RATISSON FINANCE

STRATEGIC PLAN 2016

CONTENTS
1. BACKGROUND
a)
b)
c)
d)

Context
Ratisson Finance Strategic foundations
Ratisson Finance Corporate Direction
Business Scenarios (Country, Financial
Sector, Ratisson Finance

3. STRATEGY WORKINGS

a) Critical Success Factors & Key Results

b) Implementation Plans

)2. STRATEGIC CONTEXT

a)
b)
c)
d)
e)

Situation Assessment for Ratisson Finance

Current Scenarios for Ratisson Finance
Focus Goal for Ratisson Finance
Future scenarios for Ratisson Finance
Future Business Model

)4. NEXT STEPS

BACKGROUND
RATISSON FINANCE STRATEGIC PLAN

BACKGROUND: CONTEXT

1) Ratisson Finance is a start up micro-finance company and has just submitted an

application for a microfinance business license with the Reserve Bank of
Zimbabwe. Prospects of successfully obtaining the license are high.
2) Ratisson Finance (Pvt) Ltd is related to Brance (Pvt) Ltd, Farmers Warehouse
(Pvt) Ltd, Stage Master and South Bay (Pvt) Ltd. All the companies are wholly
owned by the Ratisso family.
3) The company obtains its name from the word Ratiso, being the original
surname of the Ratisso family. Ratiso means vision.
4) Ratisson Finance has inherited some assets and liabilities from Brance (Pvt) Ltd.
The shareholders have reduced equity in other companies and even closed
some inorder to invest in Ratisson Finance.
5) The shareholders are not keen to have their equity diluted at least in the initial
stages of the business. They are willing to review this position in a few years
time.

BACKGROUND strategic foundation [Purpose,

Destiny and Values]
Purpose : To continually improve the livelihoods of the commuinities we operate in
through hassle free access to credit and provision of customer focused service

Mission : To create and continuously increase shareholder value through the

provision of excellent service and innovative products to its customers and a
conducive working environment in which every employee is encouraged and
assisted to develop to their full potential

Values: : Customer focus, Innovation and flexibility, Respect, Honesty, Integrity,

Professionalism

Background: Country Scenarios - Zimbabwe

In defining the future corporate direction, time was taken to reconsider the country scenarios which also provided
guidance in planning for Ratisson Finance.
NOTES

COMPETITIVENESS
+VE
Premier League

The country variables have been defined as

the same as South Africa, being
competitiveness and Internal harmony /
conflict. These variable provide 3 feasible
scenarios which have been described below
from a Zimbabwean Context.

0
%

X
Relegation Zone

100
%

Failed State
Lagging Infrastructure development
Political Instability

201
6

Conflicting policy
Increasing rates of unemployment

201
5

201
5

Play-ofs

INTERNA
L
CONFLIC
T

Increased
FDI

Stable
government

Second Division

COMPETITIVENESS
-VE

International
acceptance

0%

INTERNA
L
HARMON
Y

1)Premier League This is the areas where

the countrys competitiveness has improved
significantly with increase FDI and international
acceptance, in the next few years it is not felt
that Zimbabwe will have reached this stage
just from appreciating where things are
starting from as such the chance of this
occurring by 2016 has been rated as 0%
2)Second Division In the second division
the country is now in a place of internal
harmony although competitiveness is still
relatively low. In Zimbabwes case this is very
unlikely scenario by 2016 with a 0% chance. It
is not expected that Zimbabwe will be on its
way to the premier league with
competitiveness going up as reflected by
continued economic deterioration, company
closures, job losses and international isolation
which is also further exacerbated by political
instability.
3)Failed State This is the worst state to be
in as the country has both internal conflict and
a lack of competitiveness. Zimbabwe is seen to
have been in this state in 2008 at the peak of
the economic and political crisis. The Country
has been steadily moving towards the Second
Division until the end of the inclusive
government in 2013. Factors that may make us
fail the playofs and remain in the failed state
status include lagging infrastructure
development (afecting service provision),

BACKGROUND: INDUSTRY SCENARIOS - ZIMBABWE

Potential Scenarios for Diferent industries were also plotted in order to define the operating space that Ratisson Finance
must play in
NOTES
The industry variables have been defined as how positive the
market is towards the industry and the amount of economic
growth in the customer base that would be targeted by that
industry. Four key scenarios have been identified and these
are briefly explained below.

MARKET +VE
Cash Cow

Star

Telecoms

2016

Retail

Funeral
Assurance

LOW
ECONOMI
C
GROWTH

Mining
(Precious
Minerals)

Tobacco

All Other
Insurance
Financial
Services

Mining (Non
Precious
Minerals)

Tourism

Manufacturing

Agro Based
Mineral Value Addition

2016
Potential

Crisis

MARKET -VE

HIGH
ECONOMI
C
GROWTH

1)Crisis This scenario is seen in a situation were a country

has low economic growth and the market is also negative
about the goods on ofer. As an industry the financial services
sector, manufacturing, NGOs and insurance are seen to be in
this state, aspects of these though may also be in another
state. The mining of non precious metals such as Chrome
and Coal are also in this state due to low local and global
demand. In the future Tobacco is most likely to end up in
crisis as the global push for better health and a tobacco free
society grows market attractiveness will diminish. Non
Government to Government NGOs are also likely to remain in
this realm.
2)Cash Cow The Cash Cows are the industries that are
doing well despite the low growth in the economy, these are
consumables or necessities as such telecoms, retail and
funeral assurance are all in this state. Tobacco and Mining of
precious minerals are also in this state due to current global
market attractiveness. Individuals and Public Administration
are also in this sphere with an expectation that individuals
will remain in this quadrant into the future.
3)Potential This state is reserved for industries who are
operating in a good economy but seem to lack market
attractiveness, some new industries that evolve will fit in this
category. Due to the current low economic growth of the
country, only tourism is seen to be in this quadrant. In the
future as the economy grows the mining of non precious
minerals, Infrastructure Services and Government to
Government NGOs may fall into this state. Informal to small
businesses which have not been looked at in this model may
also fit in this state in the future until they establish
credibility. The manufacturing of agro based products and
mineral value addition along with the financial services will
move from crisis into this phase as some of the market
attractiveness of these has a direct correlation to economic
growth.

BACKGROUND :

corporate direction for 2016

Taking account of the operating environment and the expectations of the shareholders,
Ratisson fi nance Board has defi ned a desired corporate direction for the company with
a clearly Focus Goal and deliverables to 2016.

AREA
Financials
Market share
Productivity
Human Capital

KEY DELIVERABLE FOR 2016

STRATEGIC CONTEXT:

RATISSON FINANCE CURRENT SITUATION ASSESSMENT

Ratisson Finance has assessed its current positioning in each of these areas
Key Areas

Positives

Funding

Adequately capitalised.
Variety of funding internal and external

Working ICTS

N/A

Skills and Rewards

Target market growth

Skilled and experienced top management

Covering all target markets.(Micro small to medium scale enterprises)

Company not yet exposed to the difficult market segments

Delivery channel

Challenges

50%

Funding is limited.
Regulatory challenge.
NGO have conditions they attach to funding so target market may not be our core
business and terms may not be conducive
No NGO backed funding on our book so far

No system in place at all.

No CRM for there to be 360 degree view of customers
No MIS for important business reports
Only 1 desktop in place the two current managers use own laptops

Inadequate staff compliment

Only two staff members
No loans officers, receptionist and administration staff
Difficult to segregate duties
Reward system not market related
Grading system not reflective of work demands and skills level

10%

Book is skewed towards agri-trade (tobacco) sector.

One client constitute greater than 90% of the book
Not fully captured the female and rural market.(agriculture)

15%

No branch network.
No systems in place - CRM
Disbursement challenges in areas we do not have presence.
Manual systems with a lot of paper work.
No motor vehicles for client visits and for efficient service delivery

30%

60%

Collection arrangements.
Quick turnaround time.
Ambience of Head offices.

Product innovation

Wide array of products to be introduced.

Convenience in terms of disbursements.

Not competitively priced in MFI market (working capital loans).

Loan tenure for working capital is too short.

Commercial culture

Daily performance tracking.

Business cases.
Productive staff performance tracking.
Appraising potential partners and reviewing relationships.
Focusing on core business.

Lack of proper market penetration strategies.

Inadequate performance tracking mechanisms (due to MIS)

Corporate governance

Have an effective Board

Good relations with regulator
Compliance levels with regulator are satisfactory
Basic risk mgt framework in place.
Adherence to core client protection principles

Compliance oversight is inadequate (internal perspective)

Need for company rating .
Shareholder interference in operations

PREPARED BY BRIAN KUFAHAKUTIZWI

Composite Rating (0 100%)

0%

60%

65%

CURRENT MICRO FINANCE SECTOR SCENARIOS ZIMBABWE

MicroKing is the most dominant player in this sector at the moment.

NOTES

MARKET
+VE

BancABC

..

Ima
li

FBC
Metbank FMC

KCI
WDSCU

Healthy

Ratisson
Yambukai

.
.
...

No
Profitability

Homelink
Zambuko

Out Patient
(Observation)

Based on two key variables (profitability and the level of

market attractiveness) four key scenarios have been identified
and these are briefly explained below.

MicroKing

CBZ

Fidelity

untu

.
Intensive Care Unit

Sedco

High Dependency
Unit

MARKET
-VE

1)Intensive Care Unit This scenario is were the

organization has little to no profitability and is also perceived
negatively by the market it wishes to serve. Financial
institutions in this quadrant are good candidates for
curatorship. No micro finance institution is sitting in this
quadrant as the micro finance industry is on a boom at the
moment.

Profitabilit
y

2)High Dependency Unit This scenario is associated with

saturation and houses institutions that have a significant level
of liquidity / profitability but have not been able to turn this
into market attractiveness. In the current state SEDCO is felt
to be sitting in this quadrant to some extent due to its low key
approach to promotion.
3)Out Patient (Observation) This scenario reflects the
institutions that have managed to create market appeal but
are still hampered by lack of liquidity. These institutions are
outpatients and will continue to go and see a doctor until the
seemingly chronic but somewhat manageable condition is
addressed. This group can easily slip into ICU if not managed
properly or can be cured and move to the next quadrant. At
the moment Homelink, KCI, Imali, FBC, Zambuko , WDSCU,
Metbank , FMC and BancABC are felt to all be in this scenario.
4)Healthy This scenario is where the financial institution has
both liquidity and a positive market perception. The chance of
a healthy institution going into ICU are low unless there is an
uncontrollable external force such as indigenization. Currently
MK, CBZ, Fidelity and FMC are perceived to be in this quadrant.

PREPARED BY BRIAN KUFAHAKUTIZWI

10

STRATEGIC CONTEXT : RATISSON FOCUS GOAL 2016

In line with Ratissons Strategic Foundations, current positioning and 2016 objectives , we have adopted this Focus Goal:

Penetrate the local market

ofering sustainable and
innovative microfinance
solutions.

11

PREPARED BY BRIAN KUFAHAKUTIZWI

STRATEGIC CONTEXT: RATISSON 2016 SCENARIO

In line with the focus goal Ratisson reviewed and adopted its future projections of where it would need to be positioned by 2016
for the focus goal to be achieved.
NOTES

MARKET
+VE

BancABC

Healthy

Ratisson
Yambukai

..

Ima
li

Ratisson

FBC
Metbank FMC

KCI
WDSCU

. .

.
.
...

No
Profitability

Out Patient
(Observation)

Homelink
Zambuko

40%

Care Unit

40%

MicroKing

CBZ

Fidelity

Profitabilit
y

.
20%Intensive

Based on the desired 2016 state, Ratisson Finance will

consolidate its position in the healthy quadrant. This
placement has been given a 40% chance while
remaining in the state of Outpatient has been given a
40% chance. An 20% chance exist that Ratisson
Finance may slip into the Intensive Care quadrant if
Premier Tobacco defaults on its facility with Ratisson.
The desired state for 2016 has been driven by the
predetermined factors and the country context that
Zimbabwe will be in the year 2016 and that Ratisson
will need to focus on penetrating new markets,
capturing clients from competitors and growing the
appetite for Micro Financing so as to grow the size of
the cake.

Sedco

High Dependency
Unit

MARKET
-VE

PREPARED BY BRIAN KUFAHAKUTIZWI

12

STRATEGIC CONTEXT:

RATISSON BUSINESS MODEL CANVAS

In line with the set focus goal, Ratisson will need to do business in a certain way and as such a picture of the future business
model has been defined.
Description

Key
partners

Key
activities

Branch network
through (Real
estate agents)
Donor community
(Development
partners)
Brance
subsidiaries
Government
Agencies
Credit bureaus
Rating agencies
Apex bodies
(ZAMFI)

Skills development
Market
development
Product
development
After loan service
Financial literacy
programs.

Key
Working ICT systems
resources

Value
proposition
Smart lending with
speed which will be
defined by:
Quick turnaround.
Easy access
Competitive
Pricing.
Variety (innovation)
Service
Managed risk
Outreach

Technically equipped
and motivated
people with an
understanding of the
market.( individual
with minds of
bankers and hearts
of social workers)
Infrastructure(branch
es etc)
Support from
The key cost drivers being:
Consultant
1. Staff Costs
Appropriate funding.
2. ICT Costs
3. Marketing Costs (includes CSR)
4. Operating costs
5. Cost of funding

Cost structure

Customer
relationship

Channels
1.
2.
3.
4.
5.

1.
2.
3.
.
.
.

Long term
Intimate
Loyalty
Deep and broad
Mutually beneficial
Customers become
ambassadors of the
brand.

Customer
segments
1.
2.
3.
.

4.
5.

Middle and
upper levels of
informal sector.
SME
Special bias to
women
In urban and
rural areas
(agriculture)
Youth (15-35)
Agriculture
sector

Branch Network
Mobile banking
CABS
Business
Associations
(community based)
Mobile
branches(kiosk)

Interest Income
Pure grants
Non funded income:
Business advisory service.
Consultancy.
Commissions

Revenue streams

Template Source: www.businessmodelgeneration.org

PREPARED BY BRIAN KUFAHAKUTIZWI

Ratisson will focus on maintaining

and
growing its client base with a specific focus
on real estate owners, the middle and upper
levels of the informal sector, SMEs, Women
in both rural and urban areas, people in the
agricultural sector and the youths in the age
bracket 15 to 35.
Value to these clients will be delivered
through smart lending with speed which will
entail
providing
clients
with
quick
turnaround,
easy
access,
competitive
pricing, variety and service delivery while
managing the risks associated with lending
to these target sectors. To sustain the value,
relationships with clients will need to be
deep and broad (intimate, long term and
mutually beneficial)
where customers
become ambassadors of the brand. This
value and relationships will be delivered
through own and partner (CABS) branches,
mobile banking, Community based Business
associations and kiosk type mobile branches
that will go to where the clients are.
To deliver this value, the business will focus
on market and product development, after
loan service and financial literacy training for
clients as well internal skills development so
that staf will be technically competent with
the minds of bankers and hearts of social
workers. To support this process the business
will need appropriate funding, support from
the shareholder and adequate infrastructure.
Key partnerships
with development
partners, Government agencies, credit
bureaus, rating agencies and Apex bodies
will be required along with supportive
relationships with other Brance subsidiaries
as well as the support services from
Consultant.
This ofering to the client will cost money13
through staffing, ICT, Marketing (including

RATISSON FINANCE
STRATEGIC PLAN (2016)

Strategy Workings
PREPARED BY BRIAN KUFAHAKUTIZWI

14

RATISSONS STRATEGIC
OBJECTIVES - 2016

Key Performance Target

Area
Financial
Adequate capitalization

management
Securing lines of credit

Cost management

Portfolio growth

Activities

KPI

Corporate
Governance and
Risk
Management

Compliance with all internal, legal and

regulatory compliance provisions.

Systems and
processes

Develop seamless service-oriented

architectures and processes.

Leadership and
Human capital

Resource the organizational structure

Human capital development

Products and
Market
Development

15

Corporate

communications

Achieve proper market segmentation

Penetrate our chosen markets
Diversification of revenue streams

Efective stakeholder relations

Access additional capital from the shareholder

Establish optimum capital structure for the business
Set up background structures and begin company profiling to ensure
readiness for developmental finance from NGOs, Government facilities and
international development institutions.
Setup structures to ensure readiness for a deposit taking microfinance
license in five years time
Implement appropriate cost structure and align costs to income
Evaluate new projects adequately before implementation
Grow book size to $
Ensure 100% compliance with regulatory/legal/internal policy provisions
Conduct regular internal checks
Establish policies and procedures
Recruit resource to handle compliance and recoveries tasks
Benchmark corporate governance standards against international
benchmarks on microfinance
Set up background structures and begin company profiling to ensure
readiness for developmental finance from NGOs, Government facilities and
international development institutions.
Setup structures to ensure readiness for a deposit taking microfinance
license in five years time

Develop policies and procedures on credit and security, compliance,

recoveries, HR manual, operational policies and procedures manual

Develop and implement service level agreements for all outsourced services
IT, consultancy, payroll etc.

Adequate resourcing of staf

Standardized outreach program methodologies for all selected markets

Create an internal blacklisting system

Develop a HO/branch ambiance checklist
Develop and implement a Business Recovery Plan
Develop an incentive scheme for all staf in line with strategy

Efective performance monitoring

Review and redesigning structure to ensure efficient implementation of

strategy

Technical training for all staf at all levels

Develop and maintain client database

Profile all successful clients

Develop new products in line with market segments

Define target markets

Implement efficient and appropriate delivery channels

Grow loan book to $
Coordinate the dissemination of information to stakeholders

Open regular communication with customers interactive website for

Return on equity 28%

Debt to captal ratio 57%
Return on assets 26%
Net profit percentage 21%
Cost to income ratio 70%

Reviewed Credit committee charter in place by 31 August

2015
Reviewed Audit Committee Charter in place by 31 August
2015
Reviewed Risk management and Compliance Committee
Charter in place by 30 September 2015
Credit Policy in place by 30 September 2015.
Positive audit rating ongoing.
100% adherence to risk tolerance levels
100% compliance on all key ratios
PAR > 1 day 7%
PAR > 30 days 5%
Risk coverage ratio of 70%
Reviewed policies and procedures by October 2015
Robust /efficient system by 31 March 2016
99% system uptime
Standardized outreach programs by 31 December 2015.
Functional credit scoring system by 31 December 2015
Web based database by 31 December 2016.

Incentive scheme reviewed by 31 December 2015

Increased productivity as measured by income per head.
Optimal staffing levels
100% submission of appraisal documents
99% staf satisfaction index (Motivated staf)
Ratisson Finance specific programs every quarter.
Defined market segments by December 2015
Develop 1 more product per quarter
Customer satisfaction index of 85% by December 2016

Harmonious relations ongoing

Feedback from stakeholders through availed channels

OBJECTIVE IMPLEMENTATION
PLAN :FUNDING
1

Focus Area

Objective Name

Funding and profitability

Accountability

Managing Director

Raise adequate funds for on lending and ensure profitability

How will we achieve this Objective

Activities and Tasks

Timings

Costs

Responsible

Support

Inform

Consult

Raise long term funding from

external & internal sources, June
2013 4.5 m, 10m Dec 2013.

On-going

TBA

MD

FM,OM,

Board

Financial
Partners

Ensure utilisation of availed lines

of credit to the limit

On-going

TBA

OM

FM,BDM, OM

MD

Financial
partners

Reduce cost of funding from

average of 35% August 2015 to
18% by Dec 2016

On-going

TBA

FM

OM

MD

Board

Cost containment

On-going

TBA

FM

HODs

MD

Board

Ensure revenue growth in line with

target

On-going

TBA

MD

FM, OM

Board

Scout for non funded income

commissions from money transfer
agencies, grants and fees for
advisory services

Monthly

TBA

MD

FM, BD, OM,

Board

Partners

How will we Track the Objective

Performance Indicator

Frequency of Measure

Unit of Measure

Target

Alarm

ROCE

Monthly

Cost of funding

Monthly

Cost to income ratio

Monthly

PREPARED BY BRIAN KUFAHAKUTIZWI

16

OBJECTIVE IMPLEMENTATION PLAN : WORKING ICTS

2

Focus Area

Objective Name

Working ICTS and systems

Accountability

Managing Director

Deploy relevant and robust ICT solutions and systems

How will we achieve this Objective

Activities and Tasks

Timings

Costs

Responsible

Support

Inform

Consult

Implement systems, Monitoring of

system performance and ensure
proper documentation.

March
2016

TBA

Operations
Manager

MD

Risk and
Compliance
board
committee

Tech partners

Implement MIS(ERP,BI, CRM -360

degree view)

June
2016

TBA

Operations
Manager

FM, MD

Risk and
Compliance
board
committee

Tech Partners

Maximize utilization of availed

systems

June
2016

TBA

Operations
Manager

FM, BDM.

MD

Tech partners

Acquire MFI system

March
2016

TBA

MD

Operations
Manager

Board

Tech Partners

Disbursements over Ecocash,

telecash and E-Wallet platforms

Dec 2016

TBA

Operations
Manager

FM, BDM

MD

Tech partners

Fully resourced DRS

Dec 2016

TBA

Operations
Manager

FM

MD

Tech Partners

How will we Track the Objective

Performance Indicator

Frequency of Measure

Unit of Measure

Target

Alarm

System related complaints.

TBA

20%

25%

TBA

99.9%

98%

System uptime

PREPARED BY BRIAN KUFAHAKUTIZWI

17

OBJECTIVE IMPLEMENTATION PLAN : SKILLS AND REWARDS

3

Focus Area

Objective Name

Skills and Rewards

Accountability

Managing Director

Attract and retain highly efficient skills in the right places

How will we achieve this Objective

Activities and Tasks

Timings

Costs

Responsible

Support

Inform

Consult

Develop and implement efective

staf wellness initiatives for the
company to increase staf
engagement levels

Decembe
r 2015

TBA

MD

HR Committee

Board

FM

Refine the incentive system in line

with international best practices to
reward performance

Decembe
r 2015

TBA

HR
Committee

MD

Board

HODs, FM

Review and resource structure in

line with strategy

Decembe
r 2015

TBA

MD

HR Committee,
HODs

Board

HODs

Review job descriptions

Decembe
r 2015

TBA

MD

HODs, MD HR
Committee,

Board

Consultants

Conduct a job regarding exercise

Decembe
r 2015

TBA

HR
Committee

MD, HODs

Board

HODs,
Consultants

Implement an efective training

program for both front and back
offices.

June
2016

TBA

MD

HODs

HR Committee

External
Consultants

Develop and Implement a staf

rotation system

Decembe
r 2016

TBA

MD

HR Committee

Board

HODs, BMs

Ensure efective implementation

of performance management
system

On-going

TBA

MD

HODs

HR Committee

Consultants,

Ensure efective leave day

management system.

On-going

TBA

MD

HODs

HR Committee

FM

Target

Alarm

How will we Track the Objective

Performance Indicator

Frequency of Measure

Unit of Measure

18

OBJECTIVE IMPLEMENTATION :TARGET MARKET PENETRATION

4

Focus Area

Objective Name

Target market penetration

Accountability

Managing Director

Thrive for market leadership and explore opportunities for growth

How will we achieve this Objective

Activities and Tasks

Timings

Costs

Responsible

Support

Inform

Consult

Customer needs analysis and

market segmentation in order to
ofer appropriate products

On-going

TBA

BDM

OM

MD

Marketing
consultants

Create partnerships and

associations to increase outreach

Decembe
r 2016

TBA

BDM

OM

MD

Marketing
Consultants

Scout for project activities with

NGOs and development partners

On- going

TBA

BDM

FM, OM

MD

Legal advisors,
board

Reduce exposure to Premier

Tobacco Auction Floors to 40% of
total book

June
2016

TBA

MD

OM

Board

Shareholder

Develop client retention strategies

Loyalty programs

Septemb
er 2016

TBA

OM

BDM

MD

Marketing
consultants

How will we Track the Objective

Performance Indicator

Frequency of Measure

Unit of Measure

Target

Alarm

Market share

TBA

28%

20%

Customer retention rate

TBA

85%

70%

PREPARED BY BRIAN KUFAHAKUTIZWI

19

OBJECTIVE IMPLEMENTATION PLAN : DELIVERY CHANNEL

5

Focus Area

Objective Name

Delivery channels

Accountability

Managing Director

Ensure appropriate, relevant and efficient delivery channels

How will we achieve this Objective

Activities and Tasks

Timings

Costs

Responsib
le

Support

Inform

Consult

Scan the market for possible branch

locations

June 2016

TBA

BDM

FM, OM

MD

Board

Establish satellite branches for selected

regions

June 2016

TBA

BDM

FM, OM

MD

Board

Implement an outreach framework with

business membership organisations

Ongoing

TBA

OM

BDM

MD

Associatio
ns

Develop a mobile banking strategy for

Ratisson.

December 2016

TBA

OM

BDM

MD

Board

Develop interactive website and CRM

module

December 2015

TBA

BDM

OM

MD

Consultan
t

Standardise information meetings

October 2015

TBA

BDM

OM

MD

FM

Zone catchment areas for loan officers and

future branches.

Feb 2016

TBA

OM

BDM

MD

Clients

How will we Track the Objective

Performance Indicator

Frequency of Measure

Unit of Measure

Target

Alarm

Average profitability per channel

TBA

35%

20%

Case load per Loan officer

TBA

Number

150

200

Location coverage

TBA

70%

60%

PREPARED BY BRIAN KUFAHAKUTIZWI

20

OBJECTIVE IMPLEMENTATION PLAN: PRODUCT INNOVATION

6

Focus Area

Objective Name

Product Innovation

Accountability

Managing Director

Provide profitable, appropriate and relevant products

How will we achieve this Objective

Activities and Tasks

Timings

Costs

Responsible

Support

Inform

Consult

Develop and package product

ofering.

Decembe
r 2016

TBA

BDM

MD

OM

Consultants

Conduct monthly product

performance monitoring

Monthly

TBA

BDM

FM

MD, OM

Consultants,
Clients

Develop and pilot 3 new products

annually. (Housing Development
loans, Energy Loans, Asset
Finance, order finance, Dairy
Finance etc.)

Annually

TBA

BDM

MD

OM

Consultants

Product Diversification Develop

advisory & Training services
package

June
2016

TBA

BDM

OM

MD

-Consultant

Review business conditions

Quarterly

TBA

BDM

OM

MD, Board

Clients,
Consultants

How will we Track the Objective

Performance Indicator

Frequency of Measure

Unit of Measure

Target

Alarm

Average product profitability

TBA

38%

20%

Client retention

Quarterly

85%

70%

PREPARED BY BRIAN KUFAHAKUTIZWI

21

OBJECTIVE IMPLEMENTATION PLAN: COMMERCIAL

CULTURE
7

Focus Area

Objective Name

Commercial Culture

Accountability

Managing Director

Promote a culture focused on performance and strategic cost management.

How will we achieve this Objective

Activities and Tasks

Timings

Costs

Responsible

Support

Inform

Consult

Business management soft skills

On-going

TBA

MD

FM

HR Committee

Consultants

Training on sales at all levels

On-going

TBA

MD

HODs

HR Committee

Consultants

Market, Product and project

viability analysis before launch

On-going

TBA

FM

BDM, OM

MD

Consultants

Standardization of processes and

systems

On-going

TBA

OM

FM

MD

Consultants

Develop incentive scheme and

performance awards

Decembe
r 2015

TBA

Incentive
and Awards
committee

HR Committee

MD

Consultants

Ensure quick turnaround (max 5

days on all loans)

On -going

TBA

OM

BDM

MD

FM

How will we Track the Objective

Performance Indicator

Frequency of Measure

Unit of Measure

Target

Alarm

Staf achieving targets at each level

TBA

80%

60%

Cost: Income ratio

TBA

60%

70%

PREPARED BY BRIAN KUFAHAKUTIZWI

22

OBJECTIVE IMPLEMENTATION PLAN : STRONG CORPORATE GOVERNANCE

8

Focus Area

Objective Name

Strong Corporate Governance

Accountability

MD

Ensure 100% compliance with internal and external regulations

How will we achieve this Objective

Activities and Tasks

Timings

Costs

Responsible

Support

Inform

Consult

Devise monitoring and evaluation

tools for checking adherence to
client protection principles

On-going

TBA

OM

BDM

Regulators.
Partners, Board

MD,
Consultants

Engage a external rating agent

Decembe
r 2016

TBA

MD

Risk and
Compliance
committee, FM,
OM

Regulator

Board

Develop and implement internal

compliance function

June 2016

TBA

OM

Consultant,

MD

Risk and
Compliance
committee

Develop credit policy

Decembe
r 2015

TBA

OM

Consultant

MD

Risk and
compliance
Committee

Establish relationship with two

credit bureau

Decembe
r 2015

TBA

OM

MD

Board

Risk and
compliance
Committee

Develop and adopt social

performance monitoring tools

Sept 2016

TBA

BDM

FM

MD

-Consultant
Risk and
compliance
Committee

Develop and implement

appropriate social corporate
responsibility programs

Decembe
r 2016

TBA

BDM

Consultant

FM , Board

MD

Develop recoveries function and

create/maintain an internal
blacklist.

On-going

TBA

MD

OM

FM, Board

External
recoveries
agents

Ensure adherence to covenants set

by financiers and trading partners

On -going

TBA

FM

OM

Board , MD

Company
secretary, or

23

Activities

Devise monitoring and evaluation tools for checking

adherence to client protection principles
100% Compliance to Engage a external rating agent
Develop internal compliance function
regulations.
5% PAR greater than Develop and implement credit policy
Establish relationship with two credit bureau
30 days
Develop and adopt social performance monitoring tools
Develop and implement appropriate social corporate
responsibility programs
Intensify recoveries efforts and create/maintain an internal
blacklist.
Ensure adherence to covenants set by financiers

Establish satellite branches/kiosks for selected regions

Implement an outreach framework with business membership
organisations
Develop interactive website and CRM module
Establish standardised information meetings
Rezone catchment areas for branches and loan officers.

Customer focus

Respect

Fu
ade nding
e n s u q u a te c
a
re p
rofita pital an
d
bility

PURPOSE
To continually improve the livelihoods of the
communities we operate in through hassle free
access to credit and provision of customer
focused service
MISSION
To create and continuously increase
shareholder value through the provision of
excellent service and innovative products to its
customers and a conducive working environment
in which every employee is encouraged and
assisted to develop to their full potential.
FOCUS GOAL 2016
Penetrate the local market offering sustainable
and innovative microfinance solutions

Ens Deliv
e
u
and re app ry chan
ro
effic
n
ient priate, els
deli
rele
very
v
cha ant
nn e
ls

Honesty and Integrity

Ts

Develop and package product offering.

Conduct monthly product performance monitoring
Develop and pilot 3 new products annually. (Housing Development loans,
Energy Loans, Asset Finance, order finance, Dairy Finance etc.)
Introduce start-up entrepreneurship loans
Product Diversification Develop advisory & Training services package
Set and continuously review business conditions

Raise long term funding from external & internal

sources, Dec 2016.
Ensure utilisation of availed lines of credit to the limit
Reduce cost of funding from average of 35% Aud 2015
to 17% by Dec 2016
Cost containment
Ensure revenue growth in line with target

Key
Result
s
$767k loan book.
28% ROCE
17% Cost of
funding
$848k lines of
credit

Rais
e

S
ICT bust IC
king
ro
Wor nt and
va
rele

Pro Com
m
per ote a mercia
f
ma orman cultur l cultu
nag
e
r
c
em e and focus e
e nt
stra ed o
teg
n
ic c
os t

na
over
h
ate g ance wit ns
r
o
p
r
li
o
p
t
c
m
la
o
u io
ng
Stro 100% c rnal reg
e
e
t
r
x
Ensu al and e
n
inter

loy

Average profitability
of 35% per channel
150 Case load per
Loan officer
70% Location
coverage

S T R A T E G IncC
OBJECTIVES
e

on
ovati
ct inn
Produ table,
fi
an t
e p ro
relev
Provid riate and
p
appro ts
c
produ

Average product
profitability 38%

(Who are we, Where are we going and how will we get there?)

Dep

Financial management workshops for managers and

executives
Business management soft skills
80% of staff achieving Develop partnership with development organisations
targets at each level Training on sales at all levels
60% Cost: Income
Market, Product and project viability analysis before
ratio
launch
Standardization of processes and systems
Develop incentive scheme and performance awards
Ensure quick turnaround (max 5 days on all loans))

Activities

Ratisson Finance
Strategy@Work Summary
2015 - 2016

Sk
Attra ills and
effic ct and Reward
re
ient
s
skills tain hig
h
plac in the rig ly
es
ht

Key
Result
s

wth
t gro
arke adership r
m
t
e
Targ market le unities fo
for opport
e
iv
Thr xplore
e
and h
t
o
r
g w

Innovation and Flexibility

Development of systems and ensure proper

documentation.
Implement MIS(ERP,BI, CRM -360 degree view)
20% system related
Maximize utilization of implemented systems (Admin
complaints.
systems, Coretalk)
99.9% system uptime
Acquire MFI system
Ensure IT training for all staff
Commence disbursements over mobile based payment
platforms like Ecocash
Fully resourced DRS
Develop and implement effective staff wellness
initiatives to increase staff engagement levels
Develop and implement incentive system in line with
international best practices to reward performance
Develop and resource structure in line with strategy
Review job descriptions
Conduct a job grading exercise
Implement an effective training program for both front
and back offices.
Develop and Implement a staff rotation system
Ensure effective implementation of performance
management system
Ensure effective leave day management system.

Customer needs analysis and market segmentation

in order to offer appropriate products
Identify and create associations to increase outreach
Identify and develop project activities with NGOs and
development partners
Reduce exposure to Premier tobacco to 10% of total
book.
Develop client retention strategies Loyalty
programs

Professionalism

95% critical staff

retention.
80% customer
satisfaction.
25% staff cost to
income

2% market share.

24

AREAS WITH BIGGEST BUSINESS IMPACT

The following areas are believed to have the most impact on the success of Ratisson Finance.

1. Good leadership
2. System
3. Inadequate funding
4. Macroeconomic situation
5. Capacity to serve markets.(Skills, synergy development)
6. Product innovation
7. Daily trackers and performance monitoring.
8. Performance management
9. Delivery channels (brand awareness)
10.Customer service/seamless
11.Market penetration
12.Compliance to regulatory functions.
13.Advisory services
14.Transformation agenda/ Social Performance

25

PREPARED BY BRIAN KUFAHAKUTIZWI