Some Lessons from PKSF Model

Some Lessons from PKSF Model

PKSF is unique in its organizational structure, activities and management practices.  A few factors can be identified that have made it possible to register such an impressive performance.

PKSF has been established and funded by the government, but it has been kept as an independent organization outside government bureaucracy.  That enabled PKSF to form its own policies and develop its own management practices suitable for its activities.

The outstanding quality of the Governing Body has contributed most in guiding the management and forming and revising policies whenever necessary.

The policy of recruiting officials of above average quality has contributed most to the growth and performance of PKSF.

PKSF has been successful in utilizing the capacities of local NGOs in quickly reaching the poor and developing the POs to deliver the financial services to the poor.  Selection of the right POs was the most crucial factor for PKSF’s success.

The key to the sustainability of POs is the assured source of funds and the improvement in the capacity of human resources backed by good management practices.  In both areas, PKSF has proven itself to be effective.

Financial intermediaries (NGOs) backed by resources from PKSF have been found to be effective in reaching the poor.  Both PKSF and the POs can also become sustainable in the process.

The rural poor and poorest men and women have proven themselves to be capable of managing money and improving their income. Likewise, the POs of PKSF have proven the ability to select the right target groups and deliver the desired services.

One area that needs top priority from PKSF is enhancing the capacity of POs. This can be done by more investment in development of the POs’ human resources.

The PKSF model (as an apex second-tier organization) shows potential for replication. It can further grow and make a significant contribution in improving the quality of life for the poor and poorest.