Operations Review
Rationale
The Operations Review aims at assessing the acceptability of a bank’s product to the clients
and bank staff, evaluating how the product is being serviced and delivered, and identifying
areas for improvement. The ultimate objective is to make the product fit to what the market
wants and make it competitive with the products that other suppliers offer in the same
market. The Operations Review process provides the bank an opportunity to listen to clients
and what the MF staff say, observe and do.
The first product Operations Review is conducted after the first six months of the pilot test of
the micro loan product, or upon reaching 100 clients. The Operations Review is not a onetime activity. The bank should make it a practice to review the microfinance products and
services they offer to clients at appropriate intervals. Products have their life cycle also.
Banks must not wait for signs of product decay before conducting an operations review.
To obtain objectivity, outside consultants who have sufficient background on microfinance
and banking should conduct the operations review. However, if the bank has a market
research and product development unit, which is not involved in operations, this unit can
undertake the Operations Review using the guideline and tools in this module.
Objectives
By the end of the module, participants are expected to be able to:

Use the tools for listening to clients including Exit Survey, Focus Group Discussions, and
Guideline for interviewing clients who have left the bank.

Conduct an actual operations review.

Interpret and analyze the information gathered from officers, staff, and clients.

Write an Operations Review Report.
Target participants




MABS Service Provider (MSP) Consultants
Senior and/or middle management
MFU Supervisor
For banks with a market research and product development unit, some personnel from
this unit can also be trained if the bank wants to have institutional capability to conduct
its own Product Operations Review.
Methodology
The Module on Operations Review is mostly a hands-on training where the facilitator guides
the participants through a field practicum simulating the processes that happen in an actual
operations review.
During the field practicum, the participants will be divided into 2 or 3 teams, depending on
the number of participants. Each team will be assigned specific tasks to do. For example, a
team may be assigned to review sample loan folders and conduct an FGD with the account
officers and supervisors. Another team may be assigned to conduct the FGDs with clients;
while another will conduct the exit survey and visit/interview with some delinquent clients.
The team assigned to particular tasks will also be responsible for processing the respective
information that the team gathered.
Course Content
Methodology
Duration
Overview of Operations Review Scope and
Process
Power point
presentation
1/2 hour
The Tools: Exit Survey, FGD, Guide to
Interviewing Delinquent Clients
1 hour
Orientation/Discussion
Reviewing loan documentation
Field Practicum
1 hour
FGD with AOs and Supervisors; FGD with
Clients; Interviewing Delinquent Clients;
Exit Survey; Field Visit with Existing Clients
Field Practicum
5 hours
Processing Information and Report
Preparation
Exit Meeting with Senior and Middle
Management
Field Practicum
5 hours
Presentation of
Highlights of Findings
and
Recommendations
1 hour
Module 5: Operations Review
Module Description
Page 2 of 3
Expected Outputs
In determining the effectiveness of the module, the participants are required to apply the
techniques they have learned from the training during the practicum. They are tasked to:

Administer the tools for listening to clients by interviewing at least 10 clients who have
left the bank within the last 6 months, interviewing 5 delinquent clients, and conducting
FGD with at least one group of current clients.


Use the tools for reviewing compliance to policies and procedures and loan
documentation by randomly sampling at least 5 loan folders.
.
Conduct FGDs with the MF account officers and interview some of the bank back-room
support staff to determine where product design changes and procedural improvements
would be necessary for simplification and efficiency.

Process the data that have been gathered.

Write a Product and Operations Review Report using a reporting template as a guide.
The report need not be solely confined to what are in the guide.
Module 5: Operations Review
Module Description
Page 3 of 3