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					GOAL: Grid for Organizational Assessment and Learning
REDF's capacity assessment tool*

Purpose
One of the goals of a REDF portfolio relationship is to help portfolio organizations strengthen their capacity to achieve their
mission, particularly relating to social enterprise. REDF has developed GOAL (adapted from McKinsey's Capacity
Assessment Tool) to measure your organization's capacity in 6 areas:
   - Agency planning and performance
   - Agency leadership (CEO/ED and management team)
   - Agency management capacity
   - Agency financial sustainability
   - Agency network reach
   - Social enterprise
Select members from your organization, as well as from REDF, will each individually fill out GOAL. The compiled results
will be reviewed by the group and used to set goals for the year. Additionally, the results will be a useful baseline against
which future GOAL results can be compared.
In order to set the right goals, it is important to be open and honest when filling out GOAL. While your responses are not
anonymous, the compiled results will not attribute a particular person to a particular answer.
Your answers on GOAL will not affect REDF portfolio status in any way, nor should it affect anyone's status or
performance within an organization. Rather, it is meant for both you and us to learn more about your organization, and to
spark a productive discussion on where to focus our efforts together.

Instructions

- You can either fill out GOAL electronically or on paper (electronic preferred). Estimated time = 2 to 3 hours

If you fill it out electronically:
- Click the button below to go to GOAL.
- For each of the 32 elements listed, decide on the capacity level (1 through 4) that you think best describes your
organization's capacity, and either type or select your answer from the pull-down menu in the yellow box to the right. If you
don't know or don't want to answer, type or select "N/A".
- Should you need it, the button on the upper right hand corner of GOAL will take you to a glossary of terms.
- For each element, we have also suggested (on the far right) several types of documents that may help you, but please
do not spend excessive time on any one element.
- Once you are finished, please email the completed GOAL to Katie Gavigan, kgavigan@redf.org, as an attachment.
Please rename the file as: GOAL.yourorgname.yourfirstname.yourlastname.xls
If you fill it out on paper:
- Click the button below to go to GOAL, and print a copy. If you would also like to print the accompanying glossary of
terms, click the button on the upper right hand corner of GOAL, and print the glossary as well.
- For each of the 32 elements listed, decide on the capacity level (1 through 4) that you think best describes your
organization's capacity, and write your answer in the yellow answer box to the right. If you don't know or don't want to
answer, write "N/A".
- For each element, we have also suggested (on the far right) several types of documents that may help you, but please
do not spend excessive time on any one element.
- Once you are finished, either fax (415-561-6685) or mail (P.O. Box 29566, SF 94129) to REDF c/o Katie Gavigan prior to
the deadline. IMPORTANT: make sure your name and org's name are on each page!
Next steps:
- Katie Gavigan will compile all responses into one set of results, and email the results to all participants.
- We will meet as a group to discuss the results. Each participant should review the results report in advance.
- Using the results, we will mutually agree on capacity improvement goals for the organization.


Keep in mind…
- It's okay not to be a 4! No organization will be at Level 4 in all areas. In fact, for some elements, Level 1 or 2 may be
the most appropriate for that organization at that point in time.
- GOAL is not meant to be a comprehensive assessment of all areas of organizational capacity, so it shouldn't be used as
such. It has been tailored to focus on areas specific to REDF's strategy and expertise.
- Do not collaborate with others when filling out GOAL. The intent is to get your own individual perspective.
Understanding differences in perceived capacity levels among different individuals can lead to a greater learning
experience overall.
- While it may be helpful to refer to a document or two to refresh your memory, do not spend excessive time doing
research in order to answer a question. If you don't know the answer, or don't feel confident enough to answer, simply
select or write "N/A".
- It may be helpful for you to keep your own notes on why you selected a particular answer. These notes may come in
handy during the results debriefing meeting.



* GOAL is a derivative product of the Capacity Assessment Tool created by McKinsey and Company for Venture Philanthropy Partners
(www.vppartners.org), and published in Effective Capacity Building in Nonprofit Organizations (2001)
331f7c28-3666-451d-b509-fb01f4a37730.xls                                                                                                                                                                                                    3/26/2011


GOAL - Grid for Organizational Assessment and Learning
REDF's capacity assessment tool*

                                                                                                                                                                                                             Answer      Reference
                                                                                                                                                                                                             (1, 2, 3,   documents as
Element               Level 1                                        Level 2                               Level 3                                          Level 4                                          4, N/A)     necessary
Category 1: Agency Planning and Performance
  1 Strategic Planning       Organization does not have a            High level strategic plan exists;   Detailed strategic plan exists and has             Detailed strategic plan is updated and                       Strategic plan; process
                             strategic plan in place, or strategic   used as a general directional guide quantified goals and targets. Many but not         referred to regularly. Most or all org                       documentation (e.g.
                             plan needs to be updated                for decision making                 all org decisions can be linked to strategic       decisions can be linked to direction set by                  meeting minutes,
                                                                                                         plan                                               strategic plan                                               emails)
  2 Agency Goals and         No or few performance targets           Some performance goals and            Quantified targets exist in all areas, focused   Limited set of long-term targets focused on                  Agency performance
    Performance              exist; if targets exist, they are       targets exist; focused mainly on      on both inputs and outputs; knowledge of         social outcomes and key strategic goals in                   metrics, scorecards,
    Targets                  mostly focused on individual,           inputs and systems rather than        goals, targets, and progress assessment          all areas; goals and targets motivate staff at               reports
                             program-specific goals or funding       outputs; knowledge of goals,          resides with both upper management and           all levels to improve, and guide decision-
                             requirements                            targets, and progress assessment      some staff                                       making by staff at all levels
                                                                     resides mainly with upper
                                                                     management
  3 Agency Social            Social impact not measured              Program inputs and activities         Both inputs and outputs measured; some           Comprehensive, coordinated data collection                   Social impact metrics,
    Impact                                                           measured; data collected ad hoc       data collection systems exist but not            and tracking system used to track both                       scorecards, reports
    Measurement                                                      or as needed from various sources     necessarily coordinated with each other          outputs and outcomes over time

  4 Decision Making          Decisions made largely by               Decision process and owners exist Decision making system(s) and processes              Clear, formal decision making system(s) are                  Decision making
    Framework                individuals and communicated to         but are not documented;            are formalized and known by most;                   well-known by all and used extensively, with                 process (mapped out, if
                             other staff as they come up             decisions usually made informally processes are sometimes but not always               broad participation as practical/appropriate                 available); emails,
                                                                                                        followed                                                                                                         meeting minutes
  5 Program Design           Core programs and services are          Core programs and services linked Core programs and services well defined              All programs and services well defined, fully                List of programs,
    and Integration          broad or generic in scope,              to agency mission and goals;       and aligned with mission and goals;                 aligned with mission and goals; programs                     activities and outputs
                             addressing a wide variety of social     many but not all program offerings program offerings fit together well as part of      clearly linked to one another and to overall
                             needs; some programs more               focus on the same target           clear strategy                                      strategy; synergies across programs
                             tightly linked to agency goals than     population(s) or social need(s)                                                        captured
                             others




* GOAL is a derivative product of the Capacity Assessment Tool created by McKinsey and Company for Venture Philanthropy Partners (www.vppartners.org), and published in Effective Capacity Building in Nonprofit Organizations (2001)     Page 2 of 10
331f7c28-3666-451d-b509-fb01f4a37730.xls                                                                                                                                                                                                    3/26/2011


GOAL - Grid for Organizational Assessment and Learning
REDF's capacity assessment tool*

                                                                                                                                                                                                             Answer      Reference
                                                                                                                                                                                                             (1, 2, 3,   documents as
Element              Level 1                                        Level 2                                Level 3                                          Level 4                                          4, N/A)     necessary
Category 2: Agency Leadership
  6 Leadership         Mainly operates independently,               Open to input from others; able to     Actively solicits input from others; sought      Self-aware, and actively working to better
    Effectiveness      with limited external input or               influence and build support; mostly    out by others for advice; staff has freedom      themselves as leaders; delivers consistent
    (CEO/ED and        guidance; guidance to lower-level            directive about deliverables but       to try new ideas and set own goals within an     messages that inspire and motivate staff;
    management team)   staff usually given in a directive           staff has freedom to design own        overall strategic framework                      creates opportunities to promote staff
                       manner, both on tasks and                    workplans                                                                               development
                       deliverables
  7 Analytical &       Decisions made based on                      Recognize need for longer-term         Take time to proactively identify longer-term    Identifies both organizational and external
    Strategic Thinking immediate needs; change in                   solutions; some solutions              needs; analyze complex information from          gaps in social mission delivery; synthesizes
    (CEO/ED and        strategy occurs frequently;                  incorporate data and analysis;         various sources and distill to the few best      complex, ambiguous information to develop
    management team) problem solutions based solely on              strategic priorities exist, and they   solutions; uses solutions to develop and         strategic alternatives; identifies associated
                       readily available information and            are set primarily by individual or     prioritize strategic options to address          rewards, risks, and actions to lower risks;
                       immediate stakeholders                       external influences                    organizational needs                             changes in strategic priorities occur as a
                                                                                                                                                            logical result of problem-solving process


  8 Role of CEO/ED           CEO/ED is the organization's           Organization would continue to       Organization would continue in similar way         Reliance but not dependence on CEO/ED;
                             decision-maker; organization           exist without CEO/ED but likely in a without CEO/ED's presence but in areas             smooth transition to new leader could be
                             would cease to exist without           different form                       such as fundraising or operations would            expected; fundraising and operations likely
                             CEO/ED                                                                      likely suffer during transition period; no         to continue without major problems; senior
                                                                                                         member of management team could                    management team can fill in during
                                                                                                         potentially take on CEO/ED role                    transition time; several members of
                                                                                                                                                            management team could potentially take on
                                                                                                                                                            CEO/ED role
  9 Board/Staff              Board provides little direction,          Board provides some direction,       Board provides direction, support, and          Board provides strong direction, support,                    Board meeting
    Balance of               support, or accountability to staff       support, and accountability to staff accountability to staff leadership and is       and accountability to staff leadership                       minutes,
    Leadership               leadership; no clear process for          leadership and is informed about     informed about all major matters; its input is through clear goals and policies; acts as a                   communications
                             developing or selecting board             most organizational matters;         actively sought and valued; process in place strategic resource; process in place to
                             leadership; board not fully informed informal process of developing and for selecting effective board leaders; some            identify, develop, and select effective board
                             about major organizational                selecting board leadership; board cultivation of future leaders; full participant in leaders; communication between board and
                             matters; narrowly engaged or              input on most major decisions is     major decisions with clear understanding of staff leadership reflects mutual respect,
                             prone to micro-management;                sought and valued; occasional        distinction between board and staff             awareness of appropriate roles and
                             disagreement about appropriate            disagreement on the distinction      decisions; clearly understands leadership       responsibilities, shared commitment, and
                             level of board engagement; low            between board-level and staff-level roles and responsibilities and strives for a     valuing of collective wisdom; board actively
                             level of understanding of                 decisions; members understand        balance of engagement with staff                assess and supports CEO/ED’s leadership
                             leadership roles and                      most leadership roles and            leadership; members are effective               development and proactively engages in
                             responsibilities; little participation in responsibilities, including the need ambassadors for the organization                outreach to build organization’s reputation
                             reputation building                       for participation in reputation
                                                                       building activities




* GOAL is a derivative product of the Capacity Assessment Tool created by McKinsey and Company for Venture Philanthropy Partners (www.vppartners.org), and published in Effective Capacity Building in Nonprofit Organizations (2001)     Page 3 of 10
331f7c28-3666-451d-b509-fb01f4a37730.xls                                                                                                                                                                                                         3/26/2011


GOAL - Grid for Organizational Assessment and Learning
REDF's capacity assessment tool*

                                                                                                                                                                                                                 Answer      Reference
                                                                                                                                                                                                                 (1, 2, 3,   documents as
Element              Level 1                                        Level 2                                  Level 3                                            Level 4                                          4, N/A)     necessary
Category 3: Agency Management Capacity
 10 Recruitment,             Standard career paths in place         No active development                    Some use of active development                     Management actively interested in general                    Job descriptions, HR
    Development, &           without considering staff              tools/programs; feedback and             tools/programs; frequent formal and                staff development; well-thought-out and                      manuals, statistics on
    Retention                development; limited training,         coaching occur sporadically;             informal coaching and feedback;                    targeted development plans for key                           recruiting and retention,
                             coaching and feedback; no regular      performance evaluated                    performance regularly evaluated and                employees/positions; frequent, relevant                      performance evaluation
                             performance appraisals; no             occasionally; limited willingness to     discussed; genuine concern for high-quality        training, job rotation, coaching/feedback,                   forms
                             systems/processes to identify new      ensure high-quality job occupancy;       job occupancy; regular concerted initiatives       and consistent performance appraisal
                             talent                                 sporadic initiatives to identify new     to identify new talent                             institutionalized
                                                                    talent
 11 Organizational           Current organizational structure       Some organizational entities are         Organizational entities are clearly defined;       Roles and responsibilities of all                            Agency organizational
    Design                   was built organically over time        more clearly defined than others;        all roles and responsibilities of                  organizational entities (e.g., headquarters,                 charts; job descriptions
                             and/or does not match current          most roles and responsibilities are      organizational entities are formalized but do      regional and local entities) are formalized,
                             strategic priorities; organization's   formalized but may not reflect           not necessarily reflect organizational             clear and complement each other;
                             structure and staff responsibilities   reality; organization chart exists but   realities; organization chart is complete but      organization chart is complete and updated;
                             are fluid, and not captured in an      may be incomplete or outdated            may be outdated; organizational structure           organizational structure is regularly updated
                             organization chart                                                              mostly reflects current strategic priorities but   to reflect current strategic priorities
                                                                                                             may have remnants of older ones

 12 Staffing Levels          Organization has many unfilled         Some critical positions (staff,          Positions within and peripheral to                 Positions within and peripheral to                           Agency organizational
                             positions (staff, volunteers, board,   volunteers, board, senior                organization (staff, volunteers, board, senior     organization (e.g., staff, volunteers, board,                charts; statistics on
                             senior management), or positions       management) are not yet staffed,         management) are almost all staffed; a few          senior management) are all fully staffed with                turnover and
                             may be staffed with individuals        experience turnover, or are staffed      skill or experience gaps exist within staff but    individuals of appropriate skill and                         vacancies; job postings
                             who do not have the appropriate        with individuals whose skills may        does not impede progress; limited turnover         experience; no turnover or attendance
                             skills for their role(s); most staff   be appropriate in other roles; some      or attendance problems; some staff cover           problems
                             cover many responsibilities outside    staff regularly cover additional job     additional job functions, but only during
                             their job description in order to      functions beyond their own to            crunch periods
                             keep organization running              address staffing gaps

 13 IT Infrastructure                                    Adequate basic telephone and fax
                             No web site. Limited telephone                                                  Solid telephone, fax, computer hardware            Sophisticated and reliable telephone, fax,
                             and fax. Limited/no use of  but no individual voicemail; basic                  and software accessible to entire staff; no        computer hardware and software accessible
                                                         web site contains general info but
                             computers or other technology in                                                or limited sharing of equipment is                 by all staff, fully networked computing; all
                                                         lacks current developments; site
                             day-to-day activity. Current IT                                                 necessary; comprehensive web site                  staff have individual computer access and e-
                                                         maintenance performed
                             infrastructure is an impediment to                                              containing basic information on organization       mail; comprehensive web site, regularly
                             day-to-day effectiveness andoccasionally; well-equipped                         as well as up-to-date latest developments;         maintained with latest developments;
                             efficiency                  computing at central office but                     most information is organization-specific;         praised for its user-friendliness and depth;
                                                         limited infrastructure at other                     easy to maintain and regularly maintained          includes links to related organizations
                                                         locations; equipment sharing may
                                                         be common
 14 Databases &       No systems for tracking clients,   Electronic databases and                            Electronic database and management                 Comprehensive, integrated electronic                         Database
    Management        staff volunteers, program          management reporting systems                        reporting systems exist in most areas for          database and management reporting                            documentation
    Reporting Systems outcomes and financial information exist only in few areas; systems                    tracking clients, staff, volunteers, program       systems exist for tracking clients, staff,
                                                         perform only basic features, are                    outcomes and financial information;                volunteers, program outcomes and financial
                                                         awkward to use or are used only                     commonly used and help increase                    information; widely used and essential in
                                                         occasionally by staff                               information sharing and efficiency                 increasing information sharing and efficiency




* GOAL is a derivative product of the Capacity Assessment Tool created by McKinsey and Company for Venture Philanthropy Partners (www.vppartners.org), and published in Effective Capacity Building in Nonprofit Organizations (2001)         Page 4 of 10
331f7c28-3666-451d-b509-fb01f4a37730.xls                                                                                                                                                                                                             3/26/2011


GOAL - Grid for Organizational Assessment and Learning
REDF's capacity assessment tool*

                                                                                                                                                                                                                    Answer      Reference
                                                                                                                                                                                                                    (1, 2, 3,   documents as
Element               Level 1                                        Level 2                                Level 3                                           Level 4                                               4, N/A)     necessary
Category 4: Agency Financial Sustainability
 15 Agency Cash              Cash for coverage of some bill          Cash available for timely payment      Cash flow sufficient to meet obligations and      Cash available to meet all obligations and                        Cash flow statements;
    Financial Position       payments and payroll is                 of all obligations; board has not      take advantage of investment opportunities;       investment needs; board designated                                income statements;
                             sometimes an issue; or cash is          designated an operating reserve,       board has established or is developing an         operating reserve appropriate to budget size                      balance sheets
                             available to pay bills on time, but     but periodic surpluses could begin     operating reserve of at least three months        of at least six months of expenses; most
                             not to support an operating reserve     to support a reserve; designation      of expenses; balance of restricted and            assets are in unrestricted accounts and
                                                                     of unrestricted vs. restricted funds   unrestricted assets is justified                  good justifications exist for those that are
                                                                     is sometimes unclear                                                                     restricted

 16 Accounting System        Basic system in place to ensure In addition to previous level,                 In addition to previous levels, all accounts      Robust systems in place governing all                             Armanino McKenna
    & Procedures (refer                                      accounting practices conform to
                             that revenue is deposited and bills                                            reconciled during monthly closing; financial      financial operations; clearly documented                          report; audited
    to Armanino              are paid; major accounts        accepted standards to ensure that              activities fully tracked, supported, and          procedures ensure that all accounts are                           financials
    McKenna report)                                          federal, state, and local reporting
                             reconciled periodically, though not                                            reported through a general ledger system;         reconciled each month; all internal and
                             necessarily monthly; supporting requirements and tax payments                  chart of accounts provides accurate tracking      external accounting functions are fully
                                                             are met; records are closed
                             documentation for all transactions                                             of most financial activities; process exists to   integrated with budgeting, decision making,
                                                             monthly; financial activities are
                             is retained, chart of accounts not                                             allocate indirect costs including general,        and organizational goals; comprehensive
                             necessarily in use; system does documented through a general                   management, and fundraising expenses              chart of accounts tracks full range of
                             not track joint/indirect costs  ledger; chart of accounts includes                                                               financial activities; documented procedures
                                                             separate accounts for restricted                                                                 in place for allocation of all joint/indirect costs
                                                             funds; system can track and
                                                             allocate joint/indirect costs to
                                                             individual programs
 17 Financial Planning Financial planning limited to         Some financial plans with ad hoc               Solid financial plans, regularly updated;         Very solid financial plans, continuously                          Armanino McKenna
    & Analysis (refer to specific line items or to upcoming  updates; board reviews financial               board reviews financial information at each       updated; financial performance indicators                         report; financial plans,
    Armanino McKenna months; limited board oversight of information at least quarterly; cash                meeting; cash flow projections regularly          clearly identified and monitored by the board                     income statements,
    report)              financial performance; no or little flow projections prepared                      updated and monitored closely; trends             at least monthly; cash flow routinely                             trend analyses
                         cash flow monitoring or tracking of periodically and used for planning;            including year-end revenue and expense            monitored and reviewed in conjunction with
                         program unit costs; trend analysis some trend analysis is conducted                projections are monitored to assist in            other financial statements; current year and
                         not utilized as a planning method   and some, but not all joint/indirect           making sound management decisions;                multi-year trend data collected, analyzed,
                                                             costs allocated to individual                  program unit costs monitored through              and used for ongoing planning purposes;
                                                             programs                                       documentation of staff time and other joint       strategic priorities are incorporated into long-
                                                                                                            expenses                                          term financial projections
 18 Financial Policies       Financial policies are not in writing   Written policies in place regarding    Written financial policies adequate for the       Comprehensive written financial policies                          Armanino McKenna
    and Controls (refer      and/or are followed on an ad hoc        some financial procedures;             size and complexity of the organization           outline authority over all assets, including                      report; written financial
    to Armanino              basis; in lieu of a CPA-conducted       accounting duties are segregated       include investment policies and position          investments, and provide guidelines for                           policies; annual audits
    McKenna report)          audit, financial statements are         adequately for internal controls       descriptions for financial and accounting         controlling their accumulation and
                             included in an annual report;           purposes; in lieu of a full audit, a   personnel which delineate adequately              consumption; annual independent audit
                             minimal attention paid to insurance     CPA prepares an annual review of       segregated duties; a CPA prepares an              arranged by the board, which institutes any
                             needs; no financial impropriety         the financial statements; liability    annual audit or review of the financial           required changes; insurance needs
                             reporting mechanism in place            reduction measures include             statements; insurance needs reviewed by           reviewed by the board at least annually for
                                                                     insurance coverage appropriate for     the board periodically for appropriate levels     appropriate coverage; staff and volunteers
                                                                     organization type and size and         and types of coverage; confidential means         are informed about a confidential means to
                                                                     some method in place for               for reporting financial impropriety in place      report suspected financial impropriety and
                                                                     personnel to report financial          with protections against potential retaliation    are protected against potential retaliation
                                                                     improprieties




* GOAL is a derivative product of the Capacity Assessment Tool created by McKinsey and Company for Venture Philanthropy Partners (www.vppartners.org), and published in Effective Capacity Building in Nonprofit Organizations (2001)             Page 5 of 10
331f7c28-3666-451d-b509-fb01f4a37730.xls                                                                                                                                                                                                     3/26/2011


GOAL - Grid for Organizational Assessment and Learning
REDF's capacity assessment tool*

                                                                                                                                                                                                             Answer      Reference
                                                                                                                                                                                                             (1, 2, 3,   documents as
Element                      Level 1                                Level 2                                Level 3                                          Level 4                                          4, N/A)     necessary
 19 Budgeting                A general budget based on             Annual budget based on previous         Based on two or more years of data, budget       Based on multiple years of data, budget is                   Annual budgets,
                             previous performance is               year’s financial performance            reflects steady gradual growth or contraction    integrated into all operations and reflects                  budget process
                             developed, reviewed, and              includes program, management,           and is integrated into most operations; solid    steady gradual growth or contraction;                        documentation
                             approved by the board; one            and fundraising costs and all           efforts made to isolate divisional (program      conservative revenue projections (any
                             budget for entire organization;       sources of funding and is used as       or geographical) budgets within central          increases justified by infrastructure
                             performance against budget            an operational tool; some isolation     budget; performance-to-budget monitored          changes); well-understood divisional
                             sometimes or not monitored            of divisional (program or               regularly                                        (program or geographical) budgets within
                                                                   geographical) budgets within                                                             central budget; performance-to-budget
                                                                   central budget; performance-to-                                                          closely monitored
                                                                   budget monitored periodically
 20 Funding Stability        Organization highly dependent on Organization has access to                   Good diversity of funding sources with solid     Highly diversified funding across multiple                   Development plan;
                             a few funding sources, largely of     multiple types of funding (e.g.,        base of funders in most categories (e.g.,        source types; large and active individual                    proposals
                             the same type (e.g., government, government, foundations,                     government, foundations, corporations,           donor base, with development efforts
                             foundations, individuals, special     corporations, individuals, special      individuals, special events); some activities    tailored to their varied and unique needs;
                             events); no/narrow individual donor events) but only a few funders in         to hedge against market instabilities (e.g.,     insulated from market instabilities through
                             base, or donor base exists but little each type, or has many funders          building of endowment and/or developing          fully developed endowment and/or
                             is known about them; little or no     within only one or two types;           revenue-generating activities); attention        sustainable revenue-generating activities;
                             funding stability from year to year   individual donor base exists but is     paid to growing both size and knowledge of       other nonprofits emulate organization's
                                                                   not a focus; funding base relatively    individual donor base                            fundraising strategies
                                                                   unstable
 21 Fund Development         Fund development strategy not         Fund development strategy               Fund development strategy includes               Multi-pronged fund development strategy is                   Donor management
    Planning &               well articulated and/or reliant on    includes several activities, but is     multiple activities and is loosely connected     proactive and integrated into budget                         system documentation;
    Evaluation               funds from a few sources; no or       not well connected to strategic         to long-term strategic plan and budget           projections and strategic plan; well                         donor development plan
                             few activities underway for long-     plan and budget projections;            projections; some systems in place for           developed and documented systems for
                             term planning, revenue                fundraising more opportunistic          proactive long-term planning, revenue            long-term planning, revenue diversification,
                             diversification, managing against     than strategic; some efforts            diversification, managing against target         managing against target goals; costs and
                             target goals, or evaluating fund      underway to develop systems for         goals, and evaluating costs of fundraising       effectiveness of fund development
                             development efforts; no or            long-term planning, revenue             activities; development staff are involved in    strategies are evaluated; development staff
                             inexperienced development staff       diversification, managing against       setting and meeting individual goals within      are integral to both setting and executing
                                                                   target goals, and evaluation of         overall development strategy                     overall organization's fund development
                                                                   fund development program;                                                                strategy
                                                                   dedicated development staff in
                                                                   place, focused on executing




* GOAL is a derivative product of the Capacity Assessment Tool created by McKinsey and Company for Venture Philanthropy Partners (www.vppartners.org), and published in Effective Capacity Building in Nonprofit Organizations (2001)      Page 6 of 10
331f7c28-3666-451d-b509-fb01f4a37730.xls                                                                                                                                                                                                          3/26/2011


GOAL - Grid for Organizational Assessment and Learning
REDF's capacity assessment tool*

                                                                                                                                                                                                                Answer      Reference
                                                                                                                                                                                                                (1, 2, 3,   documents as
Element              Level 1                                        Level 2                                  Level 3                                         Level 4                                            4, N/A)     necessary
Category 5: Agency Network Reach
 22 Network and              Organization’s presence is limited     Organization’s presence                  Organization reasonably well-known within       Organization widely known within larger                        Publications, press
    Community                to immediate circle of stakeholders    recognized and generally regarded        community and within local/national network     community, and seen as a leader or                             clippings
    Reputation               (including partners, customers and     as positive within peer network and      of peers; perceived as open and                 innovator within local/national peer network;
                             clients); relatively unknown within    the community; some members of           responsive to community needs; members          perceived as actively engaged with and
                             peer network or larger community       larger community constructively          of larger community constructively involved     responsive to it; many members of the
                                                                    engaged with organization                in organization                                 larger community actively and constructively
                                                                                                                                                             involved in organization

 23 Network and              Organization not involved in           Involved in applicable local,            Regularly involved in peer networks both        Built and maintained long-term, high-impact
    Community                applicable local, regional or          regional or national peer networks       locally and nationally. Effectively built and   relationships with peer network (and
    Relationships            national peer networks (if they        on an ad hoc or perfunctory level.       leveraged some key relationships with some      national headquarters, if one exists) as well
                             exist). Limited use of partnerships    Early stages of building                 relevant parties (for-profit, public, and       as variety of relevant parties (government
                             and alliances with public sector,      relationships and collaborating with     nonprofit sector entities); some relations      entities as well as for-profit, other nonprofit,
                             nonprofit, or for-profit entities      other for-profit, nonprofit, or public   may be precarious or not fully “win-win”        and community agencies)
                                                                    sector entities.

 24 Capturing and            Learning from past experience,         Lessons learned are internally           Organization captures and shares lessons        Organization regularly and proactively sets                    Publications,
    Sharing Lessons          codification and/or dissemination      codified and/or shared; no time or       learned externally on an ad hoc or as-          aside time and budget to capture and                           conference
    Learned                  of lessons learned has not             budget is proactively set aside for      requested basis through familiar or             disseminate lessons learned; written                           proceedings, press
                             historically been part of              capturing lessons learned                convenient forums, e.g. annual trade            dissemination plan exists and is used;                         releases, articles;
                             organization's goals                                                            conferences, own network; dissemination         dissemination occurs in many different                         dissemination plan
                                                                                                             happens mostly organically through own          formats, tailored to different audiences
                                                                                                             website, existing networks and outlets          outside of own network, and feedback is
                                                                                                                                                             captured and incorporated into future
                                                                                                                                                             dissemination plans




* GOAL is a derivative product of the Capacity Assessment Tool created by McKinsey and Company for Venture Philanthropy Partners (www.vppartners.org), and published in Effective Capacity Building in Nonprofit Organizations (2001)        Page 7 of 10
331f7c28-3666-451d-b509-fb01f4a37730.xls                                                                                                                                                                                                      3/26/2011


GOAL - Grid for Organizational Assessment and Learning
REDF's capacity assessment tool*

                                                                                                                                                                                                              Answer      Reference
                                                                                                                                                                                                              (1, 2, 3,   documents as
Element               Level 1                                       Level 2                                 Level 3                                          Level 4                                          4, N/A)     necessary
Category 6: Social Enterprise
 25 Enterprise Link to       Enterprise(s) are not as integral to   Social enterprise(s) are linked to      Social enterprise(s) are fairly strongly         Social enterprise(s) are critical to executing               Latest copy of strategic
    Agency Mission           mission as other programs;             mission as strongly as other            aligned with organization's mission;             mission of organization, and necessary to                    plan; mission statement
    and Strategic Plan       enterprise(s) not mentioned in         programs; enterprise(s)                 enterprise included as a priority in strategic   fulfill key goals of strategic plan
                             strategic plan                         mentioned in strategic plan but not     plan
                                                                    as a priority
 26 Market            Can identify several immediate or             Can identify major competitors in       Solid knowledge of competitive dynamics          Extensive knowledge of industry market                       Business plan; market
    Understanding and local competitors; understanding              local market, and know                  within industry (e.g. pricing strategies,        dynamics, including similar industries in                    studies; customer
    Response          of market demand is based on                  enterprise(s) relative competitive      suppliers, regulatory issues); regularly         different markets and future trends.                         surveys; industry
                      own customers' recent behavior;               position; can identify customer         adapt enterprise business model to reflect       Proactively adapt business model to                          reports
                      changes in business model based               needs outside of own customer           current changes in market conditions             anticipate future changes in market trends
                      on factors other than customer                base; sometimes change product
                      demand                                        mix or service to reflect changing
                                                                    demand
 27 Strength of              Operations and social mission          Operations have been established;       Operations are well-established and in line      Operations incorporate industry best                         Social outcomes
    Enterprise               delivery in formative stages           some "kinks" being worked out in        with industry benchmarks and accepted            practice, and performance is ahead of                        metrics; operational
    Operations and                                                  business and social mission             practices; social mission delivery is seen as    industry benchmarks; social mission                          metrics
    Delivery of Social                                              delivery; business operations are       solid, and partially integrated with business    delivery is seen as excellent, and tightly
    Mission                                                         seen as separate from social            operations, e.g. business model is similar to    integrated with business operations, e.g.
                                                                    mission delivery                        comparable for-profits, but some aspects         business model has been tailored to
                                                                                                            have been altered to improve social mission      improve social mission delivery while
                                                                                                            delivery                                         exceeding performance goals
 28 Enterprise               No enterprise-specific                 Agency staff manage overall             Dedicated enterprise manager in place,           Enterprise manager tracks performance                        Enterprise
    Management               management; agency staff               enterprise operations; some             monitoring short-term performance and            trends and conducts long-term strategic                      organizational chart,
                             oversee enterprise(s) part-time;       enterprise-specific staff in place at   some daily operations - "putting out fires";     planning; manager delegates daily                            job descriptions
                             everyone "wears many hats"             lower levels; agency staff              manager oversees enterprise staff, who           operations to enterprise-specific general
                                                                    occasionally monitor key financial      may cover several functions; periodic            managers, all with appropriate industry
                                                                    and social performance indicators       agency oversight of key financial and social     experience; regular meetings occur
                                                                                                            performance indicators                           between enterprise and agency
                                                                                                                                                             management to review both short- and long-
                                                                                                                                                             term performance




* GOAL is a derivative product of the Capacity Assessment Tool created by McKinsey and Company for Venture Philanthropy Partners (www.vppartners.org), and published in Effective Capacity Building in Nonprofit Organizations (2001)      Page 8 of 10
331f7c28-3666-451d-b509-fb01f4a37730.xls                                                                                                                                                                                                       3/26/2011


GOAL - Grid for Organizational Assessment and Learning
REDF's capacity assessment tool*

                                                                                                                                                                                                             Answer      Reference
                                                                                                                                                                                                             (1, 2, 3,   documents as
Element                      Level 1                                Level 2                                Level 3                                          Level 4                                          4, N/A)     necessary
 29 Enterprise          No separate accounting of                   Enterprise revenues and direct         Enterprise revenues and all costs tracked        Enterprise has own distinct, appropriate                     Enterprise income
    Financial Reporting enterprise financials, either costs         operating costs tracked separately     distinctly from agency's; some enterprise        accounting system that is linked to agency's                 statements, balance
                        or revenues                                 from agency's, e.g. as a separate      social costs are tracked but not all; some       system; social costs fully identified and                    sheets
                                                                    program; social costs not tracked      administrative costs allocated to enterprise     tracked, with all appropriate overhead costs
                                                                    or separated; administrative costs                                                      allocated
                                                                    not allocated

 30 Enterprise               No separate budget for enterprise      Budget for enterprise exists and is    Budget for enterprise exists, based on two       Budget for enterprise based on                               Enterprise business
    Financial Planning                                              based on previous year's data          or more years' data and some external            conservative revenue projections and                         plan; budget
                                                                                                           industry information, and performance-to-        comparable industry data/benchmarks;
                                                                                                           budget tracked                                   performance-to-budget frequently monitored
                                                                                                                                                            and used to adjust future budget

 31 Path to                  Enterprise lives "paycheck to          Enterprise has enough guaranteed       Enterprise has clear plan (with some             Enterprise has solid long-term (2-3 year)                    Enterprise cash flow,
    Sustainability           paycheck"; small or no customer        revenue (earned and/or                 demonstrated track record) for medium term       plan for revenue generation (earned and/or                   customer pipeline,
                             pipeline; transition between           subsidized), customers/jobs, and       (1 year) revenue generation, including           subsidized) to cover anticipated expenses                    income statements,
                             immediate status and future            operating labor/supplies for short     sales/marketing and additional capital           and growth; deep pipeline of customers or                    balance sheets
                             success not clearly laid out           term viability (~6 months) but plan    investments; operating costs are stable and      solid long-term demand exists; operating
                                                                    beyond that is unclear, or may         sufficiently under control                       costs are streamlined and efficiency savings
                                                                    need major additional investment                                                        captured

 32 Enterprise Social        Neither inputs/activities or social Enterprise's social inputs and            In addition to inputs and activities, social     Comprehensive, coordinated data collection                   Social outcomes
    Outcome                  impact of enterprise are measured activities measured (e.g. # of              outputs measured (e.g. income or housing         and tracking system used to track both                       metrics, reports,
    Measurement                                                  employees; # of trainings held);          status of employees); some data collection       outputs and outcomes (e.g. % decrease in                     analyses
                                                                 data collected ad hoc from various        systems exist but not necessarily                substance abuse) over time; data trends
                                                                 sources                                   coordinated; data sometimes used to refine       analyzed and used to refine enterprise
                                                                                                           enterprise service delivery                      service delivery




* GOAL is a derivative product of the Capacity Assessment Tool created by McKinsey and Company for Venture Philanthropy Partners (www.vppartners.org), and published in Effective Capacity Building in Nonprofit Organizations (2001)        Page 9 of 10
GOAL - Grid for Organizational Assessment and Learning
REDF's capacity assessment tool*

Glossary of terms

Term                               Definition

Metric or performance indicator    Something that is tracked, usually numerical or quantitative, in order to assess how
                                   well something or someone is doing. Examples: revenue per year, trainings held
                                   per month, clients served per week, % of clients homeless after 6 months
Input                              The building blocks or resources that go into making a program or enterprise
                                   happen. Examples of input metrics: staff hours per training held, dollars spent per
                                   event
Activity                           The way or ways in which a program or enterprise's inputs get used. Examples of
                                   activity metrics: number of trainings held, number of events attended, number of
                                   job postings

Output                             What gets accomplished, produced, completed, etc as a result of an activity.
                                   Examples of output metrics: number of participants trained, number of housing
                                   units built, dollars raised, systems implemented, new staff hired
Outcome                            The social impact (either short- or long-term) that happens as a result of the output.
                                   Examples of outcome metrics: decrease in homelessness, decrease in high-school
                                   dropouts, increase in employment retention
Organizational entity              A division, office, program, or department within an organization's structure e.g. "the
                                   Chicago office" or "Youth Programs"




* GOAL is a derivative product of the Capacity Assessment Tool created by McKinsey and Company for
Venture Philanthropy Partners (www.vppartners.org), and published in Effective Capacity Building in Nonprofit Organizations (2001)