appendix: capacity assessment grid -...

D E S C R I P T I O N

� The McKinsey Capacity Assessment Grid is a tool designed to

help nonprofit organizations assess their organizational capaci-ty. The grid should be used in conjunction with the CapacityFramework, which explains the seven elements of organization-al capacity and their components. The grid asks the reader toscore the organization on each element of organizationalcapacity, by selecting the text that best describes the organiza-tion's current status or performance. The framework and thedescriptions in the grid were developed based on our team’scollective experience as well as the input of many nonprofitexperts and practitioners.

� The grid may be used by nonprofit managers, staff, board

members and external capacity builders and funders with thefollowing objectives:

• To identify those particular areas of capacity that are strongestand those that need improvement

• To measure changes in an organization's capacity over time

• To draw out different views within an organization regardingits capacity; different responses to the grid among staff, Boardmembers and funders, for example, can be a valuablediscussion-starter within an organization

APPENDIX:CAPACITY ASSESSMENT GRID

77Ve n t u r e P h i l a n t h r o p y P a r t n e r s

� The grid is not a scientific tool, and should not be used as one.

It is very difficult to quantify the dimensions of capacity, andthe descriptive text under each score in the grid is not meant tobe exact. The scores are meant to provide a general indication– a "temperature" taking, if you will – of an organization'scapacity level, in order to identify potential areas for improve-ment. Furthermore, the results of the exercise should be inter-preted in the context of the organizatins stage of development.For example, a score of “2” on organizational processes maybe sufficient for a new organization, and this area may notmerit immediate attention. In fact, many organizations maynever get to level 4 on many elements.

� This tool is meant to be a starting point only. We encourage

you to adapt the grid to meet your own organization's capacityassessment needs.

I N S T R U CT I O N S

GUIDELINES FOR SURVEY ADMINISTRATORS

Decide for which point(s) in time you want to assess the nonprofit'sorganizational capacity – e.g., today, beginning of last year, 3 yearsago, etc. You may choose to assess the organization at twodifferent points in time, in order to measure changes in capacity.

Select the people whom you want to assess the nonprofit(assessors); these can include nonprofit staff members, boardmembers, or external parties. Ideally, assessors should have a goodknowledge of the organization for all points in time chosen for theassessment.

Capacity Assessment Grid

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For the human resources section, decide whom you wish toevaluate in the set of rows pertaining to "CEO/ED and/or seniormanagement team." Options include 1) CEO/ED only; 2) CEO/EDand senior management team considered collectively; 3) CEO/EDon the one hand and senior management team on the other; or 4)individuals taken separately. If you choose option 3 or 4, you mayneed to copy the relevant section for each separate person or groupof persons covered by the assessment.

GUIDELINES FOR THOSE FILLING OUT THE SURVEY(ASSESSORS)

For each row, determine the description most suitable for the pointin time chosen and write the date (e.g., 6/99) in that box. If youare also conducting the assessment for a second point in time,repeat the procedure with the corresponding date (e.g., 6/01).

Mark the box that is closest to describing the situation at hand;descriptions will rarely be perfect. Interpret the text loosely whennecessary and keep in mind that you are trying to score yourorganization on the continuum of "1" to "4." You may select thelimit between two boxes if this seems most accurate.

If a row is not relevant to the organization assessed, designate therow "N/A"; if you simply have no knowledge, mark the row"N/K."

A PDF file of the Capacity Assessment Grid can be obtained onVenture Philanthropy Partners’ Web site, www.venturepp.org


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I. Aspirations

• Mission

• Vision – clarity

• Vision – boldness

• Overarching goals

II. Strategy

• Overall strategy

• Goals/performance targets

• Program relevance, and integration

• Program growth and replication

• New program development

• Funding model

III. Organizational skills

• Performance management

– Performance measurement

– Performance analysis and program adjustments

• Planning

– Monitoring of landscape

– Strategic planning

– Financial planning/budgeting

– Operational planning

– Human resources planning

• Fund-raising and revenue generation

– Fund-raising

– Revenue generation

• External relationship building and management

– Partnership and alliances development and nurturing

– Local community presence and involvement


CONTENTS


• Other organizational skills

– Public relations and marketing

– Influencing of policy-making

– Management of legal and liability matters

– Organizational processes use and development

IV. Human resources

• Staffing levels

• Board – composition and commitment

• Board – involvement and support

• CEO/executive director and/or senior management team

– Passion and vision

– Impact orientation

– People and organizational leadership/effectiveness

– Personal and interpersonal effectiveness

– Analytical and strategic thinking

– Financial judgment

– Experience and standing

• Management team and staff – dependence on CEO/executive director

• Senior management team (if not previously covered)

• Staff

• Volunteers

V. Systems and infrastructure

• Systems

– Planning systems

– Decision making framework

– Financial operations management

– Human resources management – management recruiting,development, and retention



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– Human resources management – general staff recruiting,development, and retention

– Human resources management – incentives

– Knowledge management

• Infrastructure

– Physical infrastructure – buildings and office space

– Technological infrastructure – telephone/fax

– Technological infrastructure – computers, applications,network, and e-mail

– Technological infrastructure – Web site

– Technological infrastructure – databases and management reporting systems

VI. Organizational structure

• Board governance

• Organizational design

• Interfunctional coordination

• Individual job design

VII.Culture

• Performance as shared value

• Other shared beliefs and values

• Shared references and practices

I. ASPIRATIONS1 Clear need for

increased capacity2 Basic level of

capacity in place3 Moderate level of

capacity in place4 High level of

capacity in place

Mission No written missionor limitedexpression of theorganization’s reason forexistence; lacks clarity orspecificity; either held byvery few in organization orrarely referred to

Some expressionof organization’sreason for existencethat reflects its valuesand purpose, but maylack clarity; held by only afew; lacks broadagreement or rarelyreferred to

Clear expressionof organization’sreason for existencewhich reflects its valuesand purpose; held bymany within organizationand often referred to

Clear expressionof organization’sreason for existence whichdescribes an enduringreality that reflects itsvalues and purpose; broadlyheld within organization andfrequently referred to

Vision – clarity Little sharedunderstanding ofwhat organization aspiresto become or achievebeyond the statedmission

Somewhat clearor specific under-standing of whatorganization aspires tobecome or achieve; lacksspecificity or clarity; heldby only a few; or “on thewall,” but rarely used todirect actions or setpriorities

Clear and specificunderstanding ofwhat organization aspiresto become or achieve;held by many within theorganization and oftenused to direct actions andset priorities

Clear, specific,and compellingunderstanding of whatorganization aspires tobecome or achieve; broadlyheld within organization andconsistently used to directactions and set priorities

Vision – boldness No clear visionarticulated

Vision exists butfalls short ofreflecting an inspiringview of the future and ofbeing demanding yetachievable

Vision is distinctivealong only one offollowing two attributes:reflects an inspiring viewof future; demanding yetachievable

Vision reflects aninspiring view offuture and is demandingbut achievable

McKinsey CapacityAssessment Grid

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Overarching goals Vision (if it exists)not explicitlytranslated into small setof concrete goals, thoughthere may be general (butinconsistent andimprecise) knowledgewithin organization ofoverarching goals andwhat it aims to achieve

Vision translatedinto a concreteset of goals; goals lack atleast two of following fourattributes: clarity,boldness, associatedmetrics, or time frame formeasuring attainment;goals known by only afew, or only occasionallyused to direct actions orset priorities

Vision translatedinto small set ofconcrete goals, but goalslack at most two offollowing four attributes:clarity, boldness,associated metrics, ortime frame for measuringattainment; goals areknown by many withinorganization and oftenused by them to directactions and set priorities

Vision translated intoclear, bold set of (upto three) goals thatorganization aims toachieve, specified byconcrete to measuresuccess for each criterion,and by well-defined timeframes for attaining goals;goals are broadly knownwithin organization andconsistently used to directactions and set priorities

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II. STRATEGY1 Clear need for




capacity in place

Overall strategy Strategy is eithernonexistent,unclear, or incoherent(largely set of scatteredinitiatives); strategy hasno influence over day-to-day behavior

Strategy existsbut is either notclearly linked to mission,vision, and overarchinggoals, or lackscoherence, or is noteasily actionable;strategy is not broadlyknown and has limitedinfluence over day-to-daybehavior

Coherentstrategy hasbeen developed and islinked to mission andvision but is not fullyready to be acted upon;strategy is mostly knownand day-to-day behavior ispartly driven by it

Organization hasclear, coherentmedium- to long-termstrategy that is bothactionable and linked tooverall mission, vision, andoverarching goals; strategyis broadly known andconsistently helps drive day-to-day behavior at all levelsof organization

Goals/performancetargets

Targets are non-existent or few;targets are vague, orconfusing, or either tooeasy or impossible toachieve; not clearly linkedto aspirations andstrategy, and may changefrom year to year; targetslargely unknown orignored by staff

Realistic targetsexist in somekey areas, and are mostlyaligned with aspirationsand strategy; may lackaggressiveness, or beshort-term, lackmilestones, or mostlyfocused on “inputs”(things to do right), oroften renegotiated; staffmay or may not know andadopt targets

Quantified,aggressive targetsin most areas; linked toaspirations and strategy;mainly focused on“outputs/outcomes”(results of doing thingsright) with some “inputs”;typically multiyeartargets, though may lackmilestones; targets areknown and adopted bymost staff who usuallyuse them to broadly guidework

Limited set ofquantified, genuinelydemanding performancetargets in all areas; targetsare tightly linked toaspirations and strategy,output/outcome-focused(i.e., results of doing thingsright, as opposed to inputs,things to do right), haveannual milestones, and arelong-term nature; staffconsistently adopts targetsand works diligently achievethem

Program relevanceand integration

Core programsand servicesvaguely defined and lackclear alignment withmission and goals;programs seem scatteredand largely unrelated toeach other

Most programsand services welldefined and can be solidlylinked with mission andgoals; program offeringsmay be somewhatscattered and not fullyintegrated into clearstrategy

Core programsand services welldefined and aligned withmission and goals;program offerings fittogether well as part ofclear strategy

All programsand services welldefined and fully alignedwith mission and goals;program offering are clearlylinked to one another and tooverall strategy; synergiesacross programs arecaptured


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Program growthand replication

No assessmentof possibility ofscaling up existingprograms; limited abilityto scale up or replicateexisting programs

Limitedassessmentof possibility of scaling upexisting programs and,even when judgedappropriate, little orlimited action taken;some ability either toscale up or replicateexisting programs

Occasionalassessment ofpossibility of scaling upexisting programs andwhen judged appropriate,action occasionally taken;able to scale up orreplicate existingprograms

Frequentassessment ofpossibility of scaling upexisting programs and whenjudged appropriate, actionalways taken; efficiently andeffectively able to growexisting programs to meetneeds of potential servicerecipients in local area orother geographies

New programdevelopment

No assessmentof gaps in abilityof current program tomeet recipient needs;limited ability to createnew programs; newprograms created largelyin response to fundingavailability

Limitedassessment ofgaps in ability of existingprogram to meet recipientneeds, with little orlimited action taken;some ability to modifyexisting programs andcreate new programs

Occasionalassessment ofgaps in ability of existingprogram to meet recipientneeds, with someadjustments made;demonstrated ability tomodify and fine-tuneexisting programs andcreate new programs

Continualassessment ofgaps in ability of existingprograms to meet recipientneeds and adjustmentalways made; ability andtendency efficiently andeffectively to create new,truly innovative programs tothe needs of potentialservice recipients in localarea or other geographies;continuous pipeline of newideas

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II. STRATEGY1 Clear need for




capacity in place

Funding model Organizationhighly dependenton a few funders, largelyof same type (e.g.,government orfoundations or privateindividuals)

Organization hasaccess to multipletypes of funding (e.g.,government, foundations,corporations, privateindividuals) with only afew funders in each type,or has many funderswithin only one or twotypes of funders

Solid basis offunders in mosttypes of funding source(e.g., government,foundations, corporations,private individuals); someactivities to hedgeagainst marketinstabilities (e.g., buildingof endowment);organization hasdeveloped somesustainable revenue-generating activity

Highly diversifiedfunding acrossmultiple source types;organization insulated frompotential marketinstabilities (e.g., fullydeveloped endowment)and/or has developedsustainable revenue-generating activities; othernonprofits try to imitateorganization’s fund-raisingactivities and strategies


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III. ORGANIZATIONALSKILLS

1 Clear need forincreased capacity

2 Basic level ofcapacity in place

3 Moderate level ofcapacity in place

4 High level ofcapacity in place

Performancemanagement

Performancemeasurement

Very limitedmeasurementand tracking ofperformance; all or mostevaluation based onanecdotal evidence;organization collectssome data on programactivities and outputs(e.g., number of childrenserved) but has no socialimpact measurement(measurement of socialoutcomes, e.g., drop-outrate lowered)

Performancepartially measuredand progress partiallytracked; organizationregularly collects soliddata on program activitiesand outputs (e.g., numberof children served) butlacks data-driven,externally validated socialimpact measurement

Performancemeasured andprogress tracked inmultiple ways, severaltimes a year, consideringsocial, financial, andorganizational impact ofprogram and activities;multiplicity ofperformance indicators;social impact measured,but control group,longitudinal (i.e., long-term) or third-party natureof evaluation is missing

Well-developedcomprehensive,integrated system(e.g., balanced scorecard)used for measuringorganization’s performanceand progress on continualbasis, including social,financial, and organizationalimpact of program andactivities; small number ofclear, measurable, andmeaningful key performanceindicators; social impactmeasured based onlongitudinal studies withcontrol groups, andperformed or supervised bythird-party experts

Performanceanalysis andprogramadjustments

Few externalperformance comparisons made; internal performance data rarely used to improve program and organization

Some effortsmade to benchmarkactivities and outcomesagainst outside world;internal performance dataused occasionally toimprove organization

Effective internaland externalbenchmarking occurs butdriven largely by topmanagement and/orconfined to selectedareas; learningsdistributed throughoutorganization, and oftenused to makeadjustments andimprovements

Comprehensiveinternal and externalbenchmarking part of theculture and used by staff intarget-setting and dailyoperations; high awarenessof how all activities rateagainst internal and exter-nal best-in-class bench-marks; systematic practiceof making adjustments andimprovements on basis ofbenchmarking


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Monitoring oflandscape

Minimalknowledge andunderstanding of otherplayers and alternativemodels in program area

Basicknowledge ofplayers and alternativemodels in program areabut limited ability toadapt behavior based onacquired understanding

Solidknowledge ofplayers and alternativemodels in program area;good ability to adapt be-havior based on acquiredunderstanding, but onlyoccasionally carried out

Extensiveknowledge ofplayers and alternativemodels in program area;refined ability andsystematic tendency toadapt behavior based onunderstanding

Planning

Strategic planning Limited abilityand tendency todevelop strategic plan,either internally or viaexternal assistance; ifstrategic plan exists, it isnot used

Some abilityand tendency todevelop high-levelstrategic plan eitherinternally or via externalassistance; strategic planroughly directsmanagement decisions

Ability andtendency todevelop and refineconcrete, realisticstrategic plan; someinternal expertise instrategic planning oraccess to relevantexternal assistance;strategic planning carriedout on a near-regularbasis; strategic plan usedto guide managementdecisions

Ability todevelop and refineconcrete, realistic anddetailed strategic plan;critical mass of internalexpertise in strategicplanning, or efficient use ofexternal, sustainable, highlyqualified resources;strategic planning exercisecarried out regularly;strategic plan usedextensively to guidemanagement decisions

Financial planning/budgeting

No or verylimited financialplanning; general budgetdeveloped; only onebudget for entire centralorganization; performanceagainst budget loosely ornot monitored

Limited financialplans, ad hocupdate; budget utilized asoperational tool; used toguide/assess financialactivities; some attemptto isolate divisional(program or geographical)budgets within centralbudget; performance-to-budget monitoredperiodically

Solid financialplans, regularlyupdated; budgetintegrated intooperations; reflectsorganizational needs;solid efforts made toisolate divisional(program or geographical)budgets within centralbudget; performance-to-budget monitoredregularly

Very solid financialplans, continuouslyupdated; budget integratedinto full operations; as stra-tegic tool, it develops fromprocess that incorpo-ratesand reflects organiza-tionalneeds and objectives; well-understood divisional (pro-gram or geographical) bud-gets within overall centralbudget; performance-to-bud-get closely and regularlymonitored

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Operational planning Organization runsoperations purelyon day-to-day basis withno short- or longer-termplanning activities; noexperience in operationalplanning

Some abilityand tendency todevelop high-leveloperational plan eitherinternally or via externalassistance; operationalplan loosely or not linkedto strategic planningactivities and usedroughly to guideoperations

Ability andtendency todevelop and refineconcrete, realisticoperational plan; someinternal expertise inoperational planning oraccess to relevantexternal assistance;operational planningcarried out on a near-regular basis; operationalplan linked to strategicplanning activities andused to guide operations

Organizationdevelops andrefines concrete, realistic,and detailed operationalplan; has critical mass ofinternal expertise inoperational planning, orefficiently uses external,sustainable, highly qualifiedresources; operationalplanning exercise carriedout regularly; operationalplan tightly linked tostrategic planning activitiesand systematically used todirect operations

Human resourcesplanning

Organizationuncovers and/or addresses HR needsonly when too large toignore; lack of HRplanning activities andexpertise (either internalor accessible external);no experience in HRplanning

Some abilityand tendency todevelop high-level HR planeither internally or viaexternal assistance; HRplan loosely or not linkedto strategic planningactivities and roughlyguides HR activities

Ability andtendency todevelop and refineconcrete, realistic HRplan; some internalexpertise in HR planningor access to relevantexternal assistance; HRplanning carried out onnear-regular basis; HRplan linked to strategicplanning activities andused to guide HRactivities

Organization isable to developand refine concrete,realistic, and detailed HRplan; has critical mass ofinternal expertise in HRplanning (via trained,dedicated HR manager), orefficiently uses external,sustainable, highly qualifiedresources; HR planningexercise carried outregularly; HR plan tightlylinked to strategic planningactivities and systematicallyused to direct HR activities

Planning


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Fund-raising andrevenue generation

Fund-raising Generallyweak fund-raisingskills and lack ofexpertise (either internalor access to externalexpertise)

Main fund-raising needscovered by somecombination of internalskills and expertise, andaccess to some externalfund-raising expertise

Regular fund-raising needsadequately covered bywell developed internalfund-raising skills,occasional access tosome external fund-raising expertise

Highly developedinternal fund-raising skills and expertisein all funding source typesto cover all regular needs;access to external expertisefor additional extraordinaryneeds

Revenue generation No internalrevenue-generation activities;concepts such as cause-related marketing, fee-for-services and retailing areneither explored norpursued

Some internalrevenue-generation activities,however financial netcontribution is marginal;revenue-generationactivities distract fromprogrammatic work andoften tie up seniormanagement team

Some proveninternal revenue-generation activities andskills; these activitiesprovide substantialadditional funds forprogram delivery, butpartially distract fromprogrammatic work andrequire significant seniormanagement attention

Significant internalrevenue-generation;experienced and skilled inareas such as cause-relatedmarketing, fee-for-servicesand retailing; revenue-generating activitiessupport, but don’t distractfrom focus on creatingsocial impact

External relationshipbuilding and management

Partnerships andalliancesdevelopment andnurturing

Limited use ofpartnerships andalliances with publicsector, nonprofit, or for-profit entities

Early stages ofbuilding relation-ships and collaboratingwith other for-profit,nonprofit, or public sectorentities

Effectively builtand leveragedsome key relationshipswith few types of relevantparties (for-profit, public,and nonprofit sectorentities); some relationsmay be precarious or notfully “win-win”

Built, leveraged,and maintainedstrong, high-impact,relationships with variety ofrelevant parties (local,state, and federalgovernment entities as wellas for-profit, other nonprofit,and community agencies);relationships deeplyanchored in stable, long-term, mutually beneficialcollaboration

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Local communitypresence andinvolvement

Organization’spresence eithernot recognized orgenerally not regarded aspositive; few members oflocal community (e.g.,academics, othernonprofit leaders)constructively involved inthe organization

Organization’spresencesomewhat recognized,and generally regarded aspositive within thecommunity; somemembers of largercommunity constructivelyengaged with organization

Organizationreasonably well-known within community,and perceived as openand responsive tocommunity needs;members of largercommunity (including afew prominent ones)constructively involved inorganization

Organization widelyknown within largercommunity, and perceivedas actively engaged withand extremely responsive toit; many members of thelarger community (includingmany prominent members)actively and constructivelyinvolved in organization(e.g., board, fund-raising)

Other organizationalskills

Public relations andmarketing

Organizationmakes no orlimited use ofPR/marketing; generallack of PR/marketingskills and expertise(either internal oraccessible external orexpertise

Organizationtakes oppor-tunities to engage inPR/marketing as theyarise; some PR/marketing skills andexperience within staff orvia external assistance

Organizationconsiders PR/marketing to be useful,and actively seeksopportunities to engage inthese activities; criticalmass of internal expertiseand experience inPR/marketing or accessto relevant externalassistance

Organization fullyaware of powerof PR/marketing activities,and continually and activelyengages in them; broad poolof nonprofit PR/marketingexpertise and experiencewithin organization orefficient use made ofexternal, sustainable, highlyqualified resources

Influencing of policy-making

Organizationdoes not haveability or is unaware ofpossibilities forinfluencing policy-making;never called in onsubstantive policy-discussions

Organizationis aware of itspossibilities in influencingpolicy-making; somereadiness and skill toparticipate in policy-discussion, but rarelyinvited to substantivepolicy discussions

Organizationis fully awareof its possibilities ininfluencing policy-makingand is one of severalorganizations active inpolicy-discussions onstate or national level

Organizationpro-actively andreactively influences policy-making, in a highly effectivemanner, on state andnational levels; always readyfor and often called on toparticipate in substantivepolicy discussion and attimes initiates discussions


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Management oflegal and liabilitymatters

Organizationdoes notanticipate legal issues,but finds help andaddresses issuesindividually when theyarise; property insuranceincludes liabilitycomponent

Legal supportresourcesidentified, readilyavailable, and employedon “as needed” basis;major liability exposuresmanaged and insured(including propertyliability and workerscompensation)

Legal supportregularly availableand consulted in planning;routine legal riskmanagement andoccasional review ofinsurance

Well-developed,effective, andefficient internal legalinfrastructure for day-to-daylegal work; additionalaccess to general andspecialized externalexpertise to cover peaksand extraordinary cases;continuous legal riskmanagement and regularadjustment of insurance

Organizationalprocessesuse anddevelopment

Limited setof processes(e.g., decision making,planning, reviews) forensuring effectivefunctioning of theorganization; use ofprocesses is variable, orprocesses are seen as adhoc requirements(“paperwork exercises”);no monitoring orassessment of processes

Basic set ofprocesses incore areas for ensuringefficient functioning oforganization; processesknown, used, and trulyaccepted by only portionof staff; limitedmonitoring andassessment of processes,with few improvementsmade in consequence

Solid, well-designed setof processes in place incore areas to ensuresmooth, effectivefunctioning oforganization; processesknown and accepted bymany, often used andcontribute to increasedimpact; occasionalmonitoring andassessment of processes,with some improvementsmade

Robust, lean,and well-designedset of processes (e.g.,decision making, planning,reviews) in place in all areasto ensure effective andefficient functioning oforganization; processes arewidely known, used andaccepted, and are key toensuring full impact oforganization; continualmonitoring and assessmentof processes, andsystematic improvementmade

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IV. HUMANRESOURCES





Staffing levels Many positionswithin andperipheral to organization(e.g., staff, volunteers,board, seniormanagement) are unfilled,inadequately filled, orexperience high turnoverand/or poor attendance

Most criticalpositions withinand peripheral toorganization (e.g., staff,volunteers, board, seniormanagement) are staffed(no vacancies), and/orexperience limitedturnover or attendanceproblems

Positions withinand peripheralto organization(e.g., staff, volunteers,board, seniormanagement) are almostall staffed (no vacancies);few turnover orattendance problems

Positions withinand peripheralto organization (e.g., staff,volunteers, board, seniormanagement) are all fullystaffed (no vacancies); noturnover or attendanceproblems

Board – compositionand commitment

Membership withlimited diversityof fields of practice andexpertise; drawn from anarrow spectrum ofconstituencies (fromamong nonprofit,academia, corporate,government, etc.); littleor no relevant experience;low commitment toorganization’s success,vision and mission;meetings infrequentand/or poor attendance

Some diversity infields of practice;membership represents afew differentconstituencies (fromamong nonprofit,academia, corporate,government, etc.);moderate commitment toorganization’s success,vision and mission;regular, purposefulmeetings are well-plannedand attendance is goodoverall

Good diversity infields of practiceand expertise;membership representsmost constituencies(nonprofit, academia,corporate, government,etc.); good commitmentto organization’s success,vision and mission, andbehavior to suit; regular,purposeful meetings arewell-planned andattendance isconsistently good,occasional subcommitteemeetings

Membership withbroad variety offields of practice andexpertise, and drawn fromthe full spectrum ofconstituencies (nonprofit,academia, corporate,government, etc.); includesfunctional and programcontent-related expertise,as well as high-profilenames; high willingness andproven track record ofinvesting in learning aboutthe organization andaddressing its issues;outstanding commitment tothe organization’s success,mission and vision; meet inperson regularly, goodattendance, frequentmeetings of focusedsubcommittees


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Board – involvementand support

Provide littledirection, support,and accountability toleadership; board not fullyinformed about ‘material’and other majororganizational matters;largely “feel-good”support

Provide occasionaldirection, support andaccountability toleadership; informedabout all ‘material’matters in a timelymanner andresponses/decisionsactively solicited

Provide direction,support andaccountability toprogrammatic leadership;fully informed of all majormatters, input andresponses actively soughtand valued; fullparticipant in majordecisions

Provide strongdirection, support,and accountability toprogrammatic leadershipand engaged as a strategicresource; communicationbetween board andleadership reflects mutualrespect, appreciation forroles and responsibilities,shared commitment andvaluing of collective wisdom

CEO/executive director and/or senior management team

Passion and vision Low energy leveland commitment;little continued attentionto organizational vision

Good energylevel; visiblecommitment toorganization and its vision

Inspiringlyenergetic; showsconstant, visiblecommitment toorganization and itsvision; excites othersaround vision

Contagiouslyenergetic andhighly committed; lives theorganization’s vision;compellingly articulatespath to achieving vision thatenables others to see wherethey are going

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IV. HUMANRESOURCES





Impact orientation Focused purelyon social impact;financials viewed as anunfortunate constraint;fails to deliver impactconsistently; delaysdecision making;reluctant to changestatus quo; mandatesrather than leads change

Focused onsocial impactwith some appreciationfor cost-effectivenesswhen possible; constantlydelivers satisfactoryimpact given resources;promptly addressesissues; understandsimplications and impactof change on people

Sees financialsoundness asessential part oforganizational impact,together with socialimpact; focuses on waysto better use existingresources to deliverhighest impact possible;has a sense of urgency inaddressing issues andrapidly moves fromdecision to action;develops and implementsactions to overcomeresistance to change

Guides organiza-tion to succeedsimultaneously in dualmission of social impact andoptimal financial efficiency;constantly seeks and findsnew opportunities toimprove impact; anticipatespossible problems; hassense of urgency aboutupcoming challenges;communicates compellingneed for change thatcreates drive; aligns entireorganization to supportchange effort

People andorganizationalleadership/effectiveness

Has difficultybuilding trustand rapport with others;micromanages projects;shares little of ownexperiences asdevelopmental/coachingtool

Is responsiveto opportunitiesfrom others to worktogether; expressesconfidence in others’ability to be successful;shares own experienceand expertise

Actively andeasily buildsrapport and trust withothers; effectivelyencourages others tosucceed; gives othersfreedom to work their ownway; gives peoplefreedom to try out ideasand grow

Constantlyestablishingsuccessful, win-winrelationships with others,both within and outside theorganization; deliversconsistent, positive andreinforcing messages tomotivate people; able to letothers make decisions andtake charge; finds orcreates specialopportunities to promotepeople’s development



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Personal andinterpersonaleffectiveness

Fails to showrespect forothers consistently, maybe openly judgmental orcritical; has difficultyinfluencing without usingpower, limited charismaor influence; limitedcuriosity about new ideasand experiences

Earns respectof others, takestime to buildrelationships; haspresence, is able toinfluence and buildsupport using limitedcommunication style;accepts learning andpersonal developmentopportunities that arise

Is respectedand sought outby others for advice andcounsel; has strongpresence and charisma;uses multiple approachesto get buy-in, appreciatesthe impact of his/herwords or actions; seeksnew learning and personaldevelopmentopportunities

Is viewed asoutstanding“people person”; usesdiversity of communicationstyles, including exceptionalcharisma, to inspire othersand achieve impact;continually self-aware,actively works to betteroneself; outstanding trackrecord of learning andpersonal development

Analytical andstrategic thinking

Is uncomfortablewith complexityand ambiguity and doeswhatever possible toreduce or avoid it; reliesmainly on intuition ratherthan strategic analysis

Is able to copewith somecomplexity and ambiguity;able to analyze strategiesbut does not yet generatestrategies

Quicklyassimilatescomplex information andable to distill it to coreissues; welcomesambiguity and iscomfortable dealing withthe unknown; developsrobust strategies

Has keen andexceptionalability to synthesizecomplexity; makes informeddecisions in ambiguous,uncertain situations;develops strategicalternatives and identifiesassociated rewards, risks,and actions to lower risks

Financial judgment Has difficultyconsideringfinancial implications ofdecisions

Drawsappropriateconclusions after studyingall the facts; understandsbasic financial conceptsand drives for financialimpact of major decisions

Has soundfinancialjudgment; consistentlyconsiders financialimplications of decisions

Has exceptionalfinancial judgment;has keen, almost intuitivesense for financialimplications of decisions

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IV. HUMANRESOURCES






Experience andstanding

Limitedexperience innonprofit managementand few relevantcapabilities from otherfield(s); little evidence ofsocial entrepreneur-likequalities; limitedrecognition in thenonprofit community

Some relevantexperience innonprofit management;some relevant capabilitiesfrom other field(s);emerging socialentrepreneur-likequalities; some localrecognition in thenonprofit community

Significantexperience innonprofit management;many relevant capabilitiesfrom other field(s);significant evidence ofsocial entrepreneur-likequalities; some nationalrecognition as aleader/shaper inparticular sector

Highlyexperienced innonprofit management;many distinctive capabilitiesfrom other field(s) (e.g., for-profit, academia);exceptional evidence ofsocial entrepreneur-likequalities; possesses acomprehensive and deepunderstanding of the sector;recognized nationally as aleader/shaper in particularsector

Management teamand staff –dependence onCEO/executivedirector

Very strongdependence onCEO/executive director;organization would ceaseto exist without his/herpresence

High dependenceon CEO/executive director;organization wouldcontinue to exist withouthis/her presence, butlikely in a very differentform

Limiteddependenceon CEO/executivedirector; organizationwould continue in similarway without his/herpresence but areas suchas fund-raising oroperations would likelysuffer significantly duringtransition period; nomember of managementteam could potentiallytake on CEO/ED role

Reliance butnot dependenceon CEO/ executive director;smooth transition to newleader could be expected;fund-raising and operationslikely to continue withoutmajor problems; seniormanagement team can fill induring transition time;several members of manage-ment team could potentiallytake on CEO/ED role


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Senior managementteam

Team has noor very limitedexperience in nonprofit orfor-profit management;team represents fewconstituencies (nonprofit,academia, corporate,government, etc.) andhas no or very limitedcapabilities and trackrecord from other fields;limited track record oflearning and personaldevelopment; mostlyenergetic and committed

Team hassome experiencein nonprofit or for-profitmanagement; teamrepresents someconstituencies (nonprofit,academia, corporate,government, etc.); somerelevant capabilities andtrack record from otherfields; good track recordof learning and personaldevelopment; energeticand committed

Team hassignificantexperience in nonprofit orfor-profit management;team represents mostconstituencies (nonprofit,academia, corporate,government, etc.);significant relevantcapabilities and trackrecord from other fields;good track record oflearning and personaldevelopment; highlyenergetic and committed

Team highlyexperienced innonprofit or for-profitmanagement; drawn fromfull spectrum ofconstituencies (nonprofit,academia, corporate,government, etc.);outstanding capabilities andtrack record from otherfields; outstanding trackrecord of learning andpersonal development;contagiously energetic andcommitted

Staff Staff drawn froma narrow rangeof backgrounds andexperiences; interest andabilities limited to presentjob; little ability to solveproblems as they arise

Some variety ofstaff back-grounds and experiences;good capabilities,including some ability tosolve problems as theyarise; many interested inwork beyond their currentjobs and in the success ofthe organization’s mission

Staff drawn fromdiverse back-grounds and experiences,and bring a broad range ofskills; most are highlycapable and committed tomission and strategy;eager to learn anddevelop, and assumeincreased responsibility

Staff drawn fromextraordinarilydiverse backgrounds andexperiences, and bringbroad range of skills; moststaff are highly capable inmultiple roles, committedboth to mission/ strategyand continuous learning;most are eager and able totake on special projects andcollaborate across divisionallines; staff are frequentsource of ideas andmomentum for improvementand innovation

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IV. HUMANRESOURCES





Volunteers Limited abilities;may be unreli-able or have lowcommitment; volunteersare poorly managed

Good abilities;mostly reliable,loyal, and committed toorganization’s success;volunteers managed butwithout standards andlittle accountability

Very capableset of individuals,bring required skills toorganization; reliable,loyal and highlycommitted toorganization’s successand to “making thingshappen”; work easily withmost staff, but do notgenerally play core roleswithout substantial staffsupervision; volunteersare managed andcontribute to the overallsuccess of theorganization

Extremely capableset of individuals,bring complementary skillsto organization; reliable,loyal, highly committed toorganization’s success andto “making things happen”;often go beyond call of duty;able to work in a way thatserves organization well,including ability to workeasily with wide range ofstaff and play core roleswithout special supervision;volunteers managed verywell and significantlycontribute to overallsuccess of organization


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IV. SYSTEMSAND INFRA-STRUCTURE





Planning systems Planning happenson an ad hocbases only and is notsupported bysystematically collecteddata

Planning doneregularly anduses some systematicallycollected data

Regular planningcomplementedby ad hoc planning whenneeded; some datacollected and usedsystematically to supportplanning effort andimprove it

Regular planningcomplementedby ad hoc planning whenneeded; clear, formalsystems for data collectionin all relevant areas; dataused systematically tosupport planning effort andimprove it

Systems

Decision makingframework

Decisions madelargely on anad hoc basis by oneperson and/or whomeveris accessible; highlyinformal

Appropriatedecision makersknown; decision makingprocess fairly wellestablished and processis generally followed, butoften breaks down andbecomes informal

Clear, largelyformal lines/systems for decisionmaking but decisions arenot always appropriatelyimplemented or followed;dissemination ofdecisions generally goodbut could be improved

Clear, formal lines/systems fordecision making that involveas broad participation aspractical and appropriatealong with dissemination/interpretation of decision

Financial operationsmanagement

Gifts and grantsdeposited andacknowledged, bills paid,supporting documentationcollected/retained

Financialactivitiestransparent, clearly andconsistently recorded anddocumented, includeappropriate checks andbalances, and tracked toapprove budget

Formal internalcontrols governingall financial operations;fully tracked, supportedand reported, annuallyaudited fund flows wellmanaged; attention ispaid to cash flowmanagement

Robust systemsand controls inplace governing all financialoperations and theirintegration with budgeting,decision making, andorganizationalobjectives/strategic goals;cash flow actively managed


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Human resourcesmanagement –managementrecruiting,development, andretention

Standard careerpaths in placewithout consideringmanagerial development;no or very limited training,coaching, and feedback;no regular performanceappraisals; nosystems/processes toidentify new managerialtalent

Some tailoringof developmentplans for brightest stars;personal annual reviewsincorporate developmentplan for each manager;limited willingness toensure high-quality joboccupancy; some formalrecruiting networks are inplace

Recruitment,development,and retention of keymanagers is priority andhigh on CEO/executivedirector’s agenda; sometailoring in developmentplans for brightest stars;relevant training, jobrotation,coaching/feedback, andconsistent performanceappraisal areinstitutionalized; genuineconcern for high-qualityjob occupancy; wellconnected to potentialsources of new talent

Well-plannedprocess to recruit,develop, and retain keymanagers; CEO/executivedirector takes activeinterest in managerialdevelopment; individuallytailored development plansfor brightest stars; relevantand regular internal andexternal training, jobrotation,coaching/feedback, andconsistent performanceappraisal areinstitutionalized; provenwillingness to ensure high-quality job occupancy; well-connected to potentialsources of new talent

Human resourcesmanagement –general staffrecruiting,development, andretention

Standard careerpaths in placewithout considering staffdevelopment; limitedtraining, coaching andfeedback; no regularperformance appraisals;no systems/processes toidentify new talent

No activedevelopmenttools/ programs;feedback and coachingoccur sporadically;performance evaluatedoccasionally; limitedwillingness to ensurehigh-quality joboccupancy; sporadicinitiatives to identify newtalent

Limited useof active develop-ment tools/programs;frequent formal andinformal coaching andfeedback; performanceregularly evaluated anddiscussed; genuineconcern for high-qualityjob occupancy; regularconcerted initiatives toidentify new talent

Managementactively interestedin general staffdevelopment; well-thought-out and targeteddevelopment plans for keyemployees/positions;frequent, relevant training,job rotation, coaching/feedback, and consistentperformance appraisalinstitutionalized; provenwillingness to ensure high-quality job occupancy;continuous, proactiveinitiatives to identify newtalent

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Human resourcesmanagement –incentives

No incentivesystem tospeak of; or incentivesystem that is ineffectiveand/or generates bad will

Some basicelements ofincentive system in place;may include one offollowing: competitivesalary (possibly partlyperformance-based),attractive careerdevelopment options, oropportunities forleadership andentrepreneurship; someevidence of motivationaleffect on staffperformance

Many elementsof incentivesystem in place; includesa few of following:competitive salary (partlyperformance-based),attractive careerdevelopment options,opportunities forleadership andentrepreneurship; obviouseffect in motivating staffto overdeliver

Well-designed,clear, and well-accepted incentive system;includes competitive salary(partly performance-based),attractive careerdevelopment options,opportunities for leadershipand entrepreneurship;system effective inmotivating staff tooverdeliver in their job

Knowledgemanagement

No formalsystems tocapture and documentinternal knowledge

Systems existin a few areasbut either not user-friendly or notcomprehensive enough tohave an impact; systemsknown by only a fewpeople, or onlyoccasionally used

Well-designed,user-friendlysystems in some areas;not fully comprehensive;systems are known bymany people within theorganization and oftenused

Well-designed,user-friendly,comprehensive systems tocapture, document, anddisseminate knowledgeinternally in all relevantareas; all staff is aware ofsystems, knowledgeable intheir use, and makefrequent use of them

Systems


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Infrastructure

Physicalinfrastructure –buildings and officespace

Inadequatephysical infra-structure, resulting inloss of effectiveness andefficiency (e.g.,unfavorable locations forclients and employees,insufficient workspace forindividuals, no space forteamwork)

Physical infra-structure canbe made to work wellenough to suitorganization’s mostimportant and immediateneeds; a number ofimprovements couldgreatly help increaseeffectiveness andefficiency (e.g., no goodoffice space forteamwork, no possibilityof holding confidentialdiscussions, employeesshare desks)

Fully adequatephysical infra-structure for the currentneeds of the organization;infrastructure does notimpede effectiveness andefficiency (e.g., favorablelocations for clients andemployees, sufficientindividual and team officespace, possibility forconfidential discussions)

Physical infra-structure well-tailored to organization’scurrent and anticipatedfuture needs; well-designedand thought out to enhanceorganization’s efficiency andeffectiveness (e.g.,especially favorablelocations for clients andemployees, plentiful teamoffice space encouragesteamwork, layout increasescritical interactions amongstaff)

Technologicalinfrastructure –telephone/fax

Status, lack ofsophistication,or limited number oftelephone and faxfacilities are animpediment to day-to-dayeffectiveness andefficiency

Adequatebasic telephoneand fax facilitiesaccessible to most staff;may be moderatelyreliable or user-friendly, ormay lack certain featuresthat would increaseeffectiveness andefficiency (e.g., individualvoice-mail), or may not beeasily accessible to somestaff (e.g. front-linedeliverers)

Solid basictelephoneand fax facilitiesaccessible to entire staff(in office and at frontline); cater to day-to-daycommunication needswith essentially noproblems; includesadditional featurescontributing to increasedeffectiveness andefficiency (e.g., individual,remotely accessiblevoice-mail)

Sophisticatedand reliabletelephone and fax facilitiesaccessible by all staff (inoffice and at frontline),includes around-the-clock,individual voice mail;supplemented by additionalfacilities (e.g., pagers, cellphones) for selected staff;effective and essential inincreasing staffeffectiveness and efficiency

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Technologicalinfrastructure –computers,applications,network,and e-mail

Limited/nouse ofcomputers or othertechnology in day-to-dayactivity; and/or little orno usage by staff ofexisting IT infrastructure

Well-equippedat central level;incomplete/limitedinfrastructure at locationsaside from central offices;equipment sharing may becommon; satisfactory useof IT infrastructure bystaff

Solid hardwareand softwareinfrastructure accessibleby central and local staff;no or limited sharing ofequipment is necessary;limited accessibility forfrontline programdeliverers; high usagelevel of IT infrastructureby staff; contributes toincreased efficiency

State-of-the-art,fully networkedcomputing hardware withcomprehensive range ofup-to-date softwareapplications; all staff hasindividual computer accessand e-mail; accessible byfrontline program deliverersas well as entire staff; usedregularly by staff; effectiveand essential in increasingstaff efficiency

Technologicalinfrastructure – Website

Organizationhas no individualWeb site

Basic Web sitecontaininggeneral information, butlittle information oncurrent developments;site maintenance is aburden and performedonly occasionally

ComprehensiveWeb sitecontaining basicinformation onorganization as well asup-to-date latestdevelopments; mostinformation isorganization-specific;easy to maintain andregularly maintained

Sophisticated,comprehensiveand interactive Web site,regularly maintained andkept up to date on latestarea and organizationdevelopments; praised forits user-friendliness anddepth of information;includes links to relatedorganizations and usefulresources on topicaddressed by organization

Infrastructure


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Technologicalinfrastructure –databases andmanagementreporting systems

No systemsfor trackingclients, staff volunteers,program outcomes andfinancial information

Electronic data-bases andmanagement reportingsystems exist only in fewareas; systems performonly basic features, areawkward to use or areused only occasionally bystaff

Electronic data-base andmanagement reportingsystems exist in mostareas for tracking clients,staff, volunteers, programoutcomes and financialinformation; commonlyused and help increaseinformation sharing andefficiency

Sophisticated,comprehensiveelectronic database andmanagement reportingsystems exist for trackingclients, staff, volunteers,program outcomes andfinancial information; widelyused and essential inincreasing informationsharing and efficiency

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STRUCTUREVI. ORGANIZATIONAL 1 Clear need for




capacity in place

Board governance Board doesnot scrutinizebudgets or audits, doesnot set performancetargets and hold CEO/EDaccountable or does notoperate according toformal procedures;executive, treasury, andboard functions unclear

Roles of legalboard, advisoryboard and managementare clear; board functionsaccording to by-laws,reviews budgets, andoccasionally setsorganizational directionand targets, but does notregularly review CEO/EDperformance, monitorpotential conflicts ofinterest, scrutinizeauditors, or review IRSand state filings

Roles of legalboard, advisoryboard, and managers areclear and function well;board reviews budgets,audits, IRS and statefilings; size of board setfor maximumeffectiveness withrigorous nominationprocess; board co-definesperformance targets andactively encouragesCEO/ED to meet targets;annual review of CEO’sperformance, but boardnot prepared to hire or fireCEO

Legal board,advisory boardand managers work welltogether from clear roles;board fully understands andfulfills fiduciary duties; sizeof board set for maximumeffectiveness with rigorousnomination process; boardactively definesperformance targets andholds CEO/ED fullyaccountable; boardempowered and prepared tohire or fire CEO/ED ifnecessary; boardperiodically evaluated

Organizationaldesign

Organizationalentities(e.g., headquarters,regional and local offices)are not “designed,” androles, responsibilities ofentities are neitherformalized nor clear;absence of organizationchart

Some organiza-tional entitiesare clearly defined, othersare not; most roles andresponsibilities oforganizational entities areformalized but may notreflect organizationalrealities; organizationchart is incomplete andmay be outdated

Organizationalentities areclearly defined; all rolesand responsibilities oforganizational entities areformalized but do notnecessarily reflectorganizational realities;organization chart iscomplete but may beoutdated

Roles and respon-sibilities of allorganizational entities(e.g., headquarters, regionaland local entities) areformalized, clear andcomplement each other;organization chart iscomplete and reflectscurrent reality


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Interfunctionalcoordination

Differentprograms andorganizational unitsfunction in silos; little ordysfunctionalcoordination betweenthem

Interactionsbetweendifferent programs andorganizational units aregenerally good, thoughcoordination issues doexist; some pooling ofresources

All programsand unitsfunction togethereffectively with sharing ofinformation andresources; fewcoordination issues

Constantand seamlessintegration betweendifferent programs andorganizational units withfew coordination issues;relationships are dictated byorganizational needs (ratherthan hierarchy or politics)

Individual job design Lack of positionscreated toaddress a number of keyroles (e.g. CFO, HR,learning andmeasurement); unclearroles and responsibilitieswith many overlaps; jobdescriptions do not exist

Positions existfor most keyroles, with a few stillmissing; most keypositions are well-definedand have job descriptions;some unclearaccountabilities oroverlap in roles andresponsibilities; jobdescriptions tend to bestatic

All key roleshave associatedpositions; mostindividuals have well-defined roles with clearactivities and reportingrelationships and minimaloverlaps; job descriptionsare continuously beingredefined to allow fororganizationaldevelopment andindividuals’ growth withintheir jobs

All roles haveassociateddedicated positions; allindividuals have clearlydefined core roles whichmust be achieved and anarea of discretion wherethey can show initiative andtry to make a difference;core roles are defined interms of end-products andservices rather thanactivities; individuals havethe ability to define theirown activities and areempowered to continuouslyreexamine their jobs

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VII. CULTURE1 Clear need for




capacity in place

Performance asshared value

Employeesare hired,rewarded and promotedfor executing a set oftasks/duties or for noclear reason, rather thanfor their impact; decisionsare mostly made on “gutfeeling”

Performancecontributionis occasionally used andmay be one of manycriteria for hiring,rewarding and promotingemployees; performancedata is used to makedecisions

Employeecontributionto social, financial andorganizational impact istypically considered as apreeminent criterion inmaking hiring, rewardsand promotion decisions;important decisions aboutthe organization areembedded incomprehensiveperformance thinking

All employeesare system-atically hired, rewarded andpromoted for their collectivecontribution to social,financial and organizationalimpact; day-to-dayprocesses and decisionmaking are embedded incomprehensive performancethinking; performance isconstantly referred to

Other shared beliefsand values

No commonset of basicbeliefs and values existswithin the organization

Common setof basic beliefsexists in some groupswithin the organization,but is not shared broadly;values may be onlypartially aligned withorganizational purpose oronly rarely harnessed toproduce impact

Common setof basic beliefsheld by many peoplewithin the organization;helps provide members asense of identity; beliefsare aligned withorganizational purposeand occasionallyharnessed to produceimpact

Common setof basic beliefsand values (e.g., social,religious) exists and iswidely shared within theorganization; providesmembers sense of identityand clear direction forbehavior; beliefs embodiedby leader but neverthelesstimeless and stable acrossleadership changes; beliefsclearly support overallpurpose of the organizationand are consistentlyharnessed to produceimpact


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Shared referencesand practices

No majorcommon setof practices andreferences exists withinthe organization (such astraditions, rituals,unwritten rules, stories,heroes or role models,symbols, language, dress)

Common setof referencesand practices exists insome groups within theorganization, but are notshared broadly; may beonly partially aligned withorganizational purpose oronly rarely harnessed toproduce impact

Common setof referencesand practices exists, andare adopted by manypeople within theorganization; referencesand practices are alignedwith organizationalpurpose and occasionallyharnessed to drivetowards impact

Common set ofreferences andpractices exist within theorganization, which mayinclude: traditions, rituals,unwritten rules, stories,heroes or role models,symbols, language, dress;are truly shared andadopted by all members ofthe organization; activelydesigned and used to clearlysupport overall purpose ofthe organization and to driveperformance

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appendix: capacity assessment grid -...

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