Back in autumn, we published three pieces in a series entitled the Summer of Flux, which among other things explored the acts and omissions throughout the pandemic that distinguished the Sentinels’ varied responses. It looked at the role of those most curious and nebulous factors - ‘luck’ and ‘courage’ - in how they’re getting on. Since then, the situations the Sentinels find themselves in are as varied as ever. Some feel increasingly positive; clear about the path ahead. Others are still beset by uncertainty - and stress. And the arrival of Omicron in each country has created further variability in context and outlook.
In part because of this variability, our next round of posts will be organized more thematically, while also trying to take stock of two years of the pandemic. We’ll have pieces on digitalization, equity positions and a possible framework to guide recapitalization, a case study on how MFIs in high-income countries are coping and responding, and a retrospective look at what the pandemic thus far has meant for these MFIs and their leaders.
First up though is a look at the pandemic through the lens of Human Resources - the experience, motivation, and morale of staff, as well as the leadership and decision-making needed to guide it. What have been the implications of changed working conditions, reduced job security and changes in compensation and incentives, the effects of these on staff morale, and challenges relating to retention and recruitment?
Read MoreWe opened the previous piece in this series with the Serenity Prayer, which asks for the strength to accept the things one cannot change and the ‘courage’ to change the things one can. That installment explored the first limb - what are the external factors that affect how institutions cope with crises? This piece examines the second bit: what can financial providers do to respond to a crisis. This is, in particular, the heart of the Sentinel Project. What are the tough decisions that microfinance leaders are making, how are they resolving their challenges, and how are they making those decisions? Many of these choices are at least in part irrevocable. That’s why we aim to capture them as they are made, rather than with ex-post justification or explanation. Doing nothing is also a choice (and sometimes just waiting things out is the best choice), and so it does take something like courage to act, and some measure of resolve to follow through.
There are many possible actions and choices to consider: re-negotiating and re-structuring funding, executing operational changes, business ‘pivots’ and the launch of new products, among them. What emerges from the many months of interviews with Sentinels to date is a fascinating breadth of responses to the challenges the pandemic has presented.
Read MoreThe first piece in this series focused on the direct impact of the pandemic on the Sentinels themselves, including their staff, product offerings, communications with their customers, and operations. This second installment zooms out to look at the Sentinels in relation to the broader financial, policy, and regulatory systems that surround them, and how the Sentinels have coped with: liquidity and solvency challenges, liaising with funders, lobbying policy-makers, and understanding and implementing fast-changing rules.
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