Lessons from MicroSave's Action Research Programme (2003): Report

This report summarizes lessons learned from MicroSave's Action research Program. The key lessons learned are:

• Unplanned explosive growth in response to customers' needs can be fatal to the organization. Rapid induction of new staff can undermine internal control. Cramped office space would undermine productivity;
• The rapid expansion that is characteristic of market-led growth is often difficult to finance because each new branch would require funds to hire staff, expand the loan portfolio, etc. and that could be difficult;
• Preparing for market-led growth by ensuring that policies, procedures and management systems are in place, is very essential;
• In responding to challenges, prioritizing, sequencing and communicating change is of great importance;
• Information systems, procedures and templates can partially automate the management of growth. Networked information systems can facilitate more transactions, installation of automated teller machines (ATMs) would decrease costs and make the service more accessible;
• Successfully pilot-tested financial services can be quickly rolled out using a standardized approach;
• Continuous improvement of processes and systems is essential to deliver market-led financial services and control risks surrounding growth;
• Proper internal and external communication is very important. Poor communication could result in misunderstandings between the management and staff, and between the institution and its customers;
• 'Word of mouth' marketing is very effective. Financial services have to be carefully communicated to the intended customers and feedback about the product should be taken from them;
• Good customer service is essential.

The rest of the paper discusses MicroSave's experiences with different financial organizations.