PHILADELPHIA, March 24, 2010 (GLOBE NEWSWIRE) -- Women's World Banking (WWB) Center for Microfinance Leadership, in partnership with the Aresty Institute of Executive Education at the Wharton School, University of Pennsylvania, brought together 22 microfinance leaders from 14 countries in early March to examine the state of the microfinance industry and plan for its future.
The WWB Advanced Leadership Workshop, according to Wharton Professor of Management Michael Useem, who is also a member of the WWB Board of Trustees, gives microfinance executives the opportunity to take stock of where they are now in the industry and develop the resources they need to become even more effective instruments of microfinancing change.
"This program builds upon individual leadership strengths to create a collaborative community of thought. In this collective context, microfinance leaders have the opportunity to develop action plans on current issues facing the industry, such as regulation, industry standards, rapid growth, and the impact of microfinancing on the communities they serve," says Useem, who teaches leadership development in the program.
"The Center and its workshops are part of the WWB overarching commitment to developing the leadership and management capacity of microfinance providers worldwide, so the industry can adapt to the critical changes shaping it that demand new skills," adds Kathryn C. Mayer, Director of the Center for Microfinance Leadership.
Some of the issues facing the microfinancing industry were outlined recently in a Wall Street Journal.com article. Microfinance has shifted from its not-for-profit model to a profit-generating enterprise, according to the Wall Street Journal story. Spurred on by foreign capital from private investors to the tune of $14.8 billion in 2008, the industry no longer relies primarily on government funding. This shift raises the issues of shareholder interest and of a profit-making, volume-based approach to microfinance.*
Participants in the Wharton program wrestled with the question of how to maintain their commitment to the original microfinance mission of serving the poor in the face of increasing industry commercialization. "This program examines the big picture in microfinancing today. Many of the industry's leaders entered the field through a family business, but as more and more banks have become interested in microfinance, the industry has evolved to encompass a wide range of banking initiatives," says Rita McGlone, Senior Director at the Aresty Institute. "The participants in this program are eager to ensure that the organizations they lead reflect the values of the people they serve, and that the industry stays true to its mission of alleviating poverty."
In addition to affirming the primary mission of the microfinance industry, participants in the Wharton program explored new and more proactive approaches to meeting industry needs in the areas of corporate governance, talent development, and risk management. The five-day program encompassed scenario planning to set the agenda for the industry going forward, and participants looked at ways to create and sustain momentum for change in both their own organizations and the industry as a whole. In light of the global financial crisis, they explored how to move beyond the paralysis that can accompany uncertainty, and instead identify possibilities and opportunities in the new landscape.
"The most exciting part of the program was the ability of these industry leaders to work across their cultural, language, and regional differences," notes Monica McGrath, Wharton adjunct professor of management and co-academic director for the program with Dana Kaminstein, Aresty Institute of Executive Education fellow. "On the final day they presented meaningful and thoughtful recommendations for the industry as a whole," McGrath continues. "The work groups formed at Wharton plan to continue their contribution though industry-wide webinars and conferences. It was really an honor to work with them."
*"Microfinance's Midlife Crisis," WSJ.com, March 1, 2010
ABOUT THE CENTER FOR MICROFINANCE LEADERSHIP
The Center for Microfinance Leadership brings the best of leadership development and organizational diversity initiative to the microfinance sector through workshops, coaching, and support for organizational change. The Center helps CEOs and senior managers hone the skills needed to steer their institutions through this period of rapid change and commercialization. It also supports high-performing microfinance providers (MFPs) in improving the gender diversity of their leadership team and staff to optimize performance. The Center's partners, the Wharton School of the University of Pennsylvania and Creative Metier Limited, are leaders in executive development and reinforce the excellence and best practice of the program offerings. Women's World Banking is a global network of 40 leading microfinance providers and banks, working in 28 countries to bring financial products and services to low-income entrepreneurs, especially women.
ABOUT EXECUTIVE EDUCATION AT THE WHARTON SCHOOL
The Wharton School of the University of Pennsylvania — founded in 1881 as the first collegiate business school — is recognized globally for intellectual leadership and ongoing innovation across every major discipline of business education. Informed by in-depth academic research and extensive industry experience, Wharton Executive Education programs offer a supportive and challenging context where participants gain the skills necessary for their next level of executive development. In open enrollment and customized programs, participants from a diverse range of industries interact with Wharton faculty, who are the most cited, most published faculty of all top-tier business schools. With a profound influence on global business, Wharton faculty are the trusted advisors of corporations and governments worldwide.
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