FORMAT FOR APPRAISAL OF NETWORK SUPPORT ORGANIZATIONS

Transcription

1 FORMAT FOR APPRAISAL OF NETWORK SUPPORT ORGANIZATIONS September 2004

2 Cntents Acknwledgments...iv Intrductin...1 Methdlgy Summary Analysis Reprt Overview f the Netwrk NSO Services and Impact n Partners NSO Operatinal Perfrmance Summary Cnclusins and Recmmendatins Institutinal Factrs Missin and Develpment Strategy Funding and Evlutin Gvernance Cntext Structure f Operatins Management Team Human Resurces Financial Management Infrmatin and Reprting Systems Industry Rle and Perceptins Partners and NSO Impact NSO Partners and Relatinships Partner Perceptins f NSO NSO Inputs and Impact n Partners NSO Services and Perfrmance Overview f NSO Services Gvernance f Partners Institutinal Start-up and Transfrmatin Technical Services Financial Services Knwledge Management Research and Develpment Plicy Advcacy Strategic Plan Objectives fr the Near t Medium Term Prjectins...31 ii

3 TABLE OF CONTENTS iii Bxes Bx 1. The Variety f NSOs in Micrfinance Tday...2 Bx 2. Useful References...6 Tables Table 2.1 Surces f Funds fr NSO Operatins...15 Table 2.2 Uses f NSO Funds...15 Table 3.1 Summary f NSO inputs and impact by partner...21 Table 3.2 Partner perfrmance vs. MicrBanking Bulletin (MBB) Benchmarks...22 Table 4.1 External Funds (grants/lans/equity) Mbilized by NSO fr its Partners...26 Table 4.2 Grants, Lans, and Equity Funding Prvided by NSO t its Partners...27 Annexes Annex 1 NSO Screcard...32 Annex 2 Netwrk Supprt Organizatin Prfile...34 Annex 3 Interview Guide fr NSO Partners...42 Annex 4 Interview Guide fr Industry Stakehlders...47

4 Acknwledgments The principal authrs f this appraisal frmat are Matthew Brwn and Jennifer Isern f CGAP. An early draft was develped by Diana Meyers in crdinatin with Tamara Ck and Jennifer Isern. Elisabeth Rhyne f ACCIÓN Internatinal and Richard Rsenberg f CGAP prvided significant cmments and advice n the verall apprach. Isabelle Barrès and Didier Thys f the Micrfinance Infrmatin exchange (the MIX), Renée Cha-Bérff f the Centre Internatinal de Dévelppement et de Recherche, Marc de Susa-Shields f Enterprising Slutins Glbal Cnsulting, David Gibbns f CASHPOR Inc., Thmas Kennedy and Katharine McKee f USAID, and Rland Siller f KfW, als reviewed and cmmented n the dcument. Special thanks are als due t Tamara Ck, Brigit Helms, Alexia Latrtue, and Elizabeth Littlefield f CGAP, wh prvided valuable cmments. iv

5 Intrductin This appraisal frmat has been develped by the Cnsultative Grup t Assist the Pr (CGAP) as a guide t evaluating netwrk supprt rganizatins (NSOs) in micrfinance. Bradly speaking, an NSO is an rganizatin whse primary functin is t develp its institutinal partners. 1 NSO partners are typically micrfinance institutins, banks, r ther rganizatins that ffer financial services t the pr. The NSO and its partners frm what is cmmnly called a micrfinance netwrk. 2 This frmat is an utline fr gathering infrmatin and assessing NSOs. It has a number f pssible applicatins, ranging frm appraisals fr funding decisins t internal NSO selfassessments. It is designed fr bth cmprehensive appraisals as well as mini evaluatins that use a particular sectin f the frmat t analyze a specific aspect f an NSO. Fr funders interested in a full appraisal, this frmat will help an analyst assess: (1) hw well an NSO s missin fits a funder s strategic pririties, (2) the degree t which an NSO is an efficient and well-run rganizatin, (3) the quality f NSO services and their relevance t partners, and (4) an NSO s cntributin t the brader micrfinance industry. The appraisal frmat is divided int five sectins: Sectin Descriptin 1. Summary Analysis Reprt Prvides a framewrk fr the final reprt f an analyst, which shuld (a) draw cnclusins abut whether the NSO adds value t its partners in a cst-effective way and (b) prvide recmmendatins fr funding. 2. Institutinal Factrs Explres an NSO s missin and develpment strategy and analyzes its rganizatinal capacity. 3. NSO Partners Examines the prfile f NSO partners, relatinships between an NSO and its partners, and the impact f an NSO n its partners. 4. NSO Services Evaluates each service f an NSO, their impact n partner perfrmance and their cntributin t the brader micrfinance industry. 5. Strategic Plan Analyzes an NSO s strategic plan and summarizes NSO prjectins fr future peratins. Each sectin begins with an verview t guide an analyst thrugh the different mdules cntained in the sectin. At the utset f each mdule, an analyst is instructed t describe a particular aspect f the NSO, fllwed by a series f evaluative questins. 1 Althugh different terms, such as partner, member, and/r affiliate, are used t describe the relatinship f an NSO t the rganizatins it supprts, the term partner is used here t characterize all f these relatinships. 2 The diversity f NSOs perating in micrfinance is discussed in Jennifer Isern and Tamara Ck, What Is a Netwrk? The Diversity f Netwrks in Micrfinance Tday, CGAP Fcus Nte, n. 26 (Washingtn, DC: CGAP, July 2004). 1

6 2 FORMAT FOR APPRAISAL OF NETWORK SUPPORT ORGANIZATIONS Bx 1. The variety f NSOs in micrfinance tday The table belw lists many f the NSOs, primarily internatinal, that are wrking in micrfinance tday. The majrity f the rganizatins listed here have prfiles psted n the MIX Market at NSO Abbreviatin Website ACCIÓN Internatinal ACCIÓN African Rural and Agricultural Credit AFRACA Assciatin Africa Micrfinance Netwrk AFMIN Banking with the Pr Netwrk BWTP Cashpr Cashpr Cathlic Relief Service CRS Centre Internatinal de Dévelppement et de Recherche CIDR cntact: [email protected] CERISE CERISE Dévelppement Internatinal Desjardins DID Ecumenical Church Lan Fund Internatinal ECLOF FINCA Internatinal FINCA Freedm Frm Hunger FFH Friends f Wmen s Wrld Banking FWWB Grameen Fundatin Grameen F Grameen Trust Grupe de recherche et d échange technlgique Internatinal Netwrk f Alternative Financial Institutins Internatinale Micr Investitinen AG/ Internatinale Prjekt Cnsult Mennnite Ecnmic Develpment Assciates Micrfinance Centre fr Eastern Eurpe and the Newly Independent States Grameen T GRET INAFI IMI/IPC MEDA MFC MicrFinance Netwrk MFN Opprtunity Internatinal Opprtunity Prfund Prfund Pr-Mujer Pr-Mujer Sa-Dhan Sa-Dhan Save the Children Save ShreCap Internatinal ShreCap Small Enterprise Educatin and Prmtin Netwrk SEEP Unitus Unitus Wrld Savings Bank Institute WSBI Wmen s Wrld Banking WWB Wrld Cuncil f Credit Unins WOCCU Wrld Visin Wrld Visin

7 Methdlgy There is n simple way t cnduct an appraisal f an NSO. By their very nature, NSOs are cmplex rganizatins that prvide many angles frm which t measure and evaluate perfrmance. Based n CGAP s experience, there are a number f lessns learned that may help streamline the prcess. The fllwing is a list f recmmended steps fr an appraisal prcess. The rder f steps is intentinal, but shuld be changed as circumstance demands. Step 1: Determine the purpse and scpe f the appraisal Befre beginning an appraisal f an NSO, the cmmissining rganizatin shuld identify the key purpse(s) and scpe f the appraisal and establish the terms f reference fr an analyst(s). A full appraisal f an NSO fr the purpse f funding might use the cmplete frmat, with special attentin t the fllwing: 1. Analysis f the NSO s bjectives and institutinal capacity. The analyst shuld determine whether the NSO is a gd channel t meet the funder s wn strategic bjectives and whether the NSO has the institutinal capacity t achieve its stated gals. The analyst shuld draw cnclusins abut the extent t which the NSO is an efficient and well-run rganizatin with gd prspects fr the future Analysis f the NSO s impact r the value it adds t it partners. The analyst shuld draw cnclusins abut the extent t which the NSO adds value t its partners in a cst-effective way. The analyst shuld draw upn interviews with NSO partners and ther stakehlders, as well as data gathered frm different sectins f this appraisal frmat, t analyze the NSO s verall added value t partners. The analyst may als find it useful t lk at trends in a variety f partner perfrmance indicatrs t get a sense f whether the NSO is actually helping partners expand their utreach and imprve their financial perfrmance. Crrelating the quality and perfrmance f NSO partners with NSO inputs is inherently difficult, but remains a critical part f the analyst s wrk. In additin t analyzing NSO inputs, perfrmance trends, and the viewpints f the NSO and its partners, the analyst must als cnsider ther factrs that impact NSO partners, such as: (1) envirnmental factrs, (2) the stage f partner develpment when it became affiliated with the NSO, and (3) supprt received by partners frm ther NSOs r technical service prviders. 3. Analysis f NSO services and cntributin t the brader micrfinance industry. The analyst shuld draw cnclusins abut the extent t which the NSO prvides quality services that further its missin, are relevant t its partners, and cntribute t the brader micrfinance industry. Cnclusins abut the NSO s cntributin t the brader micrfinance industry shuld cme frm analysis f its services, such as knwledge management, plicy advcacy, research and develpment, and interviews with key stakehlders. The Summary Analysis Reprt has been designed specifically t capture this analysis. Items marked with a star ( ) thrughut the frmat are critical t the analysis. Fr appraisals r evaluatins that are smaller in scpe, the frmat itself may be a useful tl fr selecting areas f fcus fr the analyst s terms f reference. 3 T date, there are n perfrmance benchmarks fr NSOs. Until such benchmarks are develped, the analyst will have t use his r her best judgment and ther relevant perfrmance standards fr similar rganizatins. The analyst shuld, hwever, make clear the basis fr his r her cnclusins. 3

8 4 FORMAT FOR APPRAISAL OF NETWORK SUPPORT ORGANIZATIONS Step 2: Chse the analyst N matter the skill r experience f the analyst, the evaluatin f an NSO is a significant undertaking. An evaluatin is necessarily subjective and heavily dependent n the qualificatins and judgment f the persn carrying it ut. The mre experience an analyst has with micrfinance prviders, NSOs, the wider micrfinance industry, and institutinal-level issues, the better the analyst will be able t assess the verall quality f the NSO. Step 3: Select apprpriate sectins and mdules f the frmat The analyst shuld wrk clsely with the cmmissining rganizatin t select sectins and mdules f the frmat specific t the purpse(s) f the appraisal, as determined in step 1. The chice f apprpriate sectins and mdules will be based n the nature f the NSO, infrmatin available frm existing surces, the timeframe, and the budget. Funders wuld likely use the full framewrk nly in the case f a significant funding decisin. Fr smaller funding decisins, the analyst may chse t cmplete the Summary Analysis Reprt, fcusing n the key questins cntained there. Thse questins have been deliberately crss-referenced t ther sectins f the appraisal frmat t enable the analyst t quickly reference specific areas that may require mre extensive analysis. Step 4: Map ut the appraisal Befre the actual appraisal begins, take time t map ut a plan fr cmpleting the appraisal. Schedule time t hld a meeting(s) r cnference call(s) with the NSO and the cmmissining rganizatin, as well as ther majr stakehlders, t clarify expectatins f the prcess. Strategize the best methds fr gathering and cmpiling infrmatin, including the recmmendatins f NSO partners. The analyst, rather than the NSO, shuld make the final selectin f partners t interview and/r visit, ensuring that these rganizatins are representative f NSO clientele. Criteria fr chsing partners t interview and/r visit include: balance, in terms f partner size (utreach and prtfli), prfile (prducts, diversity, current challenges) and maturity, as well as gegraphical lcatin intensity and duratin f the NSO s relatinship with the partner appraisal time frame, budget, and number f team members the judgment f the analyst and the cmmissining rganizatin Step 5: Cllect available data in advance Prir t cnducting interviews and n-site visits, the analyst will want t capture as much data as pssible abut the NSO and its partners.

9 METHODOLOGY 5 Key data surces fr the evaluatin include: cmpleted Netwrk Supprt Organizatin Prfile 4 internal NSO dcumentatin, including financial statements fr the past three years, gvernance dcuments, missin statements, annual and quarterly reprts, reprts t funders and partners, business and wrk plans, rganizatinal charts, infrmatin system utputs, key publicatins, and ther relevant materials external reprts, ratings, r evaluatins f the NSO, including any relevant surveys cnducted amng its partners data reprted thrugh the MIX (e.g., partner prfiles) The analyst shuld als nte infrmatin that is requested but unavailable, particularly infrmatin that is unavailable due t gaps in NSO infrmatin tracking. Step 6: Cnduct telephne interviews and site visits Interviews shuld be cnducted with a significant sample f (1) NSO staff and bard members, plus partner managers, staff, and bard members, wh cllectively represent the diversity f the netwrk, (2) funders wh have supprted the NSO in the past, and (3) ther industry stakehlders. The Interview Guides fr NSO Partners and Industry Stakehlders in annexes 3 and 4 prvide sample questins and shuld be adapted, as apprpriate. All interviewees shuld be reassured that their respnses will be cnfidential and will nt be reprted t the NSO in any frm that wuld assciate a specific cmment with a particular rganizatin. The analyst shuld visit NSO headquarters and main ffices and meet with key management and technical staff. Depending n the scpe f the evaluatin, site visits f selected NSO partners shuld als be cnducted. If a cmplete partner appraisal is required as part f the evaluatin, the CGAP Frmat fr Appraisal f Micrfinance Institutins can be a useful tl. Step 7: Cmpile infrmatin and prepare the reprt Given the brad nature f mst NSO activities, a final appraisal reprt culd easily becme unwieldy. The analyst will need t balance the vlume f infrmatin against analysis f key decisin-making issues. The Summary Analysis Reprt is designed t highlight key findings and shuld be written t stand alne as a synthesis f the appraisal. The analyst may find it helpful t refer t the screcard in annex 1 t rate the NSO as he r she wrks thrugh the different mdules f the frmat. Step 8: Present the initial reprt t the NSO fr feedback Invlving NSO leadership, including directrs and managers, in the evaluatin frm the beginning can help them better understand the peratins f their rganizatin and imprve its perfrmance. Once the draft reprt is available, it is essential t share it with NSO leadership t cnfirm the accuracy f the infrmatin reprted, as well as t draw n their deep 4 A blank Netwrk Supprt Organizatin Prfile is attached as Annex 2 f this appraisal frmat. Cmpleted Netwrk Supprt Organizatin Prfiles fr a number f NSOs are psted n the MIX ( under the Partner sectin. Prfiles fr rganizatins that primarily prvide funding are available under the Supply sectin. NSOs that participate in the MIX may update their NSO Prfiles nline n a yearly basis. The analyst may want t discuss with the NSO any differences between the NSO s self-reprted respnses and the analyst s wn findings.

10 6 FORMAT FOR APPRAISAL OF NETWORK SUPPORT ORGANIZATIONS understanding f the NSO and its partners. The analyst shuld discuss the initial findings with the NSO and, ideally, request written feedback frm the NSO n the draft reprt. Step 9: Distribute the final reprt with recmmendatins and cnclusins The final reprt will prvide the cmmissining rganizatin useful insights fr making a funding decisin. If dne well, an appraisal will als prvide valuable insights that allw the NSO t understand its capacity and imprve its perfrmance. With this in mind, the Summary Analysis Reprt shuld be tailred as needed t incrprate additinal details frm the main sectins f the frmat. Once the Summary Analysis Reprt is cmpleted, the cmmissining rganizatin, in cnsultatin with the NSO, shuld decide n its distributin within the netwrk and amng stakehlders. Bx 2. Useful References Useful guidance fr NSO appraisals: Isern, Jennifer, and Tamara Ck What Is a Netwrk? The Diversity f Netwrks in Micrfinance Tday, CGAP Fcus Nte, n. 26 (August 2004). Washingtn, DC: CGAP. Netwrk Supprt Organizatin Prfiles cmpleted and maintained by a number f NSOs at under the Partners sectin, r under the Supply sectin fr rganizatins that primarily prvide funding. Other useful references: Christen, Rbert Peck, Brigit Helms, and Richard Rsenberg Frmat fr Appraisal f Micrfinance Institutins. Washingtn, DC: CGAP, _04.pdf. SEEP (Small Enterprise Educatin and Prmtin) Netwrk Netwrk Capacity Assessment Tl: Assessing the Organizatinal Capacities f Micrenterprise Develpment Netwrks. Ver Washingtn, DC: SEEP Micrfinance Cnsensus Guidelines: Definitins f Selected Financial Terms, Ratis, and Adjustments fr Micrfinance. Washingtn, DC: CGAP. Fr lan and equity fund evaluatins: ADA (Appui au Dévelppement Autnme) Internatinal Investment Funds: Mbilizing Investrs twards Micrfinance. Luxemburg: ADA, cmas/media/fndsinv_endef1].pdf. Enterprising Slutins Intermediating Capital t MFIs: A Survey f Financial Intermediatin t Micrfinance Institutins. Enterprising Slutins Brief, n. 2 (May). Cuernavaca, Mexic: Enterprising Slutins, esglbal.cm/pdf/intermediatingcapitalt MicrfinanceInstitutins.pdf. Frthcming references include an analysis f micrfinance investment funds by Enterprising Slutins Glbal Cnsulting; MicrRate s manual n micrfinance investment funds; and an upcming MicrBanking Bulletin editin n financing micrfinance (scheduled fr the end f 2004).

11 1 Summary Analysis Reprt Overview: The Summary Analysis Reprt is designed as a framewrk fr the final reprt f a full appraisal. It shuld be adapted r amended as apprpriate fr smaller appraisals r evaluatins. 1.1 Overview f the Netwrk This mdule shuld prvide backgrund details n the NSO that fcus n its missin and develpment strategy, as well as general infrmatin n NSO partners and their clients. Overall, the mdule shuld answer the questin: T what extent des the NSO share a cmmn visin with the funder and reach partners the funder wants t supprt? Histry, purpse, and missin Organizatinal fcus Gegraphic fcus Budget fr mst recent FY Number f full-time staff Descriptin f partners Number f partners Percentage f partners with psitive return n assets Ttal number f active clients f partners See annex 2, items 1 3, 5, and Key Questins: (Hw, when, and by whm the NSO was established; hw it has evlved ver time; develpment strategy; target clients; scial fcus) (Multi-sectr, micrfinance nly, micrfinance with related services) (Glbal, reginal, natinal) (and number f full-time staff dedicated t micrfinance, if different) Evaluate the NSO s missin and develpment strategy. What are the main strengths and drawbacks f the develpment strategy? (Sectin 2.1) Hw effectively des the NSO bard f directrs guide the NSO in the fulfillment f its strategic visin, prvide versight t NSO management, and represent the NSO externally? (Sectin 2.3) Cnsidering the plitical, ecnmic, and scial cntext f the cuntries (r gegraphic regin) in which the NSO wrks, evaluate the NSO s mandate and/r appetite fr wrking in difficult envirnments and hw it addresses the risks invlved. (Sectin 2.4) Evaluate the NSO s chice f partners, including their target clients, lcatins, legal status, and stage f develpment (e.g. start-up, yung, mature). T what extent is the NSO wrking with challenging partners and partners thrugh which it can have the greatest impact? (Sectin 3.1) Evaluate the relatinship f the NSO t its partners. Hw deeply and bradly engaged is the NSO with its partners and hw des this cmpare t the NSO s visin and capacity? (Sectin 3.1) T what extent has the NSO set clear perfrmance standards fr partners? Evaluate its plicies fr and experience f sanctining r disaffiliating partners. (Sectin 3.1) 7

12 8 FORMAT FOR APPRAISAL OF NETWORK SUPPORT ORGANIZATIONS 1.2 NSO Services and Impact n Partners By evaluating NSO services and inputs t partners, this mdule shuld answer the questin: Des the NSO have a gd track recrd f making substantial cntributins t the quality and perfrmance f partners in a cst-effective way? The analyst shuld refer t the instructins in sectin 3.3 when cmpleting the table belw and cnsidering the key questins that fllw. The table allws the analyst t review NSO inputs n a partner-by-partner basis. The questins that fllw tend t cnsider NSO inputs and utcmes n a netwrk-wide basis. In bth instances, the analyst shuld determine the extent t which NSO services impact the quality and perfrmance f partners and cmpare this against the dnr, gvernment, and private funding given t the NSO and its partners. Summary f NSO inputs and impact by partner* Partner (name) (stage f develpment) Input(s) Cst(s) Impact (services) (activities) (intensity f relatinship) (time perid) (financial csts) (staff time) (NSO pint f view) (Partner pint f view) Trend in Perfrmance (Outreach and/r financial perfrmance indicatrs)... *Table 3.1 in sectin 3.3. Key Questins: Evaluate the trends in partner utreach and financial perfrmance. What are the principal drivers f these perfrmance trends? Hw d NSO partners cmpare t their respective peer grups? Hw strngly des the NSO rle crrelate t trends in partner perfrmance? (Sectin 3.3) Are NSO reprts and mnitring adequate t assess NSO and partner perfrmance? Hw has the NSO used this infrmatin t transfrm NSO and/r partner peratins? Hw transparent is the NSO with this infrmatin? What is the availability and quality f infrmatin n NSO and partner perfrmance, peratins, and finances? (Sectin 2.9) What services des the NSO ffer, and hw d these services relate t the NSO s missin and develpment strategy? In what ways d these services add value t NSO partners and t the micrfinance industry as a whle? Hw effective are each f the services ffered in terms f delivery, cst effectiveness, and impact n partners? (Sectin 4.1) Hw d partners view NSO services? What d partners cnsider the cre cmpetencies f the NSO? Hw d they perceive their access t and the respnsiveness f the NSO? What ther advantages d they find in their netwrk affiliatin? (Sectin 3.2) Hw d ther industry stakehlders assess NSO services and cntributins t partners and t the micrfinance industry as a whle? (Sectin 2.10)

13 SUMMARY ANALYSIS REPORT NSO Operatinal Perfrmance This mdule fcuses n institutinal factrs f the NSO, ranging frm the structure f peratins and human resurces t the strategic plan. It als evaluates the cst structure and financial management f the NSO. Overall, the mdule shuld answer the questin: T what extent is the NSO an efficient and well-run rganizatin with gd prspects fr the future? Key Questins: Hw effective is the NSO s structure f peratins? Hw des the structure impact the NSO s ability t wrk effectively in its chice f regins and cuntries? Hw cst-effective is this structure? (Sectin 2.5) Evaluate the cmpsitin and cmpetence f the NSO management team. Hw effective is the management team in ptimizing the perfrmance and impact f the NSO? (Sectin 2.6) Evaluate the cmpsitin and cmpetence f NSO staff. T what extent is NSO staff held accuntable fr results? (Sectin 2.7) Based n the NSO s capacity and past perfrmance, evaluate the fcus f its business and/r strategic plan. Des the strategic plan reflect a clear understanding f the state f the industry? Is it realistic? (Sectins 5.1 and 5.2) Trends in Surces f NSO Funds 5 Based n the NSO s financial statements fr the past three years, the analyst shuld evaluate trends in the surces f NSO funds and depict them graphically as shwn belw, if helpful. This analysis will give the analyst sme sense f hw reliant the NSO is n dnr funding, as well as knwledge f cst-recvery mechanisms that the NSO may have in place (thrugh membership fees and ther frms f incme). REVENUE Year 1 Year 2 Year 3 Surces f funds fr mst recent fiscal year (as % f ttal incme) Public Grants Private dnatins Lans Investment incme Membership fees Earned incme Other Ttal (Graph is fr illustrative purpses nly.) 5 The categries fr surces and uses f NSO funds may be different frm thse shwn here.

14 10 FORMAT FOR APPRAISAL OF NETWORK SUPPORT ORGANIZATIONS Trends in Uses f NSO Funds Based n the NSO s financial statements fr the past three years, the analyst shuld evaluate the rganizatin s verall cst structure, especially that f headquarters, t determine whether the NSO is making gd use f its funds. The analyst shuld estimate what percentage f NSO funds are being used fr administratin, salaries, fundraising, etc., versus develpment f NSO partners and/r the micrfinance industry as a whle. The analyst shuld cmpare these percentages with industry standards and depict the infrmatin graphically, as shwn belw, if helpful. EXPENSES Year 1 Year 2 Year 3 General and Administrative Expenses fr mst recent fiscal year (as % f ttal expenses) Fundraising Partner prgrams Technical Services Financial Services Start-up / Transfrmatin Industry-wide prgrams Research and Develpment Plicy Advcacy Knwledge Management Ttal (Graph is fr illustrative purpses nly.) Key Questins: Evaluate the cst structure f the NSO. Hw effective is the NSO in maintaining perating and administrative csts at apprpriate levels? Des the NSO have effective cst-recvery mechanisms built int service delivery, where apprpriate? Is the allcatin f resurces cmpatible with the NSO s missin? (Sectin 2.8) Des the NSO have adequate resurces, given budget prjectins and funding requirements? Is the NSO s funding plan adequate fr future gals? In the case f funding shrtfalls, are adequate mechanisms r reserves in place t buffer the lsses? T what degree, if at all, des the NSO emphasize sustainability in its peratins? (Sectin 2.8) What are the ptential risks t the NSO s financial management? Hw restricted r diverse are NSO funding surces? Has the NSO effectively leveraged cmmercial resurces? Hw vulnerable is the NSO t financial shcks? (Sectin 2.8)

15 SUMMARY ANALYSIS REPORT Summary Cnclusins and Recmmendatins The analyst shuld summarize the NSO s strengths, weaknesses, impact n partners, and relevance t the industry, and make recmmendatins fr funder supprt. The analyst shuld als cnsider hw the NSO can imprve its peratins and services, such as expanding r deepening NSO partner utreach. Key questins: What are the NSO s cmparative advantages and majr accmplishments? Is the NSO making a substantial cntributin t the quality and perfrmance f its partners and/r the industry as a whle, given its resurces? Is the NSO wrking with partners thrugh which it can have the greatest impact? Operatinally, what are the NSO s principal strengths and weaknesses? Cnsider in particular NSO management, services, financial psitin, surces and uses f funds. In what ways can the NSO increase its efficiency f peratins? Given the current capacity f the NSO and the nging evlutin f the financial sectr, are the NSO s chice f partners and services apprpriate? What are ptential pprtunities fr and threats t the NSO s missin and peratins? (Sectin 5.2) What are the analyst s recmmendatins fr funder supprt (amunt, type f instrument, purpse)? What are the ptential risks related t this supprt fr the funder, the NSO, and NSO partners?

16 2 Institutinal Factrs Overview: The central fcus f this sectin is the questin: Is the NSO an efficient and wellrun rganizatin? The evaluative questins refer t the NSO s micrfinance prgram. Fr NSOs that als prvide nn-micrfinance services, be sure t characterize the relatinship between thse activities and its micrfinance prgram. Describe hw the micrfinance prgram cmpares in scale and utreach t the activities f the NSO as a whle. 2.1 Missin and Develpment Strategy Describe the NSO s missin and develpment strategy, i.e., the prblems the NSO has identified and hw it seeks t address them. Cnsider frmal charters f the NSO and the visin f its leaders. Discuss the NSO s missin and develpment strategy in terms f (1) its relatinships with its partners and (2) its rle with respect t the brader micrfinance industry. Evaluate: Clarity. Are the missin and develpment strategy f the NSO clearly cnveyed? Are they understd and shared equally by management, staff, and partners? Effectiveness. D the missin and develpment strategy f the NSO effectively mtivate the NSO and its partners? Evaluate the main strengths and weaknesses f the missin and develpment strategy. 2.2 Funding and Evlutin Describe hw, when, and by whm the NSO was established, and hw it has evlved ver time. Discuss the basis fr the initial design f the NSO s rganizatinal structure, develpment strategy, services, and gegraphic fcus, then describe the principal causes f change. If the rganizatin is a multi-sectr NSO, nte the inceptin f the micrfinance prgram and the impetus fr its creatin, as well as its rle within the brader rganizatin. 2.3 Gvernance Describe the legal framewrk by which the NSO is gverned, including its bard f directrs r equivalent bdy (size, cmpsitin, cmmittees, and member qualificatins). Discuss the bard s fficial and de fact rles and any unfficial influence it has n NSO gvernance and peratinal style. Attach a list f the current members f the bard, alng with their utside affiliatins. Evaluate: Legal framewrk. Is the legal framewrk effective fr NSO peratins? Fr multisectr NSOs, t what extent are there separate dcuments that gvern micrfinance activities? Structure. Evaluate the structure f the NSO bard, including size, cmpsitin, and cmmittees. Are there any cnflicts f interest amng bard members that impact NSO peratins? 12

17 INSTITUTIONAL FACTORS 13 Cmpetence. Hw well des the NSO bard understand the brad issues f micrfinance? T what extent d bard members understand key issues affecting NSO perfrmance? Effectiveness. Hw effective is the NSO bard in (1) guiding the NSO in the fulfillment f its strategic visin, (2) prviding versight t the NSO management, and (3) representing the NSO externally? 2.4 Cntext Describe the legal, plitical, ecnmic, and cultural cntext f the cuntries (r gegraphic regin) in which the NSO wrks. Discuss any particular areas targeted by the NSO, such as a particular regin, pst-cnflict areas, r remte rural areas. Describe significant external cnstraints that inhibit the wrk f the NSO, r external elements that give it a cmpetitive edge. Evaluate: Risk appetite. Evaluate the NSO s mandate fr and/r appetite fr wrking in difficult envirnments. Explain using examples. Hw des this appetite impact the NSO s perfrmance? Respnse. Hw effectively des the NSO respnd t envirnmental factrs that pse ptential threats t its peratins and thse f its partners? 2.5 Structure f Operatins Describe hw the NSO is structured (centralized, decentralized, r therwise) and hw respnsibilities are distributed thrughut the structure. Include a descriptin f the headquarters and field r branch ffices, if any, and the mandate fr each. Attach a cpy f the NSO s current rganizatinal chart. Evaluate: Cst. Hw cst-effective is the NSO s structure f peratins? Impact. T what extent des the structure (centralized, reginal hubs, cuntry ffices, etc.) impact the NSO s ability t wrk effectively with partners and/r in a gegraphic area(s)? 2.6 Management Team Describe the management team, including structure and functins, cmpetencies, level f penness, and its imprtance t the missin and peratins f the rganizatin. Evaluate: Cmpsitin. T what degree des the cmpsitin and structure f the management team ptimize NSO perfrmance? T what extent wuld the NSO be impacted shuld ne r mre f its managers decide t leave? Evaluate the strengths and weaknesses f key individuals.

18 14 FORMAT FOR APPRAISAL OF NETWORK SUPPORT ORGANIZATIONS Cmpetence. Hw cmpetent is the management team in terms f their knwledge and skills? Hw aware and frthcming is the management team cncerning internal NSO financial and peratinal issues, as well as financial and peratinal issues f its partners? In the case f multi-sectr NSOs, hw well des the institutin s senir management understand micrfinance issues and peratins? Effectiveness. Hw effective is the management team in terms f (1) cmmunicatin and penness with partners, NSO bard, staff, and ther stakehlders; (2) ptimizing the perfrmance and impact f the NSO; and (3) driving frward the purpse and directin f the NSO? 2.7 Human Resurces Describe the human resurce management practices and strategy f the NSO, including hw it uses and manages nn-staff resurces, such as cnsultants and vlunteers. Cmment n hw specific functins are staffed. Evaluate: Cmpsitin. Is the NSO apprpriately staffed? Des the NSO staff have the knwledge, skills, and experience fr the psitins they hld? T what extent des the NSO depend n staff, as ppsed t nn-staff, expertise and hw des this affect the peratins f the NSO? Accuntability. Hw des the NSO hld staff accuntable fr results? Are there apprpriate standards by which perfrmance is judged and rewarded? Hw des the NSO staff ptimize efficiency? Effectiveness. Evaluate the effectiveness f the NSO s human resurce management practices and strategy in terms f (1) recruiting, (2) training, (3) retentin/turnver, and (4) successin planning. 2.8 Financial Management Based n the NSO s financial statements fr the mst recent perid and the past three years, describe the funding strategy f the NSO micrfinance prgram. Discuss hw successful the strategy has been in reaching NSO gals and the ways in which the funding strategy and pririties have evlved. Cnsider NSO funds fr its wn peratins separately frm funds that it mbilizes fr partners. 6 Prvide details f the surces f NSO funds (as a percentage f ttal funds) fr the current as well as previus three years in table 2.1. Summarize funding trends fr the NSO. (Prvide this infrmatin in sectin 1.3 f the Summary Analysis Reprt.) If applicable, explain hw the wnership f partners by the NSO impacts its financial management and budgeting. 6 This may be difficult fr NSOs that cnslidate their budgets and financial statements with thse f their partners. In this case, the analyst shuld nte the level f cnslidatin and d his r her best t distinguish and evaluate the prtin f resurces allcated t internal NSO peratins. Financial resurce mbilizatin fr partners is cnsidered in detail in sectin 4.

19 INSTITUTIONAL FACTORS 15 Table 2.1. Surces f funds fr NSO peratins Year Public Grants Private Dnatins Lans Investment Incme Membership Fees Earned Incme Other Nte: Categries shuld be adapted as needed. Prvide details f the NSO s uses f funds (as a percentage f ttal funds) fr the mst recent and the previus three years fr each f the categries in table 2.2. Discuss any patterns r trends. Prvide this infrmatin in sectin 1.3 f the Summary Analysis Reprt. Table 2.2. Uses f NSO funds Year Fundraising Administratin Technical Services Financial Services Knwledge Management Plicy Advcacy Other Nte: Categries shuld be adapted as needed. Evaluate: Resurces. Des the NSO have adequate resurces (grants, lans, etc.), given its budget prjectins and funding requirements? Is the NSO funding plan adequate fr future gals? T what degree, if at all, des the NSO emphasize sustainability in its peratins? Allcatin. Are resurces allcated and mnitred thrugh an annual NSO wrk plan and budget? Is the allcatin f resurces cmpatible with the NSO missin? Risks. What are the ptential risks t the NSO s financial management? Is NSO funding sufficiently diverse and adequate fr future gals? Hw restricted are NSO funding surces? Has the NSO leveraged cmmercial resurces? Hw vulnerable is the NSO t financial shcks and funding shrtfalls? Csts. Evaluate the fundraising and administrative csts f the NSO. What is the cst f raising a dllar (eur, etc.) fr the NSO? 7 Hw effective is the NSO in maintaining perating and administrative csts at apprpriate levels? Des the NSO have effective cst-recvery mechanisms built int service delivery, where apprpriate? 7 The analyst shuld cnsider cmparing the administrative and fundraising csts f the NSO with benchmarks fr ther nn-prfit rganizatins, whether thse f the American Institute f Philanthrpy ( fr U.S.-based NSOs r f ther mnitring grups. While benchmarking fr MFIs is mre develped, the authrs nte the lack f reprting standards and benchmarking fr NSOs an area fr further industry-level wrk.

20 16 FORMAT FOR APPRAISAL OF NETWORK SUPPORT ORGANIZATIONS 2.9 Infrmatin and Reprting Systems Cmment n the reliability f NSO infrmatin systems used t mnitr NSO and partner perfrmance, peratins, finances, and impact. Describe the type and frequency with which partners prvide data t the NSO and the extent t which the NSO is transparent with this and their wn internal infrmatin. Cnsider, fr example, whether the NSO and/r its partners reprt t natinal banking and/r micrfinance supervisin authrities, the MIX Market, the MicrBanking Bulletin, r ther benchmarking services such as American Institute f Philanthrpy ( and hw significantly NSO reprts must be tailred t meet the requirements f these grups. Nte the frequency and scpe f ratings, evaluatins, and/r audits f partners. Evaluate: Inputs. Are reprting requirements and mnitring by NSO staff sufficient t track essential elements f partner perfrmance, especially prtfli quality, prfitability, and breadth and depth f utreach? Are these requirements in line with glbal industry standards? What percentage f partners send regular and accurate data t the NSO? Outputs. Des the NSO send timely peratinal and financial reprts t all staff, management, bard members, and partners? T what extent d these reprts include regular NSO financial audits? Usefulness. D the reprts enable accurate and timely assessment f NSO and partner perfrmance? T what extent des the NSO prvide feedback t its partners n reprts prvided? T what extent have they been used t make changes t NSO peratins and/r partner peratins? Transparency. Hw transparent is the NSO? What is the availability, quality, and timeliness f reprts n NSO and partner perfrmance, peratins, finances, and impact? 2.10 Industry Rle and Perceptins Describe the rle f the NSO within the cntext f the brader micrfinance industry. Discuss the external relatinships and/r affiliatins that the NSO has with the brader micrfinance cmmunity. Summarize the infrmatin gathered thrugh interviews frm varius industry stakehlders, including funders that have supprted the NSO, as well as ther NSOs and micrfinance rganizatins. 8 The analyst shuld cnsider external perceptins f the NSO in terms f its perceived services t partners, as well as its added value t the micrfinance industry. 8 The analyst may adapt elements f the Interview Guide fr Industry Stakehlders (see annex 5) t help gather infrmatin frm relevant rganizatins, as described in step 5 f the Methdlgy. The analyst shuld als cnsider ratings by watchdg rganizatins, (e.g., Charity Navigatrs, American Institute f Philanthrpy, r ther such rganizatins), if apprpriate.

21 INSTITUTIONAL FACTORS 17 Evaluate: Rle. Hw apprpriate is the rle that the NSO has adpted with respect t the micrfinance industry? T what extent des this rle detract frm r add t NSO peratins and its impact n partners? Access. Evaluate the frequency and quality f NSO interactins with the brader micrfinance industry. Accrding t industry stakehlders, including funders that have supprted the NSO, d NSO management and staff interact and cmmunicate apprpriately and effectively? Cmpetence. D industry stakehlders find NSO staff and management sufficiently qualified? D industry players see the NSO as a valuable resurce and a pint f cntact? Services. Frm the pint f view f industry stakehlders, which NSO services are mst effective and why? Impact. What cntributins t NSO partners and the micrfinance industry d industry stakehlders attribute t the NSO?

22 3 Partners and NSO Impact Overview: This mdule f the appraisal frmat is key t understanding the NSO s added value t partners and shuld frm the cre f the Summary Analysis Reprt. This sectin examines (1) the prfile f NSO partners, (2) NSO-partner relatinships, and (3) the impact f the NSO n its partners. 3.1 NSO Partners and Relatinships Describe the NSO s partners, including their ttal number, reginal lcatins, target clients, current stages f develpment, as well as NSO wnership stake. Nte the stage f develpment when partners jined the netwrk (created by the NSO; supprted by the NSO frm early days; jined as a mature, independent rganizatin; etc.) Nte any trends r shifts in fcus with respect t partners affiliated with the NSO. Summarize this infrmatin in the charts belw. REGIONAL PRESENCE: Areas where the NSO perates and/r has partners (Indicate number f partners in each regin) Sub-saharan Africa Asia Latin America Eastern Eurpe, Central Asia, NIS Middle East, Nrth Africa Nrth America, Western Eurpe Number: See annex 2, item 4. NSO OWNERSHIP f partners (Indicate number f partners in each categry) N equity stake Minrity shares Majrity shares Whlly wned See annex 2, item 15. PARTNER LEGAL STATUS (Indicate number f partners in each categry and differentiate, when applicable, between unregulated and regulated financial institutins) Banks (micrfinance r traditinal) Banks (Rural) Cperatives / Credit Unin Unregulated Regulated Nn-bank financial institutin Unregulated Regulated Nn-prfit (NGO) Other See annex 2, item 16. TARGET CLIENTS f partners at time f initial entry (Indicate number f partners in each categry) Majrity f clients in husehlds earning less than US$1/day per husehld member Majrity f clients in husehlds earning mre than US$1/day per husehld member See annex 2, item

23 PARTNERS AND NSO IMPACT 19 Describe the relatinship f the NSO t its partners, cnsidering the criteria and prcess fr netwrk affiliatin, perfrmance standards, mnitring, prcess and experience f sanctining and/r disaffiliating partners, and depth f engagement with each partner. Discuss any tacit r written agreements, including memrandums f understanding (MOUs) and/r cntracts, between the NSO and its partners. Pay particular attentin t prvisins f such MOUs r cntracts, if any, that ensure mutual accuntability. Describe the ways in which partners cntribute t the NSO (membership fees, persnnel, ther in-kind cntributins). Summarize this infrmatin in the charts belw. DEPTH OF ENGAGEMENT with partners See annex 2, item 14. Brad engagement (regular cntact and cllabratin) Mix f brad engagement and cncentrated relatinships Cncentrated relatinships (dedicated service agreement) NSO-WIDE STANDARDS fr affiliatin and disaffiliatin, such as perfrmance standards See annex 2, item 18. Standards led by NSO Standards led by partners Nt applicable IMPLEMENTATION OF STANDARDS See annex 2, item 19. Standards enfrced thrugh public disclsure Standards enfrced thrugh peer/netwrk review Standards nt enfrced (r n standards) Des a breach f standards result in disaffiliatin? Has a breach f standards resulted in the disaffiliatin f a partner r partners? Explain. DISCLOSURE OF INFORMATION abut partners, including financial perfrmance and utreach (Indicate number f partners in each categry) Netwrk des nt prvide infrmatin Netwrk disclses summary partner perfrmance Netwrk disclses partners audited financial statements and peratinal infrmatin See annex 2, item 20. Is the perfrmance f NSO partners available n public Internet resurces? If yes, where?

24 20 FORMAT FOR APPRAISAL OF NETWORK SUPPORT ORGANIZATIONS Evaluate: Chice f partners. Based n the NSO s missin and cmparative advantages, t what extent is the NSO wrking with partners thrugh which it can have the greatest impact? Ownership. 9 Evaluate the NSO s strategy (minrity versus majrity wnership) and bjectives with respect t partner wnership. Hw effective has the NSO been in pursuing its strategy? Evaluate the benefits and risks f partner wnership fr the NSO. Hw des partner wnership affect NSO peratins, its balance sheet, and lngterm strategy? Des the NSO have an apprpriate exit strategy? Partner participatin. T what extent d NSO partners participate in NSO gvernance, strategic decisins, peratins, and activities? Evaluate the quality, significance, and effectiveness f partner participatin and ther cntributins t the netwrk and NSO. Standards. Are perfrmance standards clearly cnveyed t partners? Is partner perfrmance effectively measured against these standards? T what degree des the NSO require independent verificatin f partners peratinal and financial reprts thrugh external audits, ratings, and/r n-site mnitring? Accuntability. Evaluate the degree t which the rights and bligatins f the NSO and its partners are defined. Hw effective are existing measures fr ensuring mutual accuntability? Expansin. Evaluate the NSO s ability t expand the netwrk. What are the main challenges t adding new partners? Hw d NSO plicies, including expectatins f wnership and cntrl, impact its ability t expand the netwrk? Evaluate the NSO s strategy fr expansin vis-à-vis its cmparative advantages. Terminatin r disaffiliatin. Evaluate plicies and prcedures fr terminatin r disaffiliatin f partners. T what degree are these plicies enfrced? If pssible, cite examples. 3.2 Partner Perceptins f the NSO Fr this mdule, the analyst shuld summarize the infrmatin gathered in partner interviews, 10 plus any additinal feedback the NSO has btained with respect t partner satisfactin. Describe hw partners characterize the value added t their peratins by the NSO, bth directly thrugh NSO services and indirectly thrugh NSO affiliatin. Where apprpriate, prvide examples t illustrate perceptins. Evaluate: Access. Evaluate the frequency and quality f NSO and partner interactin. Accrding t partners, d NSO management and staff interact and cmmunicate apprpriately and effectively? Is the NSO respnsive and pen t feedback? Cmpetence. D partners find NSO staff and management sufficiently qualified? In the eyes f partners, d they understand the strategic and technical issues f micrfinance and the needs f partner institutins? What d partners cnsider the cre cmpetencies f the NSO? 9 Gvernance is cvered in sectin 4.2 under NSO Services. 10 The analyst may adapt elements f the Interview Guide fr NSO Partners (see annex 3) t help gather infrmatin frm varius partners as described in Step 6 f the Methdlgy.

25 PARTNERS AND NSO IMPACT 21 Services. Frm the partners pint f view, which NSO services are mst effective and why? Have there been any prblems (e.g., technical quality, speed, reliability)? Have these prblems been reslved t partner satisfactin? Csts. T what extent d partners find NSO services cst effective versus the alternatives (if applicable)? Impact: T what extent d partners identify themselves with the NSO? T what extent des the sense f belnging t a bigger rganizatin help partners define their missin and purpse? T what extent d partners attribute their NSO affiliatin t imprvements in the verall quality and perfrmance f their institutins? 3.3 NSO Inputs and Impact n Partners T capture NSO inputs and impact n the quality and perfrmance f NSO partners, the analyst shuld cmpile in table 3.1 all relevant infrmatin gathered n selected NSO partners thrugh partner visits, interviews, and analysis f relevant dcumentatin. The infrmatin and analysis can be cmpiled in the Summary Analysis Reprt r a relevant adapted frmat. Table 3.1 Summary f NSO inputs and impact by partner Partner (name) (stage f develpment) Input(s) Cst(s) Impact (services) (activities) (intensity f relatinship) (time perid) (financial csts) (staff time) (NSO pint f view) (Partner pint f view) Trend in Perfrmance (Outreach and/r financial perfrmance indicatrs)... This table is designed fr the analyst t capture the impact r added value f the NSO n a partner-by-partner basis, an admittedly difficult task. The analyst shuld gather data relating t NSO inputs, their assciated cst (measured in NSO staff time, financial expense, etc.). Infrmatin n NSO impact shuld be btained frm the pint f view f bth the NSO and its partners. The analyst may als find it useful t lk at trends in a variety f partner perfrmance indicatrs t get a sense f whether the NSO is actually helping its partners expand their utreach and imprve their financial perfrmance. 11 The analyst shuld draw cnclusins abut the NSO s verall impact n partners and the verall cst-effectiveness f its partner relatinships. As the analyst s cnclusins will be largely subjective, they shuld be supprted t the greatest extent pssible. The analyst may als chse t cmpare verall inputs t utputs n a netwrk basis. Given available infrmatin, the analyst shuld chse the best prxies fr netwrk-wide inputs and 11 Micrfinance Cnsensus Guidelines: Definitins f Selected Financial Terms, Ratis, and Adjustments fr Micrfinance (Washingtn, DC: CGAP, 2003) is a gd surce f indicatrs that measure utreach and financial perfrmance f micrfinance institutins. Hwever, the analyst may want t use indicatrs already tracked by the NSO and its partners.

26 22 FORMAT FOR APPRAISAL OF NETWORK SUPPORT ORGANIZATIONS utputs. Fr example, he r she culd cmpare ttal dnr, gvernment, and private funding given t the NSO and its partners t the ttal lan prtfli f NSO partners. While this apprach emphasizes credit ver ther financial services ffered by NSO partners, the lan prtfli is ne prxy that prvides sme measure f the extent t which financial resurces reach the clients f NSO partners. The analyst may als find it useful t cmpare the perfrmance f selected NSO partners with industry benchmarks f the MicrBanking Bulletin (see table 3.2). The MBB uses a peer grup framewrk based n three indicatrs: regin, scale f peratins, and target market. The apprpriate peer grup and benchmark indicatrs shuld be selected by the analyst in cnsultatin with the NSO. The analyst shuld nte areas in which partners utperfrm their peer grup and/r areas in which they lag behind. He r she shuld cnsider the relative imprtance f partners netwrk affiliatin t the quality and perfrmance f their institutins, as cmpared t their peers. When cmparing partners t MFIs f their respective peer grups, the analyst may want t select mature partners r partners with which the NSO has had deep engagement ver lng perids. Such cmparisns may yield mre relevant infrmatin as t the verall capacity and impact f the NSO n its partners. Table 3.2. Partner perfrmance vs. MicrBanking Bulletin (MBB) benchmarks Indicatr Average Lan Average Depsit (if applicable) Breadth f Outreach Prfitability Prtfli Quality NSO partners vs. MBB benchmark fr relevant peer grup NSO partners MBB benchmark NSO partners MBB benchmark NSO partners MBB benchmark NSO partners MBB benchmark NSO partners MBB benchmark Nte: Indicatrs shwn are fr illustrative purpses and shuld be adapted as needed. Evaluate: Trends in perfrmance. Evaluate trends in partner utreach and financial perfrmance. What are the principal drivers f these perfrmance trends? Hw d the NSO partners cmpare t their peer grups? NSO Rle. What is the NSO s verall level f engagement with partners? Hw des the NSO help partners imprve their utreach and financial perfrmance? Hw strngly des the NSO rle crrelate t trends in partner utreach and perfrmance?

27 4 NSO Services and Perfrmance Overview: Analysis f NSO services is anther way t evaluate the perfrmance f an NSO. Overall this sectin shuld answer the questin: T what extent des the NSO prvide quality services that further its missin, are relevant t its partners, and cntribute t the brader micrfinance industry? The analyst will need t select thse mdules relevant t the NSO being appraised and adapt them t the particular cntext. Certain services, such as knwledge management, research and develpment, and plicy advcacy, may nt nly impact partner perfrmance, but cntribute t the micrfinance industry as a whle. 4.1 Overview f NSO Services Use the chart belw t depict the NSO s level f effrt in varius service categries. Indicate number f partners that receive each specific service frm the NSO. The chart shuld be adapted as needed. The analyst shuld cmpare his r her findings with the NSO s missin, wrk plan, budget, and relatinships with partners. LEVEL OF EFFORT cmmitted directly by the NSO t its partners (Indicate number f partners that receive each specific service frm the NSO) Gvernance Institutinal Start-up and Transfrmatin Technical Services Financial Services Knwledge Management Research and Develpment Plicy Advcacy Other See annex 2, item 21. If Other is indicated, please specify: 4.2 Gvernance f Partners Use the chart belw t describe NSO strategy and bjectives with respect t its gvernance f partners and the degree f verall NSO influence n partners. GOVERNANCE f partners by NSO (Indicate number f partners in each categry) N rle Ex-ffici rle Nncntrlling interest Cntrlling interest See annex 2, item 23. Evaluate: Strategy and bjectives. Evaluate the NSO s strategy (n rle, ex-ffici rle, nncntrlling r cntrlling interest) and bjectives, as well as recent trends with respect t gvernance f partners. Hw effective has the NSO been in pursuing its strategy? Cst. Evaluate trends in the cst f NSO gvernance f partners and any impact this cst has n NSO peratins. 23

28 24 FORMAT FOR APPRAISAL OF NETWORK SUPPORT ORGANIZATIONS Effectiveness. Evaluate the impact f the NSO s gvernance services n partners. (Give examples where apprpriate.) Wuld partners benefit frm mre r less NSO participatin in gvernance? 4.3 Institutinal Start-up and Transfrmatin Describe the NSO s strategy, prcess, and bjectives with respect t the launch f new MFI partners and the transfrmatin f existing partners int regulated financial institutins. In the chart belw, indicate the number f partners the NSO has launched, the number f partners the NSO has transfrmed, and the number f partners in the prcess f transfrmatin. INSTITUTIONAL START-UP AND TRANSFORMATION (Indicate ttal histrical and current number f partners in each categry) Start-ups Transfrmed t regulated financial institutin Transfrmatin in prcess See annex 2, item 24. Evaluate: NSO capacity. Evaluate the capacity and expertise f the NSO, bth t launch new MFI partners and t transfrm existing partners int regulated financial institutins. Delivery. Are start-up and/r transfrmatin services delivered in an apprpriate and effective way (e.g., n-site advisr r peridic visits)? D the timing and duratin f services meet partner requirements? Cst. Evaluate trends in the cst f launching and/r transfrming partners. T what extent des the NSO assist partners in cvering these csts? Hw willing are partners t pay fr these services? Effectiveness. Hw successful has the NSO been in launching and/r transfrming partners? 4.4 Technical Services Use the charts belw t indicate the number f partners that received each type f technical service in the latest fiscal year, hw csts were generally cvered, and hw technical services were generally delivered. Adapt the charts as necessary. TECHNICAL SERVICES: Types f technical services NSO ffers t partners (Indicate number f partners per categry during last fiscal year) Auditing / financial evaluatin Human resurces Infrmatin technlgy Operatin managemt Prduct develpmt Strategic planning Other See annex 2, item 28a. If Other is indicated, please specify:

29 NSO SERVICES AND PERFORMANCE 25 COST COVERAGE FOR TECHNICAL SERVICES See annex 2, item 28b. Netwrk subsidizes full cst f technical services Partner pays partial fees Partner pays full cst TECHNICAL SERVICES DELIVERY See annex 2, item 28c. Netwrk staff is sle surce fr technical services Mix f surces fr technical service All technical services utsurced Describe areas f specializatin with respect t technical services. Discuss (1) hw decisins are made abut which technical services are ffered, (2) wh prvides the services, (3) hw services are delivered, and (4) hw csts are generally cvered (thrugh fees, grants, etc.). Summarize any trends relating t the scpe and scale f NSO technical services. Evaluate: NSO capacity. Evaluate the capacity/expertise f the NSO t deliver different types f technical services. Des the NSO use an effective mix f staff and cnsultants t deliver services? Partner input. T what extent d partners identify their technical service needs and select the service prvider (frm the NSO and/r ther surces)? Delivery. Are the services delivered in an apprpriate and effective way (including timing and duratin) t meet partner requirements? Cst. Evaluate trends in the cst f technical services. Are they cmpetitively priced? T what extent des the NSO assist partners in cvering these csts? Hw willing are partners t pay fr these technical services? Effectiveness. Hw effective are NSO technical services? Evaluate the impact f these services. 4.5 Financial Services Use the chart belw t nte the current number f partners receiving each type f financial service frm the NSO. FINANCIAL SERVICES (Indicate number f partners receiving each type f service) Brkers r cspnsrs funding Lends t partners Invests equity in partners Prvides direct grants t partners See annex 2, item 22.

30 26 FORMAT FOR APPRAISAL OF NETWORK SUPPORT ORGANIZATIONS Brkering and Cspnsring f Funding Prvide details f funds mbilized by the NSO n behalf f partners frm bth institutinal and individual dnrs, as shwn in table 4.1. Table 4.1. External funds (grants, lans, equity) mbilized by NSO fr its partners Surce Date Target Partner Amunt (US$) Terms (incl. restrictins) Currency Status Grants Lans Subttal Equity Subttal Subttal Describe the NSO s fundraising prcess fr partners. Discuss the fundraising effrts f the partners themselves and cmpare these effrts t the NSO s ability t brker resurces fr them frm bth internatinal and dmestic surces. Nte the range f partner liabilities and equity (highest and lwest percentage) surced thrugh the NSO. Use this percentage as an indicatr f partner reliance n NSO-brkered funds. Als nte the prevalence f funds tied t NSO services and ther such restrictins. Summarize any trends in hw the NSO brkers and cspnsrs funding. Evaluate: Partner requirements. Hw dependent are partners n the NSO fr funds? T what degree des NSO affiliatin enhance its partners ability t raise grants, debt, and equity in their hme markets and abrad? Other NSO activities. Evaluate any ther NSO activities r services, such as guarantee facilities, that help fster access t third-party funds. Cst. Evaluate trends in the cst f brkering and/r cspnsring funding n the part f the NSO. Fr funding surced thrugh the NSO, what prtin f the ttal grant remains with the NSO, and what prtin is transferred t the partner? Effectiveness. Hw effective is the NSO in brkering r intermediating funds fr partners? Hw effective is the NSO s strategy fr pursuing cmmercial versus subsidized funds? Dmestic versus internatinal funds? NSO Funding Prgrams fr Partners 12 Describe the bjectives, structure, management, gvernance, funding surces, investment criteria, and perfrmance f NSO grant, lending, and equity prgrams. 13 Discuss the cst and 12 A number f publicatins n micrfinance investment funds are frthcming, including: an analysis f micrfinance investment funds by Enterprising Slutins Glbal Cnsulting; MicrRate s manual n micrfinance investment funds; and an upcming MicrBanking Bulletin issue n financing micrfinance (scheduled fr the end f 2004).

31 NSO SERVICES AND PERFORMANCE 27 pricing f the instruments, and the risk appetite f the NSO. Include their relatin, if any, t the surces f funds. Discuss internal firewalls, cntrls, and audit prcedures that may be in place t separate financial services frm ther NSO services. Describe the terms f cntracts between the NSO and its partners, as well as NSO plicies fr setting amunts, rates, etc., fr funding. Discuss the level f transparency that exists fr these prgrams with partners and ther industry stakehlders. Quantify the grants, lans, and equity funding prvided directly by the NSO t its partners in table 4.2. Summarize any trends in NSO funding t partners. Table 4.2. Grants, lans, and equity funding prvided by NSO t its partners Type Grants Date Target Partner Amunt (US $) Terms Currency Status Lans Subttal Equity Subttal Subttal Evaluate: Strategy. Evaluate the NSO s lng-term strategy fr any grant, lan, and/r equity prgrams. Investment criteria. Des the financial services prgram have sund and clearly articulated investment criteria? Are partners fully aware f these criteria? Are the criteria evenly applied t all partners? D the criteria include restrictins, such as limiting investments t partners, that impact perfrmance? Risk appetite. Hw willing is the NSO t take a financial risk, fr example, funding partners that d nt have ther surces f funds? Hw d the csts and surces f funds (earned incme, individual dnatins, private institutinal dnatins, public funder funding) impact NSO risk taking? Is there a mismatch between risk appetite and available funds? Management. Hw cmpetent is the management f the financial services prgram and/r investment cmmittee, in terms f their knwledge and skills? Hw autnmus are financial service peratins? Are effective mechanisms in place t ensure management accuntability? Systems and cntrls. T what extent are financial service accunts and prtfli management independent? Hw adequate and effective are audit prcedures? Hw effectively des the NSO manage liquidity, credit, currency, peratins, and ther risks? T what extent des the NSO disclse infrmatin n its grants, lans, and/r equity funding t its partners and the general public? 13 Sme NSOs may manage their finance prgrams frm within the NSO, while thers may have established specialized funding vehicles. This mdule shuld be adapted accrdingly.

32 28 FORMAT FOR APPRAISAL OF NETWORK SUPPORT ORGANIZATIONS Investment vehicle (if applicable). Evaluate the purpse, structure, capitalizatin, gvernance, and management f any NSO investment vehicle (such as an investment fund) fr debt and equity. Hw independent is the investment vehicle frm ther NSO services? (Fr example, can the fund invest in nn-partners? Hw des this affect the NSO?) Hw adequate and effective are the firewalls, if any, between the investment vehicle and ther NSO services? Hw transparent is any such investment vehicle? Perfrmance f grant prgram. Evaluate the grant prgram in terms f deal flw prjectins, whether partners reach grant targets, and the cst f administering the prgram. Perfrmance f lan prgram. Evaluate the lending prgram in terms f deal flw prjectins and financial perfrmance. Cnsider liquidity, prtfli quality, efficiency, and prfitability. Hw des the cst f funds t partners cmpare t that f cmmercial surces, including dmestic rates? T what extent are NSO lans displacing dmestic surces f capital with cheaper lans? What are the main factrs cntributing t the financial perfrmance f the lan prgram? Perfrmance f equity prgram. Evaluate the equity prgram in terms f deal flw prjectins. Cnsider actual versus expected returns. Hw des the NSO value its equity prtfli? What are the main factrs cntributing t the financial perfrmance f the equity prgram? Des the equity prgram have a realistic exit strategy? If the NSO has ever sld any f its equity psitins, evaluate the results. Effectiveness. What is the impact f NSO funding n partners, bth in terms f partner utreach and financial perfrmance (e.g., number f clients, verall financial prfitability, leverage frm ther surces, cst f funds, etc.)? 4.6 Knwledge Management Describe the NSO s gals and effrts t prmte learning within the netwrk, amng partners and ther stakehlders, and within the brader micrfinance industry. Summarize any trends in NSO knwledge management activities and methds. Indicate learning pprtunities that exist fr partners in the chart belw by checking all apprpriate bxes. KNOWLEDGE MANAGEMENT: Opprtunities fr transferring lessns learned within the netwrk t ther NSO partners and the brader micrfinance industry (Check all apprpriate bxes) Case studies Listserve /virtual meeting Newsletter Staff exchanges Task frce/ wrking grup Technical guides Websiteexternal Other See annex 2, item 25. If Other is indicated, please specify: Evaluate: NSO capacity. Evaluate the capacity/expertise f the NSO t prmte learning within the netwrk, amng partners and ther stakehlders, and t the brader micrfinance industry. Partner input. T what extent d partners play a rle in NSO knwledge management services (knwledge creatin, disseminatin, etc.)?

33 NSO SERVICES AND PERFORMANCE 29 Delivery. Are effective mechanisms in place that prmte knwledge sharing and lateral learning within the netwrk, amng partners and ther stakehlders, and within the brader micrfinance industry? Cst. Evaluate trends in the cst f NSO knwledge management services. Effectiveness. Hw effective are NSO knwledge management services? Evaluate the impact f these activities n NSO partners and the brader micrfinance industry, citing examples as apprpriate. 4.7 Research and Develpment Summarize the NSO s gals and effrts t cnduct research, including cnducting market research, develping new technlgies, identifying new ways t streamline peratins, develping new institutinal mdels, analyzing client impact and/r ther relevant wrk. Summarize any trends in NSO research and develpment activities. RESEARCH AND DEVELOPMENT (Check all apprpriate bxes) Client Impact Innvatin Market Research Operatins Technlgy Other See annex 2, item 27. If Other is selected, please specify: Evaluate: NSO capacity. Evaluate the capacity and expertise f the NSO fr research and develpment. Cllabratin. T what extent des the NSO cllabrate with ther relevant R&D effrts in the micrfinance industry and avid redundant utputs? Cst. Evaluate trends in the cst f NSO research and develpment. Relevance. Evaluate the impact f NSO research and develpment activities. What innvatins has the NSO made within the brader industry? Hw successful have they been? Give examples where apprpriate. 4.8 Plicy Advcacy Describe the NSO s gals and effrts t prmte gvernment plicy develpment in the cuntries and/r regins in which its partners wrk. Discuss the NSO s cllabratin with the wider micrfinance industry in natinal and/r internatinal lbbying effrts t influence plicy. Summarize any trends in NSO plicy advcacy activities. POLICY ADVOCACY See annex 2, item 26. Active in funder cuntry(ies) plicy Plicy advcacy in selected develping cuntry(ies) Glbal effrt with dedicated staff and resurces

34 30 FORMAT FOR APPRAISAL OF NETWORK SUPPORT ORGANIZATIONS Evaluate: NSO capacity. Evaluate the capacity, expertise, and scpe f the NSO fr plicy advcacy. Csts. Evaluate trends in the cst f NSO plicy advcacy activities. Effectiveness. Evaluate the impact f NSO plicy advcacy. Give examples where apprpriate.

35 5 Strategic Plan Overview: This sectin guides the analyst t evaluate whether the NSO is achieving its missin and develpment strategy. The analyst shuld cnsider whether the NSO s plans fr the near t medium term are (a) realistic and (b) satisfactry fr advancing its strategic bjectives. The analyst shuld als discuss majr changes that are anticipated by the NSO and its partners. 5.1 Objectives fr the Near t Medium Term Describe the majr features f the NSO s business (shrter-term) and/r strategic (lnger-term) plan(s), if any. Sme NSOs may have a strategic plan that functins as a business plan. Cnsider any significant changes between prir plans and actual perfrmance, and the reasns fr the variances. Evaluate: Fcus. Based n the analyst s assessment f NSO capacity and past perfrmance, evaluate the business/strategic plan. Fr NSOs wrking in a multi-sectr cntext, hw des micrfinance fit int the rganizatin s verall plan? Basis. Evaluate the basis and assumptins fr the strategic plan. T what extent des the NSO assess its wn strengths and weaknesses and hw des this factr int the strategic plan? Des the strategic plan reflect a clear understanding f the state f the micrfinance industry? Is it realistic? T what extent are the requirements and perfrmance f partners incrprated int the NSO strategic plan? 5.2 Prjectins Describe any majr changes expected in: NSO and partner perfrmance number and type f partners funding levels and types NSO services rganizatinal structure and staffing cmpetitin evlutin f the financial sectr in cuntries f peratin external relatins ther Evaluate: Partners and services. Are the NSO s prjected partners and services apprpriate given the NSO s missin? Grwth. Is the NSO s prjected grwth apprpriate, given its capacity and pprtunities? What are the cnstraints t NSO grwth (e.g., funding, technical capacity, etc.)? Opprtunities and Threats. What are the ptential pprtunities fr and threats t the NSO missin and peratins? Hw well equipped is the NSO t deal with cmpetitin, evlutin f the financial sectr, and changes in available funding and the business envirnment in the cuntries where its partners perate? 31

36 ANNEX 1 NSO Screcard This screcard is designed as a reference tl t assist an analyst in preparing the final reprt f an appraisal. It is nt necessarily intended t be included in the final reprt t the cmmissining rganizatin. The analyst shuld use the screcard while wrking thrugh the different mdules f the frmat t rate the NSO in each f the evaluative categries fund in the frmat. A simple scring system such as G, A, NI, and N/A fr gd, adequate, needs imprvement, and nt applicable is recmmended. The scres shuld nt, hwever, be simply tallied, as sme categries likely carry greater weight than thers, depending n the fcus f the appraisal. A cmpleted screcard, will nevertheless highlight an NSO s strengths and weaknesses, and thereby assist the analyst in preparing the final reprt. 32

37 NSO SCORECARD Categry Rating G A NI N/A 2 Institutinal Factrs 2.1 Missin and Develpment Strategy Clarity Effectiveness 2.3 Gvernance Legal framewrk Structure Cmpetence Effectiveness 2.4 Cntext Risk appetite Respnse 2.5 Structure f Operatins Cst Impact 2.6 Management Team Cmpsitin Cmpetence Effectiveness 2.7 Human Resurces Cmpsitin Accuntability Effectiveness 2.8 Financial Management Resurces Allcatin Risks Cst 2.9 Infrmatin and Reprting Systems Inputs Outputs Usefulness Transparency 2.10 Industry Rle and Perceptins Rle Access Cmpetence Services Impact 3 Partners and NSO Impact 3.1 NSO Partners and Relatinships Chice f partners Ownership Partner participatin Standards Accuntability Expansin Terminatin r disaffiliatin 3.2 Partner Perceptins f NSO Access Cmpetence Services Cst Impact 3.3 NSO Inputs and Impact n Partners Trends in perfrmance Categry Rating G A NI N/A NSO Rle 4 NSO Services and Perfrmance 4.2 Gvernance f partners Strategy and bjectives Cst Effectiveness 4.3 Institutinal start-up and transfrmatin NSO capacity Delivery Cst Effectiveness 4.4 Technical services NSO capacity Partner input Delivery Cst Effectiveness 4.5 Financial services Brkering and cspnsring funding Partner requirements Other NSO activities Cst Effectiveness NSO funding prgrams fr partners Strategy Investment criteria Risk appetite Management Systems and cntrls Investment vehicle Perfrmance (grants) Perfrmance (lans) Perfrmance (equity) Effectiveness 4.6 Knwledge management NSO capacity Partner input Delivery Cst Effectiveness 4.7 Research and develpment NSO capacity Cllabratin Csts Relevance 4.8 Plicy advcacy NSO capacity Cst Effectiveness 5 Strategic Plan 5.1 Objectives fr near t medium term Fcus Basis 5.2 Prjectins Partners and services Grwth Opprtunities and Threats 33

38 ANNEX 2 Netwrk Supprt Organizatin Prfile The Netwrk Supprt Organizatin Prfile highlights key dimensins f NSO peratins and then differentiates them using a series f spectrums. The prfile was develped with NSO leaders in a cnsultative prcess launched at a wrkshp spnsred by SEEP and CGAP in Octber 2002 and cntinuing thrugh June The prfile was finalized in cnsultatin with the MIX in May

39 ANNEX 2 35 NETWORK SUPPORT ORGANIZATION PROFILE CGAP advcates Netwrk Supprt Organizatins (NSOs) as an effective means fr funders t engage in micrfinance. Bradly speaking, NSOs are rganizatins whse primary functin is t develp their institutinal partners. NSO partners are typically micrfinance institutins, banks, r ther rganizatins that ffer financial services t the pr. NSO partners may als share knwledge and infrmatin amng themselves. The cmbinatin f the NSO and its partners frms what is cmmnly knwn as a micrfinance netwrk. Funders with limited staff r technical capacity can leverage their time and funds by investing in well-managed NSOs that may be in a better psitin t prvide direct financial and technical assistance t MFIs. NSOs have played a critical rle in launching new institutins, develping standards, whlesaling funds, prviding technical services, implementing knwledge management, and leading plicy refrm effrts. Hwever, NSOs have as many differences as similarities, and many peple are cnfused by their variety and diversity. This prfile seeks t uncver the key features f individual NSOs. 1. Histry, purpse and missin (Hw, when, and by whm the NSO was established; hw it has evlved ver time; develpment strategy; target clients; and scial fcus) <FULL NAME f NSO (ACRONYM)> NSO Institutinal Factrs 2. ORGANIZATIONAL FOCUS Micrfinance nly Micrfinance integrated with scial services (i.e. health, educatin) Micrfinance integrated with ecnmic services (i.e. business develpment services) Micrfinance integrated with scial AND ecnmic services Des the NSO supprt multiple sectrs, independently f micrfinance? 3. GEOGRAPHIC FOCUS Glbal Reginal Natinal Cmments: 4. REGIONAL PRESENCE: Areas where the NSO perates and/r has partners (Indicate number f partners in each regin) Sub-saharan Africa Asia Latin America Eastern Eurpe, Central Asia, NIS Middle East, Nrth Africa Nrth America Western Eurpe Number:

40 36 NETWORK SUPPORT ORGANIZATIONAL PROFILE 5. Budget fr mst recent FY NSO Institutinal Factrs 6. NSO surces f funds (Please indicate the percentage relative t ttal fr mst recent FY) Public grants Private dnatins Lans Investment Incme Membership Fees Earned Incme Other 7. NSO uses f funds (Please indicate the percentage relative t ttal fr mst recent FY) Expenses linked t delivering services t partners: Financial Services Gvernance Institutinal start-up and Transfrmatin Knwledge Management Plicy Advcacy Research and Develpment Technical Services Other If Other is indicated, please specify: General NSO expenses: (Please indicate the percentage relative t ttal fr mst recent FY) Administratin Fundraising Other If Other is indicated, please specify: 8. Number f ttal full-time staff (r full-time staff equivalent) 9. Number f full-time staff dedicated t micrfinance (r full-time staff equivalent)

41 ANNEX 2 37 NSO Partners 10. Descriptin f partners/members/affiliates (Depending n the relatinship between the NSO and the rganizatins with which it wrks, different terms are used t describe this relatinship. Fr the purpses f this prfile, partner will represent all f these relatinships, including members and affiliates.) 11. Number f partners 12. Percentage f partners with psitive Return n Assets (ROA) 13. Ttal number f active clients f partners 14. DEPTH OF ENGAGEMENT with partners Brad engagement (regular cntact and cllabratin) Mix f brad engagement and cncentrated relatinships Cncentrated relatinships (dedicated service agreement) 15. NSO OWNERSHIP f partners (Indicate number f partners in each categry) N equity stake Minrity shares Majrity shares Whlly wned 16. PARTNER LEGAL STATUS (Indicate number f partners in each categry and differentiate, when applicable, between unregulated and regulated institutins) Banks (micrfinance r traditinal) Banks (Rural) Cperatives / Credit Unin Unregulated Regulated Nn-bank financial institutin Unregulated Regulated Nn-prfit (NGO) Other

42 38 NETWORK SUPPORT ORGANIZATIONAL PROFILE NSO Partners (cn t) 17. TARGET CLIENTS f partners at time f initial entry (Indicate number f partners) Majrity f clients in husehlds earning less than US$1/day per husehld member Majrity f clients in husehlds earning mre than US$1/day per husehld member 18. NSO-WIDE STANDARDS fr affiliatin and disaffiliatin, such as perfrmance standards Standards led by NSO Standards led by partners Nt applicable 19. IMPLEMENTATION OF STANDARDS Standards enfrced thrugh public disclsure Standards enfrced thrugh peer/netwrk review Standards nt enfrced (r n standards) Des a breach f standards result in disaffiliatin? Has a breach f standards resulted in the disaffiliatin f a partner r partners? Explain. 20. DISCLOSURE OF INFORMATION abut partners, including financial perfrmance and utreach (Indicate number f partners in each categry) Netwrk des nt prvide infrmatin Netwrk disclses summary partner perfrmance Netwrk disclses partners audited financial statements and peratinal infrmatin Is the perfrmance f NSO partners available n public Internet resurces? If yes, where?

43 ANNEX 2 39 NSO SERVICES 21. LEVEL OF EFFORT cmmitted directly by the NSO t its partners (Indicate number f partners that receive each specific service frm the NSO) Financial Services Gvernance Institutinal Start-up and Transfrmatin Knwledge Management Plicy Advcacy Research and Develpment Technical Services Other If Other is indicated, please specify: 22. FINANCIAL SERVICES (Indicate number f partners receiving services in each categry) Brkers r cspnsrs funding Lends t partners Invests equity in partners Prvides direct grants t partners 23. GOVERNANCE f partners by NSO (Indicate number f partners receiving services in each categry) N rle Ex-ffici rle Nncntrlling interest Cntrlling interest 24. INSTITUTIONAL START-UP AND TRANSFORMATION (Indicate ttal histrical and current number f partners in each categry) Start-ups Transfrmed t regulated financial institutin Transfrmatin in prcess 25. KNOWLEDGE MANAGEMENT: Opprtunities fr transferring lessns learned within the netwrk t ther NSO partners and the brader micrfinance industry (Check all apprpriate bxes) Case studies Listserve/ virtual meeting Newsletter Staff exchanges Task frce/ wrking grup Technical guides Websiteexternal Other If Other is indicated, please specify:

44 40 NETWORK SUPPORT ORGANIZATIONAL PROFILE NSO SERVICES (cn t) 26. POLICY ADVOCACY: Engagement f NSO staff and partners in plicy advcacy with natinal gvernments and bank supervisrs. Active in funder cuntry(ies) plicy Plicy advcacy in select develping cuntry(ies) Glbal effrt with dedicated staff and resurces 27. RESEARCH AND DEVELOPMENT: Cnduct market research and develp new technlgies, identify ways t streamline peratins, develp new institutinal mdels and prducts (innvatin), analyze impact. (Check all apprpriate bxes) Client Impact Innvatin Market Research Operatins Technlgy Other If Other is indicated, please specify: 28a. TECHNICAL SERVICES: Types f technical services NSO ffers t partners. Technical services refers t cnsultancy, training, advisry services etc. (Indicate number f partners receiving services in each categry fr latest FY) Auditing / financial evaluatin Human resurces Infrmatin technlgy Operatin management Prduct develpment Strategic planning Other If Other is indicated, please specify: 28b. COST COVERAGE FOR TECHNICAL SERVICES Netwrk subsidizes full cst f technical services Partner pays partial fees Partner pays full cst 28c. TECHNICAL SERVICES DELIVERY Netwrk staff is sle surce f technical services Mix f surces fr technical service All technical services utsurced

45 ANNEX 3 Interview Guide fr NSO Partners The Interview Guide fr NSO Partners has been prepared fr use during interviews with NSO partners. As part f any NSO evaluatin, analysts shuld interview a significant, representative sample f partner directrs, managers, and t the extent pssible, partner staff individually r in grups during visits r by telephne. The analyst, rather than the NSO, shuld select which partners t interview, ensuring that these partners represent a diverse crss sectin f the netwrk. This Interview Guide shuld be tailred t fit the particular characteristics f the NSO being appraised, as well as thse f its partners. Interviewees shuld be assured that all respnses will be treated cnfidentially and presented annymusly t NSO management. 41

46 42 ANNEX 3 Interview Guide fr NSO Partners All respnses will be treated cnfidentially and presented annymusly t NSO management. Name: Year first emplyed: Psitin(s) held: Date: Where apprpriate, rate the NSO n the fllwing basis: 1 very pr 2 pr 3 gd but needs imprvement 4 gd 5 utstanding Sectin 1. Relatinship with NSO 1. NSO Parameters Hw wuld yu characterize the nature f yur relatinship with the NSO? Prvide any cmments n this experience. What infrmatin and/r perfrmance standards exist within the NSO (peer accreditatin, ratings prcess)? Hw were they develped? Was yur institutin invlved? Hw ften and what type f infrmatin d yu prvide (financial, peratinal, impact, etc.) t the NSO? What analysis r cmments des the NSO prvide in respnse? Has anyne frm yur institutin participated in the NSO s bard r advisry cmmittees? Prvide any cmments n this experience. D yu negtiate an annual wrk plan fr services with the NSO? If s, when d yu evaluate prgress? Hw ften d yu participate in NSO events and activities? What is yur level f engagement? Hw wuld yu rate yur netwrk participatin experience? D yu have any recmmendatins fr imprvement? 2. Cmmunicatin Hw ften d the NSO staff call, , and/r visit yur institutin? Are these cmmunicatins adequate? Hw d yu prvide feedback t the NSO and what is the NSO s penness t feedback? Has the NSO cnducted a satisfactin survey? Hw ften? D yu have any recmmendatins fr imprvement? 3. Criteria and Csts What are the criteria fr NSO membership? What are the cnsequences if these criteria are nt met? Have yu ever nt met the criteria? If s, what happened?

47 INTERVIEW GUIDE FOR NSO PARTNERS 43 Have any partners been disaffiliated frm the NSO? If s, what was the prcess? Hw did the NSO cnduct itself in this situatin? Was the disaffiliatin merited? What are the csts f participating in the NSO, including membership and ther fees, fees fr services, in-kind and time (in staff days)? List each categry separately and give the membership benefits fr these csts/fees? What additinal financial cntributins wuld yu be willing t pay? 4. Other affiliatins Besides the NSO, are yu affiliated with ther NSOs? Please specify. Hw wuld yu cmpare the NSO with ther NSOs? Why did yu chse t affiliate with each NSO? Sectin 2. NSO Capacity 1. NSO Structure Is the NSO s rganizatinal structure adequate fr its peratins? (e.g., centralized, decentralized, etc.) Hw des the NSO structure impact yur relatinship with the NSO? 2. NSO Staff Hw qualified and knwledgeable are NSO staff? Hw wuld yu rate them verall? D yu have any recmmendatins fr imprvement? 1. Gvernance Sectin 3. NSO Services (This sectin shuld be adapted fr relevant NSO services.) Please describe the NSO s frmal and infrmal gvernance rle in yur rganizatin, including its level f frmal and de fact influence, judgment, attendance, presence n cmmittees f bard, etc. Hw wuld yu rate the quality f the NSO s gvernance rle? D yu have any recmmendatins fr imprvement? 2. Technical Services (including training) What types f technical services have yu received (start-up, transfrmatin, prduct develpment, human resurce review, infrmatin technlgy training, strategic planning, rating, ther)?

48 44 ANNEX 3 What percentage f yur technical services (including training) are prvided by the NSO? What ther surces have yu used (r researched)? What factrs influence yur chice f technical service prvider? Hw much have yu paid fr NSO technical services cmpared t thse prvided by ther surces? Hw des the cst f NSO services affect yur decisin t select the NSO as a technical service prvider? What percentage f the ttal cst f NSOprvided services d yu pay? What rle des yur institutin play in requesting and designing technical services frm the NSO? Are the tasks, needed cmpetencies, and gals clearly defined? Hw wuld yu rate the quality f the NSO s technical services? D yu have any recmmendatins fr imprvement? 3. Financial Services What percentage f yur funding surces cmes directly frm the NSO? What percentage is influenced by being an NSO affiliate, including cspnsring/ brkering applicatins? (Include grants, lans, equity, ther financial services.) Describe the prcess f receiving funds frm r thrugh the NSO, including management f disbursements, flexibility, and cnditins f different funds received. Hw d these cnditins cmpare t funding frm ther surces? Hw wuld yu rate the financial services prvided by the NSO? D yu have any recmmendatins fr imprvement? 4. Knwledge Management Hw ften d yu receive written materials frm the NSO, including newsletters, reprts, updates n partner perfrmance, publicatins, and tls? D yu think this is t much, nt enugh, r abut right? Have yu ever participated in a knwledge management event (e.g., staff exchange r an NSO cnference) t facilitate exchange amng partners? What percentage f the ttal cst did yu pay t attend this event? D yu have any recmmendatins fr imprvement? Hw wuld yu rate the NSO in this area? D yu have any recmmendatins fr imprvement? 5. Research and Develpment What innvatins has the NSO develped with its partners? Hw des the NSO incrprate innvatins develped by its partners? T what extent d yu use prducts, services, and perating prcedures develped by the NSO? Hw wuld yu rate the NSO in this area? D yu have any recmmendatins fr imprvement?

49 INTERVIEW GUIDE FOR NSO PARTNERS Plicy Advcacy Has the NSO played a rle in the natinal/reginal plicy dialgue n micrfinance in yur cuntry r supprted yur wrk in this area? Please describe. Hw wuld yu rate the NSO in this area? D yu have any recmmendatins fr imprvement? Sectin 4. Overall NSO Evaluatin What are the the greatest advantages f being affiliated with the NSO? Are there any disadvantages t being affiliated with the NSO? Hw wuld yu characterize the depth f engagement f the NSO with yur rganizatin? What are the NSO s greatest strengths? Weaknesses? Hw relevant are the NSO s services t yur rganizatin? Hw cst-effective d yu find their services t be? Hw wuld yu characterize the verall impact the NSO has had n yur rganizatin? T what extent d yu attribute yur affiliatin with the NSO t the quality and perfrmance f yur rganizatin? What is yur verall rating f the NSO? D yu have any final cmments?

50 ANNEX 4 Interview Guide fr Industry Stakehlders The Interview Guide fr Industry Stakehlders has been prepared fr use during interviews with funders, gvernment fficials, and ther relevant stakehlders (such as ther NSOs, private sectr cllabratrs, etc.). As part f any NSO evaluatin, the analyst shuld, t the extent pssible, interview a significant, representative sample f stakehlders. The analyst shuld make the final selectin f which stakehlders t interview after cnsulting the NSO fr apprpriate cntacts. This guide shuld be tailred t fit the particular mandate f the evaluatin. Interviewees shuld be assured that all respnses will be treated cnfidentially and presented annymusly t NSO management. The guide shuld be adapted as needed, depending n the nature f the relatinship between the stakehlder and the NSO. 46

51 INTERVIEW GUIDE FOR INDUSTRY STAKEHOLDERS 47 Interview Guide fr Industry Stakehlders All respnses will be treated cnfidentially and presented annymusly t NSO management. Name: Year first cntact with NSO: Date: Where apprpriate, rate the NSO n the fllwing basis: 1 very pr 2 pr 3 gd but needs imprvement 4 gd 5 utstanding Sectin 1. Relatinship with Industry 1. Participatin Hw d yu wrk/cllabrate with the NSO? Prvide any cmments n this experience. Have yu ever participated in an NSO event r activity? What was yur level f engagement? What was the purpse and hw wuld yu rate the event? Has r des anyne frm yur institutin participate in the NSO s bard r advisry cmmittees? Prvide any cmments n this experience. 2. Cmmunicatin Hw ften and in what capacities d yu cmmunicate with NSO staff? Hw available and respnsive d yu find the NSO? Hw wuld yu rate the NSO as a resurce and pint f cntact? NSO Structure Sectin 2. NSO Operatins Is the NSO s rganizatinal structure apprpriate fr its peratins? Hw des the NSO structure impact yur relatinship with the NSO? 2. NSO Staff Hw qualified and knwledgeable are NSO staff? Hw wuld yu rate NSO staff verall?

52 48 ANNEX 4 1. Gvernance Sectin 3. NSO Services (This sectin shuld be adapted fr relevant NSO services.) What is yur perceptin f the NSO s ability t prvide wnership and gvernance services t its partners? Hw wuld yu rate the quality f NSO gvernance? D yu have any recmmendatins fr imprvement? 2. Technical Services (including training) What is yur perceptin f the NSO s ability t prvide technical services t its partners? Hw wuld yu rate the quality f NSO technical services? D yu have any recmmendatins fr imprvement? 3. Financial Services Have yu ever prvided funding directly t the NSO r thrugh the NSO t ne f its partners? Describe any psitive r negative experiences. Hw wuld yu rate the NSO s ability t surce and ffer financial services t partners? D yu have any recmmendatins fr imprvement? 4. Knwledge Management Hw ften d yu receive written materials frm the NSO, including newsletters, reprts, updates n partner perfrmance, publicatins and tls? D yu think this is t much, nt enugh, r abut right? Hw wuld yu rate the NSO in this area, in terms f cntributins t partners and the industry as a whle? (Nte if there is any majr discrepancy between hw yu rate NSO services fr partners and fr the industry as a whle). D yu have any recmmendatins fr imprvement? 5. Research and Develpment What innvatins are yu aware were develped by the NSO with its partners? Hw wuld yu rate the NSO in this area, in terms f cntributins t partners and the industry as a whle? (Nte if any majr discrepancy between hw yu rate NSO services fr partners and fr the industry as a whle). D yu have any recmmendatins fr imprvement?

53 INTERVIEW GUIDE FOR INDUSTRY STAKEHOLDERS Plicy Advcacy Has the NSO played a rle in the natinal/reginal plicy dialgue n micrfinance in yur cuntry r supprted yur wrk in this area? Please describe. Hw wuld yu rate the NSO in this area, in terms f impact n partners and the industry as a whle? D yu have any recmmendatins fr imprvement? Sectin 4. Overall NSO Evaluatin What are the three greatest strengths f the NSO? What are the three greatest weaknesses f the NSO? Hw relevant are the NSO s services t its partners and the micrfinance industry? Hw cst effective d yu find their services? Hw wuld yu characterize the verall impact the NSO has n its partners and the micrfinance industry? Hw wuld yu rate yur verall experience with the NSO? D yu have any final cmments?