Organizational capacity Assessment tool 1
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1 Organizational capacity Assessment tool 1 Purpose This assessment tool is intended to guide HI staff and members of local structures to assess organisational capacity. The questions highlight three key areas development organizations are generally assessed for: 1) the internal functioning of the organization; 2) its service delivery or program performance; and 3) its external relationships. The profile generated through this assessment is meant as a take-off point for discussing the strengths and weaknesses of the development organisation and the factors contributory to the strengths and weaknesses. Using the assessment tool Score 1 for each statement that describes your organization and 0 for each statement that does not, or that is only partially descriptive. Add the scores for the statement associated with each characteristic and enter the sum as its. Enter the totals for each of the characteristics on the organizational capacity profile sheet. 1 This assessment tool was adopted from two major documents: 1) the Organizational Capacity Assessment Handbook, PACT Ethiopia Program; and 2) Sustainable Development Service Projects Second Creating Change Strategies for Sustainable Development Workshop, January 14-17, 1997 by the initiatives Project/JSI Research and Training Institute.
2 Organizational capacity Assessment tool Name of NGO Date of assessment Assessment conducted by Governance 1. Board Score Comments a. The board provides overall policy direction and oversight. b. The board provides accountability and credibility. c. The board is composed of committed members who represent the varied interests of the constituents d. The board is capable of carrying out key roles such as policy formulation, fund raising, public relation and lobbying. 2. Mission and goal Score Comments a. The mission and goal are clearly articulated. b. The mission is understood by staff, constituency and the public. c. Strategies are aligned with mission and realistic. d. Strategic planning is jointly conducted by the board, senior management, and staff with input/participation from other stakeholders. 3. Leadership Score Comments a. Board and senior management have a clear understanding of their roles and responsibilities as providers of overall direction. b. Senior management s relationship to staff is participatory, transparent and management decisions are delegated. c. Leadership is accessible and fosters participation. d. Succession plan(s) for key managers exist(s) or is being developed. TOTAL 4. Organisation Score Comments a. The board meets regularly. b. The board is representative (women, PWD s, young people are included). c. The board has selection criteria for member selection. d.
3 Management 1 Organization structure Score Comments a. The organizational structure clearly defines lines of authorities and responsibilities b. Systems exist to collect, analyse and disseminate data and information. c. Decisions are based on data. d. Open communication and feed backing mechanism in place. 2 Planning Score Comments a. Operating plans are developed, reviewed, updated and reflect a strategic plan. b. Staff is involved in planning. c. Resources are planned for and allocated properly. d. Input from constituents is included in planning 3 Monitoring and evaluation Score Comments a. A monitoring and evaluation system exists and outputs are used. b. Constituents and staff are involved in monitoring and evaluation. c. Regularly reports activities and results of evaluation to stakeholders. d. Disseminates or shares reports on lessons learned. 4. Program development Score Comments a. Systems for routinely collecting information about program operations are in place or being developed (product/service mix, utilization levels and patterns, client profile(s), etc.). b. Operations are guided by an implementation (or business) plan against which performance is regularly monitored and evaluated. c. Service quality guidelines exist or are being developed d. Unit cost per benefit / client can be calculated for each main service
4 Human resource development 1. Personnel management Score Comments a. Recruitment, employment and personnel practices are clearly defined and followed. b. Clearly established links exist between staff capacity and NGO mission. c. Internal regulations governing staff rights and obligations (e.g., working hours, entitlements, discipline and codes of conduct, etc.) exist, function and are supported with written procedures and guidelines. d. Job descriptions are well defined, documented and respected and updated and an organisational chart exists. 2. Work environment Score Comments a. Staff members participate in management decisions. b. Staff members are encouraged to make suggestions and to share ideas to improve organizational; performance. c. Team work is practiced or encouraged. d. Information is shared freely among all staff members. 3. Staff development Score Comments a. Human resources development planning takes place and based on the capacity needs and strategic objectives of the organization. b. Staff members are cross-trained to facilitate backup coverage of multiple functions as well as personal professional growth. c. Opportunities exist to integrate skills acquired in staff development activities into the work environment. d. Evaluation and promotions are based on performance and are equitable. 4. Salary, benefits and performance Score Comments a. Salaries are clearly structured and competitive. b. Benefits policy is written and practiced. c. Performance is regularly assessed and used in furthering staff capacity and organization mission. d. Productivity indicators exist and are used to evaluate field staff and supervisor performance on a regular basis.
5 Financial resources 1. Accounting and financial management systems Score Comments a. Accounting system (standards, policies, records, reporting) exists, functions and is supported with written procedures and guidelines. b. Approved versus actual budget expenditures, revenues and cash flows are reviewed at least quarterly variances are explained and budgets are revised as appropriate c. Managers and program supervisors receive financial information on expenses and income, and are used to make program decision for which they are accountable. d. Accounting system(s) can segregate the costs of delivering each principal product/ service. 2. Financial control and budgeting Score Comments a. Adequate financial and inventory controls exist and are implemented. b. Internal and external financial reviews are performed with regular and appropriate frequency to assure transparency. c. Regular budgeting process is developed and integrated into annual operating plans. d. Staff members are responsible for preparation, management and implementation of project budgets. 3. Financial Reports Score Comments a. You produce monthly, quarterly, annual financial reports b. You produce donor reports c. Administrative costs are calculated d. Are separate accounts/reports available for each donor 4. Administration Score Comments a. You have administrative procedures for procurements, logistics, MIS. b. c. d.
6 Service delivery 1. Sect oral expertise Score Comments a. Relevant sect oral expertise exists within organization. b. Exercise is credible and recognised by the development community. c. Capable of adapting program and service delivery to the changing needs of the constituency. d. Appropriate structures exist to reach grassroots. 2. Community participation Score Comments a. Information about current or planned services is routinely shared with intended beneficiary communities. b. Administrative structure is either decentralized or has consultative mechanisms in place that make responsive to local needs. c. Community input is used in decision-making. d. Community members sit on the organization s local governing body (e.g., board of directors or board of trustees). 3. Impact assessment Score Comments a. Indicators of success and impact were jointly identified and established with the community partners. b. Baseline data measurements are monitored and regularly analysed. c. Data gathering and analysis for impact assessment are jointly undertaken with community partners. d. Impact assessments are used to adjust programs as required 4. Viability Score Comments a. Are the products/services financially viable. b. Are the users satisfied c. Are there methods to analyse the costs of each product/service. d. Do mechanisms exist to evaluate the product/service.
7 External relations 1. Community partners. Score Comments a. Seen as credible and a valuable resource by the target group. b. The relationship with target group is one of full partners serving a common purpose. c. Program priorities and services are defined in collaboration with constituency and are based on need and institutional capacity. d. Constituency perceives service delivery is adequate and cost effective. 2. Other development organizations Score Comments a. Networks and shares resources with national and international NGO s b. Plays leadership role in promoting coalitions, networks, linkages and mechanisms for advocacy c. Has contacts with decision makers and is able to engage policy makers in dialogue. d. Exchange of resource occurs between NGO and government (training, TA, material resource, etc.) 3. Donors Score Comments a. Has diversified contacts within the donor community. b. Regarded as a credible and valuable resource to donor(s). c. Capable of asserting and negotiating with donors. d. Has the opportunity to engage in open and frank dialogue with donor(s). 4. Other local organizations Score Comments a. Has relations with private business sector, academic and research institutions and the media for technical expertise, material and human resources. b. It is perceived as a community partner. c. Known and its opinions and experiences are solicited. d. Information on the organization is available and mechanism for dissemination exists.
8 Organization and program sustainability 1. Commitment Score Comments a. Interested in decreasing or eliminating donor dependence. b. Believes that one can be a non-profit and still think and behave in a business-like way. c. Accepts that it is permissible for programs to charge user fees. d. Prepared to eliminate unfounded cost centres 2. Strategic thinking Score Comments a. A strategic plan for achieving organizational objectives exists or is being developed. b. Strategic plan incorporates financing implications and needs of programmatic goals and objectives. c. Succession plan(s) for key managers exist(s) or is being developed. d. Decisions are based on data 3. Marketing Score Comments a. Information on the needs and wants of target clients or beneficiaries is collected or regularly updated and periodically reviewed in relation to the product/services offered by the organization. b. Client or beneficiary satisfaction is regularly assessed. c. Information is regularly collected on availability and prices of services offered by actual potential competitors. d. Marketing plan exists or is being developed and responsibility for its implementation is assigned to specific individual(s). 4. Efficiency of operation Score Comments a. Client volume is steady or increasing overtime. b. Operating costs compare favourably to those of other organizations with similar services and clients. c. Shares resources as a member of a network or with other organizations. d. Makes use of trained volunteers among whom there is infrequent turnover. 5. Reliance on donor support Score a. Decrease in reliance on a few donors (i.e., diversification of donor base). b. Type of donor funding is less restrictive (e.g., more institutional development, fewer program-specific grants). c. Amount of donor funds rising less rapidly relative to other sources of income.
9 d. Donor funds cover a decreasing portion of operating capital. 6. Alternatives to donor financing Score Comments a. Systems/procedures for local fund-raising are in place or are being developed. b. Cost recovery (fee for services) systems are in place or are being developed. c. Income-generating activities, which generate a surplus, exist or are being planned. d. The local government resources are tapped or will provide support (drugs, personnel, buildings, etc.). 7. Income-generating enterprise existence and operation Score Comments a. Mission/objectives of the enterprise are clearly defined and known within the PVO. b. Enterprise has its own operational structure and systems including its own staff and managers who have experience in the activities undertaken c. Costs/revenues of the enterprise are known and routinely monitored against a business plan. d. Enterprise is based on a feasibility study of its economic viability.
10 Governance Management Human-resource development Financial resources Service delivery External relations Organisation Program sustainability and Organisational characteristics 1. Board 2. Mission/Goal 3. Leadership 4. Organization structure 5. Planning 6. Monitoring and evaluation 7. Program development 8. Personnel management 9. Work environment 10. Staff development 11. Salary benefits and performance 12. Accounting and financial management systems. 13. Financial control and budgeting 14. Sect oral expertise 15. Community participation 16. Impact assessment 17. Community partners 18. Other development organisations 19. Donors 20. Other local organisations 21. Commitment. 22. Strategic thinking 23. Marketing function 24. Efficiency of operation 25. Reliance on donor support 26. Alternatives to donor financing 27. Income-generating enterprise existence and operation Capacity assessment scores
11 Governance Strengths Weaknesses Obstacles Potential Management Human resource development Financial resources Service delivery external relations Organization and program sustainability Collaboration possible with HI/ANS Short term- Medium term- Long term- Plan of action Activity Indicator (s) Player Date for Completion
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