark itself with top players in the market in the provision of
Advocacy services
Consistently seek to provide quality services to its members
Seek to offer services designed to transform the welfare and growth of its
members
Provide products and services that are competitive in the financial services sector.
1.2 Mission Statement
The mission sets out the purpose of an organization. Stipulates the business of an organization,
where the business will be done and how it will be done. The Mission of KETSA is:
‘To innovatively promote unity and social economic growth to Sacco fraternity through
advocacy, resource mobilization and investments, for maximum shareholders’ returns.’
This mission implies that KETSA shall:
Be innovative in offering product and services.
Continuously seek to understand the dynamic financial needs of its membership
Appreciate the diverse needs of its members to design and deliver products,
services and advocacy customized for their needs.
Consistently prioritize efficiency in its products and services offering.
1.3 Motto/Slogan
A slogan/motto is a statement that captures the Sacco’s philosophy, culture and norms. KETSA
Motto/Slogan is: Unity our strength!
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1.4 Post Review SWOT Analysis
SWOT analysis involved evaluating Kenya Teachers’ SACCOs Association internal strengths
and weaknesses and its external opportunities and threats. It is an easy-to-use tool for getting a
quick overview of a firm’s strategic situation. It underscores the basic point that strategy must
produce a good fit between an organization’s internal capability and its external situation.
The results of the KETSA SWOT analysis is shown in the analysis below:
INTERNAL ENVIRONMENT
Analysis of internal environment was carried out to identify factors within the organization that
may positively (strengths) or negatively (weaknesses) influence its future performance.
Strengths
The strengths of KETSA are:
Capital- internally generated capital from our contributions
Quality leadership
Enlightened and knowledgeable members
United- KETSA has a common unity of purpose
Legally constituted- we are registered
Dedication/ commitment to the Association (patriotic members)
KETSA has come from a region where there is a rich co-operative movement
Goodwill from Apex bodies and government
Weaknesses
The weaknesses of KETSA are:
Collision between KETSA programs with those of Member SACCOs.
Lack of adequate operating funds
Low membership 19 against all the available Teacher SACCOs in Kenya
Weak capacity in envisioned projects’ management
Lack of national outlook
Legal status of the Association not clear
Lack of a succession plan
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EXTERNAL ENVIRONMENT (PESTEL)
External environmental analysis identified external factors that may influence the institution’s
performance favorably (opportunities) or unfavorably (threats). The analysis resulted in the
identification of the following opportunities and threats.
Opportunities
The opportunities available to KETSA include:
o Availability of funds for on lending and ready market
o Potential members - Open membership to all Teacher SACCOs in Kenya
o Investment opportunities
o Partnership and collaborations
o Ability to influence policy on Sacco sector
o High Investment appetite for real estate and money market
o Customized ERP software available
o Advancements in digital finance and e- communication
Threats
Threats to KETSA include:
o Limited funds by individual Sacco members
o Political interference (internal and external)
o Competition from external institutions on investment matters
o High cost and obsolescence of technology
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2.0 SCOPE OF THE STRATEGIC PLAN REVIEW
The strategic plan review was conducted within a period of two months from the date of strategic
plan receipt (5th November 2019). It involved five distinct stages:
Studying, scrutinizing & mapping the strategic plan.
A one day review workshop at Bamburi Beach Hotel in Mombasa County. The workshop
was attended by All the Board and CEOs of member SACCOs. The purpose of the
workshop was to review the document together while developing the ideal
operationalization framework to deliver implementation and results.
Post review and writing the report which includes recommendations.
KEY BUSINESS DRIVERS & RESULT AREAS
1. Governance
a. Membership growth
b. Capacity strengthening and Learning
c. Partnerships
d. Compliance to legal framework
e. Research and Advocacy
2. Operations
a. Optimization of the Organization structure
b. Human Resource Management
c. Risk Management and Internal Control Frameworks
d. Operational Efficiency
3. Finance
a. Share Capital growth
b. Deposits growth
c. Loan portfolio growth
d. Investment Mix and Income
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2.1 Kenya Teachers SACCOs Association Synopsis
From the review that was conducted on 13th November 2019 through the interactions with the
KETSA Board members, CEOs and subsequently interactions with the Association Managers,
Synergy Financial Advisory consultants noted the following:
The Association’s governance structure is well constituted with an able Board Chairman,
Board members, CEOs and a Manager whose goodwill has propelled the Association to
higher heights in sustainable growth over the years.
The Association has loyal Members (Teachers SACCOs) with competitive some financial
products and services but from the discussions with some few members, they felt that the
Association needed to do more in formulating competitive & friendly products, offer
diversified research and Advocacy services to enhance its relevance and sustainability.
The Association has done little publicity and the information to do with its services,
Advocacy and operations within the Kenya Teachers SACCOs market is scanty. Majority
of the Members whom we interviewed seemed not to understand the KETSA operations
in as far as financial services, Investments and Advocacy is concerned.
The Association has developed customized capacity development programs for Board
members and members of staff. These programs are patronized well by its members
during the year.
The Association has adopted the best business practices of developing strategic planning
objectives alongside which they benchmark their operations, advocacy and marketing
interventions upon. The Association’s objectives are well curved out but from the review
exercise, the Consultant was able to spot many short comings in as far as setting the
strategic interventions, formulating the marketing and operational plans is concerned. The
Association had envisioned generating power and sale of plots which never happened.
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3.0 STRATEGIC PRIORITIES AND OBJECTIVES
Strategic Priorities
Strategic issues are fundamental challenges affecting an organization’s mandate, mission,
products and services to its customers. Identifying such issues enables an organization to focus
on key challenges facing it. Not all issues facing an organization are strategic. It is vital for
strategic issues to be dealt with expeditiously and effectively if the organization is to survive and
to prosper. An organization that does not respond to strategic issues can expect undesirable
results from a threat, weaknesses or a missed opportunity. Once strategic issues have been
identified, objectives, strategies and action plans are developed around them. After the review
strategic development workshop deliberations and agreement thereof, the following are the
strategic issues that KETSA shall be pursuing within the strategic period:
Membership growth.
Capacity strengthening and learning.
Deposits and Investments growth.
Partnerships, Research and Advocacy.
Policy framework and operational efficiency.
Objectives are needed for each key result area that the society considers crucial to its success. To
achieve the envisioned objectives, specific and appropriate actionable strategies must be put in
place.
Pillar 1: Membership Growth
Objectives:
To recruit all teacher based SACCOs in Kenya.
Strategies:
Conducting extensive marketing and market awareness.
Engaging in lobby groups who could propagate KETSA agenda to all potential
customers
Employ one staff to assist the Manager to run the operations and programs.
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Pillar 2: Capacity strengthening and learning
Objectives:
Provide adequate exposure in to the various Association’s committees, secretariat and
members of staff.
Running capacity development programs to all board members and members of staff
for the teacher based SACCOs.
Strategies:
Conduct training needs analysis.
Conduct an assessment to understand learning needs and objectives.
Improve on customer experience/value proposition, satisfaction and complaint
management.
Pillar 3: Deposits and Investments growth
Objective:
Continually mobilize deposits and prudently invest the available resources for the
association.
Generate revenue through running open trainings for board members and
members of staff from the teacher based SACCOs.
Develop a core banking system (ERP) to serve all SACCOs.
Strategies:
Continual Savings mobilization and Capitalization from the member SACCOs
and investing prudently for maximum returns.
Invest excess or idle funds in short term viable vehicles.
Sharing the training calendar with the Member SACCOs CEOs in advance and
conduct marker awareness of the programs.
Organizing the seminars in strategic locations.
Pillar 4: Partnership, Research and Advocacy
Objectives:
To always champion the rights of teachers and moderating regulations governing
SACCOs within the Republic of Kenya.
Establish collaborations and partnerships with the relevant bodies and authorities
to enhance Advocacy and strengthening teachers-based SACCOs.
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Strategies:
Identify the regulations flaws that could be abused against the rights and freedoms
of teachers by the employer or any other body.
Establish a harmonious relationship with all Sacco’s stakeholders, regulator
(SASRA) and TSC.
Consciously stay abreast of matters affecting the Sacco sector.
Register with relevant member association.
Pillar 5: Policy framework and operational efficiency
Objective:
To establish, maintain and review on a quarterly basis an organizational wide
well-articulated Enterprise risk management framework to ensure business
continuity.
Strategies:
Enhance processes efficiency and automation.
Enhance staff productivity be developing schemes of work, Performance
enhancement and management.
Develop risk management framework and internal controls within the
Association’s operations.
Optimize association structure and capacity.
Ensure 100% compliance with the relevant regulations.
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4.0 KETSA Strategic Objectives Implementation Matrix
KEY BUSINESS DRIVER: GOVERNANCE
KEY RESULT AREA: MEMBERSHIP
OBJECTIVE 1:INCREASE MEMBERSHIP BY 10 SACCOS ANNUALLY TO 30 SACCOS BY 2021
STRATEGY ACTIVITIES KPI TIMELINE RESPONSIBLE
Recruit all teacher based Saccos into
membership
Identify and communicate with all
teacher based Saccos
Report February
2017 and
continuous
Communicate the KETSA widely Open an social media page Social media presence Continuous
Develop a KETSA website Interactive website
Communicate at co-operative days Reports
KEY RESULT AREA: CAPACITY STRENGHTHENING & LEARNING
OBJCETIVE 1: ENHANCE THE CAPACITY OF THE BOARD AND SECRETARIAT TO OVERSEE KETSA SERVICES
AND PERFORMANCE
Provide adequate exposure in
business lines to various committees,
secretariat and staff
Conduct an assessment to
understand learning needs and
objectives
Report December
2019
Identify potential learning partners Continuous
Benchmark to understand the Continuous
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various business lines
Conduct training Number of members
trained
continuous
KEY RESULT AREA: RESEARCH & ADVOCACY
OBJECTIVE 1: PLAY A PIVOTAL ROLE IN CHAMPIONING THE GROWTH OF SACCOS
Consciously stay abreast of matters
affecting the Sacco sector
Establish a Research and Learning
function
Report Continuously
Partner with others in the sector Number of partnerships
Ensure representation at relevant
stakeholder forums
Number of forums
participated in
KEY RESULT AREA: PARTNERSHIPS
OBJECTIVE 1: ENSURE EFFICIENT DELIVERY OF OBJECTIVES
Partner with leaders in the various
business lines e.g. e-channels,
insurance, real estate, electricity
generation, and advocacy. etc.
Identify key stakeholders and
manage relationships
Report Continuously
Establish networks with various
relevant sectors
Register with relevant member
association
Number of affiliations Continuously
KEY RESULT AREA: LEGAL COMPLIANCE
OBJECTIVE 1: ENSURE 100% COMPLIANCE WITH RELEVANT FRAMEWORK
Ensure legal compliance with all
relevant government and other
Identify relevant legal framework Report Continuously
Procure/ avail required guidelines Number of legal Continuously
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agencies requirements and communicate to relevant
committees and staff
requirements
communicated
Ensure 100% compliance with
requirements
Number of exceptions Continuously
KEY BUSINESS DRIVER: OPERATIONS
KEY RESULT AREA: OPTIMIZATION OF THE ORGANIZATION STRUCTURE
OBJECTIVE 1: ENSURE 100% DELIVERY OF THE STRATEGIC PLAN
STRATEGY ACTIVITIES KPI TIMELINE RESPONSIBLE
Optimize organization structure Design optimal organizational
structure with clear delivery and
reporting lines
Org structure approved January 2019
Design role profiles and job
descriptions
February
2020
Recruit one extra member of staff to
enhance operations
Design a mentoring and coaching
program to ensure skills transfer
KEY RESULT AREA: HUMAN RESOURCE MANAGEMENT
OBJECTIVE 1: ENHANCE STAFF PRODUCTIVITY ANNUALLY
Schemes of work Conduct a comparator survey on
schemes of service and competency
Report Continuous
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frameworks in the industry
Design and implement adequate
Schemes of Work
Report Continuous
Performance management Design and implement a
performance based personnel
management system complete with
reward/ remedial criteria
Report Continuous
Capacity enhancement Conduct training needs analysis TNA and Training Plan Continuously
Provide best practice adaptation
training
Number of staff trained Continuously
Leave management Develop and implement a
comprehensive leave management
schedule
Report Continuously
Ensure not more than 25% leave
days carried forward
Number of days carried
forward
December
2019
KEY RESULT AREA: RISK MANAGEMENT &INTERNAL CONTROLS
OBJECTIVE 1: ESTABLISH A COMPREHENSIVE RISK MANAGEMENT FRAMEWORK
STRATEGY ACTIVITIES KPI TIMELINE RESPONSIBLE
Standardize operations Assess the required operating
manuals
Report Continuously
Develop relevant manuals and
policies
Number of manuals and
policies developed
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Communicate policy guideline and
operating manuals to BOD and staff
Number of BOD and
staff trained
Continuously
Ensure adequate security of KETSA
assets
Establish an internal audit structure Approved structure Continuously
Ensure data and information security Conduct daily data back up Number of exceptions
Ensure offsite data back up
Ensure comprehensive data access
rights and audit trail
KEY RESUT AREA: OPERATIONAL EFFICIENCY
OBJECTIVE 1: ENSURE 100% COMPLIANCE TO SERVICE CHARTER
STRATEGY ACTIVITIES KPI TIMELINE RESPONSIBLE
Enhance processes efficiency Conduct Process Mapping exercise Report Continuous
Identify potential service
bottlenecks and resolve
Ensure adequate competence of
staff
Ensure proper placement of staff
Ensure automation of processes Identify areas that require
automation
Continuously
Conduct MIS Audit February
2019
Define software and hardware
requirements
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Procure and install robust ERP
system
January 2020
Leverage technology Identify areas where mobile/ e
service can be of use and implement
Number of e service
channels
Continuously
Ensure adherence to the internal and
external Service Charter
Develop departmental/ project
based Service Level Agreements
Report Continuously
Monitor compliance to SLAs Exceptions report Continuously
KEY BUSINESS DRIVER: FINANCE
KEY RESULT AREA: FINANCIAL INVESTMENTS
OBJECTIVE 1: ENSURE 100% RISK MANAGEMENT FRAMEWORK IN ASSET MIX
STRATEGY ACTIVITIES KPI TIMELINES RESPONSIBLE
Invest excess or idle funds in short
term viable vehicles
Select Investments Committee Committee in place Annual
Identify viable investment vehicles Report
Conduct trend research into viable
investment vehicles
Select investment vehicles by past,
current and projected performance
Enter favorable agreements
Monitor performance and take
timely corrective action
% non-earning assets
annually / % increase in
revenue / loss
Monthly
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KEY RESULT AREA: DEPOSITS PORTFOLIO GROWTH
OBJECTIVE 1: INCREASE DEPOSITS TO KSHS 38 MILLION IN 2017, 58M BY 2018, 95M BY 2019, 135 BY 2020, 200M BY
2021
Increase Deposits of Ksh 200,000 per
member per month
Develop Deposits and Interest
policy
Approved policy Continuous
Integrate Deposits into member
database
Report Continuous
Establish a Deposits Collection
system
Continuous
Develop value proposition and
communicate to members
Continuous
Ensure 100% monthly collections Monitor performance, complete
with exception reports and
regularize
% monthly collection/
exceptions
Continuous
5.0 MONITORING AND EVALUATION
5.1 Introduction
Monitoring and evaluation for the strategic plan needs to be designed to ensure effective
implementation and that the sustainable impacts are being attained. KETSA will apply both
quantitative and qualitative techniques to monitor the planned performance of its respective
Departments. The major techniques of monitoring and evaluation that shall be used are variance
analysis and budgets.
Variance Analysis: The departments will simply compare performance targets with the relevant
actual results and any variance identified. As a consequence of variance analysis and
identification of causes, the management shall take appropriate remedial actions.
Budgetary Control: Actual results will continually be checked against planned results and
variances investigated. If necessary, action plans will be changed so that they are brought in line
with the budgeted results or the budget will be amended to take account of new developments
that require action.
In both the emphasis should be on applying participatory methods that shall ensure the
involvement of all the Board members, CEOs and staff of KETSA. This will create ownership
and commitment to the achievement of the planned objectives.
5.2 Monitoring and Evaluation Strategies
Monitoring the implementation of the strategic plan constitutes systematic tracking of activities
and actions to assess progress. Progress is measured against specific targets and schedules
included in the plan. This is followed by analyzing and reporting of information to various users.
This helps them to remain alert to any short-falls or deviations and taking early corrective action.
Effective monitoring also helps to identify difficulties and problem areas, and to take immediate
remedial action, thereby ensuring that targets are achieved. Regular reporting at all levels is
necessary for follow-up and record keeping. The following M & E framework will be put in
place by the Company in order to ensure effective implementation of the strategic plan:
5.3 Content of the Monitoring Report
The contents should include:
Extraction of strategic plan relevant for that specific year (2020, 2021)
An approved operational plan for that year
Achievements compared to planned outputs and activities. Achievements need to
indicate both qualitative and quantitative attributes
Constraints over the period whether internal or external
Proposed remedial actions intended and the way forward clearly spelt out and
indicating plan of activities to be carried out for the next period such as three months,
six months, or a year.
5.4 Evaluation Framework
The framework should include:
The overall responsibility of designing and operationalization of the evaluation
framework shall be the Chief Executive Officer through the Strategic Implementation
Team.
Development of clear responsibility sharing at all strategic plan implementation levels
Development of clear guidelines on the aspects of the evaluation that will include:
modalities and time.
The Chief Executive Officer and each department should carry out annual evaluations
as part of on-going monitoring and evaluation exercise. The evaluation reports will
serve as important inputs to the mid-term and terminal evaluation exercises of the
strategic plan.