Production & PAR Special Assistance Supervision (SAS)Introduction and Overview of Policy Developed in the Africa Region July 15, 2012

Special Assistance Supervision Quick Overview

Objectives

Client Growth and Portfolio Quality (Production Standards Policy):

• Create clear, communicated performance targets for LOs

• Optimize performance levels in Growth and Portfolio Quality

• Enhance Performance Management and Staff Supervision

• Create a regionally standardized and comparable management & reporting structure.

Arrears Management (PAR-SAS):

• Reduce the amount of time LOs spend in collection

• Ensure that BMs anticipates repayment issues and responds to PAR problems the day they occur

• Strengthen FINCA credit culture

• Achieve healthy business growth

• Enhance LO ownership and increase accountability  

Definitions

• Minimum Production Standards – the minimum client numbers required for a LO of a given experience. If the LO is below the minimum Production Standards 3 days after the end of the month (Grace Period) then the LO will enter SAS.

• Exposure Limits – maximum number of clients or portfolio value that can be managed by a single LO

• Experience Months – the number of months an LO has worked following the 6 month probation period; each additional “experience month” carries a minimum and ideal number of clients which that LO must have.

• Performance Targets – the agreed goals set and agreed upon by the employee. These are the targets to be used for ongoing performance evaluation purposes on a weekly basis and for semi-annual performance evaluations.

Production Standards – SAS

Production Standards – SASSummary

• Production Standards (PS) constitute the foundation of the performance target setting process for staff.

Establish minimum performance standards.

Outline monitoring, coaching and other management responsibilities.

• All LOs will be expected to meet or exceed the Minimum Production Standards.

• PS-SAS is designed to monitor the LO performance in terms of outreach (loan portfolio and clients).

• LO performance is monitored weekly and under-performance is addressed through 4 special assistance phases.

Production SASPhases 1-2

• Yellow Phase: If a LO does not reach the minimum Production Standards, then the LO is placed in the Yellow Phase of PS-SAS

LO will have 2 months to meet or exceed the minimum total number of clients needed for the following month.

Supervisor will develop a growth plan with the LO. 

• Orange Phase If the LO has not met the minimum client Production Standards within 2 months, then the LO moves to the Orange Phase.

LO will have one month to achieve the minimum standard total clients.

Supervisor and LO must develop a clear growth plan outlining the details on how they will achieve the client target . Plan must be approved by BM.

Progress must be tracked during Weekly Supervisor Meetings and the BM be informed of all progress.

Production SASPhases 3-4

• Red Phase: If, after 1 month in the Orange Phase, the LO has not met the minimum client production standards, then the LO moves to the Red Phase.

LO then has until the end of the next month to achieve the minimum standard for total clients.

LO must focus 100% of his/her effort on growth activities.

LO shall receive all reasonable support from his/her Supervisor to achieve the minimum standards.

• Review Committee Phase: If the LO has still not met the Minimum Production Standards after the Red Phase, then he/she must attend a Performance Review Committee.

Committee is comprised of the Supervisor, BM, COO, CM, and HRM.

Committee must decide how to best manage the LO’s portfolio going forward.

Portfolio at Risk – SAS

Portfolio at Risk - SASSummary

• PAR-SAS is designed to monitor how well a LO is managing the quality of his/her portfolio.

• All LOs must meet or exceed the existing PAR Standards, meaning that LOs must continue to maintain PAR >1 less than 5%.

• LO performance is monitored weekly and under-performance (PAR >1 greater than or equal to 5%) is addressed through 4 special assistance phases.

• PAR-SAS will always supersede PS-SAS.

• Time a LO spends in PAR-SAS Orange/Red phase shall not count towards their “Experience Months” (for client growth in Production Standards Policy)

PAR-SASPhases 1-2 for VB

• Yellow Phase: If a LO has PAR > 1 day of 5% or more for three consecutive days, then the LO is placed in the Yellow Phase.

LO will have 2 weeks to reduce PAR > 1 day below the agreed upon target.

LO must plan emergency meetings with the 5 VB Groups with the highest PAR in his/her portfolio prior the next scheduled Group Meeting.

• Orange Phase: If PAR is still not below the agreed upon target after 2 weeks, then the LO moves to the Orange Phase.

LO has 1 Month to reduce PAR > 1 day below 5%.

Supervisor and LO must develop a detailed plan on how to reduce PAR. Plan must be approved by the BM.

Together with the group executives, LO must visit the homes of delinquent clients of the 5 VB Groups with highest PAR in his/her portfolio.

LO must also visit Local Leaders in delinquent clients’ neighborhood.

PAR-SASPhases 3-4 for VB

• Red Phase: If PAR is not below the required limits after 1 month, then the LO moves into the Red Phase.

Supervisor and LO must develop a detailed plan on how they will reduce PAR.

Plan must be approved by the BM.

LO will have weekly Supervisor Meetings with the Supervisor and BM.

LO will be required to hold weekly VB Group Meetings with the 5 VB Groups with highest PAR in their LO portfolio.

• Review Committee Phase: If

Committee is comprised of the Supervisor, BM, COO, CM, and HRM.

Committee must decide on how best to manage the LO’s portfolio going forward.

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