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close this bookOrganizational Performance and Change Management - Workshop Proceedings - October 1-3, 1997, Y.C. James Yen Center, International Institute of Rural Reconstruction (IIRR), Silang, Cavite, Philippines (IIRR, 1997, 242 pages)
close this folderAnnexes
close this folderAnnex 2 - Organizational capacity assessment tool1
View the document(introduction...)
View the documentPurpose
View the documentUsing the assessment tool
View the documentOrganizational capacity profile
View the documentOrganizational capacity assessment tool

Organizational capacity assessment tool

Name of NGO __________________________
Date of assessment ______________________
Assessment conducted by _________________


1. Board


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


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, staff with input/participation from other stakeholders.


3. Leadership


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.



1. Organization structure


a. The organizational structure clearly defines lines of authorities and responsibilities.

b. Systems exist to collect, analyze and disseminate data and information.

c. Decisions are based on data.

d. Open communication and feedbacking mechanism in place.


2. Planning


a. Operating plans are developed, reviewed, updated and reflect a strategic plan.

b. Staff are involved in planning.

c. Resources are planned for and allocated properly.

d. Input from constituents is included in planning.


3. Monitoring and evaluation


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 evaluations to stakeholders.

d. Disseminates or shares reports on lessons learned.


4. Program development


a. System for routinely collecting information about program operations is 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.


Human resource development

1. Personnel management


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.


2. Work environment


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


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. Evaluations and promotions are based on performance and are equitable.


4. Salary, benefits and performance


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.


Financial resources

1. Accounting and financial management systems


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 cashflows 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 use it 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


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.


Service delivery

1. Sectoral expertise


a. Relevant sectoral expertise exists within organization.

b. Expertise is credible and recognized by the development community.

c. Capable of adapting program and service delivery to the changing needs of constituency.

d. Appropriate structures exist to reach grassroots.


2. Community participation


a. Information about current or planned services are routinely shared with intended beneficiary communities.

b. Administrative structure is either decentralized or has consultative mechanisms in place that make it 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


a. Indicators of success and impact were jointly identified and established with the community partners.

b. Baseline data measurements are monitored and regularly analyzed.

c. Data gathering and analysis for impact assessment are jointly undertaken with community partners.

d. impact assessments are used to adjust programs as required.


External relations

1. Community partners


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


a. Networks and shares resources with national an international NGOs.

b. Plays leadership role in promoting coalitions, networks, linkaging 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


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


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.


Organization and program sustainability

1. Commitment


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 unfunded cost centers.


2. Strategic thinking


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


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 or 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


a. Client volume is steady or increasing overtime.

b. Operating costs compare favorably 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


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.

d. Donor funds cover a decreasing portion of operating capital.


6. Alternatives to donor financing


a. Systems/procedures for local fundraising 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.)


6. Income-generating enterprise existence and operation


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.