Microfinance has returned!

Microfinance is back from India and we had an amazing trip! We learned so much during our time at CORD, specifically the needs of the Self Help Groups. We met with a handful of groups over our three days spent out in the field. We met with “A” rated groups, defaulting groups and everything in between. The stories of success were heartwarming while the stories of distress were heart wrenching. We met some amazing entrepreneurs who were running their own shops, starting their own insurance business, renting out their homes to college students and sending their own children off to college and graduate school. One of the key take-a-ways that we gained from our trip was each and every woman’s desire to create a better life for their children. The women wanted their children to go off to college and become strong, independent individuals. Another important discovery that we uncovered was the lack of understanding by the Self Help Groups of what CORD offered for them. We proposed semi-annual newsletters as well as survey sheets to help the women become better informed about classes that CORD offers for them as well as the opportunity for the women to offer feedback to CORD about their needs and interests. Another interesting finding that we encountered was that many defaulting groups were defaulting due to tragedies that occurred within the family and not because of failing businesses. Two of the women had extensive hospital bills due tragic accidents that occurred to their husbands. Instead of paying back their outstanding loans with the Self Help Group, they were putting every penny into hospital bills and keeping their family afloat. In total, we came back from India with an amazing appreciation for all that these village women and CORD do and were beyond thrilled with our experience.

Ask the Right Questions

It's been a few weeks since I boarded my return flight from Delhi to Indianapolis. As I sat on the plane with colored dye on my skin and in between my fingernails from celebrating Holi a few hours earlier, I tried to make sense of the past two weeks I spent in India.

Working with CORD and speaking with a range of inspirational entrepreneurs has provided me with the motivation to further work toward constant self-improvement. Although several of the women we met dealt with numerous hardships throughout their lives, not one of them allowed their personal challenges to stand in the way of learning a new skill, earning additional income or being a role model for other women. With roughly one more year remaining at Kelley, there is still much more I hope to learn from my professors and peers. Thus I must not forget the fortitude, determination and unbridled energy that nearly every woman had when sharing their future dreams because I too hope to be as fearless when chasing my dreams.

Beyond inspiration, I learned a great deal about managing a consulting engagement. One of the most valuable lessons I experienced while in India has been the importance of asking the right questions. I understand that the right questions sounds very subjective, but what I mean is asking questions that will allow you (the consultant) to unearth the real problem at hand. Sometimes a client will say, "I would like you to address this problem..." However, after gathering some data, one may realize that the client's idea of the problem is not exactly the problem that needs to be examined. This was certainly my experience in India. For example, when first speaking with our client, my team and I were told that there is a supply problem with two of the retail shops that CORD facilitates. As our team understood, there was not enough product in the retail shops. Nonetheless we thought the problem had to do with forecasting demand. However, when visiting the Guru Dhara store in Tapovan, we discovered a well-stocked store. It was only after digging deeper and asking a range of people throughout the local community a number of questions that we began to discover that the real issue had to do with women who receive formal training in stitching or weaving who then decide not to produce any items with their newly developed skills. So only a handful of women entrepreneurs are providing the majority of product for these retail outlets.

Four days was not a sufficient amount of time to solve the above problem, but I do believe that our team was able to provide some short-term recommendations around recruiting future entrepreneurs and training these same entrepreneurs to be successful businesswomen that will make a positive impact on the communities of Himachal Pradesh.

Needless to say, there is so much I learned from my experience in India that have greatly impacted my MBA experience. Yet one doesn't need an MBA to add value to communities in the developing world. Instead all one truly needs is a plane ticket, a willingness to listen, and the desire to improve the world we live in.

Back Home and Over the Jet Lag

WELL, IT LOOKS like we made it back without anyone getting too ill--more or less--and more importantly, I think we delivered on adding value to CORD and the many villagers, shopkeepers, farmers, and local volunteers who so graciously hosted us. I was on the vermicompost team (see my earlier post, pre-departure), and I'll give a summary of what we did...but first, I want to share an image that made a strong impression on me in person:

Pretty cool, huh? This is the little airport up in Kangra District, Himachal Pradesh. Stepping off the plane into fresh, warm air with incredible mountains silently looming behind us set the tone for what was to be a rejuvenating adventure. Between the simple (but delicious) vegetarian sattvic food prepared for us at CORD, early bed times, watching the sun rise over the mountains from the roof (chai or Nescafe in hand), and a hike that brought us from 1800 to 2500 meters above sea level, we lived a great week up in the north of India.

As vermicomposters, my team made well over 20, maybe closer to 30 separate visits to the homes of farmers in the local villages. We saw the government-subsidized vermicompost pits that many of the farmers had invested in, and we heard from them first-hand how vermicompost increased their crops' disease resistance and yields without depleting the soil. By carefully pressing for data points, we were able to work out a model by which an entrepreneur--with non-financial support by CORD--could buy excess vermicompost from farmers. He or she could then bag and transport this excess and sell it wholesale to local nurseries that cater to a less rural clientele who want to grow vegetables or flowers at home for their own use. Working out the details (cost of the bags, cost of bulk transportation, price sensitivity of all parties involved) was not easy, and it left a very small margin in which the entrepreneur could profit. Because of that, and because of the limited capital an entrepreneurs in the area are likely to have at first, we specified a pilot test zone for the concept. We wanted an entrepreneur to not have to risk too much until they are sure the numbers will work for them (and as we've learned in our entrepreneurship classes, being an entrepreneur is all about minimizing your risks).

Simply Stunning

I must say that I have never seen anyplace so absolutely beautiful as Sidhbari, India. The backdrop of the snow capped Himalayas is something that cannot be decribed fully, in words or in pictures. It is something you must experience to fully appreciate. That being said... you will have to check back in later to see that beauty in pictures. I managed to leave my cord to transfer pictures in Bloomington! :)

GLOBASE India has had a wonderful time the past two days getting to know our host organization and clients. Today, my team, the Kangra Painting group, was finally able to meet our artists in person and begin interactions. Because they are deaf, we have had not had the opportunity to speak with them prior to today, and I must say it is very humbling. These are individuals that have had to overcome so much in their lives, and yet they are looking to us for advice and solutions. We are VERY excited to have the next 2 days to interact with the artists one on one and truly understand what drives them and how we can best motivate them, and others, to continue on with this beautiful art form.

In addition to working on our projects, everyone is also gaining a lot of cultural experience. In the past two days we have visited a Hindu ashram and witnessed their evening prayer session, visited a Buddhist temple, and many of us were even invited to a wedding feast and to sit in on part of the wedding ceremony. I have found that the people of rural India are so incredibly friendly and welcoming. There are so many offers of tea and snacks, that should we accept them all we would be drinking Chai tea all day!

Also, as CORD is an organization devoted to helping women, and today was International Women's Day, we all had a chance to attend local village celebrations. Seeing the women celebrate their self worth and independence was something that really struck a chord for me. It made me proud to be a member of this team and very excited that CORD and Kelley are developing this relationship. It also provided me with an opportunity to film one of our fearless leaders, Pam Roberts, dancing with the local women... that video will be coming soon to a blog near you! :)

And we're off!

Hari Om!

The GLOBASE India team is excited to depart from Indianapolis Airport today for Delhi, India! Today marks the beginning of the 2nd phase of our consulting projects - the in-country exploration. After arriving in Delhi after ~ 20 hours of airplane travel, we will stay the night in Delhi and leave for Sidhbari on Monday, March 7. Once in Sidhbari, we will be greeted by the wonderful people of CORD who have been working with us throughout the last seven weeks. The remainder of the week will be used to focus on our project work and finalize our recommendations. After our presentations on Saturday, March 12, we will have the opportunity to explore the beauty of India - by hiking in the Himalayas, exploring Old and New Delhi, and visiting the Taj Majal and Red Fort.

I can't wait to get started! Check back here to get the current update on our travels!

Until then, check out this great article on GLOBASE India.

Returning to India

I was born in Bombay (now called Mumbai), India and I moved to the United Sates with my family when I was ten years old. I have returned to India several times since we moved to the U.S. and each time, I return to a new India. It’s been amazing to see how rapidly the country has changed, from rapid urbanization, build-up of technology and business, to how people dress, speak and even eat. The last time I was in India was March of 2009; I was shopping for my wedding with my mom. It was a fun experience, picking out beautiful saris and jewelry. In just a few days I have the opportunity to discover a new part of India, but this time around I hope to give something back.

I’m excited to use my Hindi language skills again. I learned Hindi when I was young and in school in India and I’ve been able to keep in touch with it mostly through watching Bollywood movies and listening to music. I’m a little nervous about speaking Hindi again, but I’m so proud to have held on to the language even after all of these years. The non-Hindi speakers on the trip have been taking lessons and it will be great to see them speak some Hindi on our trip.

This trip is also especially important to me as I get to share it with my husband who is born and raised in the U.S. I’m looking forward to discovering a new part of India with him and especially interested to see his reactions to the country. I think that’s what makes this trip fascinating; it’s not only about me learning and growing, but also seeing how others adapt to new situations and learning from them.

I am part of the retail project team and I was just telling one of my teammates that I will be elated if we are able to just give one new recommendation to CORD that they feel they can implement. Of course, we hope to accomplish much more than that, but as we get further into this project I realize that there are many paths that CORD has already explored. Giving them a unique perspective is essential and although we might not be able to transform how they work immediately, I hope we can add value in some way, even if it is in small way.

Microfinance is ready to take flight!

Less than a week left until we take flight for India!!! The Microfinance team is excited and ready to meet our assigned self-help groups and to learn first-hand about their triumphs and struggles as a group. While at C.O.R.D. we want to put together an inspirational video complied of interviews with “A” rated self-help groups that we can leave behind at C.O.R.D. We hope this video will help other self-help groups find inspiration and motivation to become an “A” rated group like some of their peers. We have also put together a few surveys that we hope to leave at C.O.R.D. These surveys will allow C.O.R.D. to get a better understanding of the various types of income generating activities that their community is looking for as well as areas of improvements for current training programs in place at C.O.R.D. There is a lack of participation in the trainings that are offered and we believe by pooling together some feedback from the community, C.O.R.D. might be able to better identify the lack of enthusiasm and help increase training demand amongst their community.

I mentioned in my last post, “Microfinance at C.O.R.D.”, that we were scheduled to have a phone call with three group leaders to get a better understanding of what motivates their members and what has led to some of their successes. Bhairavi is fluent in Hindi and was able to have a wonderful phone conversation with the group leaders and then relayed the phone conversation back to Troy, Steven and I. The groups we spoke with were all formed in the year 2000 and had very different paths to success. One group leader heavily enforced the importance about being on time and consistent attendance at their group meetings and the group members really thrived off of her strict enforcement. One key success driver for her group members was renting rooms out in their homes to local college students. Another group leader reduced her group's lending rates so that the women would feel more comfortable borrowing and being able to pay back their loans. As the women’s confidence grew, the leader slowly increased their lending rates to the standard at C.O.R.D. of 2% a month. We were very grateful to hear these women share their stories and cannot wait to hear many more when we arrive.

I will be blogging from India so make sure to check back to hear about our in-country experiences!

Let the countdown begin...

There are currently only 11 more days until we board the plane, and start our adventure in India! Yesterday, we had our last class meeting, where all of the groups presented their research and recommendations to the entire class. This was a great opportunity for all of the groups to understand the intricacies of every project, and see the progress that everyone has made. It was also a great forum to give and receive feedback on the ideas that we have been developing. Every team has devised a plan of action for when they arrive to CORD, so that they can continue to research their project, and reinforce their recommendations or adjust them based on new findings.

As part of the retail team, we plan to spend a lot of time in the retail locations understanding the consumer's willing-to-pay, the competition in the area, and the recruitment process for women making handicrafts. Our main objective is to prove that production of handicrafts is a viable long term income generating activity, and to motivate more women to participate in these activities. Our recommendations focus on ensuring that CORD is targeting the correct women in the appropriate geographical areas, as well as improving in-store success to drive motivation to produce more handicrafts. Throughout our time in India, we will be able to get our final questions answered, and determine for ourselves if our recommendations are feasible.

The Asian MBA Association gave a presentation on 'how to survive India' with great practical travel tips, and suggestions for our time in India. One thing that they stressed is that India has a TON of amazing food! I am very excited to try parantha for breakfast (a kind of Indian bread made from wheat flour and cooked on a flat pan - various stuffing includes potato, onion cauliflower, cottage cheese, etc.), and jalebi for dessert (made from flour mix deep fried in oil and then dipped in sugar syrup - looks like funnel cake). Indians also love cricket, and is currently one of the hosts for the 2011 Cricket World Cup. Hopefully while we are there, we get to see the true passion for the sport!!

Kangra Paintings

We have only very busy two weeks before we leave for India, and we are anxious and excited to begin the in-country part of our project!

Joni, Julia, Sumedh and I are consulting with artists who make Kangra paintings. Kangra paintings originated in Indian Punjab in the 17^th century. They depict stories from poetry, and often center around the love story of Radha and Krishna. The work is done with tiny brushes, and so the detail of each painting is very fine. The artists with which we are working are hearing and/or speaking impaired, and face discrimination and often a tough economic future. They see Kangra painting as an income generation activity, a social activity, and a passion.

Our project faces a supply side problem. Paintings are sold to a corporate client and through CORD. Currently, the corporate clients want more paintings than the artists can produce, but the price corporate pays is low. Travellers coming through CORD also buy the paintings, but again, these people are not willing to pay much for them. So even though plenty of demand exists, the artists cannot raise the prices, because a ceiling value exists for the paintings within the markets in which they are currently sold.

We are looking at ways to attract new artists, through recruitment methods and earning potential incentives. We want to create recruiting initiatives, both through advertisement and peer recruiting. These initiatives will take better shape as we are able to meet the artists. We suggest three avenues to increase earning potential: adjusted presentation, new products, and new channels. Simple adjustments to the presentation by adding mat board to the paintings and protecting them with plastic will give the impression of a higher value product. New products using prints of the paintings, such as postcards or greeting cards, could help raise the amount of money earned from each painting. New channels via fair trade, the internet, or new corporate partnerships could match current supply with consumers willing to pay higher prices than the artists currently charge.

With our recommendations, we hope to give the artists tools with which they themselves are able to shape and improve their futures. As we have researched and refined our recommendations, the cultural aspects have become increasingly important. As our focus turns to our presentation, they will likely become even more important. We are leaving in two weeks, and we are all beyond excited to meet the artists and members of CORD in person.

Live the Questions

As our departure date to India rapidly approaches, our group has spent countless hours gathering data about worms, wool shawls or lending practices in Sidhbari and its surrounding communities. At the same time, we have practiced Hindi, read articles on microfinance, and listened to highly esteemed professors lecture on the history of Indian politics and economics. However, despite all that we have studied over the past four weeks, there is much we still don't know.

The reality is that no matter how much we learn about India this semester, we still don't know as much about the country as the people we are going to visit. Thus, it is vital that we approach our work in Sidhbari with curiosity and humility. Being able to listen to entrepreneurs, Self-Help Group leaders, and the staff at CORD will not only enable us to solve challenging business problems, but also strengthen our ability to work in cross-cultural environments.

As with any consulting engagement, all of our teams have wrestled with a great deal of ambiguity. Yet that ambiguity is what will make this experience as transformative as we originally imagined. So instead of trying to know all of the answers before we depart, let's try to "live the questions now," as the poet Rainer Maria Rilke once wrote. By recognizing our limited exposure to this diverse culture, I believe that we will allow Incredible India to teach us new things, both about its people and about ourselves.

Microfinance at CORD

Steven, Troy, Bhairavi and I are working with CORD to discover ways to improve the Microfinance program currently in place at CORD. As it stands, self-help groups of approximately 10-15 women are formed and work together to save and lend money to one another. Savings can amount to as little as 20 rupees a month per individual (approximately $0.50 ) to a more standard average of 50 rupees a month (just over $1). Each self-help group decides how much money they went to save each month and every member of the group must present the agreed upon savings at their monthly meeting. At this monthly meeting it is also determined which women from the group will receive a loan from the savings that the women have just deposited. The women that take out loans are charged a monthly interest rate of 2% and ideally should start repayment on her loan the following month.

Every three months the self-help groups are evaluated by CORD on a variety of parameters from internal democracy to loan taking capacity and based on these parameters the group will receive a score out of 600 that is recorded on a grading sheet. On this grading sheet is a grade (A, B, C, D) based on how many points were earned out of 600.

Last week our team received grading sheets for 25 different self-help groups at CORD that Steven, Troy, Bhairavi and I will be working with when we travel to Sidhbari next month. These charts really gave our team a much better understanding of where our focus needs to be in trying to help these self-help groups grow and ultimately earn a higher grade. The areas that seem to need the most attention are borrowing money for income generation purposes as well as demand for training and the members’ participation at the training sessions. The training sessions are intended to teach women a skill that will help them use their loans for income generation, whether it is sewing clothes, painting a beautiful portrait or farming. This is our next big challenge, how to get the women motivated and excited to attend training sessions that will enhance their skill set as well as to earn a higher grade as a group and move from a “C “to a “B”, a “B” to an “A”, etc. This coming Monday we will be having a phone call where we hope to speak to 3 different group leaders that currently have an “A” grade. We hope to learn from them what it is that has made their group so successful and what motivates their members to score well.

I look forward to updating you on our phone call this coming week! And happy almost Valentine's Day :)