Managing Growth: The Organizational Architecture of Microfinance Institutions
Churchill, C.
Publication Date: May 1997
Published by: USAID - Microenterprise Best Practices (MBP) Project
Document Type: Paper
How can microfinance institutions achieve growth with outreach and sustainability?
Provides microfinance practitioners with ideas and suggestions to assist them with the challenging task of managing growth
"Organisational architecture" defines the building blocks necessary to the organisation?s growth: - organisational structure
- institutional culture
- human resource development
Uses an entrepreneurial framework to analyse the growth process of microfinance institutions (MFIs) by looking at the individuals who start and operate MFIs as entrepreneurs charged with ?growing? their businesses. This responsibility requires them to resolve two fundamental questions: - what is their optimum size, based on an analysis of the relative costs and benefits associated with the size of their operations
- what is the right speed for growth, again based on an analysis of the risks related to the speed of growth
Concludes that the entrepreneur director must recognise that if the organisation is built too high or if one of the components is forced to change too quickly and support too much stress, it will topple.
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