Sustainable Microfinance - Balanced Scorecard's added value for ...

TB Everybody thinks it is important, because the paradigm we have created, the financial model
dominants for the perception whether we should be satisfied.
TB If you need to pay twice as much for your product, but you are still satisfied. Does the company have a
problem than?
TB We developed those financial models when they were needed. By that time we did not have enough
calculation capacity. But do we still need it?
TB why don't we abolish it? I am really in favour to do so. Or at least in combination with things that really
matter.
TB Do not make the bottom-line so important. But for a starting company still look at how he thinks to
finance the plan.
TB What is now the value of the financial objectives? Let say we need to make 100.000 Euros, what did
we earn than. What is the equivalent?
TB do the output measurement in bags of potatoes or something similar. It is completely irrelevant if I have
made !100.000, -
TB the goal should be to break even
TB 90% is about rewards. I know from experience that that is not true, especially for people of my age.
TB the financial should only be serving the other perspectives.
TB first social, financial only serving, than costumer
TB Do not start from the financial perspective. But accepted that the financial is only there to facilitate the
other aspects. Go to the costumer and employee and ask what do you really want.
TB it is an aspect of the relation a company has with a supplier, and an aspect between the company and
the society. So it is not the main goal, not even for a financial organization.
TB you have a mental model for a couple of stakeholders, costumer, employee, I think a capital provider
should be included, also the society.
TB the most important thing is that he is satisfied, why does he need to make money than?
RL then we taught; 'he guys maybe we should be able to make some money with this'.
RL At the end we looked at how we could link that to some finance model.
RL later we had a look at how we could make some money out of it.
RL One is the goodwill, but that is quite difficult.
RL the other is the income through your services. For the business process, the customer value, for all the
services that you have,
RL You also need to satisfy your investors. That is part of the financial return.
RL In the end that is your income and related to you’re turnover and return on investment.
RL We are looking now for investors that are related to the IT. When they provide people they will make
sure that they provide good IT people. In order for their return to be higher
RL In the end we will, definitely look at the financial figures, because you can have a lot of users, but if
they do not use our services, then we still have nothing.
OE I have to say that for a lot of our clients, the financials are not leading.
OE We often hear people say; 'As long as I can eat, its fine'
OE the financials are more facilitative
OE I am happy, because I am able to make my own decisions and to put my own creativity to use, that is
more important than to become rich'.
OE things we look at are: Opening balance, investment and finance, exploitation budget, liquidity budget
OE We try to look 3 years ahead, but that is difficult for a lot of people, so in that case 2 years
OE Strange thing of this book is that it does not have a liquidity budget included
OE liquidity budget is the most important. For companies that are started up and do not need a lot of
capital, it is important to have a look at your liquidity. I think that is the most important management tool
OE you can make an exploitation budget as profitable as you want, as long as you have a lot of patience.
But you need to have a look whether the money is coming in.
OE I think that only 5% of the people that come here will need external funding.
OE The Bank is difficult, they do not wake up for loans below !100.000, -.
Elmar Hoogendoorn 113
Sustainable Microfinance