Michael Mayboeck

Applicant for the MIM Program at IE Business School

E. Describe the most outstanding leader you have worked with. Indicate some aspects of the way you work that are similar to the way this leader works and others that are different.

Microfinance organization and community development bank started in Bangladesh

Makes small loans (known as microcredit or "grameencredit") to the impoverished without requiring collateral

Gram means "rural" or "village the poor have skills that are under-utilized

Background

Bank Founder: Muhammad Yunus (Doctorate in Economics, Vanderbilt University, USA)

Inspired by the Bangladesh famine of 1974 Began as a research project, to test his method

for providing credit and banking services to the rural poor

The project was transformed into an independent bank

Two bankers from Shorebank (community based development bank in Chicago), helped with the official incorporation of the bank

History

Charity is not an answer to poverty It creates dependency and takes away individual's

initiative to break through the cycle of poverty Loans offer people the opportunity to take

initiatives in business or agriculture Credits offered to impoverished people, women,

illiterates and unemployed peopleAccess to credit on reasonable terms such as the

group lending system and weekly-installment payment

Micro-Credit Strategy

Borrowers own 94% of the bank, and the remaining 6% is owned by the Government of Bangladesh

Significant growth between 2003-2007oOctober 2007, the total borrowers of the bank

amount to 7.34 million, and 97% of those are women

o In 2003, the bank had only 3.12 million members The bank has distributed Tk 347.75 billion

(USD 6.55 billion) in loans Tk 313.11 billion (USD 5.87 billion) has been repaid Loan recovery rate of 98.35%, up from the 95%

recovery rate claimed in 1998

Operational Statistics

October 13, 2006 ~ The Nobel Price Committee awarded Grameen Bank and its founder, Muhammad Yunus, the 2006 Nobel Peace Prize for their efforts to create economic and social development from below.“From modest beginnings three decades ago, Yunus has, first and foremost through Grameen Bank, developed micro-credit into an ever more important instrument in the struggle against poverty. Grameen Bank has been a source of ideas and models for the many institutions in the field of micro-credit that have sprung up around the world.”

Only business corporation to ever have won a Nobel Prize

Nobel Peace Prize

An outstanding leader:Mohammad yunus

Muhammad & me; July 2014

While working with Muhammad Yunus I have observed the following characteristics of his leadership style

Motivation to solve problems within your communityLeading by exampleEncouraging subordinates to follow your lifestylePatient, but strong-willedTaking on challenges that really matter to the world and deriving additional motivation through thatGiving your employees a cause to work for rather than only a paycheckA happy boss leads happy employees

Style of Leadership

Through my various work placements and studies in an international context I have discovered that I am also:

Motivated by causes rather than moneyLeading by sharing my vision with my co-workersEnhancing work attitude by creating a joyful atmosphere in the teamA good public speakerAble to encourage co-workers to think outside the boxKnowing when it is time to take a break and encourage team bonding in an relaxed atmosphere

My own Leadership style

Areas I hope to improve at IE Business School

Not to be too focused on short term resultsNot overthinking good solutions Taking on more challenges outside my area of expertise Getting better at negotiating

Improvement

If you are interested, I invite you to watch this video made by a friend and colleague during our stay in Bangladesh.

https://www.youtube.com/watch?v=X4CIK5fTP2U&feature=youtu.be

Thank you very much for your timeand I hope to hear from you soon!

Michael Mayboeck

Video of the Experience