Building Effective Leaders in Microfinance Deborah Burand, Esq. President and co-founder, WAM International May 2008

This session will cover: How is the gender of leadership in microfinance changing? Should we care? Becoming a more effective leader Grooming others to become effective leaders Where to go from here

Gender of senior leadership in microfinance is changing. Percentage of females in senior management positions in microfinance appears to be dropping fast with one notable exception -- MENA/Europe* Region LAC86%60% Africa60%50% Asia58%46% MENA/Europe52%61% *Data is based on the more than 50 microfinance institutions and banks in 29 countries that are network members of Women’s World Banking (WWB). (Source: Microfinance Insights, March 2008)

Should we care? 85% of the poorest clients served by microfinance are women (Source: Microcredit Summit Campaign Report 2007) “SECTOR TARGETS A MAJORITY OF WOMEN, EMPLOYS A MINORITY” (Headline: Microfinance Insights, March 2008) “To advance and support women’s leadership in the microfinance industry through education and training, by promoting leadership opportunities, and by increasing visibility of their participation and talent while maintaining a work/life balance.” (Excerpt from WAM International Mission)

Part 1: Becoming a More Effective Leader Part 2: Grooming Leaders for the Future

Part 1: Becoming a More Effective Leader

What is the difference between “effective leadership” and “effective management”? 1.An effective _________ organizes people and resources towards the effective and efficient pursuit of predetermined objectives An effective _______ catalyzes commitment and rigorous pursuit of a clear and compelling vision.

Leadership Myths: Which of these are true? Which are false? 1. Everyone can be a leader 2. Leaders deliver business results 3. People who reach the top are leaders 4. Leaders are great coaches 5. Leaders are everywhere in organizations, not only at the top 6. Leaders are contagious 7. Leaders are made, not born

Common Leadership Styles 1)Dictator: “Do what I say” 2)Team Builder: “Come with me” 3)Relater: “People come first” 4)Democrat: “Let’s decide together” 5)Coach: “Try this” 6)Analyzer : “Let’s evaluate all options” WHICH OF ABOVE DESCRIBES YOUR LEADERSHIP STYLES?

Role Play of Leadership Styles Six board members of Gud Kredit, a microfinance NGO, meet to discuss whether Gud Kredit should transform into a formal financial institution. –Identify which leadership style each board member represents.

Part 2: Grooming Leaders for the Future

The Study of Leadership What Makes an Outstanding Leader? How to Recognize and Mentor Leadership Potential

“Effective leaders are alike in one crucial way: they all have a high degree of Emotional Intelligence.” “Emotional intelligence can be learned. The process is not easy. It takes time and commitment.” Daniel Goleman, HBR OnPoint

Recognizing and grooming leadership potential in others Look for and nurture characteristics of emotional intelligence in potential leaders “Self-aware job candidates will be frank in admitting to failure--and will often tell their tales with a smile.” Daniel Goleman, HBR OnPoint

What are defining qualities of leaders with Emotional Intelligence? 1.Self-aware 2.Self-regulate 3.Highly motivated/motivating 4.Empathetic 5.Strong social skills

Finding and investing in strengths rather than fixing weaknesses Talent X Investment = Strength If your manager primarily:Chances of disengagement: Ignores you40% Focuses on your weaknesses22% Focuses on your strengths1% Source: Strengths Finder 2.0 by Tom Rath

Another tool: Mentoring What is Mentoring? A process of building a beneficial partnership to help develop the insights, skills, and behaviors to reach the partner’s goals.

Speed Mentoring – Round One Help to identify your partner’s priority goal by nurturing insight Ask questions like: What is your priority goal? Why is it important to you to achieve this goal? How will your life and/or life of your organization change if this goal is achieved (or not achieved)?

Speed Mentoring – Round Two Help to identify strategies for reaching that goal by nurturing self-awareness and advancing an action agenda Ask questions like: What have been key drivers of your prior successes? Can any of that be replicated here? What additional resources do you need? What can you do …. tomorrow …. to move toward your priority goal?

Conclusion Sharing what you learned