Situations that Align with Our Services
Disturbing trend, failure to improve, or consistent sub-optimal financial or operational performance. Examples may include
- Inability to achieve business transformation initiatives such as new product introductions, alternative delivery channel rollouts / digital technology improvements, or reengineering of existing core processes.
- High staff turnover, poor governance, weak internal culture, lack of staff development plans, absence of talent bench.
- Structural weaknesses, gaps in market competitiveness, poor liquidity management, weak internal controls.
Exposure on key risk categories (e.g. strategic, credit, liquidity, operational, interest rate, compliance, legal, regulatory, market, among others) is spiraling into dangerous territory, and strategic insight and intervention is needed. Examples may include
- Large or systemic frauds.
- Negative macroeconomic shocks.
- Political events.
- Regulatory changes affecting the entity.
Failure to deliver on strategic objectives or operational / administrative activities. Examples may include
- Inability to service debt obligations by the institution and subsequent restructuring need from the lender side.
- Consistent downward trend in KPIs and inability to meet financial and operational forecasts.
Management turnaround. Examples may include
- A need for in-depth diagnostic review of the core leadership team, with report-out / recommendations on whether to retain or replace key personnel.
- A need for strategic leadership plans to strengthen and build internal capacities.
New investor (lender or shareholder) joining (or leaving) the institution, or complete change in ownership. Examples may include
- For new investors considering a capital contribution.
- For current investors considering options to exit.
Strategic options are anticipated to occur (merger, acquisition, portfolio transactions, new market entry).
An in-depth, rigorous, methodic and data driven approach to identifying business issues, improvement opportunities, assessing value propositions, as well as professional advice and support for implementing the transformative change that the customer is seeking.
- Assessment of the underperforming institution and strategic support for p/l turnaround:
Governance structure, strategic planning and budget processes, market competitiveness, internal culture and climate, business model stability and efficiency assessment, operational and financial performance, process optimizations, loan portfolio quality and risk management systems, management capacity, human resource capacity and staff optimizations, internal / external communication systems, and organizational set-up.
- Support, quality assurance, and capacity building during implementation phase of action plans presented (see Project Management and Organization transformation).
- Market and competition analysis: Regional / local macro-environments, political and regulatory environment, market saturation assessment / potential over-indebtedness, product and price competitiveness, brand presence / recognition, SWOT analysis.
- Development of recommendations and action plans.
- Equity valuation.
- Research report on the institution's creditworthiness (for lenders).
Full-fledged Institution Management
An action plan and deliverables will need to be agreed with the client beforehand, preferably coming from an Institutional Analysis assessment. This allows impactiive® to (1) create a customized Scope of Work / Terms of Reference, (2) achieve quality assurance, and (3) verify that impactiive® is a good fit for the client seeking support.
Delivery of service will be onsite, with 1-3 executives running the operation as needed.
Other short-term assignments in-country may be needed to ensure performance under the plan.
Backstops can be provided by other impactiive® team members.
Representation at Board and Audit Committees will be needed.
- Banks or MFI owners, who are unfamiliar with, or lack the expertise in Bank or MFI Management.
- Bank or MFI startups (at least 5 years in business) with foundational infrastructure, but in need of strategic / best practice buildout support for its next phase of growth.
- Creditors of a Bank or MFI engaged in a work-out or restructuring situation.
- Existing Management turnaround, C-suite support for an unspecified period to correct financial and/or operational issues that require immediate governance and control.
Executive Secondment, Coaching, and Support
impactiive® supports and coaches management teams during periods of important change. Support programs can take the shape of backstops, permanent advisory channels, short term secondment of one or more executive roles, monitor progress and, in close cooperation with the customer, undertake executive action.
Membership in corporate governance bodies (Board, Audit Committee) will be required for MSA agreements of not less than one year, in order to better shape the outcome and fully assess the impact of services.
- Portfolio quality transformation.
- Efficiency programs.
- Rapid market expansions.
- Institutional mergers.
- Operation turnarounds / crisis management.
- Lender relationship management.
Project Management and Organization Transformation
impactiive® assists financial institutions in executing projects and various types of transformation initiatives that arise through delivery of Institutional Analysis assessments, Full-fledged Management support and Executive Secondments.
- Large scale organization transformation.
- Transformation from an MFI to a Bank
- Greenfield launch of an MFI or Bank operations
- New IT system implementation
- Assessment of skills gap and bridging those gaps.
- Strengthening internal controls and risk management environment.
- Developing work plans to incorporate a risk management framework.
- Crisis management.
- Funding/Treasury management.
- Delivery channel(s) optimization.
- Strengthening In-house training capacity (ToT) and HR best practices.
- Strengthening corporate culture by fostering an environment that embraces change management initiatives.