Capacity Building 101: How to Scale Your Impat Module 1 Taking a Capacity Assessment Purpose: In this assignment, you willuse a capacity assessment tool to determine which ofthe seven areas of capacity building your ‘organization should prioritize, For each area, you will select whether your organization is inthe “initiate “grow, “stabilize”, or “amplify” stage. To help you make this choice, your can read the descriptions and challenges faced by organizations in each growth stage ofthat capacity bulding are. We've also added optional quiding questions you can answer to help you decide on a growth stage. Although optional, the guiding ‘questions can help give you a better idea about the root cause preventing your organization trom increasing its impact ‘The category your organization should prioritize wil ikely be one that you find is least developed (le. has the lowest growth stage) However, ifthere is ate between multiple areas, select the capacity building pilar you feel wil be most benefcial to Boosting in your impact. ‘You might want todo this activity with others in your organization if they can provide you with more insight. Step 1: Complete the capacity assessment Going one area at atime, select your organization's growth stage in each of the seven areas of capacity building below. Ifyou need help making adecision about your organization's growth stage, use the guiding questions at the bottom ofeach section. ‘Stop 2: Answor the 2 questions at the bottom of the assessment, ‘After completing the capacity assessment, answer the reflection questions. Take your time writing a response ait willbe graded by others.Capacity Building 101: How to Scale Your Impat Growth Description Challenges Your ‘Stage Ranking Initiate ‘Your organization has no formal strategy in place ‘Articulating a formal strategy and aligning However, the founder has.avery clear vision and the ability project work around this stratesy toarticulate’t Ensuring projects become programs ‘Stabilize ‘Your organization has annual alas for each program Developinglongerterm plans and v ‘Your organization is deeply conscious ofthe target preventing mission drift due to donor beneficiary'sneeds as well asits own identity priorities Grow ‘Atworthree year plan exists and is substantially adhered to Refreshing strategy to effectively operate in practice, individual program plans are reviewed at atthe Amplify’ stage periodicintervals Making hard choices around core versus Strategy has been socialized with and has the support of the ‘non-core programs Board, key funders and employees. ‘Amplify Strategy s well articulated, and may have been developed ‘Avoiding loss of clear mission focus and with assistance from external advisors Formal planning procedures are established and intensively reviewed at both aprogram and organizational level ‘The organization has multiple partnerships with nonprofit organizations and others, it proactively monitors the results of partnershins and exits those that are not effective or high-priority. identity that inspires and motivates, peoale Losing touch with voices from the groundCapacity Building 101: How to Scale Your Impat Mission and Vision a a a a Does your organization's have a mission and vision statement? IF you have a mission and vision statement, i it being used to guide the organization’ decisions, proves and strategy? In ther words, does the organization's programs and activites ead tothe outcomes defined in the mission and vision? Has your organization ever changed its mission or goals to accommodate donor interests; have you refused funding ‘portunities that did not align with your mission and goals? To what extent does the staff fel thatthe mission and vision is relevant to their work? Strategic Planning and Review a ‘Does your organization have a strategic plan of action to achieve its mission? Has it identified the core activities and ‘competencies it needs to focus on to succeed” How frequently isthe strategic plan tracked and reviewed? Partnership Strategy a a To what extent dovs your organization leverage networks or other organizations (nonprofits, government agencies, or private companies) to accelerate reaching its mission? How strategic is your organization wth deciding which partnerships to pursue? Are these partnerships winewin situations for both parties?Capacity Building 101: How to Scale Your Impat Growth Description Challenges Your ‘Stage Ranking Initiate “The organization consists ofthe founder and their direct reports| Building capacity of employees to ‘The organization is characterized by sole decision making by the founder, row from fieldwork to project ‘minimal staff and sometimes acadre of volunteers management Salaries are low but employees are motivated by the founder's passion and charisma ‘Stabilize “The organization has a well-defined multi-tier organizational structure Effectively developing v Employees do nat make major decisions independently, and instead second-line leadership especially ‘execute on founders directions. Daly operating decisions however, are forfutureneeds decentralized Hiring judiciously for ‘Afunctional structure emerges (including an accounting specialist and ‘on-pragram positions program delivery specialists) Grow ‘The fourth tier ofthe organization emerges—these are people whose Managing staff turnover; roles may include strategy development, business develooment etc. resisting culture dilution Funetions mature and are given greater operating freedom by the Meeting the learning and founder development needs of those in ‘bead of HRs hired: HR policies begin tobe codified technical, functional, and Educational programs may be used to train managers and enhance thelr ‘managerial roles effectiveness Preparing for founder succession ‘Amplify “The founder may be replaced by anexternalorinternally-promoted CEO ‘Successfully transitioning ‘The organization has a well-defined set of behaviors based on its values, which pervade every aspect ofthe organization inelucing policies and hiring pracesses (for example the hiring process includes criteria on ability to demonstrate these behaviors) between founder and new CEO, including value alignment.Capacity Building 101: How to Scale Your Impat ‘The Leader {@ Does your organization have a clear leader? Does the organization operate on the decisions of the leader alone or is there adequate input fom others? How does leadership suppor the stat? Second Line of Management {Is there @ second line of management? Iso, whats their relationship withthe leader? Is your organization prepared to operate in the event thatthe leader is no longer present? Are appropriate staff mambers adequately empowered to make ther decisions? Does the staf at your organization know how decisions are being made atthe top and how they/re work is contributing tothe ‘overall mission? Ambition How ambitious isthe leadership in thelr goals forthe organization?” How cleary has the leadership broken down the vision, plotted how to achieve it and understood the external factors that right impact achieving the vision? Tatent 'D__Does the organization of roles and responsibilies in your organization help i achieve its mission? Are the roles and responsiilties of the staff clear? Is there an inciviual responsible for HR or human resource management (hiring, training, compliance with labour practices etc)? Does the organization have an HR planning process which oulines how the organization will determine is hiring needs? If 0, how useful is it for guiding HR activites? How effective isthe organization in bringing inthe right talent ina tmaly manner? ‘Are people onboarded effectively? ‘To what extent does the organization proactively manage and develop talent? ‘To what extent are the salaries clea structured, and employee benefits dacumented and practiced? oes the organization have shared values that guide i's work? © ooooeCapacity Building 101: How to Scale Your Impact Growth Description (Monitoring) Description (Evaluation) Challenges Ranking Stage Initiate | Monitoring valuation Belngable to articulate ‘= Theorganization tracks # Theorganiz “impactin terms of projectevelnacators 2 Ithasmoful-time MEL roles outcomes © Ituses paper-based tools Issabjectves for MEL aeill dened Findingfinancal resourees for MEL Stabilize | Monitoring Evaluation Drawinginsightstrom | ' Theorganzatons tracks ‘The organization racks output-evelindcators MELand using them to prograrvlevelinciestors ‘Ithasoneflltine MEL poston possibiya improve program + Musee MsExcalor Google ataentry person effectiveness spreadsheets for monitoring ‘+ Tthasbasijob descrotions for MEL 1 _Thekey MEL objectives donor reporting Grow Evaluation psig the team "tracks program and 1+ TheNGO has aresuts framework and theory staying abreast ofthe organizatiorlevelingicators of change latest methodologies © Ituses Ms Excelor Google 4+ Tetracks outcome level indicators spreadsheets it may also 2 Ithasdedicated MEL team of two or more develop dashboards and esMELjob descriptions ncluce meationof inehouse tools for partner MEL for advocacy organizations (reporting ‘+ Thekey objectives to gain insights and templates, Exce-based tons) validation, including from external eval Amplify ing Evaluation Using rigorous designs ‘= Theorganization tracks program-ane organizational evelindcators 1 Itusee customizes tools data visualization tools and ‘ualtatve analysis too ‘© Theorganization racks impacttevel indicators thas dedicated MEL team of furor more 1 Thekey objeciveis togaininsightstodrve learning andte demonstrate impact. such as randomizee Eontol tral (RCTS) Drivingetficiencies in MEL processesCapacity Building 101: How to Scale Your Impact Monitoring, Evaluation and Learning | Guiding Questions Mae Systems @ How robust isthe data collection system? 2 How efficiently isthe data collected analyzed and used to find ways to Improve work? Whatis the attitude of the organization with regards to evaluating its impact? Is this an organization-wide norm orisitarare ‘occurrence, usually forced?Capacity Building 101: How to Scale Your Impat Growth Description Challenges Your ‘Stage Ranking Initiate “The organization sources funds from the founder's Rising sufficient capitaltoinvest fr stage savings and contributions from friends and family 2 ‘Stabilize “The organization has sufficient funding opportunities, | Gaining long-term visibility into funding v butturns down those that are completely misaligned overcoming dependence ona small number with its vision of funding sources Fundraising continues to beled by the founder, aided by | _¢ Improving proposal quality and grant others part-time reporting Grow The organization hires addtional fundraising staff Being able to attract larger, more mature The organization becomes more strategic/ selective donors that are now necessary for survival about which types of funding opportunities it pursues; significant quantum of funding is from repeat funders those who support over the longterm. ‘The fundraising plan incorporates a long term view (3+ years) ands regularly updated Large institutional donors come on board ‘The NGO improves funder engagement; some funders support the organization (for examale volunteering, offering expertise) ‘Amplify “The organization has a diversified base of alarge Retaining the scarce, high-skilled talent institutional funders inluding multinational corporations ( MNCs) and foundations Less commonly, the organization may also have large base of retail givers necessary to manage sophisticated donorsCapacity Building 101: Howto Scale Your Impact Fundraising | Guiding Questions Fundraising Strategy {@ Does the organization havea strategy around meetingits fundraising targets? Diversification of Funding How consistent or dependable are the funding sources your organization relies on? What percentage ofthe organization's funding sources are long-term? Funder Engagement Does your organization leverage existing funders technical sills or social networks? 2. _Does your organization seek advice from or discuss thelr challenges with larger funders?Capacity Building 101: How to Scale Your Impat Growth Description Challenges Your ‘Stage Ranking Initiate | © The NGO lacks Finance and Accounting systems; accounts are ‘Getting basic audits done; maintained in MS Excel arranging foundational ‘© However, accounts are well maintained and follow commonly compliances/ certifications accepted accounting principles; external review of accounts possible without extensive clarifications ‘© Adesignated accountant may additionally be involved in ad-hoc administrative tasks, human resources, drawing up agreements ee ‘Stabilize | + The organization maintains accounts in software suchas Tally ‘© Fulfling donor reporting v ‘© One or two dedicated staff are hired in the accounts department requestsina timely and accurate way Grow ‘© The organization hires a professional CFO ‘© Managing periodic cashflow «© Itevelops proactive budgets problems eg due to delayed ‘© Itevelops a financial risk management plan ‘government payments, or the ‘© Itevelops and follows investment uidetines tinplanned exit of corporate ‘© Ithiresaucitors with development sector experience and donor} intraduces internal audits Amplify | « Theorganization upgrades Tally equivalent to afullfledged ERP | Ensuringexcellence inrisk system (enterprise resource planning) Itmay help tostreamiine Finance, Accounting and Compliance of partner NGOs ‘management and financial controlsFinance, Accounting, and Compliance | Guiding Questions Financial Management How strong is your organization’ fnancial management capability? @ How are finance decisions taken and by whom? Budgeting 2. How robust the budgeting process ofthe organization? ‘Accounting How robust is the accounting process ofthe organization? Capacity Building 101: How to Scale Your ImpactCapacity Building 101: How to Scale Your Impat Growth Description Challenges Your Stage Ranking Initiate “The organization has a website but no formal Finding high-quality communication support Communications function without commensurate financial resources ‘Stabilize The NGO solicits pro bono communication support (Same as above) Finding high-quality v from designers, web design agencies etc communication support without “The organization develops official promotional commensurate financial resources material Grow “The organization hires in-house talent Finding an experienced resource tolead the Communication people communications function It develops a communications plan every yearn “raining internal teams touse this function ina Tne wit the business planning process strategicway tramps up production of professional promotional materials ‘Amplify The organization focuses more deeply on advocacy Driving dissemination and uptake of learnings and developing and disseminating it'slearnings to become athought leader IRisoften references inthe media asa thought leader ints fel toinfluence the sector as a whole,Capacity Building 101: How to Scale Your Impat ‘Strategy Does your organization have a communications strategy—a communication’ plan that wll help the organization achiove its mission? 2. How effectively does your organization communicate wit its various stakeholder groups? Use of Tools! Platforms/ Media @ How visible is the organization tothe public? What is your organization's atitude towards being spotlighted in the media’ Does your organization actively seek out media spotlights or is it accidental?Capacity Building 101: How to Scale Your Impat Growth Description Challenges Your ‘Stage Ranking Initiate “The organization has a board: its composed largely of Building aboard that sable to support the friends and family. and the founder is able to founder effectively, with sufficient effectively tap intoit fr funding ‘commitment to reach stage 2 (such as helping the founder access funding, and providing adequate time and availability) ‘Stabilize “The first‘outsiders'are inducted Managing board turnover as the v ‘The focus ofthe board shifts from general support to ‘organization's need outgrows board ‘oversight and formal reporting bythe founder to the members ability to offer tallored support. board begins Ensuring openness of the founder to scrutiny by the boardin athe larger interest ofthe organization Grow “The board's size and diversity increases “Tapping the expertise ofthe board for ‘Committee structures are formed: most work is done specialized input beyond ther ably to in committees fundraise and offer high-level guidance “Thereis greater clarity on processes Board members open their networks to assist with fundraising. advocacy efforts et cetera ‘Amplify “The board plays akey role as guardian of the Using the board to further professionalize ‘organization's vision; and in scouting for senior leaders, and holding them accountable, tie structure ofthe organization Source: Dasra-wth modificationCapacity Building 101: How to Scale Your Impact Board and Governance | Guiding Questions Board Composition and Characteristics Dees your organization have an independently run board that can provide advice and meet the needs of the organization? Does the board provide leadership with various stakeholder perspectives? Board Engagement 'D_ Does the board provide direction and keep leadership accountable? How does the board work with the executive leadership team (CEO etc}? Does the board ask questions or provide perspectives that guide the decision making process and the organization's direction?Step 2: Reflection Questions Nice work completing the capacity assessment. Now, let's summarize your organization's strengths and woaknes Capacity Building 101: How to Scale Your Impat Record how your organization performed by writing the growth stage for each capacity building area as shown below: Example: Intate: Fundraising, Communications, Monitoring Evaluation and Learning ‘Stabilize: Leadership and Talent, Board and Governance, Grow: Strategy, Finance Accounting and Compliance Amplify: NA Rubric Unsatisfactory Needs Improvement Excellent 0-2 ofthe seven areas of capacty building are listed 2.6 of the seven areas of capacity building are listed All of te seven areas of capacity buléing are listed. The growth stage of each capacity is specie.Capacity Building 101: How to Scale Your Impat Looking at your overall results, which area of capacity would be most beneficial o develop for your organization? Why ‘would you say that is? Make sure to list three reasons why your organization specifically should focus on this area, Example: Alter taking the capacity assessment, | decided to focus on the of capacity going to help my organization become more impactul because right now my organization is struggling wath, By making improvements to this area of capacty, my organization willbe able to__[inset three reasons hor] ‘area of capacity. | believe focusing on this area Rubrie Unsatisfactory Needs Improvement Excellent “The response does not specify which area of capacity needs to be developed by the organization, The area of capacity to be developed is, specified, but three pieces of evidence are not provides. The area of capacity to be developed is, specified and thee pieces of evidence are provided to support why the organization should bulé capacity in tis