TOP CEO TOP CEO MUHAMMAD MUHAMMAD

YUNUSYUNUSPRESENTION BY ATHALIA PRESENTION BY ATHALIA

OCHIENGOCHIENG

Who is a LeaderWho is a Leader

Leadership refers to the ability of an Leadership refers to the ability of an individual to influence, guide and individual to influence, guide and teach other people and to use this teach other people and to use this influence to bring about positive influence to bring about positive change. A leader is able to influence change. A leader is able to influence people through the ideas that he people through the ideas that he shares and also by his deeds. shares and also by his deeds.

Leadership is important in all areas Leadership is important in all areas of interaction within communities. of interaction within communities. Leaders are made or developed by Leaders are made or developed by their experiences, knowledge their experiences, knowledge acquired through education and by acquired through education and by the actions of their role models.the actions of their role models.

QUALITIES OF A QUALITIES OF A LEADERLEADER

Qualities of a leader include Qualities of a leader include integrity, honesty, and people integrity, honesty, and people building skills. A leader must also building skills. A leader must also have job knowledge, which involves have job knowledge, which involves knowing which direction to take at knowing which direction to take at the right time, and the practical the right time, and the practical ability of problem solving.ability of problem solving.

BRIEF BACKGROUNDBRIEF BACKGROUND

Muhammad Yunus is the founder Muhammad Yunus is the founder and CEO of Grameen Bank, which he and CEO of Grameen Bank, which he established in Bangladesh in 1983. established in Bangladesh in 1983. Grameen Bank means village bank. Grameen Bank means village bank. He had the He had the idea and beliefidea and belief that that credit is a fundamental human right credit is a fundamental human right and should be accessible by all.and should be accessible by all.

MUHAMMAD’S MUHAMMAD’S OBJECTIVEOBJECTIVE

His objective was to provide credit His objective was to provide credit facilities to as many low income and facilities to as many low income and unemployed people as possibleunemployed people as possible

in order to improve the quality of in order to improve the quality of their livestheir lives

and to give them the opportunity to and to give them the opportunity to live with dignity. live with dignity.

His Role ModelHis Role Model

Muhammed was Muhammed was influencedinfluenced by his by his mother’s love for helping the poor, mother’s love for helping the poor, and her willingness to share and her willingness to share whatever the family had with the whatever the family had with the less fortunate. This had a lasting less fortunate. This had a lasting effect on him.effect on him.

Humble beginningsHumble beginnings

He introduced the idea of micro-credit to a He introduced the idea of micro-credit to a small group of basket weavers in his home small group of basket weavers in his home town, starting with a loan of 27 dollars. The town, starting with a loan of 27 dollars. The initiative has been accepted, lauded and initiative has been accepted, lauded and adapted at global level. Micro Credit is adapted at global level. Micro Credit is defined as “extending small loans to very defined as “extending small loans to very poor people for self-employment projects poor people for self-employment projects that generate income allowing them to care that generate income allowing them to care for themselves and their families.” (Micro for themselves and their families.” (Micro Credit Summit, February 1997)Credit Summit, February 1997)

As an As an agent of changeagent of change, his goal , his goal was to help poor people assess was to help poor people assess funding without the burden of funding without the burden of providing collateral. This was providing collateral. This was introduced in consultation with introduced in consultation with recipients of loans who commit to recipients of loans who commit to adopting and internalize sixteen (16) adopting and internalize sixteen (16) decisions on the direction they want decisions on the direction they want their lives to take. their lives to take.

16 DECISIONS16 DECISIONS

We shall follow and advance the four We shall follow and advance the four principles of Grameen Bank --- principles of Grameen Bank --- Discipline, Unity, Courage and Hard Discipline, Unity, Courage and Hard work – in all walks of out lives. work – in all walks of out lives.

Prosperity we shall bring to our familiesProsperity we shall bring to our families We shall not live in dilapidated houses. We shall not live in dilapidated houses.

We shall repair our houses and work We shall repair our houses and work towards constructing new houses at the towards constructing new houses at the earliest. earliest.

16 DECISIONS16 DECISIONS

We shall grow vegetables all the year round. We shall grow vegetables all the year round. We shall eat plenty of them and sell the We shall eat plenty of them and sell the surplus. surplus.

During the plantation seasons, we shall During the plantation seasons, we shall plant as many seedlings as possible. plant as many seedlings as possible.

We shall plan to keep our families small. We We shall plan to keep our families small. We shall minimize our expenditures. We shall shall minimize our expenditures. We shall look after our health. look after our health.

We shall educate our children and ensure We shall educate our children and ensure that they can earn to pay for their education. that they can earn to pay for their education.

CONTINUEDCONTINUED

We shall always keep our children and the We shall always keep our children and the environment clean. environment clean.

We shall build and use pit-latrines. We shall build and use pit-latrines. We shall drink water from tubewells. If it is We shall drink water from tubewells. If it is

not available, we shall boil water or use alum.  not available, we shall boil water or use alum.  We shall not take any dowry at our sons' We shall not take any dowry at our sons'

weddings, neither shall we give any dowry at weddings, neither shall we give any dowry at our daughters wedding. We shall keep our our daughters wedding. We shall keep our centre free from the curse of dowry. We shall centre free from the curse of dowry. We shall not practice child marriage. not practice child marriage.

We shall not inflict any injustice on anyone, neither shall we We shall not inflict any injustice on anyone, neither shall we allow anyone to do so. allow anyone to do so.

We shall collectively undertake bigger investments for We shall collectively undertake bigger investments for higher incomes. higher incomes.

We shall always be ready to help each other. If anyone is in We shall always be ready to help each other. If anyone is in difficulty, we shall all help him or her. difficulty, we shall all help him or her.

If we come to know of any breach of discipline in any centre, If we come to know of any breach of discipline in any centre, we shall all go there and help restore discipline. we shall all go there and help restore discipline.

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We shall take part in all social We shall take part in all social activities collectively. activities collectively.

Concern for peopleConcern for people

It is not just the technicalities of It is not just the technicalities of accessing loans, and repayments but accessing loans, and repayments but Muhammed Yunus took the human Muhammed Yunus took the human factor into consideration. The 16 factor into consideration. The 16 decisions empowers borrowers and decisions empowers borrowers and gives them the will to succeed. This gives them the will to succeed. This leader uses his influence to bring leader uses his influence to bring about social change.about social change.

Muhammed’s ability Muhammed’s ability to energizeto energize whole villages, for positive change is whole villages, for positive change is recognized throughout the world. recognized throughout the world. This is evidenced by the number and This is evidenced by the number and diversity of awards and accolades he diversity of awards and accolades he has received for his has received for his innovativeinnovative ideas. ideas.

Start with the problem rather than Start with the problem rather than the solution: a credit system must be the solution: a credit system must be based on a survey of the social based on a survey of the social background rather than on a pre-background rather than on a pre-established banking technique.established banking technique.

2. Adopt a progressive attitude: 2. Adopt a progressive attitude: development is a long-term process development is a long-term process which depends on the aspirations which depends on the aspirations and committment of the economic and committment of the economic

Make sure that the credit system serves Make sure that the credit system serves the poor, and not vice-versa: credit the poor, and not vice-versa: credit officers visit the villages, enabling them officers visit the villages, enabling them to get to know the borrowers. to get to know the borrowers.

4. Establish priorities for action vis-a-vis 4. Establish priorities for action vis-a-vis to the the target population: serve the to the the target population: serve the most poverty-stricken people needing most poverty-stricken people needing investment resources, who have no investment resources, who have no access to credit.access to credit.

At the beginning, restrict credit to At the beginning, restrict credit to income-generating production income-generating production operations, freely selected by the operations, freely selected by the borrower. Make it possible for the borrower. Make it possible for the borrower to be able to repay the loan. borrower to be able to repay the loan.

6. Lean on solidarity groups: small 6. Lean on solidarity groups: small informal groups consisting of co-opted informal groups consisting of co-opted members coming from the same members coming from the same background and trusting each other.background and trusting each other.

Associate savings with credit Associate savings with credit without it being necessarily a without it being necessarily a prerequisite.  prerequisite. 

8. Combine close monitoring of 8. Combine close monitoring of borrowers with procedures which borrowers with procedures which are simple and standardised as are simple and standardised as possible. possible.

9. Do everything possible to ensure 9. Do everything possible to ensure the system's financial balance. the system's financial balance. 

Invest in human resources: training Invest in human resources: training leaders will provide them with real leaders will provide them with real development ethics based on rigour, development ethics based on rigour, creativity, understanding and creativity, understanding and respect for the rural environment. respect for the rural environment.

recognitionrecognition

He has received seventy-seven (77) He has received seventy-seven (77) awards for his contribution to awards for his contribution to mankind. These include-mankind. These include-

Germany: Vision Award 2007 by Germany: Vision Award 2007 by Global Economic NetworkGlobal Economic Network

USA: Global Citizen of the Year USA: Global Citizen of the Year Award, 2006 by Patel Foundation for Award, 2006 by Patel Foundation for Global UnderstandingGlobal Understanding

Spain:Foundation of Justice, 2005Spain:Foundation of Justice, 2005

UK: World Technology Network UK: World Technology Network Award, 2003Award, 2003

Jordan: King Hussein Humanitarian Jordan: King Hussein Humanitarian Leadership Award, 2000, by King Leadership Award, 2000, by King Hussein FoundationHussein Foundation

Australia: Sydney Peace Prize, Australia: Sydney Peace Prize, 1998,by the Sydney Peace 1998,by the Sydney Peace FoundationFoundation

Despite having worldwide recognition of Despite having worldwide recognition of his achievements, Muhammed Yunus is his achievements, Muhammed Yunus is more interested in more interested in developing other developing other peoplepeople. He does this by providing an . He does this by providing an enabling environment for people who enabling environment for people who want to learn more about micro-credit want to learn more about micro-credit and the Grameen Bank. Training and the Grameen Bank. Training programs are not rigid but are tailored programs are not rigid but are tailored to suit the needs of interested persons to suit the needs of interested persons and institutions. and institutions.

Members of the press and media are given Members of the press and media are given opportunities to make documentaries on opportunities to make documentaries on the work of Grameen Bank. Researchers the work of Grameen Bank. Researchers are also welcome to conduct research are also welcome to conduct research according to their own objectives for any according to their own objectives for any duration of time. All this is done with the duration of time. All this is done with the aim of getting as many people to know aim of getting as many people to know about micro-credit as possible, and for about micro-credit as possible, and for them to develop their own models. them to develop their own models. Students from all over the world can join Students from all over the world can join as unpaid interns at Grameen Bank.as unpaid interns at Grameen Bank.

There are annual evaluations of the microcredit There are annual evaluations of the microcredit programme to see if the economic situation of programme to see if the economic situation of the participants is improving. the participants is improving. Ten indicators have been developed to evaluate Ten indicators have been developed to evaluate poverty level of borrowers. These include- poverty level of borrowers. These include-

quality and cleanliness of the water used by the quality and cleanliness of the water used by the families, families,

ability of parents to send their children to ability of parents to send their children to primary school, primary school,

Ability of the family to have three square meals Ability of the family to have three square meals a day,a day,

Ability of families to afford health care.Ability of families to afford health care.

The Grameen Bank has grown from The Grameen Bank has grown from having .15,000 borrowers in 80 to over having .15,000 borrowers in 80 to over 7. 93 million members in 2009. The 7. 93 million members in 2009. The success of this approach reflects the success of this approach reflects the quality of management and leadership quality of management and leadership provided by Muhammed Yunus. provided by Muhammed Yunus. Strategies employed by the bank Strategies employed by the bank ensures that there is minimum rate of ensures that there is minimum rate of default. 98% of repayments are made.default. 98% of repayments are made.

CONCLUSIONCONCLUSION

““The quality of leadership, more The quality of leadership, more than any single factor, determines than any single factor, determines the success or failure of an the success or failure of an organisation” (Fred Fielder and organisation” (Fred Fielder and Martin Chemers)Martin Chemers)

Muhammad Yunus is both a good Muhammad Yunus is both a good manager and leadermanager and leader