1. How does SPM help FI address operational challenges? Youssef Fawaz – Al Majmoua

2. Overview  50,000 clients  USD 44 Million Outstanding Portfolio  Group and Individual loans  BDS  Targeting social and economic needs (Group loans for women, Business loans for working capital and investment needs, Home improvement... )  21 branches  285 staff

3. Historical Growth Average growth 31% 5.5X size from 2006-2013

4. Challenges o Period of high-growth (2007-2013) o Growth oriented training o Many new LO (“weaker” in their social commitment) o Widening gender imbalance in clients and staff o Higher rate of D.O. LO turnover (Exit Survey) No systematic follow up of DO from LO (unanswered phone calls) o Worries about level and quality of customer service o Product may no longer match clients needs (size, tenor…) o How to shift to a client centric culture

5. Goals o Create a SPM culture across the organization o Improve client service o Improve product development o Better understanding of market segmentation

6. Strategy Highlights o Creation of SPM committee o Development of an SPM Dashboard o Development of an SPM action plan embedded in the institutions’ action plan o Adoption of Smart Campaign o Updating of code of ethics and conduct

7. Solutions (HR) o Changes in recruitment process Field visit previous to HR interview Behavioural questions during the interview to assess if we have a cultural match More women recruited o Monitoring percentage of women on all levels within AM o Adoption of measures to allow women to have more balance with their personal lives/family commitments o Including SPM dimensions (customer service) in employee appraisal % of female entrepreneurs % of clients renewal versus new Clients complaints Number and type of Hotline complaints

8. Solutions (Training) o Revision of Training program and curriculum Shift from field-only focus to classroom oriented focus 10 days introductory workshop (6 classroom, 4 field) Organizational Culture (Code of Ethics/Conduct) (1/2 day) Promotion and Customer Service (1/2 day) SPM (2 hours) Refresher courses for existing staff

9. Solutions (Operational) o Systematic follow-up on all closing clients o Systematic follow-up on D.O. (call center) o D.O included in branch performance evaluation (proxy for client service) o Internal Audit include items on customer service (follow up process) o Creation of a Hotline

10. Solutions (Communication) o Annual retreat and mid-year staff gathering o Quarterly Newsletter o Quarterly Board reports o Website o Annual report Do no harmDo our bestDo good

11. Indicators o Women % of women in staff on all levels of the organization % of women in clients o Drop out DO rates (and internal formula has been developed) DO per branch DO survey to understand the reasons for DO o Client service Customer satisfaction surveys include questions on LO service and branch reception Hotline calls: complaints by type o Vulnerable populations In poverty pockets Youth Non-Lebanese Rural vs. Urban In Palestinian camps

12. Results o Results are quantitative and qualitative The mission has been reinforced. All employees know about SPM and its importance for the organization Employees encourage clients to use their grievance channel through the hotline Employees are self-aware of issues like the collection malpractices or over indebtedness

13. Results Satisfaction indicators  93% of clients recommend Al Majmoua on other financial service providers (Good & respectful treatment, clear & easy procedures, responsiveness)  97% of clients received clear and sufficient information about the lending and disbursement process  40% find that the loan size should be increased 201220132014 Number of calls to the hotline751964 1,010 % of complaints5%7%9%

14. Results Increase in number of women

15. Lessons Learned o Factors that enable SPM practices Internal training team well qualified to do the job Alignment on the management team of importance of SPM – sacrifice growth to focus on SPM principles Existing AM culture was conducive to incorporate the principles – it complemented the mission, didn’t change it Selection of a SPM Champion and creation of a multidisciplinary committee Integration of SPM in the Organization's action plan o Costs are not hindering as long as the SPM process is embedded in the normal course of the organization's operations and action plan