Bank Positions Analysis (HR)

8/13/2019 Bank Positions Analysis (HR)

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Competency Based Training Needs Analysis Oct 2012(2ND version) Positions, Activities, and Competencies Analyses This document summarizes analyses of various positions and their contents on as-is basis followed by recommendations. It covers Microfinance, SME, CommercialBank, and a few Head Office departments i.e. Finance and Accounting, HRAdministration and Training, Marketing and Product Development and, LogisticsSecurity and Office Administration. The very purpose of this analysis has been toidentify position based competency profiles as a basis to formulate correspondingtraining requirements specific to each position. This analysis can however also

provide basis for restructuring jobs and determining compensation equity.

BANK

Sohailuddin Alavi, DAIBP International Consultant in Capacity Building and Organization Development (Pakistan)

BANK

Second Version


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BANK COMPETENCY BASED TRAINING NEEDS ANALYSIS OCT 2012 (2ND VERSI ON)

Sohailuddin Alavi, DAIBP International Consultant in Capacity Building and Institutional Development (Pakistan) 2

Table of Contents

1. Acknowledgements 4

2. Project Introduction 5

3. Summary Analysis and Recommendations 10

4. Microfinance Unit 14a. Overviewb. Regional Managerc. Branch Managerd. Deputy Branch Managere. Loan Officer

5. Small and Medium Enterprise Financing Unit 24a. Overviewb. Head of SMEc. Sales / Production Managerd. Credit Risk Managere. Compliance and Administration Managerf. Team Lead SME Lendingg. Relationship (Loan) Officer SME Lending

6. Commercial Banking Unit 39a. Overviewb. Deputy Head of Commercial Bankingc. Branch Operations Managerd. Deputy Branch Operations Managere. Account Officer

7. Finance and Accounting Department, HO 48a. Overviewb. Chief Finance Officerc. Manager Accounting and Book Keepingd. Manager Financial Budgeting and Planninge. Manager Financial Transaction, Control and Compliancef. Assistant Manager / Officer Data Base Administrationg. Assistant Manager / Officer Front Desk


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8. Human Resources Administration and Training Department, HO 56a. Overviewb. Head of Human Resourcesc. Senior Manager Recruitment, Induction and Trainingd. Manager Compensation and Employees Benefits

e.

Manager Career Planning, Job design, and Performance Appraisalf. Assistant Manager / Officer Employees Administration g. Assistant Manager / Officer Researchh. Assistant Manager / Officer Human Resource Information System

9. Marketing and Product Development Department, HO 64a. Overviewb. Head of Marketing & Product Developmentc. Manager Product Developmentd. Manager Advertising and Promotione. Manager Institutional Brand Management and Public Relations

f. Assistant Manager / Officer Market Researchg. Assistant Manager / Officer Marketing Information System

10. Logistics, Security and Office Administration Department, HO 71a. Overviewb. Department Managerc. Officer Logisticsd. Officer Securitye. Officer Office Administration

11. Proposed Competency Based Training Curriculum 75

a. Frameworkb. Microfinancec. Small and Medium Enterprise Financingd. Commercial Banke. Finance and Accountingf. Human Resource Administration and Trainingg. Marketing and Product Developmenth. Logistics, Security and Office Administrationi. Comments on FMFB A existing training modules

12. Proposed framework: Salary Equity Framework 86

a. Contextb. Frameworkc. Exemplified

13. Tentative Implementation Plan 92


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Acknowledgement

ALAHMDOLILLAH this project is now approaching its successful and meaningful culmination. At this

point in time, I earnestly feel to extend my gratitude for all those who were part of this project, directly

or indirectly.

Mr. Chris Underwood, CEO, has given me immense support in many ways; sharing his vision, giving

timely feedback and resolving issues. Ms. Shaheen Tijani, Head of Training Academy (AKAM) has truly

demonstrated AKAMs commitment to support institutional development of FMFB A by providing

financial support and appreciation. Dr. Syed Ali Rawnaq, Senior Manager Training has provided to me allthe possible support in liaising with various departments, soliciting their comments and especially

sharing his learned insights that helped me analyze and articulate in the context of prevailing ground

realities.

Now I would like to personally thank all the Heads and their colleagues of various departments who

patiently discussed with us their jobs, challenges and concerns and provided us with an objective data

for analysis. This would not have been possible if these gentleman and ladies had not cooperated with

me.

I hope this document will go a long way in bringing about positive change in the work lives of the

employees and of course in further augmenting FMFB A organizational capacity.

Sincerely,

Sohailuddin ALAVI


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Project Introduction

1. Preamble

FMFB Afghanistan was established to build better livelihoods in Afghanistan. The Imam of Ismaili Muslims and

the chief patron of FMFB A says, Our duty is to try to free people from poverty. This has been the driving forcebehind the organization. FMFB A is a predominantly a microfinance bank with branches all over Afghanistan. Ithowever, also has exposure in the SME as well as in the commercial banking sectors.

2. BANK Structure

The organizations core structure consists of three strategic business units, namely; Microfinance, SME andCommercial Bank. These core business (or processes) are supported by various support processes. The schematicvalue chain diagram of the organization elaborates the inter-relationship between core and support processes andtheir combined expected outcome.

Three pronged structure is being envisaged the corporate, operations and support. Focus(specialization); integration; decentralized control; empowerment; and, synergy are the fundamentalpillars of this structure. As the schematic diagram depicts, the corporate structure focuses on strategicand policy interventions that aim at continually maintaining harmony between the banks strategicdirections and the changing external permeable environment to ensure consistent and constructivebank performance and position. The operations structure focuses on effective operations. Theoperations structure is split into three sub functions namely; microfinance, small enterprise financingand commercial bank as SBUs. This is being proposed to instill increased focus and accountability. Thesupport structure focuses on multidimensional internal support services such as marketing andresearch, information technology, organization systems and methods, HRM and last but not the leastadministration. These functions are considered essential for maintaining dynamism and validity of thebanks performance on various fronts.

CorporateStructure

Strategic Planning, Business Policy, Equity Management, CorporatePerformance Monitoring, Corporate Governance, and

Corporate Citizenship

Performance Indicators:

Financial Rating

Profit Growth and RisksMitigated

Loans Portfolio Growthand Performance

Regulatory Compliance

Market Penetration andCompetitiveness

Social Impact

MicroFinance

SMEFinancing

CommercialBank

OperationsStructure

Finance & Accounting, Regulatory Compliance, Internal Audit,Risk Management and Operations Management

Marketing & Research, Information Technology, OrganizationSystems & Methods, HRM, Logistics and Administration

SupportStructure


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3. Project Objectives and Scope

The CEO presented his vision for upgrading the human resource quality of the bank in a meeting with Director AIBFand International Training Adviser. He emphasized upon the need for instilling higher level of professionalism,integrity, job related competence, ownership for results and last but not the least, employees development alongtheir career paths as strategic objectives for achieving greater organizational competitiveness and sustainability,and employee performance and retention. In addition to the above, he also felt the need for cross functionalpositions benchmarking primarily as an objective basis for establishing compensation equity.

Subsequently, it was agreed upon that the project will focus on the followings:

i. Mapping of generalized role perceptions and tasks at various core positionsii. Identification of realistic roles and tasks for each core position along the value chainiii. Gap analysis on as-is basisiv. Charting of position specific competenciesv. Preparation of competency specific training curricula for each position

4. Sponsors

This project is sponsored by AKAM Training Academy.

5. Disclaimer

The analysis presented in this document is based on the information obtained through interviews, groupdiscussions and focused deliberations with the CEO. The recommendations are strictly articulated in the back dropof the information obtained and analysis made thereof. The information contained in this document is confidentialand meant for the management of FMFB A only.

________________________________*SBU (Strategic Business Unit)


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Terms of Reference

To: Mr. Chris Underwood , CEO, FMFB Afghanistan

From: Sohailuddin ALAVI,

Dated: April 8, 2012

Subject: Proposal for Competency Analysis, Profiling and Benchmarking.

6. Background

The CEO presented his vision for upgrading the human resource quality of the bank. He emphasized upon the need for instillinghigher level of professionalism, integrity, job related competence, ownership for results, employee development along theircareer paths, and last but not the least compensation equity across the positions as strategic objectives for achieving greaterorganizational competitiveness and sustainability, and employee performance and retention.

In the first phase competency analysis and profiling of the core positions in the Microfinance group was completed followed byrecommendations on a structured position based curriculum were developed by the undersigned. The Management is now

desirous to complete the similar intervention in other business groups i.e. Commercial Bank, SMEs, and at the Corporate Office.Furthermore, the management also desires to develop competency based benchmarks across the positions for establishingcompensation equity.

7. Proposal Summary

I feel pleasure in putting forth this proposal for replication of the intervention, which has been successfully completed for theMicrofinance group, in Commercial Banking Group, SME Group, and Corporate Offices. The envisaged deliverables and scope ofwork are appended:

2.1 Deliverables

2.1.1 Gap analysis of each core position, as would be agreed by the CEO. This shall include mapping of the actual tasksperformed at each position and their critical review in the context of overall working (value chain) of the respectivegroup.

2.1.2 Position based competencies for each core position. The competencies shall generally clustered into three categories,namely; Perspective (mental outlook), technical (including managerial, administrative and operational skills), andInterpersonal (this includes social skills, teamwork, time management, etc.)

2.1.3 Recommended position based training curriculum. The curriculum will be based on position specific competencyrequirements. The trainings will be clustered into four categories, namely; management skills that focus on managingfrom external perspective such as strategic thinking and analysis, business planning etc., business process skills thatfocus on operational engagements such as loan processing and administration, compliance, products etc.organizational skills primarily focus on managing people and organization from internal perspective and professional

skills focus on personal development of the employees such as understanding FMFB vision and values, buildingintegrity, etc.

2.1.4 Quantitative benchmarks for compensation equity across the positions. Competency based benchmarks will bedeveloped to assign objective weightages to each position, which in turn will provide basis to determine its fairfinancial value both in relation to its productivity quotient and also vis--vis other positions.


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2.2 Methodology

Here let me explain the strategies and tools that I would like use in this proposed intervention. The appended grid presentsenvisaged activities and the respective strategy.

Deliverables Activities Strategy LocusPosition Gap Analysis- Commercial Bank- SME

Corporate Office

Construct conceptual valuechain and/or holisticbusiness process.

Document business vision,goals and business processby interviewing the head ofrespective business head.

Prepare draft document fordiscussion with therespective business headand CEO

On site.

List tasks performed on as-isbasis by 4 personsrepresenting each position.

Interview four persons ateach position randomly

On site.

Review and analyze the as-istasks in the context of valuechain and respective jobdescriptions.

Compare actual tasksreported with standard jobdescriptions to identify gaps/ disorientations

Judge validity of tasksreported in the context ofvalue chain and/or businessprocess.

Off site.

Redefine tasks for eachposition vis--vis value chain

Prepare a draft on revisedtask profile for each position

Off site.

Focus Group Discussion Present gap analysis of tasksprofiles on as-is basis

Present the revised taskprofile for each core position

Finalize the two documents

On site.

Position basedcompetencies analysis foreach core position

Do competency analysis Develop recommendationson target competencies foreach position on the basis ofupdated task profiles.

Off site.

Recommended position

based training curriculum

Identify relevant training

curriculum for each position

Develop recommendations

on training modules for eachposition, relevant to theupdated competencies.

Off site.

Finalize competency profilesand training curriculum andsubmission of report.

Meeting / discussions withCEO and respective businessheads.

Discuss therecommendations on targetcompetencies and trainingmodules with the CEO andrespective business head.

On site.


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Provide final report onanalysis andrecommendations for eachbusiness group, separately.

Quantitative benchmarks forcompensation equity acrossthe positions.

Prepare recommendationson a framework fordeveloping task/competencybased standard weightagefor each position across thebusiness group.

Develop conceptual model Off site.

Discuss its potentialchallenges in applying themodel

Make necessary changes inthe model to mitigatechallenges

On site.

On site.


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Summary Analysis and Recommendations

We append our summarized observations and recommendations in respect of the immediate work environment

particularly with reference to role clarity, responsibilities and tasks distribution at various positions across theorganization.

1. Methodology

The analysis was done primarily by interviewing select individuals at various core positions. By looking at the tasksreported by the respondents draft position profiles were developed. The same were then presented for validationto a focus group consisting of select FMFB executives.

Simultaneously value-chains for the overall all organization and for each SBU were articulated independent of thevalidated as-is position profiles. Key-result-areas [KRAs) and key-performance-indicators [KRAs] were alsodeveloped for each position. Subsequently, the tasks reported by the individuals were analyzed against the KRAs

and KPIs to identify the gaps. This was done separately for each position. Finally, a comprehensive competency-based-training-curriculum was formulated.

Lastly, FMFB A existing training modules were reviewed to highlight the gaps in their contents vis--vis the newlydeveloped competency based training curriculum.

2. Observations

Several interesting findings were made and discussed with the CEO. The findings were however not shared /disseminated to other stakeholders in the company to avoid any possible chaos. While detailed findings arediscussed separately in each departmental review, a summary of the same is briefly presented below:

a. FMFB A is relatively an emerging organization in the group. Its growth has been phenomenal over thelast decade. The company grew horizontally as well as vertically. While the company was adding newbusinesses, systems harmonization was missed out consequently multiple titles are now being used for allthe more similar positions in different parts of the company. It is interesting to note here that a system ofcadres does exist in parallel to these positions but is not well harmonized in the system.

b. FMFB A over a period of time has evolved into a typical administrative orientation, which it perhapsowes to the founding employees coming from typical administrative environments. Subsequently,administrative behaviors have prevailed over professionalism, which hitherto has grossly displaced focusfrom business processes to internal competition for controlling people and resources, results have beeneclipsed by mere activities, positions and titles have become more a sign of status and authority rather

than of re sponsibility and accountability and last but not the least individuals discretion prevails overbusiness policies and processes.

c. We observed w ide variation in positions classification across the organization. For instances, i n onedepartment the titles are Head of the Department, Manager, Deputy Manager. While in anotherdepartment the in-charge is titled as Manager and the subordinate staff is titled as Assistant Managers,though the relative scopes of responsibilities are all the more similar in two departments.


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In our opinion this ad hoc system has led to many challenges. To name a few, no standardization ofpositions is possible in the given situation, it is difficult to establish compensation equity across the similarpositions, and last but not the least career paths are distorted.

d. We also noticed that in a scenario dual title hence virtual positions are superficially maintained. However,

single incumbent occupy both positions with much unclear distinction of roles and responsibilities. Inshort we see no productive rationale to maintain this scenario.

e. We have basis to say that there were wide gaps in the role perception of different persons operating atthe same positions. For instance, Branch Manager, Loan Officers, etc.

f. We observed that almost at all positions the focus has been dominantly operational with introvertorientation. Put it simply, almost all of the individuals showed their engagement in operational activitieswithout the attention to planning and/or ownership of outcomes [results].

g. We observed especially in the field formations the team members in general were incognizant of their

strategic, managerial and development roles, respectively.

h. We observed that individuals were performing duplicate tasks which were leading to two major problems:dysfunctional internal competition and ignorance of many rather critical managerial and strategic tasks.We have basis to say that these two problems were de-synergizing organizational productivity.

i. While reviewing the in-house training modules, we observed that these are generalized and dominantlyfocused on operational aspects of the business.

j. Some departments and/or units are practically operating as a single position function. The subordinatestaff by and large has no explicit responsibilities but to assist the in-charge. This has largely constrained

emergence of structure and system as it fostered ad hocism and personified work culture.

k. Lastly, we feel that the problems cited above were primarily rooted in the overly administrative hierarchyand work culture; inadequately developed job profiles; trainings curriculum is too generalized inadequateto develop job specific competencies; absence of career paths; and, last but not the least lack ofownership for results probably emanating from absence of position specific and measurable key resultareas and key performance indicators for individuals and insufficient management information system onbusiness results.

3. Recommendations

The analysis and findings were thoroughly discussed and deliberated with the CEO all along the way. Based onmutual understanding and agreement, we made following recommendations:

a. Although emergence of multi positions is very obvious and rather natural, it is about time to standardizethe positions along some companywide standard cadres. The advantages would surely exceed the cost. Inthe first place, this will provide objective basis for determining compensation equity* and help reduceemployees dissatisfaction. Secondly it will provide informed basis for planning job rotations within andacross the functions. Thirdly, it will help prepare realistic career paths and development rosters for the


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incumbents. Last but not the least, it will improve the achievement motivation as the incumbents canrelate their promotion from one cadre to another with their achievement aspirations.

b. Global Positions, Roles and Competencies: The positions have been carefully clustered into three distinctcadres, namely; Managerial, Operational and Functional. The cadres will help distinguish roles, establish

responsibilities, identify position locus on the hierarchy, and last but not the least provide basis forharmonizing positions across the organization which will enable cross functional positions benchmarking.In order to establish an objective basis for the task it is recommended that positions across the functionsare standardized as follows:

Cadres Managerial Operational FunctionalTitles Business Head /

Deputy Business HeadSenior Manager /Manager

Deputy / AssistantManager, and Officer

Key ResponsibilityAreas

In-charge of a StrategicBusiness Unit

In-charge of coreprocess(es)

In-charge of supportprocess(es)

Roles Business strategy & policy,Operation s management, and

Performance management

Operations,Supervisory (optional)

Performance /execution of routine

tasksCriticalcompetency areas

Management skillsOperational skillsOrganizational skillsProfessional skills

Operational skillsOrganizational skillsProfessional skills

Operational skillsBasic organizationalskillsProfessional skills

c. Afghan financial sector in particular and business environment in general is becoming highly competitiveand posing humongous challenges. FMFB A in particular and all financial institutions in general mustdemonstrate responsiveness to the market dynamics to sustain competition and to beat the challenges.We have basis to say that transforming the work force and internal systems from administrativeorientation to professionalism is the most urgent matter on the table.

d. We believe elimination of virtual positions and tiles are justified in the context of improving institutionalharmony and incumbents focus and accountability. Hence we suggest that the management shouldconsider eliminating virtual positions that may exist across the organization.

e. The analysis so made has objectively identified generalized competencies for different core positionsacross the organization. It is now imperative to conduct individual employee assessments to assess theirpersonal competency inventories on as-is basis and to measure the degree of proficiency for eachcompetence. This will allow identifyi ng the competency gaps at individuals level and to plan the requiredtrainings.

f. The analysis reveals that employees generally focus on operational tasks and there is general lack ofownership for results. Thus it is imperative to revisit the existing job profiles to include position specifickey-result-areas and key-performance-indicators. We have basis to say that this would enrich and enlargeemployees engagement and performance at each position.

g. The competency based proposed curriculum has focus on Management Skills; Business Process Skills;Organizational Skills; and, Professional Skills. While the current curriculum has focus on operational


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(Business process) trainings alone. We feel there is a need to develop training modules covering all thefour dimensions.

h. This analysis provides an objective basis and template for benchmarking different positions vis--vis crossfunctional competency requirements and establishing financial and status equity across the positions.

i. It is about time to instill explicit structures and system in each and every function (department / SBU) toavoid potentials for ad-hocism and personification.

j. Lastly, as mentioned in the analysis that positions have some degree of duplication we believe that if themanagement deem fit it should consider redefining the positions along the business lines with a higherdegree of empowerment and job control at each position. Also the management should consideridentifying career paths within each business stream and cross functionally. We believe this will improveindividuals ownership for results, accountability and sense of accomplishment.


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Strategic Business Unit I

Microfinance

This chapter presents analysis in respect of critical positions of the Microfinance Business line. Subsequently,recommendations on revised roles, competencies and training needs are articulated for each position. The analysis

was done for four core positions, namely; Regional Manager, Branch Manager, Deputy Branch Manager, and LoanOfficer. Positions analysis follows:

1. Brief Analysis

l. We have basis to say that there were wide gaps in the role perception of different persons operating at thesame positions. For instance, across MF Branch Managers, Loan Officers, etc.

ii. We observed that almost at all positions the focus has been dominantly operational with introvert orientation.Put it simply, almost all of the individuals showed their engagement in operational activities without theattention to planning and/or ownership of outcomes [results]. Furthermore, the Regional manager, branchmanager, deputy branch manager and loan officer in general were incognizant of their strategic, managerialand development roles, respectively.

iii. We observed that Regional Managers, Branch Managers are typically performing similar tasks. Similarly thedeputy branch managers given task list was found no different than of a loan officer. This situation in ouropinion is leading to two major problems: dysfunctional internal competition and ignorance of many rathercritical managerial and strategic tasks. We have basis to say that these two problems were de-synergizingorganizational productivity.

2. Recommendations

i.

Suggestive Value Chain of MF Operations*


Continually expandingMF portfolio, andincreasing customer base

Improving MF portfolioquality, increasing yield,and containing risk

Adhere to internationalstandards; and achievetotal regulatory andpolicy compliance

MF Process I

Prospecting andselling MF credits,Proposaldevelopment,Customerrelationsmanagement

MF Process II

MF Credit RiskAssessment,Regulatory &policy compliance,and delinquencymanagement

MF Process III

MF CreditUnderwriting, Duediligence, TrackingRecoveries, Aging& classification

Strategic integration, planning, and policy environment

MIS: DAB and Internal Reporting

CoreProcesses

StrategicProcess

SupportProcesses

Social Impact Analysis

*This value chain reflects front end processes only


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ii. The analysis reveals that employees generally focus on operational tasks and there is general lack ofownership for results. Thus it is imperative to revisit the existing job profiles to include position specific key-result-areas and key-performance-indicators. We have basis to say that this would enrich and enlargeemployees engagement and performance at each position.

iii.

The analysis suggests that positions have some degree of duplication. Thus we believe that if the managementdeem fit it should consider redefining the positions along the business lines with a higher degree ofempowerment and job control at each position. Also the management should consider identifying careerpaths within each business stream and cross functionally. We believe this will improve individuals ownershipfor results, accountability and sense of accomplishment.

iv. Competencies for various positions are identified under managerial, business, organizational and professionaldimensions. This provides basis for building training curriculum and plans.

Detailed analyses, corresponding competencies and recommended trainings follow.


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FMFB A Microfinance Positions Analysis (Regional Manager)

Position Preview: Regional manager is a management position .The incumbent at this position expected todemonstrate performance in the following areas, namely;

1. Entrepreneurial (Managerial)a. Corporate Governanceb. Represent corporate management in the field (region)c. Set directions, facilitate actions and supervise performanced. Coordinate between various branches in the regione. Scanning and analysis of regional market dynamics and competition drivers in voguef. Mobilize / allocate organizational resourcesg. Trouble shoot: Disturbance handling

2. Informationala. Spokesperson To effectively represent FMFB in the region, build positive public relations in the

immediate external environment

b. Disseminator To scan information from the immediate external environment and communicateto the branches

c. Social mobilizing To mobilize the public at large and potential customers in particular in theimmediate external environment

d. Build and strengthen institutional networks

3. Interpersonala. Provide leadership in the regionb. Be a Catalyst for institutional development and change

Performance of Regional managers must result in increased profits of the region, improved competitiveness

reflected in increased market share, clearly differentiated superior brand perception, improved customerconfidence, improved public image and last but not the least improved relations with outsiders in the vicinity whileconforming to the legal and policy environment in vogue.

In the appended grid, as-is work profile of individuals currently working as Regional Managers is analyzed in thecontext of above noted position description. Following the analysis, need to learn newer competencies byindividuals working as regional managers are being carefully articulated. The as-is work profile has been developedon the basis of primary data collected by interviewing one regional manager available at the Head Offices using astructured questionnaire. However, on the basis of our subsequent discussions with the executives at Head Officeswe have basis to believe that the Regional Managers Position across the company is by and large unstructured.Thus we have basis to assume that in the prevailing scenario actual performance of regional managers varies from

individual to individual depending upon their unique perspective and competencies. In nutshell no standardizationof performance at this level can be predicted in the given scenario.


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Reported Job Activities Analysis CompetenciesManagement Activities- None reported

Operational ActivitiesOverseeing Branch Managers in

the following areas- Operations, and- Compliance- Delinquencies

Monitoring branch/personneltargets, however, no involvementin targeted setting

Supervisory Activities- Employee supervision- Seconding appraisal reports

1. The primary functionsperformed by the regionalmanagers are in factduplication of managers ordeputy managers tasks. Hence

it is difficult to say that anyadditional value is created inthe value chain.

2. It is also apparent that theregional managers by-passbranch managers whileinteracting with staff. This canlead to chaos and dilution ofbranch managers position vis --vis other staff members.

3. In the prevailing scenario,regional managers play no rolein improving profits, brandperception, market share, etc.save few who do it on theirpersonal initiative. Rather theirentire focus remains oncounter checking what branchmanagers or deputy managersdo. This is quite different fromsupervision per se.

4. Major contributing factors inthis regard, as we can cite,could be lack of position clarity,distorted perception of

management process,operational outlook, lack ofspecific performanceindicators, and ineffectiveperformance appraisalframework. Complacency andmotivation for learning andchange and administrativeculture could be secondaryfactors as well.

Managerial- Strategic business planning- Business policies and work

environment- Operational planning and

monitoring- Performance management and

culture- Corporate governance and social

responsibility

Operational- Lending laws, regulations and

practices in Afghanistan- Market competition /

performance analysis- Product development marketing

mix and branding strategies- Loans / Investment portfolio

strategies analysis- Risk appetite analysis- Internal controls and compliance

framework- Regulations and Corporate

policies- Pre sanction loan proposals

review (Jointly in the creditcommittee)

- Operations management andcoordination

- Business development- Problem loan management

Organizational- Goal setting- Organization- Coordination- Decision making- Problem solving- Negotiating- Team building and bonding- Training and Development

Professional- Leadership- FMFB values, norms and

etiquette- Harnessed motivation and

realistic work attitude- Logic, analytical and out of box

thinking


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- Time management- Impression management- Business networking- Assertiveness- Communication- Business research and report

writing

FMFB A Microfinance Positions Analysis (Branch Manager)

Position Preview: Branch manager is an operations position. The incumbent is expected to demonstrateperformance in the following areas, namely; Achieve higher profits, conduct profitable business development,build and enrich customer relationships, service quality assurance, improve employees and process efficacies,ensure total compliance with regulations, company-policies and corporate-values, network with outsiders such asGovt. Agencies, and to liaise with superior offices and coordinate with other branches.

Performance of managers must result in increased profits, reduced cost of doing business, improved customer

confidence, better employee performance and last but not the least improved relations with outsiders in thevicinity while conforming to the legal and policy environment in vogue.

In the appended grid, as-is work profile of the incumbent is analyzed / enlarged in the context of above notedposition review. Following the analysis, required competencies are being carefully articulated. The as-is workprofile has been developed on the basis of interviewing randomly selected individuals working at this position.

Reported Job Activities Analysis CompetenciesOperational Activities -Administrative- Branch Supervision- Assigning tasks- Cash Budgeting- Internal controls and risk

management- Periodic reporting- Ensuring compliance

Operational Activities - Credit/Business Development- Portfolio Development- Clients relation ( Meeting)- Loan portfolio supervision- Loan classification/ Analysis (

Past due / Aging)- Leading loan committee

meeting

Supervisory Activities- Employee performance

Supervision- Employee Development and

1. The existing work scenario isdominantly action driven withfocus on internal activities.Consequently, there is a lack of

cognizance of responsibilities;ownership of outcomes (results)and proactive approach towardsbusiness development,customer relations andemployee handling.

2. Difference in managers andothers job is of authority, whileboth focus on operational tasks.Therefore we have basis to saythat consequently managers failto perform high valuemanagement tasks per-se thatare necessary to synergize thework productivity at theoperational level. For example,creating enabling environmentfor the subordinates toexecutive their jobs even better.

Managerial- Mostly non-critical for this

position


practices in Afghanistan- Internal control and risk

mitigation processes- Credit / Investment analysis and

administration process- Business Development- Operational efficacy and cost

control- MF products and process

knowledge- Selling and CRM process- Individual vs. group lending

process- Typical loan transaction cycle- Construction and analysis of

business (financial) data- Problem loan management


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Training- Employee performance

appraisal and reinforcement

Instead, the managers remainbogged down with operationalactivities, which lead toduplication of work and alsoroot dysfunctional competitionbetween managers and

subordinates which furtherdecrease the synergy potentials.

3. Major contributing factors inthis regard, as we can cite, couldbe lack of position clarity,distorted perception ofmanagement process, excessiveoperational orientation, lack ofspecific performance indicators,and ineffective performanceappraisal framework. Besides,excessive focus on quantitativeaspects of targets can obscurevision. Complacency andmotivation for learning andchange and administrativeculture could be secondaryfactors as well.

4. It is earnestly recommendedthat the branch manager shouldoperational tasks to the DeputyBranch Manager and increasehis or her focus on the following

new tasks:

Prospecting, ManagingCustomer Relations andBuilding Networks- Business development- Prospect new customer and

assign them to loan officer forprocessing

- Focus on customers businessrelationship with bank and ,their profitability

- Look for opportunity for crossselling and enriching therelationships for greaterprofitability

- Build business networks in theterritory and use it forcapturing critical customerinformation and anticipatingopportunities and/orchallenges

Organization Skills- Supervision- Coordination- Decision making- Problem solving- Negotiating

- Team player




thinking- Time management- Impression management- Business networking- Assertiveness- Communication- Business writing


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Customer profitability analysis:- Assess customer profitability

on periodic basis- Establish independent

communication withcustomers

- Resolve customer problems /grievances that could lead todelinquency

Facilitating Sales Team:- Assign, facilitate and monitor

sales targets to fieldfunctionaries

- Ensure standards, turn-around-time, and attention todetails in loan processing bythe sales team

- Provide lead / references tothe team

- Coach and train the team

FMFB A Microfinance Positions Analysis (Deputy Branch Manager)

Position Preview: Deputy Branch Manager is a functional position. The incumbent at this position is expected todemonstrate performance in the following areas, namely: operational efficiency; robust internal controls;compliance to regulations, policies and procedures; supervision of routine bra nch transactions and loan officersactivities; and last but not the least, efficient management information system.

Performance of deputy managers must result in cost efficient branch operations, improved operational discipline,improved employee performance supervision, while conforming to the legal and policy environment in vogueultimately resulting in increased profits.


Reported Job Activities Analysis CompetenciesOperational Activities Administrative- Preparing Reports on period

bases- Ensuring compliance- Internal controls and risk

management

Operational Activities Credit /Business Development- Customer proposal review- Loan document review

1. This position appears to be ahybrid of a branch managersposition. At one point the personas Deputy Branch Managerperforms the tasks of a BranchManager and at the same times/he performs loan officerstasks. When discussed withseniors, we felt that theorganization is quite much awareof this situation and has rathercompromised with it. They

Managerial- Not relevant at this position

Operational- Laws, regulations and practices

in Afghanistan- Operational efficacy- MF products and process

knowledge- Selling and customer relations- Individual vs. group lending

process


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- On site business reviews(Clients Monitoring)

- Past due loans follow up- Participate in loan committee

meeting- Portfolio development

Supervisory Activities- Loan officer supervision- Loan officer work planning and

scheduling- Monitoring and assessment of

loan officers target- Disseminating the loan policies

to loan officers

consider it as a transitoryposition manager in making.

1. Major contributing factors in thisregard, as we can cite, could beunstructured job itself, comfort

zone as these people might enjoydoing a lower position tasks withease because of so much timespent at loan officers positionand sometimes because ofinability to delegate the taskseffectively.

2. Moreover, replicating part ofmanagers job provides authorityespecially over people.Irrespective of the fact thatwhether the individual isintrinsically empowered to makeuse of authority in constructivemanner and can make gooddecisions rather than justcontrolling people not theirperformances.

3. While the deputy manageressentially ensure operationalefficacy, to further augment thevalue addition at this position wefeel that s/he should focus on the

followings:

Quality Assurance and DueDiligence:- Educate loan officers on

regulations, company policiesand best practices

- Guide loan officers inpreparing the loan applicationsand proposals in conformitywith the regulations, bankpolicy and best practices

- Review loan applications andproposals for quality assurancei.e. to check the reliability andvalidity of the information andrecommendations therein

- Meet with customers forsecond level verifications, ifdeemed necessary

- Give feedback on improving, ifneeded

- Typical loan transaction cycle- Construction and analysis of


Organizational

- Coordination- Problem solving- Negotiating- Team player



realistic work attitude- Time management- Communication- Effective writing


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Coaching and Mentoring theLoan Officers on- Prospecting and selling process- Regulations and Policies- Products and Processes- Evaluate performance and

further development.

FMFB A Microfinance Positions Analysis (Loan Officer)

Position Preview: Loan officer is a functional position. The incumbent is expected to demonstrate performance inthe following areas, namely: Prospecting borrowers and selling loans, borrower assessment and loan processing,customer service and relations, loan tracking and recovery.

All that loan officer performs must result in increased customer outreach, quality loan portfolio development,profitable customer relations, and efficient loan recovery, while conforming to the legal and policy environment invogue ultimately resulting in increased profits.


Reported Job Activities Analysis CompetenciesOperational Activities Credit /Business Development- Interviewing the clients - Checking the title deeds - Ensuring the proper usage of

the loan as per the loanrequest

- Prospecting and Selling- Preparing the loan files- Appraising the client and

guarantors- Recovery of past dues- Ensuring policy conformity- Evaluating repayment capacity- Clients retention- Client education- Loan documentation- Coordinating account

- Loan disbursement- Recovery of loan installment - Reporting anomalies in

portfolio

1. The loan officers in generalappear to be engaged in loanprocessing and administration.Though these are critical aspectsof their job, however, we feelthat there is an urgent need forthe loan officers to attend toselling, promotion and customerrelations on priority without anycompromise on other activities.

2. In this regard, we proposefollowing additional tasks:

Selling, Customer Service andRelations- Proactively reach out to

potential borrowers

- Initiate sales discussiono Uncover customers

borrowing needs andexpectations

o Uncover customerschallenges and concerns

o Collect necessary customerdata

o Establish customers basic

Managerial- Not relevant at this position


practices in Afghanistan- MF products and process

knowledge- Selling and customer service- Individual vs. group lending- Typical loan transaction cycle- Construction and analysis of


Organizational- Coordination- Problem solving

- Negotiating- Team player



realistic work attitude


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eligibility to borrowo Conduct preliminary

negotiationso Assist customer fill the FMFB

loan application and providenecessary documents / data

- Promote FMFB lending andallied products

- Broaden business activity bycross selling other products,focusing on their emergingfinancial needs andexpectations

- Build business relationsbeyond loan relationship withexisting borrowers

- Time management- Communication- Business writing

End of analysis (microfinance unit)


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Strategic Business Unit II

Small and Medium Enterprise Financing

1. Introduction

FMFB SME operations focus on financing small and medium sized business enterprises on commercial terms. Thecore SME team operates from the FMFB Corporate Office. SME customers are accessed through a desk atmicrofinance branches across the provinces.

The SME operations are managed by a Core Team that comprises of Sales/Production Manager, Credit RiskManager and Compliance, Administration and Delinquency Manager. Field functionaries Team Leader, SeniorLoan Officer, and Loan Officer work under the direct administrative control of the Sales/Production manager.However, for the coordination convenience and to provide necessary support these functionaries havecommunication lines directly with other managers.

The SME operations has four inter-linked functions, namely; Marketing and product development, Loan

processing, Customer relationship management, and Administration & MIS. The guiding principle for SMEoperations is Four Eyes, which means loan decisions are always made by two or more persons.

The sales and production manager along with field functionaries are responsible to process customers loanrequests, conduct preliminary eligibility reviews, obtain all the relevant information/documents and do theanalysis as per FMFB standard format, make sure that the information and documents are complete and as perregulations and company policy. Subsequently, upon approval of the loan by the credit committee the sales teamwould then conduct physical verifications of the collateral, prepare loan documentation, coordinate with branchesfor loan disbursement, and last but not the least monitor and recover the loan. In addition, if the loan becomesdelinquent at any future date, work with the relevant manager to salvage the loan.

2. Brief Analysis

i. Our initial conclusion is that the department is working as an inverted pyramid. Much of the tasks areperformed at the Relationship (loan) officers position by a single person while the team lead and threemanagers seem to merely counter check the data/documents prima fascia . This practice is inhibiting realvalue addition at the second and third tiers and leading to duplication of work and reduced individualownership.

ii. Secondly, the incumbents at the Relationship (loan) officers position do not seem to go through a structuredcapacity building process although they are expected to do selling; business and credit analysis; loanstructuring; customer relationship management; loan monitoring; and, delinquency management to anextent. In short what they learn on the job and by the chance is what they do atypical thumb-rule syndrome.

iii. Thirdly, the sales team in particular does not seem to realize the need for prospecting customers ratherproactively by the extent they should. The team seems complacent with voluntary customers who come ineither by themselves or through the reference of other customers. In our opinion this could be detrimental inthe competitive future scenario. This is because, they dont think from portfolio growth and profit angles.Instead they consider risk aversion being single factor for profitability, although it is one of the importantfactors but not the only.


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iv. Credit risk managers responsibility is relatively narrower. He is expected to review the loan proposals fromthe regulatory and policy compliance angles and assess credit risk. Again, I have basis to say that the scope ofcredit risk analysis is more quantitative rather than qualitative and have focus on sort of thumb-rulestandards. Subsequently, the conclusions and recommendations are bound to be stereo type and lack

reliability.

v. The compliance, delinquency and administration manager for all the left over tasks. Although it is hisresponsibility to perform compliance check, it is done by the credit risk manager. Consequently, for thismanager the compliance is only to ensure that the loan underwriting is done in verbatim as per the loanapproval memo prior to disbursement. While understandably the credit risk manager should have moretechnical and in- depth understanding of a particular loans risk dynamics for he had analyzed the same forcredit risk at the onset, compliance manager with relatively much little technical understanding of theparticular loan happens to deal when it becomes delinquent.

vi. In short, all the managers and the functionaries seem to be working from the operational perspective with

little focus on managing the outcomes (results) loan portfolio yield, loan portfolio quality, market share,customer solutions, etc.

3. Broad Recommendations

i. Suggestive value chain, SME Operations

ii. It is imperative that the work of Relationship (loan) officers is adequately complimented by the team leads andmanagers, respectively. One way of doing this could be through redefining and enlarging the scope of work ofthe team leads and managers so that value addition could be ensured at each stage, instead of simple counterchecking of the work done by the Relationship (loan) officer.


Continually expandingSME portfolio, and

increasing customer base

Improving SME portfolioquality, increasing yield,and containing risk

Adhere to internationalstandards; and, achievetotal regulatory andpolicy compliance

SME Process I

SME CreditProduction,Sales,Customerrelations,disbursement&management

SME Process II

SME CreditRisk As ses sme nt ,Regulatory& po li cycompliance,anddelinquencymanagement

SME Process III

SME CreditUnderwriting,Due diligence,TrackingRecoveries, Ag ing &classification

Strategic integration, planning, and policy environment

Pipeline Analysis: Credit Application Tracking

CoreProcesses

StrategicProcess

SupportProcesses MIS: DAB and Internal Reporting


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iii. The Relationship (loan) officers should essentially be developed as generalists building diverse skillscommensurate with their work responsibilities. We also feel that it would be advantageous if at certain pointin time the Relationship (loan) officers are moved to other functions to gain hands-on understanding. This willimprove their performance in the field and strengthen their career development.

iv.

The sales team in particular needs to be encouraged to perform proactively towards portfolio growth andprofitability in order to maintain FMFB competitiveness, market share and profits. In our opinion, this can besuccessfully accomplished by clearly emphasizing upon these critical behaviors in the Key Performance Areasand Key Result Indicators of the incumbents job descriptions. Moreover, appropriate weightage should begiven to these behaviors in the incentive plan already in place. Furthermore, even more structured Marketingand Sales function with clearly distinguished roles, responsibilities and targets of the Sales Manager, TeamLeads and Relationship (loan) officers surely merits consideration.

v. The position of Credit Risk Manager is one of the critical links on the SME value chain. First of all, we feel thatvalue addition at this stage can be further enriched if more structured risk assessment criteria with theaddition of qualitative dimensions are put in place. Secondly, in our opinion delinquency management

function merits relocation under this position. However, the Relationship (loan) officers may continue to dothe same on-site.

vi. The position of Compliance, Administration and Delinquency Manager is a bit grey. In our opinion, theincumbent should have more focused responsibilities and result areas. Such as, the incumbent should not justreview the loan documentation done by the Relationship (loan) officer, prima fascia, but should have activerole in ensuring that the borrower has understood the his or her obligations under the loan arrangement andthe repercussions of signing the documents and/or subsequently defaulting; that the documents are valid asper the law in force and shall be acceptable to the court; that banks interest is fully secured; that thedisbursements are done in the due course and as per good practice; and, last but not the least, monitor theloan relationship from all the four angles in conjunction with the relationship (loan) officers / team leads.

vii. Finally, we suggest that the present hierarchy needs some explicit reporting relationships. Considering themulti-faceted function of Relationship (loan) officers and Team Leads it is imperative that the incumbents atthese positions are considered as a virtual group with dotted reporting relationships with all the managers.However, for administrative purpose they may continue to report to the Sales and Production Manager.

Detailed analyses, corresponding competencies and recommended trainings follow.


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FMFB SME Positions Analysis (SME Group Head)

Position Preview: Group head of SME loans is a management position. Its core function is to manage growth,profitability and risk of the SME business as a whole segment. The incumbent at this position is expected toachieve the followings: market penetration, larger and loyal customer base, secure, growing and profitable SMEloans portfolio, team productivity management, and last but not the least market reputation.

Indicative Key Responsibility Areas:

- Strategic surveillance and business planning- Market positioning and branding- Portfolio management: integrating profitability, liquidity, risk and dispersal- Business policies and administration- Coordination and operations tracking (pipeline analysis)

Proposed Job Activities* CompetenciesStrategic Surveillance and business and Planning:- Monitor permeable business environment:

political, economic, social and technological- Develop, implement and monitor long term and

short term business directions (visions), plans andpolicies

- Ensure compliance with corporate governanceregulations and social responsibility

Market Positioning - Watch forces of competition- Develop SME marketing objectives and strategies- Develop marketing action plans

Portfolio Management - Portfolio structuring- Liquidity planning and monitoring- Establishing and monitoring risk appetite- Establishing loan performance benchmarks- Establish guidelines for preventive loan

management- Establish guidelines for handling delinquent loans

Business Policies and Administration- Define business and operation policy guidelines- Establish operating procedures and work standards- Communicate and implement Corporate Policies

such as Human Resources, Procurement, etc.- Establish and implement robust internal controls- Monitor, assess and report groups performance to

the CEO- Manage and develop high performing work force:

Performance planning, employee development andempowerment, performance reviews andappraisals, etc.

- Foster business culture in the letter and spirit

Managerial- Strategic SME business planning- SME business policies and work environment- Operational planning and monitoring- Performance management and culture- Corporate governance and social responsibility

Operational:- Lending laws, regulations and practices in

Afghanistan- Market competition / performance analysis- Product development marketing mix and branding

strategies- Loans / Investment portfolio strategies analysis

- Risk appetite analysis- Internal controls and compliance framework- Regulations and Corporate policies- Pre sanction loan proposals review (Jointly in the

credit committee)- Operations management and coordination- Business development- Problem loan management

Organizational:- Goal setting- Coordination- Decision making- Problem solving- Negotiating- Team building and bonding- Training and Development

Professional:- Leadership- FMFB values, norms and etiquette- Harnessed motivation and realistic work attitude


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- Management of overall discipline across the group

Coordination and operations management- Analyze pipeline for making sure that loan

appraisals are tracked in a timely manner in orderto make decision on the loan cases.

- Make sure that loans are processed and appraisalprocessing time is reduced to minimum.

- Ensuring post loan disbursement monitoring visitsare followed up on time by loan officers.

- Maintain close relationship with ACSP for loanverification/loan assessment.

- Logic, analytical and out of box thinking- Time management- Impression management- Business networking- Assertiveness- Communication

- Business research and report writing

*The position of Head SME is vacant. Hence actual work profile is not available to analyze. The above work profile is an indicative one presentedby the consultant for consideration. The premise of this indicative profile is that Head is primarily responsible for the management of thebusiness. S/he has no direct role in the operational activities. Rather, s/he is responsible for setting the directions and enabling workenvironment where operations team can effectively work rather synergistically.

FMFB SME Positions Analysis (Sales / Production Manager)

Position Preview: Sales/Production Manager is an operations position. The incumbents performance at thisposition is reflected in exploring newer markets; providing reliable feedback to Marketing department for thedevelopment of new products; expanding sustainable customer base; and, last but not the least, managing existingcustomer relationships profitably while conforming to the legal and policy environment in vogue.


- Do feasibilities for the target markets- Periodically do customer-profitability analysis of existing customers- Enabling sales team to continually prospect new customers (loans)- Communicate with existing and potential customers to understand their emerging needs, expectations and

challenges

- Represent sales team by owning and presenting loan proposals in the Credit Committee

Reported Activities Analysis CompetenciesLoan production- Manage and direct Team Leader

to achieve monthly / annualproduction targets.

- Assist Team Leaders with loanproduction.

- Provide Training, coaching andguidance to Team Leaders onproduct and loan opportunities.

- Making primary check andassigning the loan requests toloan officers consideringgeographical location of clientsto loan officers.

- Making pre-CC/screening formaking decision on the loan forSME Credit Manager.

- Sit in the CC as non-voting

1. The incumbent in the presentscenario is acting as a front linesupervisor of the sales team. Heseems concentrating more onthe counter checking of loanapplications in addition to theteam leads. Besides, he sits inthe Credit Committee as a non-voting member to present the

loan proposals as therepresentative of the salesteam.

2. We feel there is a clear need toincrease the value addition atthis position. In our opinion itentails establishing adistinguished responsibility of

Managerial- Not much relevant at this

position

Operational- Business development- Business feasibility preparation

and analysis- Customer s profitability analysis

- SME loan products and processknowledge

- Lending regulations, policies andpractices in Afghanistan

- Construction and analysis ofbusiness (financial) data

- Selling & customer relations- Loan proposal (Investment plan)

development


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member.

Product Development andMarketing- Consult the Marketing

Department on new product

development in order to respondto the client need.

- Identify new opportunities forclient promotion.

- Identify new geographical areasof expansion. Discuss modes ofachieving 100% target andensure achievement of targets.

Pipeline Analysis- Analyze pipeline for making sure

that loan appraisals are trackedin a timely manner in order tomake decision on the loan cases.

- Make sure that loans areprocessed and appraisalprocessing time is reduced tominimum.

- Ensuring post loan disbursementmonitoring visits are followed upon time by loan officers.

- Maintain close relationship withACSP for loan verification/loanassessment.

the incumbent, improving hisfocus on business development,profitability and last but not theleast ownership of specificresults. In this regard, wesuggest re-visiting the scope of

work as follows:Marketing- Explore new market niches- Conduct market research and

develop feasibility reports- Coordinate with marketing

department forimproving/developing loanproducts

Customer profitability analysis- Assess customer profitability

on periodic basis- Establish independent

communication withcustomers

- Resolve customer problems /grievances that could lead todelinquency

Facilitating Sales Team- Assign, facilitate and monitor

sales targets to fieldfunctionaries

- Ensure standards, turn-around-time, and attention todetails in loan processing by

the sales team- Provide lead / references tothe team

- Coach and train the teamCredit Committee- Participate in the Credit

committee meetings as anon-voting member topresent loan proposals withownership, answer queries,clarify concerns of othermembers and to coordinaterectifications, if required, bythe Relationship (loan) officer

It is earnestly believed that thePipeline Analysis activities shouldbe transferred to the ManagerAdministration. The reason is thatthe Admin manager is alreadyresponsible for the IT system.Secondly, he is more independent

- Typical loan transaction cycle- Problem loan management

Organizational- Supervision- Coordination

- Decision making- Problem solving- Negotiating- Team player






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then that of the Production/Salesmanager for this purpose.

FMFB SME Positions Analysis (Credit Risk Manager)

Position Preview: Credit Risk Manager is an operations position. The incumbents performance is much critical inenabling the Credit Committee make informed and prudent decisions; safeguard the interest of the bank in all loanrelationships; and, to manage the overall loans portfolio risk and return. The scope of work of the incumbent ismuch diverse and highly technical. Loan proposals need to be reviewed from different angles such as regulatoryand policy compliance, adequacy of collateral value, risk and return and last but not the least socioeconomicimpact. In addition, monitor loan performance and manage loan delinquencies in conjunction with Relationship(loan) officer / Team lead. Moreover, track overall loan portfolio returns and risks.


- Review loan structure, appraise the adequacy of collateral value, to ascertain if the regulations, policy andprocedures are being fully complied with and banks interest is aptly safeguarded

- Assess risks in individual credit transactions and determine mitigates- Loan delinquency management (moved here from compliance managers portfolio) - Overall credit portfolio risk and yield reviews

Reported Activities Analysis CompetenciesCredit Risk Assessment andReview- Managing the credit approval

process for maximumeffectiveness in alignment withthe Department Business Planand the Organization MissionStatement.

- Ensuring efficient role inreviewing credit files in aneconomical amount of time andarrangement of creditcommittee for approval of filesto help department meet themonthly and annual target.

- Ensuring that the creditcomponents of the LoanProduct programs are properlyfollowed (e.g. loan appraisal is

done properly havingconsidered the policycompliance, the 5 Cs of credit,market reference check, crosschecking of information,verification on documents andbusiness assets, SWOT analysis,financial ratios, collateral andguarantees checks and physical

1. At present the scope of work ofthe Credit Risk Manager issomewhat restricted tochecking if a proposal is in linewith the regulations and policy

per se . Furthermore, if theborrowers financials presentedby the Relationship (loan)officer are conforming to thepolicy standards and thecollateral(s) available physicallyverifiable and the title isunencumbered.

2. We feel that in order to fortifythe value addition at thisposition, it needs restructuringas follows:Loan Reviews- Loan purpose, tenure, type of

facility, pricing, collateral,compliance to the regulationsand bank policy, etc.

Risk Analysis- Adequacy of collateral value- Adequacy of work capital

(liquidity)- Adequacy of free-cash-flows

(for fixed asset loans)

Managerial- Not much relevant at this

position


practices in Afghanistan- SME loan products and process

knowledge- Construction and analysis of

business and financial data- Loan proposal (Investment plan)

development- Business and financial risk

analysis- Loan structuring- Collateral valuation- Prudential regulations- Compliance (AML/KYC)

regulations- Typical loan transaction cycle- Problem loan management

Organizational- Supervision- Coordination


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visits, verification by secondparty the four eyes principleand adequate answers to theverifier s concerns in verificationnote and risk review noteproduced by credit risk

manager).- Ensuring proper, prudent andconservative credit analysis isdone and independentlyverified on each proposal andthat all Policy requirementshave been met (e.g. thefinancial ratios, age ofapplicants, anti-moneylaundering, partnershipstructure, collateral evaluationand coverage value, guarantorseligibility, and exclusion list).

- Ensuring the credit file issues,risks are addressed to loanofficer and close work withProduction Manager to get thefiles to credit committee cleanfor decision in short time.

- Conducts independent riskreview and demonstrates therisk mitigations.

- Participates in CreditCommittees, presents the risksand shares opinions,

recommendations for mitigationof risks.

- Helps Loan Officers inimprovement of technical andanalytical analysis skills.

- Enforces strict credit disciplineon client loan applicationscompleted by the Loan Officer;and ensures that proper fieldcredit operations are followedand does analysis of the processflow and suggests initiatives forfaster and efficient work flow.

- Monitoring repayments madeby customers and immediatelyreport any delinquencies to the:Production Manager, the LoanOfficers, the ComplianceManager, and the TeamLeaders.

- Helping LO resolve any loanapplication problems with

- Going concern riskCredit Portfolio Risk and YieldReviews- Monitor and assess credit

portfolio risk and yield trends- Conduct sectorial analysis to

assess systemic and un-systemic trends that mightaffect portfolio quality.

Credit Committee Meeting- Present a review of loan

proposals as an independentmember

- Compile and communicatecommittee minutes includingloan approvals, observations,etc.

Delinquency Management:- Prevent and workout

delinquencies- Coordinate with Recovery

Manager, Head of Securityand Legal Advisors on allLegal Counsel Matters.

- Guide and assist RO/TL in thepreparation of delinquencylog sheets.

- Guide and assist RO/TL in thepreparation of proposals forrescheduling.

- Ensure all delinquency

related reportingrequirements are met, anddeliverables are on time andaccurate.

- On weekly basis, presents allrelevant documentation ondelinquencies to thedelinquency committee.

- Provide advice, guidance andtraining to minimize loss andmaximize recovery ofdelinquent loans.

- Claims processing.

- Decision making- Problem solving- Negotiating- Team player

Professional

LeadershipFMFB values, norms and etiquetteHarnessed motivation and realisticwork attitudeLogic, analytical and out of boxthinkingTime managementImpression managementBusiness networkingAssertivenessCommunicationBusiness writing


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customers as they areencountered.

- Manages the Credit CommitteeAgenda for credit submissions,ensures all proposals arecomplete, accurate, and meet

Policy standards.- Manages, monitors, coaches,trains and mentors the CreditAnalyst.

- Works very closely with theProduction Manager to achievesales targets while maintainingan approved tolerance of creditrisk as determined by the BoS*and CEO. Works very closelywith the Compliance Managerto ensure Shareholder andRegulatory compliance as wellas seem-less and efficient Officeenvironment.

BoS Board of Supervisors

FMFB SME Positions Analysis (Compliance /Loan Administration Manager)

Position Preview: Compliance (Loan Administration) Manager is an operations position. T he incumbentsperformance at this position is reflected in a typical loan administration process. We feel that the incumbentshould focus on valid underwriting of loans, secure disbursements and effective monitoring in conjunction with theRelationship (loan) officer / Team lead.


- Protect the interest of the bank in each loan relationship prior to the execution of the transaction- Communicate in clear and concise terms to the prospective borrower his or her obligations under the loan

arrangement and the repercussions of signing the documents and/or subsequently defaulting- Ensure the documents are made in order as per the legal and policy requirements and shall be acceptable to

the court of law in the due course of time- Oversee the disbursements to ensure prudent practices are followed at the respective branches- Monitor loans in collaboration with Relationship (loan) officers / team leads

Reported Job Activities Analysis Competencies- Compliance-

Primarily responsible forensuring the compliance of theSME Department related to:

- Underwriting of loan contracts& acquiring collateral,

- Internal policies- Accounting and legal

regulations,- DAB directives, and

1. The as-is work responsibilities of

the incumbent are ratherincoherent and do notcomplement each other.

2. Besides, the role of theincumbent in underwriting isalso much limited for he seemsto review the documentation ata later stage only. The

Managerial-

Non-critical at this position


practices in Afghanistan- Prudential regulations- Compliance (AML/KYC)

regulations


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- Contracts with third parties.Ensure all compliance relatedreporting requirements are met,and deliverables are on timeand accurate.

- Report any internal control

deficiency to HoD.- Coordinate administrationissues with HoD, attend internaland external meetings asrequested.

- Responsible for informationsystem and technology projects,loan accounting, and overviewing departments expensesand operating costs.

- Supervise Admin staff andensure that well motivated.

- Participate on Loan Committee- Partner with the SME

management team to achieveprofitability targets, BusinessPlan and stay aligned with theMission Statement.

- Responsible for internal Auditissues, and Shareholderrelationships as assigned byHoD.

- Maintain close relationship withFMFBs technical assistanceproviders.

- Liaise with Bank Risk Manageras needed or requested

- Manage Team Leaders ondelinquency management.

- Supervise and assist TL in thepreparation of delinquency logsheets.

- Supervise and assist TL in thepreparation of proposals forrescheduling.

- Ensure all delinquency relatedreporting requirements are met,and deliverables are on timeand accurate.

- On weekly basis, presents allrelevant documentation ondelinquencies to thedelinquency committee.

- Provide advice, guidance andtraining to minimize loss andmaximize recovery ofdelinquent loans.

underwriting process is generallycarried out by the Relationship(loan) officer and the Team leadrather independently

3. Monitoring of loan from all thefour aspects is a function that

seems to complement othertasks at this position.

4. Moreover, delinquent loanmanagement is all together adifferent job, which theincumbent is responsible for atpresent. We strongly feel thatthis task should be relocated tothe Credit Risk Manager for itentails similar tasks as in case ofloan risk analysis i.e. determiningrisk impact, loan structuring,business and collateral valuation,and negotiations etc.

5. Hence, we feel that theincumbents responsibilitiesneed revisiting with a focus onthe followings:Underwriting- Preparing template loan

contracts/documents inconsultation with the legalexperts

- Review actual loan contracts /documents prior to signing bythe prospective borrower(s)for legal validity and adequacy

- Explain in clear and conciseterms to the prospectiveborrower(s) his or herobligations and possiblerepercussions in the event ofdefault, preferably himself orthrough the Team lead

- Review thecontracts/documents postsigning and accord approvalfor disbursement, with fullresponsibility for the validity ofthe contract / documents

Disbursement

- Collateral valuation- Banks policy and procedure on

loans underwriting- Banks policy standards and

international best practices forloan management

- Typical loan transaction cycle- Problem loan management

Organizational- Supervision- Coordination- Decision making- Problem solving- Negotiating- Team player






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- Effectively manage in house andoutside Counsel.

- Coordinate with RecoveryManager, Head of Security andLegal Advisors on all LegalCounsel Matters.

- Claims processing.- Partner with MarketingDepartment on new productdevelopment, focusing onaccounting, legal & regulatorycompliance and adherence tothe Mission Statement.

- Collaborate with the SMEProduction Manager to developthe marketing and sales strategy

- Collaborate with SME CreditRisk Manager to ensurecompliance with Credit Riskobjectives as set by the BoS*.

- Issue instructions to therespective branch for themode of disbursement

- Conduct post disbursementcompliance check at the

branchMonitoring: - Loan utilization- Loan repayment- Account monitoring- Business dev. Monitoring

6. Administrative matters currentlybeing handled by the incumbentcan create cross functionalconflicts. Hence it is suggestedthat these functions should be

relocated to the task portfolio ofthe Head of SME, who can thentackle these issues through anAdmin officer.

BoS Board of Supervisors

FMFB SME Positions Analysis (Team Lead)

Position Preview: Team Lead is a functional position. The Team Leads position has dual perspective. On one hand,the Team Lead is the territory supervisor facilitating four to five Relationship (loan) officers. On the other hand,s/he provides a critical link between Relationship (loan) officers and the SME managers. Though it is important thatthe Team Lead must do active selling on his / her own, his/her scope of work should be rather enlarged. Hence, in

addition s/he should also be responsible for customer relationship management, and developing businessnetworks in the territory.

In short the team leads performance should includedprospecting of new customers, providing leads and supportto the Relationship (loan) officers in prospecting new borrowers and/or cross selling, providing guidance to theRelationship (loan) officers in processing loan applications and proposals, reviewing loan requests and proposalsfor quality assurance, managing customer relationships, building business networks and regularly interacting in theterritory, preparing territory budgets and action plans in the light of overall targets assigned in consultation withRelationship (loan) officers. Besides, the Team Lead should work as Eyes and Ears of the Managers to capturecritical data/information about the prospective and existing borrowers and seek market feedback through rigorousinteractions in the territory, although the Sales/Production Manager should also maintain direct linkages in the

se

Documents

Bank Positions Analysis (HR)