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Wednesday, 8 January 2014

HOW TO ASSESS NGO CAPACITY?

HOW TO ASSESS NGO CAPACITY?
A Resource Book on
Organisational Assessment
Stein-Erik Kruse
Oslo 1999 Norwegian Missionary Council
Office for Development Cooperation
FOREWORD............................................................................................................................2
HOW TO READ THE BOOK...............................................................................................3
ACKNOWLEDGEMENTS.....................................................................................................3
CHAPTER 1: BACKGROUND AND PURPOSE................................................................4
1.1. NEW CHALLENGES FOR NGOS......................................................................................4
1.2. WHAT IS ORGANISATIONAL ASSESSMENT?...................................................................4
1.3. WHAT ISSUES ARE DISCUSSED?.......................................................................................5
CHAPTER 2: AID POLICES AND KEY CONCEPTS.......................................................8
2.1. THE REDISCOVERY OF ORGANISATIONS..........................................................................8
2.2. CONCEPTS AND DEFINITIONS.........................................................................................10
CHAPTER 3: STAKEHOLDERS AND PURPOSES........................................................14
3.1. WHO ARE THE STAKEHOLDERS?.....................................................................................14
3.2. HOW TO DECIDE THE PURPOSE?.....................................................................................15
3.2.2. MONITORING AND EVALUATION OF CAPACITY DEVELOPMENT..................................17
3.2.3. ESTABLISHING NEW PARTNERSHIPS............................................................................17
CHAPTER 4: A FRAMEWORK FOR ASSESSING NGO CAPACITY.........................19
4.1. FOCUSING THE ASSESSMENT: ZOOMING IN AND ZOOMING OUT.....................................19
4.2. FRAMEWORKS FOR ASSESSING PERFORMANCE..............................................................20
CHAPTER 5: HOW TO CARRY OUT AN ASSESSMENT?...........................................27
5.1. REASONS FOR CONDUCTING AN ASSESSMENT................................................................27
5.2. MAPPING THE STAKEHOLDERS.......................................................................................28
5.3. ASSESSING ORGANISATIONAL READINESS......................................................................30
5.4. DECIDING THE TEAM TO CONDUCT THE ASSESSMENT.....................................................32
5.5. IDENTIFYING KEY ISSUES AND SCOPE OF THE ASSESSMENT.............................................34
5.6. TAILORING THE TOOLS...................................................................................................35
5.7. ARRANGING THE WORKSHOP.........................................................................................35
5.8. PREPARING THE FOLLOW-UP.........................................................................................37
CHAPTER 6: FOCUSING THE ASSESSMENT...............................................................38
6.1. RAPID ASSESSMENT TOOLS............................................................................................38
6.2. ORGANISATIONS IN DIFFERENT STAGES OF LIFE..........................................................43
APPENDIX 1: ORGANISATIONAL ASSESSMENT FORMAT....................................47
APPENDIX 2: REFERENCES.............................................................................................52 Foreword 2
FOREWORD
An anecdote tells of six blind men who happen upon an elephant. One man felt the animal's leg and exclaimed: "Elephants are very much like trees!" Another man felt the tail and concluded: "No, an elephant is more similar to a rope". Another felt the tusks, and yet another the trunk, and so on. In the end, each of the six blind men left with his own idea of what an elephant really is.
The assessment of organisations is very much like the six blind. It is the same organisation, but conclusions vary dramatically depending on who describes and evaluates, and the purpose of the assessment. To some extent this is necessary. Organisations are complex "animals" that need to be examined from many different perspectives.
As such, there is not only one organisation, but several images of the same organisation depending on people's different perceptions. On the other hand, we believe that a more systematic approach helps to provide a better understanding of organisations and their dynamics.
It is increasingly being realised that NGO performance is linked to and depends on organisational capacity. Capacity building or organisational development have become key aims and strategies in respect of the cooperation between Northern and Southern NGOs.
NGOs in the North and South are thus faced with new challenges. How do they form the basis for constructive collaboration? How do Norwegian NGOs appraise the capacity of their partners, and identify genuine needs and opportunities for change? What methods of self-assessment are available for Southern NGOs starting capacity building efforts? And not least, how should the results and impact of partnership and organisational objectives be measured and evaluated?
The Norwegian Missionary Council – Office for Development Cooperation (BN) has for several years worked with thematic areas like new partnerships, the assessment of organisational sustainability and how to measure results and impact. A Handbook with various models for how to assess organisational sustainability was developed in 1995, along with tools to analyse the handing over process of development projects.1 This book has been used extensively and BN wished to prepare a new and supplementary resource book. While the former analysed organisations in relation to a broad discussion of sustainability, this book goes more inside the organisation and presents models and tools for assessing NGO capacity.
1 "Caring, Sharing, Daring. Development Work in Transition", Oslo 1995. Acknowledgements 3
HOW TO READ THE BOOK
This is partly a Handbook presenting guidelines and tools for how to assess organisations, but it seeks also to broaden perspectives and knowledge about organisational change and institutional development.
Chapters 1 and 2 set the scene by defining new challenges for NGOs as partnership organisations and key concepts used in the book. Chapter 3 makes the point that the purpose of organisational assessment depends on the interests of the users, and introduces three main purposes for conducting an assessment.
In Chapter 4 the framework and main analytical model for organisational assessment is presented. Chapter 5 goes through the practical steps in an assessment process and Chapter 6 suggests some more rapid assessment methods.
There is a logical progression in the book and basic ground rules are important. Organisational assessment is not a neutral instrument, but needs to be understood in a broader development context and handled with care. Users could, however, benefit from specific tools and guidelines in the final chapters. We will also encourage readers to test and experiment with alternative approaches and keep in mind that one or the same tool does not necessarily work in all organisations. Quality assessment is not a matter of mechanical application, but careful adaptation.
ACKNOWLEDGEMENTS
We would like to thank BN for funding this project and their staff - in particular Arne-Kjell Raustøl for his moral support and professional advise throughout the process. An advisory group consisting of representatives from Norwegian missionary organisations and external advisers have met three times and provided valuable comments and input to the process and product.
The main model in this book has been tried out in Bangladesh and Kenya. We would like to thank Bangladesh Evangelical Lutheran Church (BNELC) and the Norwegian Santal Mission, the Free Pentecostal Fellowship (FPFK) in Kenya and the Pentecostal Foreign Mission of Norway (PYM) for their active cooperation and useful comments in constructive workshops in Dinajpur and Nairobi. Chapter 1 4
2 Another definition is: "OA is the application of different frameworks, techniques and tools to help development agencies decide which partner organisation to work with, and to help them identify which interventions may be needed to strengthen this partnership". Hailey J. (1995)

CHAPTER 1: BACKGROUND AND PURPOSE
1.1. New Challenges for NGOs

New partnerships between Norwegian and Southern NGOs are emerging. NGOs in Norway are not supposed to plan and implement programmes on their own, but collaborate with and provide support through like-minded Southern partners. Capacity development has become a key concern for most Norwegian NGOs, and organisational development represent both a strategy and an aim in a new era of development cooperation.
NGOs are faced with new challenges. How do organisations find each other and form the basis for constructive collaboration? How do Norwegian NGOs appraise the capacity of their partners, and identify genuine needs and opportunities? What methods for self-assessment are available for Southern NGOs starting new capacity building efforts? And not least, how should the effects and impact of partnership and organisational change be measured and evaluated?
NGOs need new knowledge about organisations and how they change in different cultural contexts. They need to know what characterises a well performing NGO, a framework for assessing NGO capacities, skills and methods for the systematic collection of data.
The new concepts of capacity building and institutional development are still over-used and under-defined by most NGOs. Strategies and rhetoric have changed without sufficient understanding of operational strategies and the skills required to follow the new principles and practices for development cooperation. Capacity development has been presented as part of the new answers, without a clear sense of the problems. Effective strategies for capacity development require good diagnosis. Lack of diagnosis is malpractice whether in medicine or management, and may lead to resources being wasted and serious failures. Project support was often found to be difficult, but organisational development is a far more complex and risky effort.
1.2. What is Organisational Assessment?

Organisational assessment is defined as:
«all systematic processes which are used to assess the performance, competence and capacity of an organisation and find ways to increase its efficiency and effectiveness".2 Chapter 1 5
It consists of tools and techniques which are used to identify areas in organisations that are progressing well, and to reveal deficits in capacity and competence that are limiting performance. The analysis also indicates what level of capacity would be needed in the future. The comparison between the actual and the desired shows what gaps need to be filled.
Organisational assessment is nothing new or mysterious. It is a continuous process carried out by managers, staff, members and beneficiaries. People often have clear views about the qualities of leaders, the reputation of the organisation, its profile, ability to provide services, etc. There is, however, an important difference between intuitive judgements and more formal organisational assessment. It is the structured approach and more systematic procedures which characterise organisational assessment.
The purpose of this resource book is twofold:
• To present an approach, models and procedures for assessing NGO capacity.
• To place organisational assessment as a strategic challenge for NGO growth and development.

It is partly a Handbook which presents guidelines on how to conduct an organisational assessment. The specific dos and don'ts are relatively few since every assessment needs to be tailored to a context and particular organisation. We would rather call it a resource book on organisational assessment with the intention of broadening perspectives and knowledge about organisational diagnosis and development.
The book is prepared mainly for NGO managers, staff and consultants working with NGOs. We also believe that development practitioners from other sectors could benefit from the approach and models presented here.
1.3. What Issues are Discussed?
Changing Policies and Key Concepts
CCCWhat drives the interest for capacity development?
WWWWhat are the basic concepts and definitions?

Concepts are many and often unclear. Similar terms have multiple meanings. There are few operational definitions which allow NGOs to target capacity development well. Recent NGO evaluations illustrate a wide gap between theory and practice in the sense that NGOs are often more clever at adopting Chapter 1 6
3 UD Evaluation Report 3/98, NGO Study
4 See References.
5 The model has been tried out with NGOs in Bangladesh, Kenya and Jamaica.

new buzzwords than at translating and putting those words into operation in their programmes.3
The Purpose of Organisational Assessment
TTTWhy are we doing an organisational assessment?
WWWWho are the users and the stakeholders?

Organisational assessment is always a means to an end, and should be placed within a broader strategic framework. It is the user that defines purpose and relevance. A powerful tool has little value if the craftsman does not know how and why he is using it. Assessment of organisational capacity is carried out at various points in the programme cycle with different objectives. We need to clarify the most common uses, define who the stakeholders are and their interests.
Framework and Analytical Model
FFFWhat is a relevant framework and model for assessing organisational capacity?
WWWWhat are the most important dimensions?

An organisational assessment requires a view of what constitutes an organisation, and what capacities or abilities are required to perform well. For each ability a set of dimensions should be defined for measuring the most relevant characteristics.
This Resource Book concentrates on one analytical model - not because there is only one way to analyse organisations. On the contrary, no blueprints are available. Different approaches are complementary and each model might provide particular insights. There is a growing abundance of literature available4 on the subject and NGOs have gained much experience in assessing organisations. Our attention is focused on one approach since it is comprehensive and has been found to be relevant in practice.5 For practical and pedagogical purposes one approach remains in focus - not excluding others.
How to Carry out an Organisational Assessment?
HHHHow to clarify the reasons for conducting an assessment and its major stakeholders?
HHHHow to decide whether an organisation is prepared and ready for an assessment?
dddWhat is the best team to conduct an assessment?
Chapter 1 7

CCCHow to identify key issues and the scope of the assessment?
HHHHow to organise an assessment and prepare for the follow up?

The tool in itself is neutral – neither good nor bad, but the use and how the process is carried out must be guided by clear, shared and agreed values and guidelines. The message is that there are several roads to the same goal. But it is equally important to acknowledge that organisations start from different "locations" and normally use different means of transport depending on how far they want to travel, their resources, cultural preferences and the time available. Chapter 2 8
CHAPTER 2: AID POLICES AND KEY CONCEPTS
2.1. The Rediscovery Of Organisations
The broad ideas of organisational and institutional development gained new importance in the 1990s in Norwegian development cooperation. This was a result of the growing realisation of the role organisations and institutions play in the development process. In Norwegian aid policy increasing emphasis has been placed on the ability and capacity of developing countries to design and implement their own programmes through the growth of effective organisations and institutional frameworks in the public, private and civil sectors. Capacity building for sustainable development has become a cornerstone of Norway's involvement in international development cooperation.
Linking organisations in the South with like-minded partners in Norway was encouraged. While institutional development was perceived as the goal, cooperation between public agencies, universities, cultural institutions, and non-governmental organisations became the means. In the same period there has also been a rapid increase in the number and size of non-governmental organisations involved in development work. There are currently more than 80 Norwegian NGOs supporting about 1000 large and small projects in Africa, Asia and Latin America with support from the Norwegian Government.
This Resource book is about NGOs and there has been a gradual shift in how most Norwegian NGOs have responded to three questions:
• Strategy: What should we focus on?
• Activities: What should we do?
• Evaluation: How do we know if we are succeeding?
Chapter 2 9
Strategy: From Project Support to Organisational Development
There has been a change in focus for Norwegian NGOs from supporting their "own" projects to building and strengthen-ing like-minded organisations in the South.
Various NGOs have followed different paths and speed in the process of change, but most Norwegian NGOs currently define themselves as «partner organisations» in the sense that their main role is to support Southern NGOs in achieving their aims and objectives.
The chart illustrates the change of focus which has taken place from helping poor individuals, to community development, leadership training and finally partnership and organisational development. There are obvious differences between NGOs. Some provide only support to organisational development while most seek to balance traditional projects with forms of organisational support. Emergency relief maintains a strong focus on helping individuals in need, while long-term development has a stronger organisational focus.


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