Human Capital - Restructuration of an Organizational Chart for a Growing Micro-Finance Institution in Colombia
Due to the significant growth that Contactar has experienced in the last years, its structure needs rethinking in order to support the growth expected and to attend with efficiency and effectiveness internal and external clients.
The general objective is to reorganize and restructure the current organizational chart. Specifically, Contactar is seeking an expert for restructuring its organizational chart by adjusting it to the size of the institution with the new areas implemented.
The must be proficient in Spanish and must have a comprehensive knowledge and experience in terms of institutional structure. This role requires a comprehensive understanding of all departments within a MFI.
BACKGROUND
Contactar is a microfinance institution that serves urban and especially rural areas, through both individual and group microfinance methodologies (solidarity groups, associations and community savings and loans). In addition to the loans, Contactar provides micro-insurance, financial education, and health promotion in the community. Contactar's mission is “to give financial access to urban and especially rural micro entrepreneurs and farmers, contributing to reduce poverty and improve their living conditions”.
Since 2007, Contactar has grown by 40% and increased its coverage to 22 branches in two departments of Colombia (Nariño and Putumayo), which are mainly rural. It currently has a work force of 134 collaborators. The portfolio has grown by 35% and the number of clients by 57% represented mainly by micro-companies and small producers with low incomes. As of December 2010, Contactar’s portfolio amounted over $26 million reaching 31.840 beneficiaries; for 2011, the portfolio is expected to grow by 60% and the number of clients by 61%.
CHALLENGE
Contactar’s Business Plan 2010-2015 includes, as an important strategy, tThe “adjustment of the organizational structure to meet the needs from Contactar’s expected transformation and growth strategy”.
Furthermore, the current organizational chart is not appropriate for Contactar’s actual size and for further growth; additionally, Contactar will implement new areas that have to be placed appropriately according to its function wihtin the organization’s structure.
The 2011 operational plan identified the need to design, adjust and implement new areas, with its corresponding functions and interrelations. Furthermore, an essential decentralization process, which is expected to give greater institutional effectiveness, has been considered.
Contactar is currently implementing new areas, or modifications in its organizational chart, namely:
1) Implementation of a new risk management unit (combined or separated from the Internal Control Area)
2) An independent administrative department (so far, administrative functions and responsibilities were under the ‘Administrative and Finance Sub Director’; we think these two functions should be split)
3) The administrative department will have underneath the following: human resources, legal documentation, record and files documentation, and general services.
4) Implementation of a new marketing area.
5) Implementation of a new quality assurance area (under the operational department).
6) Re-design and adapt the commercial area, which is the largest and complex.
7) Redesign the ‘Technology, Computing and Communication’ area.
8) Implementation of a new project management area.
PROJECT DESCRIPTION AND OBJECTIVES
Through this project, the volunteer will make a consultancy for supporting the restructuring of Contactar’s organizational chart by adjusting it to the size of the institution and the implementation of the abovementioned new areas.
The volunteer will be expected to:
• Complete all pre-readings provided by the Human Resources Sub Director;
• Will have an initial and final meeting and interviews with Contactar’s executive team;
• Get an understanding of how Contactar should restructure its organizational chart.
VOLUNTEER DELIVERABLES AND TIMELINE
Deliverables:
• A matrix of the new organization chart;
• A transition plan to move to the new structure;
• Presentation of such matrix to Contactar’s senior management.
Timeline:
• Deliverables will take two weeks to perform, details below.
VOLUNTEER REQUIREMENTS
Contactar seeks one (1) volunteer with strong knowledge and experience in organization structure. The volunteer must be fluent in Spanish and English.
PROJECT DURATION AND LOCATION
This project will be implemented during two weeks (full-time work):
• Pre-readings and meetings/interview with the directive team performed – five days.
• Develop the new matrix of Contactar the organization chart – one week.
• Final Presentation of results through video conference at the end of the project.
The volunteer´s consultancy will be more effective by visiting the organization and meeting personally the directives since the volunteer would receive more information and will have a broader understanding of Contactar; nonetheless, if not possible, the work can be done remotely.
GETTING STARTED/NEXT STEPS
-Institutional presentation from Contactar’s executive team.
-Available documents related to the organization chart at Contactar.
-Collaboration of the Human Resources Sub Director in any further questions.
EXPECTED RESULTS/IMPACTS
The volunteer’s contribution will help establish an effective institutional structure that will support the growth expected, which is an essential need for Contactar’s sustainability and further development
Qualifications Required
- Experience in Human Resources - Organizational Assessments Must be at least 00 - 04 years
- Experience in Human Resources - Organizational Development Must be at least 05 - 09 years
- Experience in Human Resources - Strategic Planning Must be at least 05 - 09 years
- Experience in Human Resources - Succession Planning Must be at least 05 - 09 years