Organizational Capacity. Audit Tool
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1 Organizatinal Capacity Audit Tl Prepared by Esther Mwiyeria Wachira, GeSCI Cpyright ntice This dcument is prvided under a Creative Cmmns License f Attributin- NnCmmercial-ShareAlike. Fr mre infrmatin n this license, please visit the Creative Cmmns website at The latest versin f this dcument is available frm: Please send any cmments and suggestins t the authrs r GeSCI (inf@gesci.rg). Page 1 f 22
2 Table f Cntents Backgrund...4 Objectives f the Organizatinal Capacity Audit tl...5 Target Audience...5 Intrductin...6 Definitin f Organizatinal Capacity...6 CAPACITY AUDIT PROCESS...9 STEP ONE: Plan fr the Capacity Audit...9 Assess rganizatinal readiness...9 Determine the bjectives fr the capacity audit...10 Map ut the capacity audit prcess...10 Determine wh shuld cnduct the audit...10 Identify wh will use the results and the purpse the data will serve fr each target audience...11 STEP TWO: Determine Requirements...12 STEP THREE: Establish Existing Capacity...14 Cmpnents f Organizatinal Capacity...14 STEP FOUR: Determine the Gaps/Issues...19 STEP FIVE: Analyze Gaps and Prpse Slutins...21 Disseminatin t the relevant parties...22 The capacity audit reprt...22 List f Tables Table 1-Establishing Resurce Requirements...12 Table 2 - Cmpnents f Organizatinal Capacity...14 Table 3 - Determining Gaps...19 Table 4 - Analyzing Gaps...21 List f Figures Figure 1- Levels f Capacity Develpment: Adapted frm IDRC, Page 2 f 22
3 List f Abbreviatins IDRC - Internatinal Develpment Research Centre UNDP - United Natins Develpment Prgramme SIDA - Swedish Internatinal Develpment Agency Page 3 f 22
4 Backgrund As GeSCI cntinues t engage with Ministries f Educatin in their bids t deply ICTs in educatin, there has been an internal tendency t use the term capacity building and capacity develpment t mean different things. Befre we can think abut capacity building r develpment in relatin t ur partner rganizatins we may need t establish why we need t develp the capacity, whse capacity we need t develp, hw this capacity will be develped, what capacity exists within the rganizatin, and hw the capacity develped will be used nce develped. This wuld help us identify specific gaps nt which ur capacity building effrts shuld be fcused. This frmal systematic assessment f an rganizatin s ability t achieve stated bjectives and execute its mandate will be referred t as the capacity audit in the dcument. Whereas a capacity audit then is a necessary step t be carried ut befre any capacity develpment activities can cmmence the tw activities are clsely related in the sense that the latter shuld be dictated upn by the frmer. Capacity develpment, which is nrmally targeted n an rganizatin s perfrmance, has been defined by UNDP as an nging prcess t increase the abilities f rganizatins t perfrm cre functins, slve prblems and achieve bjectives. In its definitin it includes the ability f an rganizatin t assess and react t future needs in rder t maintain relevance and effectiveness ver time. In particular it underscres its definitin f capacity develpment as being a cntinuus, learning, and changing prcess (UNDP, 1997) 1. The changing aspect f an rganizatin s capacity is referred t by IDRC as an rganizatin s adaptive capacity (IDRC, 2005) 2. Wh then shuld develp an rganizatin s capacity? Oxfam ntes that n ne develps anyne else s capacity. Organizatins ften develp their capacities in unplanned, spntaneus ways. While external rganizatin s resurces may be used t supprt capacity develpment, rganizatins themselves must take ultimate respnsibility fr develping their wn capacities. Withut rganizatinal will t dedicate resurces t capacity develpment and a culture that is pen t Page 4 f 22
5 learning and change, rganizatinal capacity develpment effrts will be f limited value (Eade, 2007: pg 27) 3. Objectives f the Organizatinal Capacity Audit tl This tl has been develped with the fllwing bjectives in mind: T create a cmmn understanding internally f what cnstitutes an rganizatins capacity T prvide structure fr GeSCI s staff in auditing the capacity f the rganizatins and units it chses t wrk with in rder t ffer targeted capacity building supprt T prvide a tl t be used by GeSCI during the cuntry selectin prcess t audit the capacities f ME and subsequently help in develping apprpriate engagement strategies. Target Audience This tl was develped ut f an identified need frm within the rganizatin t create a cmmn understanding f capacity building. On the ne hand, the tl culd be used by GeSCI staff in assessing its internal capacity t nt nly carry ut its day-t-day peratins but als in its capacity t ffer strategic advice t its partner cuntries. On the ther hand, the tl culd be used by GeSCI while assessing the capacity f the Ministries f Educatin t carry ut their dayt-day activities in relatin t ICT4E r in executing a defined prject in the same cntext. 3 Eade D.,(2007), pg. 27; Capacity-building, An Apprach t Peple Centered Develpment, Oxfam: UK and Ireland Page 5 f 22
6 Intrductin Definitin f Organizatinal Capacity An rganizatin s capacity in simple terms is its ptential t perfrm. Ker (2003) 4 defines this mre specifically as its ability t successfully apply its skills and resurces t accmplish its gals and satisfy its stakehlders expectatins. The skills and resurces include staffing, infrastructure, technlgy, financial resurces, strategic leadership, prcess management, netwrks and linkages with ther rganizatins and grups. IDRC 5 identifies three ways f lking at rganizatinal capacity in its develpment wrk which as GeSCI we shuld lk fr while carrying ut rganizatinal capacity audits: 1. It grups the elements that cnstitute rganizatinal capacity under the categries f resurces and management. Resurces cnstitute the staff, the infrastructure, technlgy and financial ability whereas management includes strategic leadership, prgram and prcess management, netwrks and linkages. The resurces and the management capacities make up the verall rganizatinal capacity. 2. Anther way f lking at rganizatinal capacity is t distinguish between the capacities that an rganizatin needs t carry ut its day-t-day activities and the capacities needed fr an rganizatin t learn and change in respnse t changing circumstances. These have been referred t as adaptive capacities. The capacity f 3. Organizatinal capacities have als been distinguished between individuals, grups and team capacities. Individuals pssess capacities in the frm f knwledge, skills and attitudes. These are usually made available t the rganizatin but always lst when such individuals leave the rganizatin. When knwledge, skills, and attitudes are shared with thers, such capacities becme embedded in prcesses and when these are widely shared in the entire rganizatin then, they becme incrprated in the rganizatin s culture. an rganizatin has been defined as its ability t successfully apply its skills and resurces t accmplish its gals and satisfy its stakehlders expectatins. Ker, A (2003) 4 Ker, A Evaluating Capacity Develpment: Experiences frm Canada, Chile, the Dminican Republic, Suth Africa and Suth Krea [Online]. Available frm IDRC at: [Accessed 6 February 2008] 5 Page 6 f 22
7 Overall, the capacity f an rganizatin cannt be taken in islatin as it is deeply embedded in the scial, ecnmic and plitical envirnment in which it perates 6. In assessing the capacity f an rganizatin, it is imprtant t understand this external envirnment. This envirnment includes the administrative and legal systems, plicies and laws, the cultural cntext and the general plitical stability f a cuntry. The capacity f an rganizatin has been seen t exist at three different levels: Micr, Mes, and Macr levels. DFID , Wrldbank , and SIDA , nte that capacity develpment effrts can be targeted at these three levels. At the micr level the effrts wuld address persnnel skills as exhibited by the staff. It wuld equally fcus n team wrk, infrmatin building and sharing. The Capacity f At the mes level the fcus wuld be n the rganizatin. Factrs t an rganizatin be cnsidered in this include the rganizatinal structure, definitin has been seen t f rles and respnsibilities, leadership, attitudes and incentives, exist at three appraisal prcedures, budgetary allcatins fr varius tasks, different levels: facilities, access t infrmatin, infrastructure and technlgy, and Micr, Mes and cmmunicatin within the rganizatin. Macr The macr level fcuses n the external factrs and the envirnment within which the rganizatin is situated. This includes the plitical will, stakehlders dealing directly r indirectly with the said rganizatin, plicies, netwrks and partnerships, and budgets frm the parent institutins r ministries. 6 Eade D.,(2007), Capacity-building, An Apprach t Peple Centered Develpment, Oxfam: UK and Ireland Page 7 f 22
8 Figure 1- Levels f Capacity Develpment: Adapted frm IDRC, Micr 1 Mes 2 Macr 3 Individual/ Prject team : Persnnel skills as exhibited by the staff, team wrk, infrmatin building and sharing. Organizatin: Organizatinal structure, definitin f rles and respnsibilities, leadership, attitudes and incentives, appraisal prcedures, budgetary allcatins, facilities, access t infrmatin, infrastructure, and cmmunicatin within the rganizatin. Natinal institutins Plitical will, stakehlders dealing directly r indirectly with the said rganizatin, plicies, netwrks and partnerships and budgets frm the parent institutins r ministries. These three levels are clsely intertwined. Capacity in ne f the levels cannt guarantee delivery f services withut capacity in the ther levels. Hence, while carrying ut an rganizatinal audit, it will be necessary t assess capacities at the three levels Page 8 f 22
9 CAPACITY AUDIT PROCESS The methdlgy is in three sectins. The activities in Steps 1 and 2 wuld have t be carried ut befre the capacity audit, Step 3 during the audit, and Steps 4 and 5 after the audit. The bjective f this five step methdlgy is t help yu determine whether a particular rganizatin has the ability t execute a particular prject as well as carry ut its day-t-day activities. In this dcument, the term rganizatin can be used t represent a department, a unit r a Ministry and the term prject will be used t describe the task at hand. STEP ONE: Plan fr the Capacity Audit Befre yu start with the audit, yu need t establish whether yu are auditing the capacity f the rganizatin t carry ut its day-t-day functins r t execute a defined prject. Examples include; yu might want t audit the ICT unit t carry ut its day-t-day activities in the Ministry f Educatin r yu might want t audit the capacity f the same unit t develp electrnic cntent fr schls. Assess rganizatinal readiness Lusthaus, Andersn, and Murphy (1995) 11 identify parameters that can be used t ascertain the degree f an rganizatin s readiness fr a capacity audit. These include: Cultural readiness acceptance t prvide suggestins fr imprvement Leadership readiness supprt frm the leadership t carry f the audit exemplified in resurce allcatin in terms f time, persnnel and gdwill. This will increase a sense f wnership especially during the implementatin f change. Visin and strategy wnership The rganizatin shuld have a desire t achieve stated bjectives and execute its mandate B+Lusthaus&surce=bl&ts=DIuMzw00WW&sig=FP-VFdVO0VgFulLNXdVsaSjB0&hl=en&sa=X&i=bk_result&resnum=1&ct=result#PPA18,M1 Page 9 f 22
10 Peple readiness There is a need t identify a champin wh will be ready t wrk with the capacity audit team thrughut the prcess Determine the bjectives fr the capacity audit Befre the cmmencement f the audit exercise yu need t define the bjectives and clarify the needs f the participants. This shuld be dne cllabratively with identified persnnel in the target rganizatin. The fllwing questins are imprtant; why are we ding this? Hw will we d it? Wh will d it? These will help yu determine the scpe f the interventin, the depth f the data t be cllected, the fcus and the cst (DFID, 2006) 12. Map ut the capacity audit prcess As yu embark n the capacity audit prcess, the fllwing are activities that may be required: Define the scpe f the capacity audit Identify the main issues t be addressed Identify indicatrs t help yu achieve yur bjectives Identify surces f data t maximize n the time and the available resurces Identify data cllectin methds that are best suited t yur questins and yur bjectives (Questinnaire survey, face-t-face interviews, telephne interview, fcus grup, dcument review, bservatin) Develp the instruments fr data cllectin. Determine wh shuld cnduct the audit After analyzing the bjective and the scpe f the audit, a team drawn frm the target rganizatin and GeSCI staff shuld be assembled with clear rles and respnsibilities. This team shuld gather as much backgrund infrmatin as pssible in relatin t the target rganizatin. It might be necessary t identify a champin frm within the partner rganizatin in this team fr crdinatin purpses. He/she might nt necessarily attend all the interview sessins during the audit due t the sensitivity f sme f the issues, but will be instrumental in crdinating the activities n the grund during the audit perid Page 10 f 22
11 Identify wh will use the results and the purpse the data will serve fr each target audience The target audience needs t be identified. This audience culd cmprise f thse inside the rganizatin and utside the rganizatin. Thse inside the rganizatin may use the data t imprve decisins while thse utside may use the data t supprt internal change. There are als stakehlders in the external envirnment wh wuld be interested in the results f the audit. These may include the parent Ministries and ther Ministries and departments within the rganizatin s sphere f influence r peratin. Page 11 f 22
12 STEP TWO: Determine Requirements This step will prvide a time f reflectin t establish the requirements fr the executin f a particular prject r the anticipated imprved perfrmance f an rganizatin t carry ut its mandate n a day-t-day basis. During this stage analyze the prject/ task at hand and break it dwn int its discrete cnstituent prcesses and activities. The fllwing are questins that culd guide yu thrugh the prcess. What shuld be the mandate f the rganizatin/department t undertake this prject r t carry ut its day-t-day tasks? Hw many peple will be required t execute the tasks at hand? What skill-sets are necessary fr this executin? What technlgy resurces will be needed? What are the budgetary requirements? What kind f leadership is required e.g. Prject Management What are the external factrs that must be in place fr the prject r the tasks at hand t be executed successfully? (These might include partnerships, linkages, cmputers labs, trained teachers, e-cntent, electricity etc.) What is the prpsed utput? What is the peratinal cst required? Review the tasks t be carried ut and find ut what is invlved. Hw will the task(s) be executed rganizatinally? (Think abut the rles and respnsibilities) What ther resurces (ther than financial and technlgical) will be required? Develp the terms f reference fr the capacity audit In establishing the required resurces the fllwing table can serve as a guide Table 1-Establishing Resurce Requirements Capacity cmpnent Items t cnsider within each cmpnent Human resurces Persnnel, rles and respnsibilities Strategic leadership Mandate, rganizatinal structure, rganizatinal gals and Page 12 f 22
13 Capacity cmpnent Items t cnsider within each cmpnent bjectives, strategic plans, leadership etc. Financial resurces Budgetary allcatin within the rganizatins and frm the parent Ministries, disbursement prcedures etc. Infrastructure and technlgy Electricity, telecmmunicatins, transprt, cnnectivity, human resurce t supprt existing technlgy, skills t use the technlgy, space allcatin etc Prcess and prgramme management Organizatinal prcesses relevant t the prject at hand, dcumentatin, knwledge management and sharing prcesses, criteria fr selecting schls fr deplyment f cmputers etc. External envirnment Legal and administrative envirnments, plitical will and stability, plicies, netwrks and partnerships. Page 13 f 22
14 STEP THREE: Establish Existing Capacity Cmpnents f Organizatinal Capacity The cmpetencies listed in this table are drawn frm the three levels f rganizatinal capacities. A list f questins has been prpsed but these can be adjusted depending n the task at hand, the scpe f the audit, and the intended users f the audit results. The data cllectin instruments will be develped by the selected audit team t address specific bjectives. Table 2 - Cmpnents f Organizatinal Capacity Cmpnents Human Resurce Pssible questins t ask? Tls fr the Audit Micr Level Persnnel Hw many staff members d we have in the department/rganizatin? What skills are available? Rles and respnsibilities Strategic Leadership Are rles and respnsibilities linked t actin plans? The rganizatin has apprpriate jb descriptins? Questinnaires F2F interviews Examinatin f dcuments F2F Interviews Mes Level Visin, Missin Des the rganizatin have a visin statement? Is the visin aligned with the rganizatin s verall missin? Mandate What is the mandate f the rganizatin? Des the rganizatin have the mandate t execute this prject? Organizatinal structure Organizatinal gals and bjectives Hw is the rganizatin structured? Des the gvernance structure supprt the rganizatin s directin? Are the right peple in the right jbs in the rganizatin? Is the rganizatinal visin translated int clear Examinatin f dcuments Fcus grups Examinatin f dcuments Fcus grups Examinatin f dcuments Examinatin f dcuments Page 14 f 22
15 bjectives and t its human resurce planning? Mtivatin What have been the milestnes, successes and mments f crises in the rganizatin? D the staff members ascribe t the rganizatins missin and mandate? Hw wuld the staff rate their mrale? Hw wuld yu rate the attitude twards wrk in the rganizatin? Incentives Are individual r/and team effrts recgnized in the rganizatin? What incentives exist t mtivate the staff mnetary r nn-mnetary? Is the staff adequately cmpensated? Appraisal prcedures What are the existing appraisal prcedures? Financial Resurces Examinatin f dcuments Observatin F2F interviews Questinnaire Fcus grups F2F interviews Questinnaires Examinatin f dcuments Interviews Questinnaires Budgetary allcatins Is there an adequate budgetary allcatin frm the parent ministry? Is there a budgetary allcatin within the rganizatin fr the specific tasks? Are there pprtunities fr diversin f the allcated funds? Hw are the disbursements carried ut; n a pririty basis r a first-cme-first served basis? Is there a resurce allcatin in the actin plans t help the rganizatin realize its visin? Infrastructure (facilities and technlgy) Page 15 f 22 Examinatin f dcuments Interviews
16 Technlgy Is there adequate physical infrastructure (pwer, telecmmunicatin, transprt) in place t supprt the rganizatin s wrk? Des the gvernment system facilitate the rganizatin s prcess fr acquiring needed technlgy? Is the level f human resurce capacity in the rganizatin adequate t supprt the existing r new technlgy? Facilities D the facilities and internal services adequately supprt staff? Is cmmunicatin systems functinal t the levels required? Is there a budget fr infrastructural and technlgy maintenance? Prcesses Management Observatin Interviews Questinnaires Observatin Interviews Questinnaires Prcesses What prcesses are in place within the rganizatin? Are these prcesses dcumented? (These shuld be related t the activities f the prject in questin and the day-t-day peratins f the said unit) Are there prcesses that are currently being used in the rganizatin that culd be taken advantage f? Knwledge sharing and building Are there any knwledge sharing mechanisms/practices/prce sses in place t build rganizatinal knwledge and prmte skill transfer? Examinatin f dcuments Interviews Questinnaires Examinatin f dcuments Interviews Questinnaires Page 16 f 22
17 Cmpnents Pssible questins t ask? External Envirnment Tls fr the Audit Macr Level Legal and administrative envirnments T what extent is the rganizatin influenced by the rules and regulatins f ther institutins? Are the bjectives under the influence f gvernments, dnrs and ther institutins? T what extent d the laws supprt the rle played by the rganizatin? Des the legal framewrk supprt the rganizatin s autnmy? Plitical will Is the plitical envirnment cnducive fr the executin f the said prject? Is there plitical will t supprt the executin? At what level is this plitical will? Des the rganizatin have access t gvernment funding? Examinatin f dcuments Interviews Questinnaires Examinatin f dcuments Interviews Questinnaires Research Plicies D the gvernment plicies and prgrams supprt the rganizatin Netwrks and partnerships What plicies are in place in supprt f the mandate f this rganizatin? Are these plicies at the rganizatinal level r at the ministerial level? Des the gvernment facilitate cllabrative arrangements? What are the netwrks and partnerships in place? What are the mutual benefits with each f the partners? Page 17 f 22
18 Other Stakehlders What are the administrative and legal systems that might affect the executin f the prject? What are the plicies in the ther ministries that might have an influence in the executin f this prject? E.g rural electrificatin, Tax waiver n all ICT equipment, Telecmmunicatin. Stakehlder analysis Targeted Fcus grups Page 18 f 22
19 STEP FOUR: Determine the Gaps/Issues This will entail lking at the prject requirements versus the resurces and capacity that is available under the varius subheadings. It will als be necessary t assess whether the rganizatin has the capacity t execute the prpsed prject r t carry ut the assigned tasks given the current capacities. Using the table belw as a guide, reflect n the capacities f the rganizatin. Identify capacity gaps and hw they affect the rganizatin s perfrmance. Discuss the seriusness f these issues with the audit team and see if there is sme cnsensus n the pririty issues. There culd be variatins. Table 3 - Determining Gaps Capacity Required Available Magnitude f Gap cmpnent Capacity Capacity High Medium Lw Hw des the gap affect perfrmance Human resurce Strategic leadership Financial resurces Prcess management Page 19 f 22
20 Infrastructure Mnitring Evaluatin and External envirnment Page 20 f 22
21 STEP FIVE: Analyze Gaps and Prpse Slutins Drawing frm the gaps that may have been established in the preceding sectin the fllwing questins may be cnsidered in rder t develp cnclusins and recmmendatins Is the rganizatin the right hme fr this prject? What adjustments need t be effected fr the prpsed task t be executed in this rganizatin? What additinal resurces are required t increase prductivity? What adjustments need t be put in place t effectively use the available resurces? Draw cnclusins and recmmendatins n hw t fill the gaps In analyzing the data yu may cnsider the fllwing: Table 4 - Analyzing Gaps Cmpnent Gaps Prpsed Slutin(s) Page 21 f 22
22 Disseminatin t the relevant parties Yu need t decide hw the varius audiences will receive the findings frm the audit. This may take the frm f reprts, presentatins, , r staff meetings. This will depend n the target audience. The capacity audit reprt Include an executive summary that utlines the purpse, methds and findings f the audit Describe the purpse f the assessment and append the terms f reference Answer the questins psed in the terms f reference Describe the methds used t cllect and analyze the data Indicate the limitatin f the methdlgy Include the data, suitably analyzed, n which the cnclusins are based Page 22 f 22
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