issues
INSTITUTIONAL &INSTITUTIONAL &
ORGANISATIONALORGANISATIONAL
DEVELOPMENTDEVELOPMENT
A Source Book of Tools and Techniques
PROMOTINGPROMOTING
This sourcebook has been written by David Wilson and Lindsay Beaton of The Development Partnership under the supervision
of Simon Gill of Governance Department, with support from Colin Roth.
Promoting Institutional & Organisational Appraisal & Development
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1. ANALYSIS AND DIAGNOSIS:
OVERALL INSTITUTIONAL FRAMEWORK . . . . . . . . . . . . . . . . . . . 9
1/1 Assessment of Institutional Capabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
1/2 Impact Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
1/3 Sponsor Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
1/4 Change Forecasting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
2. ANALYSIS AND DIAGNOSIS:
THE ORGANISATION IN ITS INSTITUTIONAL CONTEXT . . . . . . . . 17
2/1 Open Systems Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
2/2 7-S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
2/3 SWOT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
2/4 Organisational Elements Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
2/5 Problem Tree Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
3. REVIEW AND DESIGN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25
3/1 Risk Management Matrix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
3/2 Benchmarking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
3/3 Business Process Reengineering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
4. IMPLEMENTATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
4/1 Change Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
4/2 Force Field Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
4/3 Burke Litwin Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
4/4 StakeholderManagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
5. MONITOR/EVALUATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
5/1 EFQM Excellence Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Appendix Open Systems Model: Detailed Checklists . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Department for International Development, March 2003
3
CONTENTS PAGE
Promoting Institutional & Organisational Appraisal & Development
INTRODUCTION
This sourcebook outlines some of the key tools used by those involved in institutional development.While there
are an increasing number of tools and techniques,we have focused here on those that are used or have been used
in DFID’s own institutional work.We have for example drawn on the Sourcebook on Institutional Development
for Utilities and Infrastructure prepared by PriceWaterhouseCoopers in 2000 for DFID’s Sustainable
Livelihoods Support Office. The World Bank has also been developing and piloting some diagnostic tools that
focus on specific aspects of institutional development, from Civil Service Institutional Assessment to legal and
judicial review. We have included one example here (Tool 1/1) and others are covered in depth on the World
Bank website (www1.worldbank.org/publicsector/toolkits.htm) Governance Department have also developed a
Governance Review Framework to cover the 7 key governance capabilities and guidance on the use of this tool
and others can be obtained from DFID.
Most of the tools are either simple models or checklists designed to help you through the key issues. They all
have rigorous theoretical underpinnings and are based on practical experience of what works. Most
importantly, the tools provide a common framework for encouraging discussion between the stakeholders
involved in the institutional reform process. None of the tools is intended to be a blueprint, all have their
strengths and weaknesses, and they should be adapted to reflect the local context in which you work and in a
way that works best for you.
5
Promoting Institutional & Organisational Appraisal & Development
1. ANALYSIS AND DIAGNOSIS: Overall
Institutional Framework
1/1 Assessment of Institutional
Capabilities
A tool developed by the World Bank for "diagnosing
institutional capability for implementing and
sustaining a policy".The toolkit provides a structured
approach for asking questions, analysing results, and
identifying critical institutional issues.
1/2 Impact Analysis
A structured workshop for representatives of all
groups concerned with the change process, held
before the process begins. It helps to get all
stakeholders involved; to identify objectives and
predicted areas of impact; and to build stakeholder
consensus and commitment. It can also produce
innovative suggestions for evaluation measures.
1/3 Sponsor Evaluation
This is a questionnaire which looks at key aspects
of the change sponsor’s attitudes and readiness
to change.
1/4 Change Forecasting
A tool which is being developed within DFID to
assist in the development of Country Assistance
Plans. The tool will assist in the identification of
interventions which will promote change; in the
measurement of performance and in the assessment
of particular sectors where reform may take place.
2. ANALYSIS AND DIAGNOSIS:
The Organisation in its Institutional
Context
2/1 Open Systems Model
The model recommended for a diagnosis of
the strategic/institutional environment, and
organisational problems.
2/2 7-S
This describes 7 key interdependent organisational
variables that need to be taken into account in
organisational design. It forces practitioners to think
not only about the "hardware" of an organisation - its
strategy and structure - but also about the "software"
- its management style, systems and procedures,
staff, skills and shared values ( ie. culture).
2/3 SWOT
SWOT analysis is a tool for assessing and
communicating the current position of an
organisation or a particular reform option in terms
of its internal Strengths and Weakness and the
external Opportunities and Threats it faces.
2/4 Organisational Elements Model
This demonstrates the relationship between inputs
and results. It looks for linkages between all the
elements of the process, from inputs through to
outcomes; if the chain breaks at any point this
indicates there is no connection between the
elements e.g. there may be inputs which are not
contributing to the creation of outputs, and not
producing any return on investment.
2/5 Problem Tree Analysis
This helps to illustrate the linkages between a set of
complex issues or relationships by fitting them into a
hierarchy of related factors. It is used to link issues
which contribute to an institutional problem, and to
help to identify the underlying or root causes.
SUMMARY OF TOOLS
6
Promoting Institutional & Organisational Appraisal & Development
3. REVIEW AND DESIGN
3/1 Risk Management Matrix
This identifies risks and their likely impact, and
strategies for responding to different degrees of risk.
3/2 Benchmarking
A comparison of processes in a different context as a
basis for the design of a series of interventions.
3/3 Business Process Reengineering
This involves the fundamental review and redesign
of an organisation's business processes. It aims to
move from traditional division of labour towards
the creation of integrated cross-functional work
processes. The underpinning philosophy is that
such integrated work units are more flexible and
can respond more readily to customer and
service demands.
4. IMPLEMENTATION
4/1 Change Management
This provides a note of the five key elements to take
into account in change management and a checklist of
activities to carry out for a major change programme.
4/2 Force Field Analysis
A technique for analysing the forces that help or
obstruct change. It can be useful, as part of drawing
up a strategic change plan,in examining how feasible
a strategic objective is, and in identifying areas of
focus for any associated action plan.
4/3 Burke Litwin Model
The "Burke-Litwin model" is a model of organisational
change and performance. It provides a link
between an assessment of the wider institutional
context and the nature and process of change within
an organisation.
4/4 Stakeholder Management
How to identify the individuals or groups who will
either be affected by the changes or have the ability to
impact on the change process; and developing a
strategy to manage these stakeholders.
5. MONITOR/EVALUATE
5/1 EFQM Excellence Model
A framework for assessing the aspects of performance
which make an organisation successful.
7
ANALYSIS AND DIAGNOSIS:
1 Overall Institutional Framework
Institutional
Development
5. Monitor/evaluate
1. Analysis and Diagnosis:
Overall Institutional
framework
3. Design
4. Implementation
TH
E
INSTITUTIONAL DEVELOPMENT PROCE
SS
2. Analysis and Diagnosis:
the organisation in its
institutional context
Institutional
Development
5. Monitor/evaluate
1. Analysis and Diagnosis:
Overall Institutional
framework
3. Design
4. Implementation
TH
E
INSTITUTIONAL DEVELOPMENT PROCE
SS
2. Analysis and Diagnosis:
the organisation in its
institutional context
Promoting Institutional & Organisational Appraisal & Development
1 ANALYSIS AND DIAGNOSIS: Overall Institutional Framework
10
What is it?
This tool (developed by the World Bank) provides a
good basis for "diagnosing institutional capability
for implementing and sustaining a policy".
The toolkit provides a structured approach for
asking questions, analysing results and identifying
critical institutional issues.
How is it used?
• Start by identifying the objectives of the policy,
programme or project and outcomes required to
meet these
• Work back from these outcomes to identify the
necessary actions and behaviours that will be
required and by whom, and the institutions that
will influence these actors (particularly where these
are likely to result in outcomes significantly
different from what you expect).On the basis of this
identify those institutions that have to be addressed
to meet the policy,programme or project objectives
(referred to below as the "critical to success"
institutions)
• Collect data from relevant sources, including key
local stakeholders, informed observers, relevant
documentation and past experience of DFID and
other donors
• Compile information in the logical framework
shown below
• The key questions to ask are shown below
Objectives
Objective 1
Objective 2
Required
Outcomes
Outcome 1
Outcome 2
Required
Actions
Action 1
Action 2
Required
Actors
Actor X
Actor Y
Plus
Positive
Incentive for
Actor X to do
Action 1
Minus
Negative
Incentive for
Actor X to do
Action 1
“Critical to
Success”
Incentives
Crucial to
Success
Incentives for
Actor X to do
Action 1
Incentives for Actors
to Take/Not to Take Required
Actions
Reference: Adapted from Berryman S. etal (1997). "Guidelines for Assessing Institutional Capacity, November 17,World Bank.
1/1 ASSESSMENT OF INSTITUTIONAL CAPABILITIES
Promoting Institutional & Organisational Appraisal & Development 11
Assessment Area
1. The Outcomes: What Has to
Occur for the problem
Addressed by the Policy,
Programme or
Project to be Solved?
2. Implementation Actions
and Actors: What Critical
Actions Have to be Taken
to Secure the Outcomes
and by Whom?
3. What are the formal and
informal institutions that
condition whether and how:
• players who control
the resources and
permissions required to
take critical actions make
them available
• players responsible for
taking critical actions try to
obtain resources they need
and deploy those they get
Key Questions
• What are the specific outcomes
that would constitute policy,
programme or project success?
• How will beneficiaries have
to behave - or which of their
behaviours will have to change
- for the policy, programme or
project to succeed?
• What key actions do the
different stakeholders (including
beneficiaries) have to take to
realise the desired outcomes?
(both at policy making and
implementation stage)
• What critical actions does the
state have to take to realise
the desired outcomes, and
who has to take them? This
refers to all relevant government
actors from politicians
to front-line service providers
• In practice, what incentives
affect the players who control
the resources required for a
critical action?
Examples / Comments
• Be careful not to confuse outcomes
(meeting water needs for a particular region)
with the means (building standpipes)
• For example if a policy objective is to
improve the performance of the electric
power sector, users have to stop bribing
meter readers in return for false readings to
lower their bills
• Eg. private sector construction firms may have
to take specific actions to implement a policy
of road maintenance standards, such as using
materials that meet new specifications
Consider, for example:
• Funding: predictability of necessary funds,
historical variances between budget
allocations and actual expenditure, etc
• Legislation and Regulation: What laws and
related monitoring regime need to be put in
place. Eg. Development of roads agency
may require enabling legislation; does the
government have the necessary regulatory
capacity to ensure privatised utilities will meet
service requirements?
• Assets, Products and Services: What new assets
have to be purchased (such as a new road, new
IT system, etc) and are there any constraints
(such as capital finance regulations)
• Responsibility and Authority: Who has the
decision-making power / power to block
decisions? Do local government authorities
have the resources to match their authority?
• Actors may undertake or block actions
depending on how the action affects their
monetary rewards, status within kinship
group, etc. Is actor primarily motivated by
public service ethic?
Reference: Adapted from Berryman S. etal (1997). "Guidelines for Assessing Institutional Capacity, November 17,World Bank.
Promoting Institutional & Organisational Appraisal & Development
1/2 IMPACT ANALYSIS
What is it?
Impact analysis involves representatives of all groups
involved in the change process taking part in a
workshop before the process begins. The process
described below draws on the work of Peter Bramley
and Barry Kitson1.
The advantages of this process are:
• involvement of all stakeholders
• useful in identifying objectives and predicted
areas of impact for follow-up evaluation
• helps build stakeholder commitment
to the change
• achieves stakeholder consensus on objectives
• can produce innovative suggestions for
evaluation measures
How do I use it?
1. At an early stage in the intervention organise a
workshop of at least half a day for:
• agents, ie. people who design or
implement the change
• beneficiaries, ie. people who will benefit from
the change in some way
• victims, ie. those who will be
negatively affected
Some people may fall into more than one category,
for instance, a line manager could be a beneficiary in
the long term, but a victim in the short term.
2. Ask each stakeholder to write down what he or
she sees as the three most important purposes of
the change, one purpose to a piece of paper.
3. Collect the statements and pin them up on a
board/fix them on a wall (Post-Its are useful).
4. In discussion, group the purposes into related
clusters and agree a title for each cluster.
5. Give each stakeholder 10 points to allocate as
he/she chooses between the clusters, with the
most points to the cluster he/she thinks
represents the most important objective. There
are no restrictions on points allocation;
stakeholders can give all the points to one cluster
if they wish. This process should have identified
the overall priorities for all the stakeholders.
6. Ask the group to consider each of the objectives
in turn, and to suggest how they would assess
whether or not the objective had been achieved
and how they would evaluate its impact on
organisational performance and outcomes.
Variants
• you can add in an extra stage between prioritising
objectives and identifying evaluation measures,
which would be to carry out a force field analysis
(see 4/2) of factors which will help or hinder the
change. If you do this you will need more than a
half-day workshop
• you may choose to reconvene the workshop at
intervals to see if stakeholders’ priorities have
changed and if the impact and evaluation
measures are proving valid
Box 1 suggests some approaches to help ensure a
favourable impact on the poor.
1 ANALYSIS AND DIAGNOSIS: Overall Institutional Framework
12
1 Peter Bramley and Barry Kitson, Journal of European Industrial Training,Vol 18, No 1, 1994
Promoting Institutional & Organisational Appraisal & Development 13
Experience shows that without internal change in the main service provider organisations there will be little or no
change in their external relationships with service users: services will continue to be of little relevance to poorer
people and there will be limited sustained change in poor people’s access or influence over key livelihood assets.
To make a real difference to poor people’s lives it is essential for service providers to recognise the outcomes that
poor people want. Sustained change in poor people’s livelihoods needs organisational change both of those
directly involved with service provision and those organisations providing support (e.g. donor agencies).
There are several approaches that can help service providers to devise ways of reaching poorer households:
Box 1: Reaching the Poor
• Shifting clients – generally from wealthier to poorer
households and understanding their diversity of
livelihood strategies
• Finding out what services make a real difference
to their lives
• Focusing on those services and dropping others
that do not make a significant difference to poor
people’s livelihoods
• Moving from implementation to enabling and
facilitation of others to provide services; only
implementing where there is a demonstrable
comparative advantage
• Changing the way an organisation organises itself ie.
responding to entry points after an holistic analysis
of livelihoods and their opportunities and constraints
has been carried out, rather than predetermining
entry points; moving from rigid structures that
constrain innovation and responsiveness
• Changing attitudes, values and behaviour of staff
from ‘knowing’ and lecturing poor people on how
to develop their lives to facilitating them to take
their own lives forward through informed choices
• Changing internal systems and structures to
support these new roles, in particular introduction
of dynamic, responsive and flexible mechanisms;
providing mechanisms for choice
• Changing procedures, information and
communication flows, changing the way
resources are planned, allocated and accounted
for (eg. introducing flexibility and responsiveness
through new funding mechanisms)
• Introduction of action-learning approaches,
iterative cycles rather than linear-sequential
implementation
Source:“Unpacking the PIP Box”Mary Hobley 2001 (PIP=Policies, Institutions, Processes)
Promoting Institutional & Organisational Appraisal & Development
1 ANALYSIS AND DIAGNOSIS: Overall Institutional Framework
14
I believe I have a full appreciation of the impact of the changes on the people in the organisation 1 2 3 4 5
I am very willing to commit whatever resources (which are at my disposal)
that are required for the change project to succeed 1 2 3 4 5
I am very willing to demonstrate personal support for the change (e.g.: meet privately with key individuals) 1 2 3 4 5
I am able and willing to reward promptly those who facilitate implementation 1 2 3 4 5
I am able and willing to express displeasure with those who inhibit the acceptance of the change 1 2 3 4 5
I am willing and able to make sacrifices for the project, even if the costs are high 1 2 3 4 5
I am willing to maintain strong and sustained commitment until the change is implemented 1 2 3 4 5
I have a clear idea why the proposed change is required 1 2 3 4 5
I am prepared to put effort into communicating the reasons for change 1 2 3 4 5
I will be rewarded for helping to implement the proposed change 1 2 3 4 5
The proposed change is in accord with the values of this organisation 1 2 3 4 5
The change being proposed is vitally necessary 1 2 3 4 5
My senior colleagues agree with the proposed changes 1 2 3 4 5
If this proposed change is implemented it may call into question my previous decisions or performance 1 2 3 4 5
The proposed change will have a great deal of impact on the organisation 1 2 3 4 5
Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree
1 2 3 4 5
Reference: Adapted from "Management of Change", D. Connor.
1/3 SPONSOR EVALUATION
What is it?
The sponsor evaluation is a questionnaire which
looks at key aspects of the sponsor’s attitudes and
readiness to change.
How do I use it?
Ideally,work through the questionnaire in discussion
with the sponsor. Discuss each question in some
depth rather than quickly select a response.
Alternatives are to ask him/her to complete it, or
complete it yourself based on what you believe to be
the sponsor's views on the proposed change (in the
latter case you will need to confirm the consistency
of your marks with the sponsor).
Promoting Institutional & Organisational Appraisal & Development 15
1/4 CHANGE FORECASTING
What is it?
This tool, being developed by DFID, is designed to
provide realistic predictions of likely change.It is based
on the premise that while donors can encourage
change they cannot make it happen; and that change
will only take place when the government and people
of a country really want it. Change Forecasting (CF)
predicts what is likely given the particular historical,
political, cultural and economic context. This can
include the effects of donor support and
encouragement, but it should not assume that donor
efforts“drive”change.
When is it useful?
CF analysis takes a lot of time,effort and consultation.
It is best reserved for analysing significant change –
institutional rather than organisational.For example it
is likely to be too elaborate for a new computer system
at a central health ministry, which may be important
for those using it but would not constitute a significant
reformist change. On the other hand, wider health
sector reform such as changing the ministry’s role
from direct implementer to regulator would constitute
reformist change, and CF analysis may well be
justified. CFs can also be used to conduct a risk
assessment of our interventions at country level.
How can it help?
By answering three main questions:
• which sectors should we support? It makes sense for
donors to support sectors where reform is likely
and to steer clear of those where it isn’t. It may be
worth reviewing sectors where we are already
involved: if there is a real prospect of change,
reviews of existing or planned projects can show
which of them will help the change process; which
will hinder it; and which are neutral.If on the other
hand there is no real prospect of change in a sector
then prima facie we should pull out
• how should we support promising sectors? Knowing
what changes are likely helps to identify interventions
which will support them.
• how are we doing? Is the reform we predicted
taking place and are our interventions helping the
reform process?
How do I do it?
The forecast will be made up of four components: a
statement of overall change; a stakeholder analysis,
showing who the key stakeholders are and defining
the key characteristics of their current and
anticipated behaviour; a forcefield analysis (see 4/2
below); and a description of the process of change.
The statement would describe:
• the key characteristics of the sector in its current
state; and
• the future state, after the anticipated change, and
over the relevant time-frame
The description would be a “road map” showing the
key steps or the “how” of change, including the role
of the people who are pressing for change – the
“change advocates”.
This approach may need to be modified to suit the
particular circumstances; users should employ a
process that they feel comfortable with. The process
will often be as important as the outcome, since it
should help to increase understanding of a sector.
The time frame is up to you, but:
i as horizons lengthen uncertainty increases, and
the usefulness of the forecast to programme
decisions decreases;
ii on the other hand, significant change does not
happen overnight;
iii if the time frame for the expected change is long,
it might be helpful to specify two CFs: a long
term (say, 15 year) one; and a shorter term (say,
5 year) one, which is a time-slice of the first.
These could then satisfy both (i) and (ii). The
shorter CF should be consistent with, and
encompassed by, the longer-term projection.
If it becomes clear during the process that there is no
realistic prospect of substantial pro-poor change,
there will often be little purpose in completing the
forecast. Completed forecasts will usually be ones in
which the direction of change is favourable. But
occasionally – for example if we are considering
withdrawing from a sector – it may be worth
completing an unpromising forecast to show why the
sort of change we would be willing to support is
unlikely to happen. In sectors which are felt to be
particularly crucial, unpromising CFs may also be
worth completing to help understand better the
blockages to change, and to develop influencing
strategies to address them.
The scope of a CF will vary from case to case. It may
be a sector – health, education; or a sub-sector such
as primary schooling. Or it may be something
broader, not necessarily corresponding with
individual Ministerial responsibilities. The
over-riding criterion for defining a unit of analysis is
that the conclusions should be discrete and well
defined.This might not be the case,for example,with
a high level unit such as economic policy: the
required overall change might be "improved
economic environment for pro-poor economic
growth"; CF analysis might then investigate the
various aspects of this, such as the financial sector,
regulatory functions, public enterprises, trade policy
etc; each of these is likely to require a second-level
Statement of Overall Change that yields a more
tractable forecast. A clear and useful answer to the
original high level question is unlikely to emerge.
Change forecasts should be undertaken with local
partners and other interested donors. This will
improve the quality of the forecast. There may be
differences of opinion about the likelihood of change
– a Minister may believe that reform in a certain
sector is likely and we may disagree. The process of
consultation should aim to obtain as wide agreement
as possible, but ultimately DFID needs to agree with
the forecast in order to support it.
1 ANALYSIS AND DIAGNOSIS: Overall Institutional Framework
ANALYSIS AND DIAGNOSIS:
2 The Organisation in its Institutional Context
Institutional
Development
5. Monitor/evaluate
1. Analysis and Diagnosis:
Overall Institutional
framework
3. Design
4. Implementation
TH
E
INSTITUTIONAL DEVELOPMENT PROCE
SS
2. Analysis and Diagnosis:
the organisation in its
institutional context
Promoting Institutional & Organisational Appraisal & Development
2 ANALYSIS AND DIAGNOSIS: The Organisation in its Institutional context
18
Strategic and institutional Environment
• Economic background - growth etc
• Political/legal environment - stability, - legal framework of
institution, - corruption, - extent of political interference in
detailed operations
• Social - cohesiveness of society, - minorities issues
• Priorities and policy making capacity
• Key drivers for change
• History of previous reform efforts and achievements
• Key stakeholders - what critical actions have to be taken
• Outcomes - what constitutes programme success?
• Incentives - to modify behaviour of key stakeholders
• Accountability and governance arrangements?
• Informal influences?
Strategy
• Official statements of goal and mission
• Actual priorities as indicated by budget allocations to divisions
• Is there a strategic planning process - what form? Were staff and
other stakeholders involved?
• Form of high level decision-making
• Has the strategy been derived from an appraisal of the
institutional environment - strengths, weaknesses, opportunities,
threats? Current levels of service delivery?
• Are the goals and strategy generally understood inside and
outside the institution/ organisation?
• is there a plan to achieve the changes necessary to meet goals?
Is there a clear implementation plan? And provision to adapt and
review in light of circumstances?
People/HRM
• Human "outputs" - indications of satisfaction and
commitment such as absenteeism and turnover
• pay scales and how do they compare with
competing organisations
• Is there a performance management/appraisal system
• Perceptions of leadership of organisation
• Investment in training/skills development
• Skills shortages
• What are the main personnel systems?
Does the organisation know how many staff it has?
• What is the recruitment system?
Are there any major staff shortages?
• Informal power blocks and coalitions
Structure
• What is current structure? Is there a clear organisation chart?
• Are there clear lines of accountability responsibility?
• What are the number of management levels in the organisation?
• What are the average spans of control?
• Basis for grouping of units
• Co-ordination mechanisms
• Spatial distribution of units
• Degree of decentralisation of processes and authority
Inputs and Resources
• Revenue: major sources; how stable are they?
Is there a serious shortfall and if so why?
• Financial and capital assets
• Numbers of staff by job category
• Major programmes and programme headings
• Balance between personnel and operating costs
• Budgeting system - how effective?
• Does final expenditure bear any relation to the budget?
• Is there a link between expenditure and outputs?
• Size of budget surplus/deficit
• What accountability and audit mechanisms are in place?
• For commercial enterprises, is the organisation financially sustainable?
• Financial performance over last 3 years
Culture
• attributes of national culture and their impact on the institutional
framework / management of the organisation
• What are the implications of the above for the design of:
i Consultative/ participatory processes
ii Performance management
iii Monitoring information
iv Impact of external change agent
• Likelihood of a more effective organisation
meeting its goals
Systems
• Major systems for high level decision-making, strategy
formulation and planning
• Are systems clearly documented?
• What evidence is there of use of systems
• What management information is supplied
at what levels? What action is taken as a result?
• Are there clear lines of accountability?
• Try a random check on how a specific system is
being used in practice
• What formal and informal mechanisms exist
for co-ordination?
• Are there documented procurement processes?
Outputs/Performance
• Main products or services
• Indications of satisfaction with services
• Impact on the poorest in society
• Baseline of performance - what outputs,
at what cost and outcomes
• Performance of key policies
• Is there a performance management system?
Detailed checklists of the major elements of this model are given in Appendix 1.
Reference: Cummings and Worley:“Organisation Development and Change”, 7th edition South-Western Thomson Learning
Table 6: Structuring Information on Institutional and Organisational Characteristics
2/1 OPEN SYSTEMS MODEL
What is it?
This model and its use is fully explained in Chapter 3 of the main guidelines. It is particularly useful at the
appraisal/diagnosis stage.A summary version of key issues is shown below:
Promoting Institutional & Organisational Appraisal & Development
2/2 7-S MODEL
What is it?
The 7-S framework describes 7 key interdependent
organisational variables that need to be taken
into account in organisational design. It forces
practitioners to think not only about the "hardware"
of an organisation - its strategy and structure - but
also about the "software" - its management style,
systems and procedures, staff, skills and shared
values ( ie. culture).
The 7-S model has proved to be a useful tool for
analysing internal issues within an organisation.
However, it does not take into account the impact
of the external environment on these 7 variables.
While it is not as robust as the Burke-Litwin
model (see 4/3), many find it easier to remember,
use and communicate.
The authors developed the model in the context
of their research into the key attributes of excellent
private sector organisations. They identified
8 attributes:
• A bias for action: Built in devices to ensure a
responsive, action-oriented approach
• Close to the customer: Listen to customer to
ensure quality of outputs and service. Autonomy
and entrepreneurship: Support creative and
innovative people
• Productivity through people: Treat staff with respect
and as most important asset
• Hands-on, value driven: Strong organisational
philosophy throughout organisation
• Stick to the knitting: Focus on core competencies
and areas of expertise
• Simple form, lean staff: Avoid complex structures
(e.g. matrix), keep top level lean
• Simultaneous loose-tight properties: Autonomy with
centrally-promoted core values
19
Skills
Structure
Staff
Systems
Style
Strategy
Shared
Values
Promoting Institutional & Organisational Appraisal & Development
How do I use it?
• Use the 7-S Framework as a basis for discussion of
organisational design with key stakeholders in
the organisation and relevant experts. Special
attention should be paid to the relationships
between the 7 variables
• Gather data on each of the areas based on desk
research and interviews with key stakeholders
throughout the organisation
• Summarise findings in a report for senior staff.
This report can then be used as a basis for
identifying which boxes relate to which executives
and managers, and can be useful in helping them
understand the complex performance and change
issues they are trying to manage
• Key questions to include are summarised in the
table below
• As noted above, one of the key weaknesses of the
7-S Framework is its failure to look at the external
environment. In practice, there are a number of
external issues that need to be considered during
the design phase, including for example:
• Supportive legislative structures: Do new laws
need to be introduced to enable agency formation?
• Wider policy context: How does the institutional
reform being implemented fit with other reforms
in progress?
• Other aspects of the wider institutional context:
For example, how do informal institutions in
society (such as "patronclientelism", gender
relationships, etc) impact on the organisation's
culture and design?
2 ANALYSIS AND DIAGNOSIS: The Organisation in its Institutional context
20
Area Examples of Key Questions
Strategy Clarity of vision and goals that guide the organisation? Extent to which these are
shared amongst planners? Level of participation in formulation of these?
Structure Organisation of functions? Definition of roles and responsibilities? Mechanisms
for participation of key stakeholders - staff, other Ministries and civil society?
Systems Effectiveness of the human, financial and technology systems that
support objectives? Nature of incentives within HR and budgeting policies
and procedures.
Staff Effectiveness of staff utilisation? Adequacy of staff resources?
Level of staff motivation? Factors that would increase job satisfaction?
Skills Nature of task requirements and individual skills/knowledge needed for
task effectiveness? Adequacy of the task-skills match? Opportunities for
training/knowledge sharing?
Style Leadership style of Ministers/senior civil servants and relationship with staff?
Extent to which there is a supportive environment for staff?
Level of communication?
Shared Values Nature of the overt and covert rules, values, customs and principles
that guide organisational behaviour? Extent to which core professional
values are internalised?
Reference: Peter and Waterman: "McKinsey 7-S Framework".
Promoting Institutional & Organisational Appraisal & Development
2/3 SWOT
What is it?
SWOT analysis is a tool for assessing and communicating
the current position of an organisation or a
particular reform option in terms of its internal
Strengths and Weakness and the external Opportunities
and Threats it faces.
It provides a clear basis on which to develop
a picture of the changes needed to build on
strengths, minimise weaknesses, take advantage of
opportunities and deal with threats.
How do I use it?
• Gather and summarise initial insights from
internal interviews and relevant documents
• Supplement as needed with insights from surveys
of users and other key stakeholders
• Organise the insights in the format below
• Carry out this process with key partners
and stakeholders
• Note that many strengths can also be weaknesses
when viewed from a different perspective. The
same applies to opportunities and threats
• Develop strategies on the basis of this analysis
2/4 ORGANISATIONAL ELEMENTS MODEL
What is it?
The Organisational Elements Model (OEM) is
designed to demonstrate the relationship between
organisational efforts, organisational results, and
external payoffs2. The aim is to demonstrate the
relationship between inputs and results. The key point
of this analysis is the need to show linkages between all
the elements of the process, from inputs through to
outcomes.If the chain breaks at any point this indicates
there is no connection between the elements e.g.inputs
are not contributing to the creation of outputs, and
therefore there is no return on investment.
Pros:
• very useful in identifying areas where evidence of
post-learning benefits may be found
• also useful as a diagnostic tool to identify where
there may be a learning need
Cons:
• no hard data
• can appear academic; possibly more useful as an aid
to discussion rather than persuasion
21
2 R Kaufman, Strategic Planning Plus: an organisational guide Newbury Park, CA, USA, 1992
Strengths
1.
2.
3.
4.
Opportunities
1.
2.
3.
4.
Weaknesses
1.
2.
3.
4.
Threats
1.
2.
3.
4.
ExternalInternal
Promoting Institutional & Organisational Appraisal & Development
How do I use it?
1. Identify the following elements involved in
the activity:
• inputs
• processes
• products
• outputs
• outcomes
2. Write this information in the boxes in the OEM
table, with the top row showing what the
organisation would like the situation to be,
and the second row showing the reality of the
current situation.
3. Look at each of the elements and see if there is a clear link
between it and its neighbours. For instance, are inputs
used in processes, are outputs the result of the use of
inputs in processes?
4. Missing elements or a lack of clear linkage between
elements indicates “disconnects” ie. areas where
there are inefficiencies or lack of the necessary
resources and methods to deliver useful results.
An effective organisation will show clear links
between products and outputs and outcomes.
2 ANALYSIS AND DIAGNOSIS: The Organisation in its Institutional context
22
What should
or could be
What is
Outcomes Outputs Products Processes Inputs
What should
or could be
What is
Outcomes
patients living
healthy and
productive lives
Outputs
patient
discharge
from hospital
Products
completed
surgery or
therapy
Processes
methods of
treatment
Inputs
money
staff
resources
Example
A cost benefit analysis of health care interventions3 identified the following elements in the current situation (“what is”):
They observed that in the current situation there was no
clear link between products and outputs and outcomes, ie.
between patient discharge from hospital and patients
living happy and productive lives. They then concentrated
on identifying indicators which would link the first
four elements with the final outcome to demonstrate
the effectiveness of the health care interventions.
The disconnect was between product and outcome, due to
the inadequate definition of the product. A better
definition might be "successful completion of surgery or
therapy which deals with major symptoms and
is sustained".
3 R Kaufman and R Watkins, Cost consequences analysis, Human Resource Development Quarterly, vol 7 No 1 Spring 1996
Promoting Institutional & Organisational Appraisal & Development
2/5 PROBLEM TREE ANALYSIS
What is it?
Problem tree analysis helps to illustrate the linkages
between a set of complex issues or relationships by
fitting them into a hierarchy of related factors.
It is used to:
• link together the various issues or factors which
may contribute to an institutional problem
• help to identify the underlying or root causes of an
institutional problem
the major assumption underlying the problem tree is
the hierarchical relationship between cause and effect.
How do I use it?
1. Identify the major existing problems/issues
based on available information (e.g. by
brainstorming).
2. Select one focal problem for the analysis e.g.
poor communications to staff.
3. Develop the problem tree beginning with the
substantial and direct causes of the focal
problem e.g. hierarchical and autocratic management
culture.
The following figure illustrates the process:
23
This process can help to distinguish the underlying or root causes of an institutional problem from their effects and guide
advisers towards the critical issues that need to be tackled in institutional development. For example, poor budgetary
processes or late arrival of funds in a Ministry may be effects of a poor or non-existent Public Expenditure Management
process or poorly articulated priorities – or no money.
FOCAL PROBLEM
Effects
Causes
Developing the Problem Tree
Promoting Institutional & Organisational Appraisal & Development
PROBLEM ANALYSIS: Bus Example
The elements in the problem tree can then be re-formulated as an objectives tree, by re-wording the problems, from the
top, as positive statements or objectives.
OBJECTIVES ANALYSIS: Bus Example
2 ANALYSIS AND DIAGNOSIS: The Organisation in its Institutional context
24
Frequent Bus Accidents
Effects
Core Problem
Causes
passengers
hurt or killed
Loss of confidence
in bus company
people
are late
drivers not
careful enough
bad conditions
of vehicles
bad road
conditions
vehicles
too old
no ongoing
maintenance
Frequent Bus Accidents
Greatly Reduced
Effects
Core Problem
Causes
fewer
passengers hurt
customers have
better image of
bus company
passengers
arrive on time
drivers drive
carefully and
responsibly
vehicles kept in
good condition
road conditions
improved
old vehicles are
regularly replaced
vehicles regularly
maintained
and checked
REVIEW AND DESIGN
3
Institutional
Development
5. Monitor/evaluate
1. Analysis and Diagnosis:
Overall Institutional
framework
3. Design
4. Implementation
TH
E
INSTITUTIONAL DEVELOPMENT PROCE
SS
2. Analysis and Diagnosis:
the organisation in its
institutional context
Promoting Institutional & Organisational Appraisal & Development
3/1 RISK MANAGEMENT MATRIX
What is it?
The risk management matrix is based along two axes:
• the likelihood of an adverse outcome
• the scale of the impact if things don’t go to plan
The degree of risk will therefore fall into one of four
quadrants. The relevant strategies for responding to
the degree of risk are set out in each of the quadrants.
How do I use it ?
Identify possible problems and decide which
quadrant they fall into and then plan accordingly for
how they will be managed.
Risk is not static, and regular risk assessments should be
carried out to ensure that circumstances have not led to the
need for a revised assessment and handling strategy.
3/2 BENCHMARKING
What is it?
Benchmarking involves regular meetings of people
from different sections within an organisation
or from different organisations to exchange
information and ideas about specific processes or
areas of activity.It contributes to building a culture of
openness, learning and continuous improvement.
How do I use it?
To be effective it requires:
• regular (not necessarily frequent) meetings
• defined agendas focused on specific issues
eg.“responding to customer complaints”
rather than the more general ”customer service”
• agreed groundrules eg. the extent to which
information will be shared (more of an issue
when private sector organisations are involved)
• a clear framework for examining benchmark
activities or processes. The simplest of these
involves breaking each activity or process down
into its component parts and then reviewing:
i what works
ii what doesn’t work
iii what could be done differently
Simpler processes are often the most effective,
especially in providing the opportunity for more
junior members of an organisation to participate.
Tips and comments
Benchmarking can operate simultaneously at
different levels within an organisation; for instance,
one benchmarking group of Registry clerks can be
looking at filing systems whilst heads of Department
can be benchmarking strategic planning processes.
Participants in benchmarking do not have to be
operating in the same fields; in fact,there is a lot to be
gained from benchmarking similar processes with
very different organisations. for example, when the
UK Prison Service wanted to benchmark how it
handled queues of prisoners it looked at how the Post
Office managed the same process.
3 REVIEW AND DESIGN
26
LOW
HIGH
HIGH
IMPACT
LIKELIHOOD
LOW
Contingency
Plans
Detailed
Management
Occasional
Review
Regular
Review
3/3 BUSINESS PROCESS REENGINEERING
What is it?
Business process re-engineering (BPR) involves the
fundamental review and redesign of an organisation's
business processes. It aims to move from traditional
division of labour towards the creation of integrated
cross-functional work processes. The underpinning
philosophy is that such integrated work units are
more flexible and can respond more readily to
customer and service demands.
How do I use it?
The steps involved in BPR are shown in the
figure below:
1. Review the organisation's operating context to
identify pressures for doing business differently.
2. Review and clarify the organisation’s core
objectives and business strategy.
3. Identify and analyse core business processes.
These are the processes that are considered
essential for the organisation to perform
successfully.At this stage,some BPR reviews also
cost the processes.
This can be a useful lever for change as it
identifies the real cost of certain activities which
are often not apparent because costs are
ascribed to overall organisational budgets (eg.
salaries, accommodation). Realising how much
of an organisation's resources a particular
activity consumes can come as a surprise – or
shock – and reinforce the need for change, or
raise the question whether the activity should
take place at all.
4. Define performance objectives for each
business process.
5. Design new business processes. This is the part
of BPR that goes back to basics, asking the
question:“If we were setting up this organisation
today, what processes would we need to create to
provide an excellent service/retain a competitive
advantage?” The guidelines for this part of the
process are shown in the box below.
Promoting Institutional & Organisational Appraisal & Development 27
Design
New Business
Process
Review
Context
Core
Objectives
Analyse Core
Business
Processes
Define
Performance
Objectives
BPR guidelines
• begin and end the process with the needs
of the customer
• simplify the current process by combining and
eliminating steps
• use the best of the current process
• attend to both the technical and social aspects
of the process
• do not be constrained by past practice
• identify the critical information required at each
step in the process
• perform activities in their most natural order
• assume the work gets done right first time
(ie. don’t build in excessive checking)
• listen to the people who do the work
Reference: R. Manganelli & M.Klein "The Reengineering
Handbook" (New York: AMACOM, 1994).
Promoting Institutional & Organisational Appraisal & Development
6. Restructure the organisation around the new business processes.
3 REVIEW AND DESIGN
28
Case study: UK War Pensions Agency
The UK War Pensions Agency was initially organised around the activities involved in processing a pension
application and managing pension payments so that, for example, one section handled applications but once a
pension was awarded responsibility for payments was transferred to another section. This separation of activities
meant that nobody owned the whole process, and led to a high error rate and, more importantly, a poor quality
of service to a customer group who were mainly elderly and frail.
The Agency decided to move to a system where teams were organised around customers, with responsibility for
seeing the whole process through for their particular group. This led to a greater sense of ownership and job
satisfaction for the team members and a much improved quality of service to customers.
Reference: Hammer & Champy "Reengineering the Corporation" (New York: Harper Collins 1993).
IMPLEMENTATION
4
Institutional
Development
5. Monitor/evaluate
1. Analysis and Diagnosis:
Overall Institutional
framework
3. Design
4. Implementation
TH
E
INSTITUTIONAL DEVELOPMENT PROCE
SS
2. Analysis and Diagnosis:
the organisation in its
institutional context
Promoting Institutional & Organisational Appraisal & Development
4/1 CHANGE MANAGEMENT
What is it?
Various approaches to change management exist. However, all include the following key elements:
4 IMPLEMENTATION
30
Element Issue
Change Vision Why is change necessary? Is there a compelling and inspiring vision
that is driving change (such as improved public services)?
Has this been communicated?
Change Strategy What are the enablers & barriers to change? Are people willing to change?
What should the approach be? Is there a clear project team leading change?
Commitment Is there support for change amongst politicians/senior civil servants?
Is there local ownership or has reform been imposed? What is being
done to build commitment.
Capacity and Is there a change sponsor or champion who will lead change? Is there
Leadership effective leadership throughout the organisation with the capacity to manage
change? Do staff have the skills needed to perform in the new organisation?
have change agents been identified?
Culture How does the organisational culture support/hinder reform? Is reform taking
place on the basis of internalised principles? Is effort needed to change the
culture? What is being done to engage with users and poor people? What
resources are being mobilised to sustain change?
Change
Vision
Capacity
Change
Strategy
Culture
Commitment
and
Leadership
Promoting Institutional & Organisational Appraisal & Development
How do I use it?
31
Element Activities
Change Vision • Understand the need for change
• Develop a clear and compelling argument for change - the change vision
• Carry out visioning workshop with key stakeholders
Change Strategy • Assess change readiness to minimise the risk of reform failure. Ideally this should be
done early (preferably when there is still scope to alter the design of the reform) in
order to increase understanding of the reform's change impact, identify high risk areas
that will need to be managed, understand stakeholders' concerns/insights/emotional
responses to change and key issues for the communications strategy
• Identify change sponsor and change agents. (This can be done through interviews
and/or a "change readiness workshop")
• Identify the key enablers (those things that work to support change or are critical to
success) and barriers to change (those things that can hinder reform)
• Select the best framework for managing the change process. Experience demonstrates
the effectiveness of an impartial, senior project manager and a committed project
management unit acting as a catalyst in the reform process
• Develop a project plan (based on the other activities listed in this table)
Commitment • Change can be achieved through building commitment or generating compliance
The right mix will depend on the nature of the reform and you should start by asking:
Is commitment or compliance needed? If we need commitment, how much is needed
and from whom?
• There are five inter-linked components of building commitment:
i Stakeholder Management (see 4/4): This involves identifying who the key
stakeholders are and managing them through the change process
ii Managing Resistance: Resistance needs to be managed continuously and can be
grouped into 3 categories, each of which will require different activities:
"Unwilling" (activities will include negotiation, persuasion, introduction of positive
and negative sanctions, redesign of reform); "Unable" (this will require training,
skills transfer, support and coaching); and "Unknowing" (activities will focus on
communication and involvement)
iii Team Building: people often feel alone during major change. Actively encourage
team building to provide a supportive atmosphere for staff
iv Skills Transfer: Identify skills gaps to address through training. This can help remove
some of the fear about being unable to perform "new" tasks
v Communications: Honest, timely, frequent, consistent, two-way communication is
essential to building commitment. Develop a communication plan that focuses on
the "why" as much as on the "what". A good communications plan should consider:
the audience, message, media, frequency, goals, responsibility, feedback
mechanisms and measures of communication effectiveness
Capacity • Develop leadership capacity and commitment. Change champions and agents may
require specific training in team working and change management. Sponsors may need
support and coaching
• Develop the capacity and skills amongst staff to succeed in the new organisation.
• Mobilise the people and financial resources needed to sustain reform
Culture • Assess what culture factors (norms, values, beliefs, etc) are driving behaviour. Look at
culture in relation to time, hierarchy, relationships, space and activity. How strong are
these factors and to what extent do they fit with the direction of the change
programme? Do not let your own cultural orientations influence your analysis
and Leadership
Promoting Institutional & Organisational Appraisal & Development
4/2 FORCE FIELD ANALYSIS
What is it?
This is a technique for analysing the forces that help
or obstruct change. It can be useful, as part of
drawing up a strategic change plan, for examining
how feasible a strategic objective is and what areas
need to be focused on in any associated action plan.
How do I use it?
1. Identify the forces which support the
achievement of change (driving forces) and those
which act against the change (restraining forces).
2. Identify ways in which driving forces can be
promoted, strengthened or maximised.
3. Identify ways of reducing, weakening or
minimising the restraining forces.
The detailed steps in the process are described below
(see also the format at the end of this section).
Write a brief description of your objective.You must
state what you want to achieve and when, very
specifically, using the words "To.........by...."
NB Make sure you have stated only one objective deal
with additional ones on a separate sheet.
1. List the all driving forces you can think
of on the left
• Be very specific (ie.what,who,where,when how
much,how many etc)
• Forces can be inside you as well as outside
• Indicate how the force will contribute to meeting
the objective
2. List the restraining forces on the right
• Again, be specific
• List all the factors, both inside and outside
yourself which will work against you
• Indicate what effect each force is likely to have
on your achieving your objective
3. Analyse the forces
• Identify which forces are most important
(make sure they are real, not assumed).
These are the ones that will have a significant
effect on whether or not you can achieve
your objective. Circle all the important
forces on your list
• Obtain any additional information you may
feel is lacking about any important force
4. Strengthen the driving forces - weaken the
restraining forces (reducing a restraining
force is generally more effective than
increasing a driving force).
•Work on each important force in turn
• Identify ways in which you can increase,
strengthen, or maximise each driving force
• Identify ways in which you can reduce,
minimise or eliminate each force working
against you
• If you really cannot find a way of reducing a
restraining force, write "no action possible"
against it
• It is often useful to get others' ideas and
suggestions to help here
• The secret of the technique is to address the
forces most likely to tip the balance
5. Realistic assessment of feasibility
• Do the driving forces now clearly outweigh the
restraining forces?
• If yes, check "Do I really want to achieve this".
If the answer is another yes, then adopt your
objective and begin work on the forces
• If the answer is no to either question,revisit
section 4 to see if you can come up with further
ideas.If you can't,you may have to revise
your objective
Box 2 illustrates some driving and restraining
forces affecting forestry policy in Malawi, from the
wider environment. There are also likely to be
driving and restraining forces in the immediate
environment, of course.
4 IMPLEMENTATION
32
Promoting Institutional & Organisational Appraisal & Development 33
Box 2: Developing a National Forestry Policy in Malawi
At the outset, a number of positive and negative developments in the wider environment were noted which would
have an impact on the forestry sector:
Positive
• Inflation down, growth up: encourages investment by forest product producers and a larger private sector
• Primary school enrollment up: will eventually increase capacity of workforce, entrepreneurs and managers
• Market liberalisation: smallholders’ livelihoods boosted (but downside: expanding farms encroaching on forest)
• Privatisation and deregulation: opportunities for commercial plantations and smallholder tree production
• Land policy reform: registration of communal land will increase security of access and use and encourage
long-term investment eg. in tree planting
Negative
• Chronic land shortage and food insecurity: puts additional pressure on forests; not conducive to long-term
smallholder tree production, or larger forestry investment
• Credit use and repayment declining: militates against small and medium enterprise
• Roads, law and order, deteriorating: keeps smallholder farm gate prices low; reduces security of forest and
tree assets
• HIV/AIDS spiralling: high mortality in workforce - rural, urban, forest; the fit have to look after the sick, and
orphans; and funerals make financial demands
• Chronic shortage of fuelwood: more time looking for fuel means less time on productive work; burning of eg.
crop residues reduces soil fertility; fuel shortages mean less food cooked reducing nutrition standards especially
for children
• Civil service reform and shrinking budgets: collapse in capacity leading to poor management of plantations
and natural woodland
• Weakly-planned decentralisation: local communities unable to realise opportunities to access resources, assert
rights and rise to responsibilities
Over time, the impact of these developments may increase or diminish; some of them may evaporate; new ones
may come along.
Action to remedy negative developments, where feasible, often falls outside the bounds of forestry policy.
FORCE FIELD ANALYSIS
What is the change you want to make?
Promoting Institutional & Organisational Appraisal & Development
4 IMPLEMENTATION
34
List the:
DRIVING FORCES RESTRAINING FORCES
Promoting Institutional & Organisational Appraisal & Development
4/3 BURKE-LITWIN MODEL
What is it?
The "Burke-Litwin model" is a model of organisational
change and performance. It provides a link
between an assessment of the wider institutional
context and the nature and process of change within
an organisation. It makes the following key points:
• The external environment is the most powerful
driver for organisational change
• Changes in the external environment lead to
changes in the "transformational" factors within
an organisation - its mission and strategy, its
organisational culture and its leadership. These are
referred to as transformational because if changed,
they have an impact across the whole organisation
and its staff
• Changes in these transformational factors lead to
changes in the "transactional" factors within an
organisation - its structure, systems, management
practices and climate. These are more operational
factors and changes in them may or may not have
an organisation-wide impact
• Together, changes in transformational and
transactional factors affect motivation, which
in turn impacts on individual and organisational
performance
• The model describes 12 organisational variables
(incorporating the 7 variables of the 7-S model see
2/2) and the relationships between them. Each of
the variables interact and a change in any one of
them can eventually impact on the others. This is
useful in explaining not only how organisations
perform, but also how they can be changed
Internally, the key levers for major organisational
change are the transformational factors.
Transactional factors are more relevant when change
is about "fine tuning" the organisation.
However, to be effective and sustainable, changes in
transformational and transactional factors need to
be consistent with each other.
35
External Environment
Leadership
Mission & Strategy Organisational Cultural
Individual Needs & ValuesTask & Individual Skills
Management Practices
Structure Systems
Work Unit Climate
Motivation
Individual and Organisational Performance
Promoting Institutional & Organisational Appraisal & Development
How do I use it?
• Gather data on relevant boxes based on desk
research and interviews with key stakeholders
throughout the organisation
• Summarise findings in a report for senior staff.
This report can then be used as a basis for
identifying which boxes relate to which executives
and managers, and can be useful in helping them
understand the complex performance and change
issues they are trying to manage
• Key questions to include are summarised in the
table below:
4 IMPLEMENTATION
36
Dimensions of Model Key Questions
1. External Environment What are the key external drivers? How are these likely to impact on the
organisation? Does the organisation recognise these?
2. Mission & Strategy What do top management see as the organisation’s mission and strategy?
Is there a clear vision and mission statement? What are employees’
perceptions of these?
3. Leadership Who provides overall direction for the organisation? Who are the role
models? What is the style of leadership? What are the perspectives of
employees?
4. Organisational Culture What are the overt and covert rules, values, customs and principles that
guide organisational behaviour?
5. Structure How are functions and people arranged in specific areas and levels of
responsibility? What are the key decision-making, communication and
control relationships?
6. Systems What are the organisation’s policies and procedures, including systems for
reward and performance appraisal, management information, HR and
resource planning, etc?
7. Management Practices How do managers use human and material resources to carry out the
organisation’s strategy? What is their style of management and how
do they relate to subordinates?
8. Work Unit Climate What are the collective impressions, expectations and feelings of staff?
What is the nature of relationship with work unit colleagues and those in
other work units?
9. Task & Individual Skills What are the task requirements and individual skills/abilities/knowledge
needed for task effectiveness? How appropriate is the organisation’s
“job-person” match?
10. Individual Needs & Values What do staff value in their work? What are the psychological factors
that would enrich their jobs and increase job satisfaction?
11. Motivation Do staff feel motivated to take the action necessary to achieve the
organisation’s strategy? Of factors 1-10, which seem to be impacting
most on motivation?
12. Individual & Organisational What is the level of performance in terms of productivity, customer
Performance satisfaction, quality, etc? Which factors are critical for motivation and
therefore performance?
Reference:Adapted from Burke W.W. & Litwin G.H. (1992)
A Causal of Organisation Performance and Change in“Journal of Management”.
Promoting Institutional & Organisational Appraisal & Development
4/4 STAKEHOLDER MANAGEMENT
What is it?
Stakeholder management is a central part of
managing change. It involves
• Identifying the individuals or groups who will
either be affected by the changes or have the ability
to impact on the change process
• Developing a strategy to manage these stakeholders
How is it used?
• Identify and gather information on key
stakeholders through interviews, surveys,
change readiness workshops and relevant client
documents (such as organisation charts)
Be careful to protect any sensitive information
you gather during the stakeholder analysis.
• Analyse the information gathered along
4 dimensions:
1. Impact of Change: What will the impact of
the change be on the individual? (High,
Medium,Low)
2. Reaction to change: How will they react to
change? (Opponent, Follower, Enthusiast)
3. Level of Power and Influence: what is the
person’s level of power and influence? (High,
Medium, Low)
4. Desired Support: what level of support is
desired from the individual? (Necessary,
Desirable, Unnecessary)
• Present this information in the format below.
Dimensions 1 and 2 are plotted on the matrix,
while symbols are used to illustrate 3 and 4
• In practice, the level of detail you go into will
depend on the time and information available.
A simple table that plots groupings of individuals,
organisation (or even countries) with respect to
the impact of change and their likely reaction can
be a useful tool for initial analysis
• The stakeholder analysis will enable you to
categorise stakeholders eg. champion/sponsor or
change agent
• Develop a stakeholder management plan that
involves activities such as leadership,coaching or
mentoring for sponsors, project management skills
and training for change agents, and facilitation
skills for those seeking to achieve consensus
37
Stakeholder A
Stakeholder B
Stakeholder D
Stakeholder C
Power/Influence
High =
Medium=
Low=
Desired Support
Necessary
Desirable
Unnecessary
ImpactofChange
Opponents Followers Enthusiasts
Reaction to change
HighMediumLow
Key
Promoting Institutional & Organisational Appraisal & Development
4 IMPLEMENTATION
38
Box 3: Hints on Stakeholder consultations
• develop a shared understanding of the current reality of the organisation - its strengths and weaknesses - and
link this with a clear understanding of the livelihood opportunities and obstacles facing the organisation’s
primary clients. This can lead to a clear vision of where the organisation should go, building on a key element
of a learning organisation – focusing on its clients and being responsive to them
• aim for a consensus on change and how to get there, negotiated, agreed and owned at all levels including
outside the organisation with clients and the broader political environment
• excluding key individuals from the shared understanding and the vision for change will lead to alienation
and resistance
• in steeply hierarchical organisations those who hold the power to open up space for innovation must share and
own the vision for change; otherwise no change can happen and junior staff will be dissuaded from innovating
• joint organisation/client monitoring of progress can help staff to understand critical issues and pressures
facing their partners and the ways in which the operations of their organisation may be contributing to
these pressures
Source: abbreviated from Transformation of Organisations for Poverty EradIcation:
The implications of sustainable livelihoods approaches: Mary Hobley, 2000
MONITOR/EVALUATE
5
Institutional
Development
5. Monitor/evaluate
1. Analysis and Diagnosis:
Overall Institutional
framework
3. Design
4. Implementation
TH
E
INSTITUTIONAL DEVELOPMENT PROCE
SS
2. Analysis and Diagnosis:
the organisation in its
institutional context
Promoting Institutional & Organisational Appraisal & Development
5 Monitor/Evaluate
40
5/1 THE EFQM EXCELLENCE MODEL
What is it?
The European Foundation for Quality Management (EFQM) Excellence Model provides a framework for assessing
the aspects of performance which make an organisation successful. The version of the model shown below is
designed specifically for public and voluntary sector organisations.
For each of the nine central boxes there is:
• a definition
• a set of sub-criteria which pose specific questions to be considered in an assessment
• a list of possible areas to address to improve performance under each sub-criterion
An example of the structure of the model for Policy and Strategy is shown below.
ENABLERS
People
Policy &
Strategy
Leadership Processes
Customer
Results
Key
Performance
Results
People
Results
Society
Results
Patnerships
& Resources
RESULTS
INNOVATION AND LEARNING
Policy and Strategy
Definition
How the organisation implements its mission and vision via a clear stakeholder focused strategy, supported by
relevant policies, plans, objectives, targets and processes.
Sub-criterion
Policy and strategy are based on the present and future needs and expectations of stakeholders.
Possible areas to address
• gathering and understanding information to define the market and market segments the organisation will
operate in both now and in the future
• understanding and anticipating the needs and expectations of customers, employees, partners, society and
owning stakeholders (ie. government or governing body) as appropriate
• understanding and anticipating developments in the market place, including competitor/comparator activity
Promoting Institutional & Organisational Appraisal & Development
Copies of the full model and diagnostic and
evaluation questionnaires based on the model can be
obtained from:
The British Quality Foundation
32 –34 Great Peter Street
LONDON SW1P 2QX
Tel ++44-20-7654 5000
Fax ++44-20-7654 5001
http://www.quality-foundation.co.uk
email: mail@quality-foundation.co.uk
More information can be found on the EFQM website:
http://www.efqm.org
email: info@efqm.org
How do I use it in diagnosis?
Work systematically through the sub criteria to
diagnose the organisation’s current level of
performance and to pinpoint priority areas
for improvement.
The process can be completed in a number of ways
and at a number of levels. For instance, the host
organisation can be encouraged to carry out the
process themselves or consultants can use the model
to carry out a diagnosis of institutional issues.
The model can be used to look at the organisation
as a whole and/or at individual departments within
the organisation.
Using the tool with the host organisation, perhaps
with facilitation support from a consultant, can be a
useful way of helping the organisation to recognise
and accept the institutional issues which must
be addressed and thus to build ownership of the
change process.
How do I use it in evaluation?
1. Look at the elements and criteria and
consider how they relate to the objectives of
the intervention.
2. Concentrate on the criteria for the results section
of the model, and on the business results end of
the spectrum.
3. Where there is a match between criteria and
intervention objective(s) use those criteria and
the associated data gathering processes to collect
evaluation data.
Tips and comments:
• the EFQM criteria may provide formulations for
objectives; don’t bother to re-invent the wheel!
• criteria for elements in the enabling section of the
model may provide measures for evaluating the
impact of change on performance
41
Promoting Institutional & Organisational Appraisal & Development
CHECKLISTS
1. External environment/elements of institutional analysis
2. Financial resources and systems
3. Role and strategy
4. Culture
5. People and Human Resource Management
6. Management Systems and Practices
7. Organisation structure
8. Outputs / Performance
APPENDIX – Checklists for Use with Tool 2/1 - Open Systems Model
42
Promoting Institutional & Organisational Appraisal & Development
Checklist 1
External Environment Checklist
1. Identify through a stakeholder analysis other
organisations\institutions and groups to
which the organisation does, or might be
expected to, relate:
• who are they?
• what is their relevance (eg. customer, policy
maker, supplier, competitor or trade unions)?
• what are their objectives in relation to the
institution under review; what is their view of it?
• what influence/importance do they have in
theory and practice? To what extent do they
influence policy making?
• how effective are they?
2. How is the organisation affected by
government policies and procedures?
• policies on the role and authority of
the organisation
• budgetary policies and procedures: is there a
rational, transparent and consistent process for
resource allocation?
• personnel procedures (appointments,
promotions, pay etc.)
• procurement
• other eg. regional or economic policies
• government plans for decentralisation
• how appropriate are these in terms of content and
the degree of autonomy given to the organisation?
• how do they assist/constrain the organisation?
• are any changes desirable/expected/possible?
• what is the relationship with other levels of
Government eg. regional, local and central and
are these appropriate?
3. What is the legal framework for the organisation?
4. To whom is the organisation
formally accountable?
• through what mechanisms (eg. audit,
performance contract, other reporting) and
how effective is this?
• is the balance between autonomy and
accountability reasonable given the purpose of
the organisation?
5. What informal influences materially affect
the organisation?
• political pressures
• bureaucratic pressures
• social and cultural pressures eg. ethnicity,
attitudes to authority
• preferences for individual or collective action
6. How far and through what means is the
organisation responsive to the needs and
interests of intended beneficiaries or customers?
• does it have their confidence?
• are there procedures for consultation, feedback
and grievances?
• does the organisation make information about
its activities and role readily accessible?
7. What would be the likely impact of a change of
government on the organisation?
8. What other donors support the organisation or
affect the external environment?
• what are their objectives?
• are they effective?
• is there co-ordination and who leads it?
43
Promoting Institutional & Organisational Appraisal & Development
APPENDIX – Checklists for Use with Tool 2.1 - Open Systems Model
44
Figure 5: Institutional Analysis
Priorities Has government identified its priority tasks and allocated resources in accordance with
priorities? Are allocations adhered to? What levels of expenditure can be afforded in the
short, medium and long term? To what extent are the needs of poor people taken into
account in shaping priorities? How effective is the public expenditure management process?
Policies How effective are the core policy and decision making structures and processes? Are they
based on evidence and data? What is the input of poor people or their representatives
into the policy making process.
Incentives What is the current incentive structure? Who benefits? What incentives, if any, are there
to modify the behaviours of key players in support of the desired outcomes? What are
the incentives for state structures to deliver services; for the bureaucracy to attract and
motivate staff; for the development of national skilled human resources?
Legal Independence of judiciary. Effectiveness of rule of law - both criminal and civil.
Extent of political interference in judicial decisions. Levels of corruption in the legal
system. Stability of legal institutions.
Cultural Cohesiveness of society; dominant national values and norms; stability of such values.
Drivers What are the key drivers for change? Social, technological, economic or political? Are
for change there sponsors or champions for reform? Extent of their power and influence. Level of
commitment to reform. What benefits or incentives do they have to push a reform
process. Level of political stability.
Voice What mechanisms and structures are in place to promote the concerns of poor people?
and partnership How effective are they? What voice do poor people have to hold delivery organisations
to account?
9. Consider the key elements of
Institutional Analysis.
Promoting Institutional & Organisational Appraisal & Development
Checklist 2
Checklist on Financial Resources
and Systems
1. What has been financial performance over the
last three years; what are the reasons for any
significant changes; what has been happening
in real terms ie. excluding inflation, what are
future prospects?
2. What are the main sources of revenue?
3. If the organisation raises revenue who controls
prices/charges; what is the record on tariff
increases; is revenue effectively billed/collected
(what is the level and age analysis of debtors);
what trends can be identified?
4. How has the organisation responded to
financial constraints?
5. What is the balance between personnel and
other operating costs; is this appropriate given
current financial circumstances and future
prospects? How does it compare with similar
organisations elsewhere?
6. For commercial enterprises what conclusions
can be drawn from the financial statements; is
adequate provision made for depreciation;
when were fixed assets last revalued; is the
capital structure appropriate; how far is debt
serviced; are creditors paid within a reasonable
period; is the enterprise financially sustainable?
7. Does the organisation bear significant foreign
exchange risks; are those likely to increase;
what is their potential impact?
Budgeting
8. Is there a public sector expenditure process?
• does it have clear criteria for resource/cash
• allocation?
• is it documented?
• is it followed?
• do people in the organisation understand
the process?
9. Does the organisation have a
budgeting process?
• does it have clear criteria for resource/cash
• allocation?
• is it documented?
• is it followed?
• do people in the organisation understand
the process?
10. Is there a process for resources/cash allocation?
• does it have clear criteria for
resource/cash allocation?
• is it documented?
• is it followed?
• do people in the organisation understand
the process?
Financial management
11. Is there a system for monitoring expenditure?
12. Is the flow of income erratic?
13. Are there traditions of over/under spending?
14. At what level are budgets held?
15. Do operational managers get management
information about their income and spending?
• is the information accurate?
• do line managers know what to do with it?
• do line managers act on it?
16. What happens to underspends?
• are they clawed back? By whom?
17. What are the penalties for overspending?
Accountability and auditing
18. Are line managers held accountable for their
use of resources/cash?
19. Is there a process of audit and are audit reports
presented to an external body? What action is
taken as a result of audit reports?
20. What are the mechanisms to scrutinise the
efficiency and effectiveness of public spending
• How effective are they?
21. Are there official rules to regulate the process
of public procurements?
22. In practice, how does the organisation
award contracts and other forms of
economic patronage?
45
Checklist 4
Institutional Models – Culture
Promoting Institutional & Organisational Appraisal & Development
Checklist 3
Checklist on Role and Strategy
1. What is the role of the organisation,according to:
• its head
• other staff
• central government departments
• other stakeholders
What are the reasons for, and implications of,
different perceptions? Are there areas of
competition rather than complementarity;
are there unfilled gaps?
2. How is the role formally expressed eg. in law,
a mission statement or government policy
papers? How does this compare with
perceptions at (1) above?
3. How do perceptions of the organisation’s role
and formal expressions of it compare with
evidence on what it actually does?
4. Is there a strategic plan, business plan or other
document setting out objectives and strategy
for the organisation; if so is it consistent with
the role of the organisation and with
government policy?
5. Are the objectives and strategy generally
understood and agreed within and outside
the organisation?
6. How were the objectives/strategy/business plan
etc. prepared; who was involved and in what
ways; what does the process imply about the
organisation and its external relationships?
7. How consistent is current and recent
experience with the stated objectives/
strategy/business plan; is the plan realistic?
8. Are there unstated objectives for the
organisation; what are they and how important
are they?
APPENDIX – Checklists for Use with Tool 2.1 - Open Systems Model
46
POWER
• Centralised Power
• grapevine = source
of information
• in-fighting
• few rules
• money and status are
important
• use of reward and
coercive levers
ROLE
• formal definition of:
i tasks
ii roles
iii procedures
iv functions
• rules for settlement
of disputes
• attention to
coordination
• power proceeds from
role/position
• rational
• hierarchical
TASK
• job and task oriented
• organised on
team/group basis
• influence based on
technical expertise
• few formal roles
• adaptable
• power widely dispersed
• reward for results
PEOPLE
• centred on individuals
• minimal structure
• rules procedures based
on mutual consent
• shared influence
and roles based
on expertise
Promoting Institutional & Organisational Appraisal & Development
Checklist 5
People and Human Resource Management
HR responsibilities
1. Is there a personnel department?:
• what is its status?
• how senior is the Head of Personnel?
2. What are personnel department’s
responsibilities?
• devising, implementing and monitoring
HR systems
• manpower planning
• record keeping
• welfare
• recruitment
• discipline
3. Do line managers have specific personnel
responsibilities?
• are these clearly spelt out?
• are line managers clear about what their
personnel responsibilities are?
Record keeping and manpower
planning
4. Does the organisation know how many staff it
has and at what grades?
5. Are there large numbers of vacant posts?
6. Is there an organisation chart?
7. Do people have job descriptions?
8. Is there any definition of skills requirements?
9. Is there a system of manpower planning?
10. Is there a staff handbook?
Rewards
11. How do salary levels compare with competing
organisations in public and private sectors?
12. Are there other rewards besides salaries?:
• leave
• study opportunities
• travel
• pension
• flexible hours
• child care
13. How much value do staff place on nonmonetary
rewards?
14. Do people get paid on time?
Performance management
15. Is there an appraisal system?:
• is it used?
• do staff believe it is fair?
• what is the purpose of the system?
What are reports used for?
16. Are staff given regular feedback
on performance?
17. Are there complaints of favouritism?:
• how widespread?
• in which areas?
• among which groups of staff?
Development
18. Is there a system for assessing staff
development needs?
• are staff needs linked to organisational needs?
19. What are the opportunities for development?:
• internal courses
• external courses
• qualifications
20. Is there a development and training section?:
• is it valued by staff?
• what resources does it have?
• is there any data on volumes of spend
on training?
21. What is the line manager’s role in development?
22. Is there a development budget?
• who holds the budget?
• does the budget get used for purposes other
than development?
23. Do people have personal development plans?
47
Promoting Institutional & Organisational Appraisal & Development
Recruitment
24. At what level are people recruited?
• graduate
• clerical
• managerial
25. How are people recruited?:
• advertisements
• employment centres
• word of mouth
• relatives/contacts
26. Are there clear selection criteria?:
• qualifications
• competences
• experience
27. Are there any staff shortages?:
• which areas?
• which grades/types of staff?
• Are these general shortages throughout the
local labour market, or just for this
organisation?
Promotion
28. Is there a clear grading and career structure?
29. Are there opportunities for promotion?
30. Is promotion the only way to get an increase in
pay/status?
31. Are there clear criteria for promotion?:
• performance in the job
• years’ service
32. What is the promotion process?:
• individuals apply
• promotion boards
• performance appraisal reports
• automatic
• line manager nomination
Exit
33. Is there a process for dismissal?
34. What are the grounds for dismissal?:
• inefficiency
• disciplinary
35. Is there a set retirement policy?
36. Do people change with governments?
Identifying and meeting
development needs
Identifying needs
Meeting needs
Meeting needs
37. Consider:
• individual learning styles
• educational traditions
• learning culture (eg.freedom to ask
questions; acceptability of learning from
younger person etc)
• resource availability
• costs
38. Possible options for meeting needs:
• on-the-job structured training with personal
development plan and manager support
• mentoring
• delegated tasks
• secondments (short term/long term;
internal/external)
• job shadowing
• visits
• internal course
• open learning
• external course
• day release
APPENDIX – Checklists for Use with Tool 2.1 - Open Systems Model
48
Identify business objectives
Specify skills needed to meet business objectives
Assess current skills levels
Identify gap between skills need and current skills
Agree learning objectives
Decide how needs can be met
Promoting Institutional & Organisational Appraisal & Development
Checklist 6
Checklist on Management Systems and
Practices
General
i. Is there a strategic planning system?
How is it used?
ii.Are systems clearly documented; are any
manuals up-to-date, accurate and familiar to
managers and staff?
iii. How far are systems regularly followed in
practice? If not, why not?
iv. Is there an internal audit system; is it
independent; does it go beyond financial
control to wider systems issues?
1. Decision Making
• Identify key decisions for the organisation;
who decides at what level and following what
process (formal and/or informal)?
• How timely are decisions; how (well) are
they communicated?
• What do staff/outsiders see as examples of
timely and effective decision-making; what do
they see as examples of slowness or
ineffectiveness? To what do they ascribe such
performance?
• How is individual or collective accountability
for decisions maintained; how effective is this?
• What level of centralisation/delegation of
authority exists; does it appear that a different
balance would be more efficient or effective,
and why; what financial authority is given to
different levels; how many and what signatures
are needed for various approvals?
2. Co-ordination
• What formal and informal mechanisms exist
for internal co-ordination: how often is there
consultation/communication and in what
form; how well-informed are
departments/individuals of what others are
doing; do different parts of the organisation
cooperate or compete?
• What formal and informal mechanisms exist
for external co-ordination: what are seen as
appropriate links and what is their purpose;
how effectively do they operate, who is
excluded and who else might be expected to
be involved?
3. Information
• What management information is provided at
what levels, frequency accuracy and timeliness?
• What evidence is there that available
information is used effectively?
• Does the information collected relate to the
organisation’s goals or strategic plans? Are
there any major gaps?
• What information/data is collected which is
not needed/used?
4. Supplies
• What problems exist? Are items out of stock
and/or take a long time to procure?
Are any stock holdings excessive, obsolete
or inappropriate?
• Who has responsibility for procurement,
storage and distribution, is this appropriate?
• Are there clearly documented procedures and
information systems for supplies management;
do they work in practice?
• Are any problems the result of financial
constraints, inappropriate systems and
responsibilities, or poor management?
• Are procurement policies appropriate? What
proportion of contracts are subject to
competitive tendering? How transparent is the
tendering and contracting process?
• Is stockholding policy appropriate? Would it
be better to rely on suppliers to hold stocks
and buy items when needed?
5. Project Planning, Management and Monitoring
• What processes exist for appraising, approving,
managing and monitoring projects?
• Are responsibilities clearly identified, is there
accountability for them?
6. General
• Look for evidence of use of above systems and
action being taken as a result.
49
Promoting Institutional & Organisational Appraisal & Development
Checklist 7
Reviewing organisation structure
1. What is the current organisation structure?
Is there an up-to-date organisation chart?
Are people clear about the structure?
2. Is the structure consistent with the purpose of
the organisation and the environment in which
it operates? How does the organisation interface
with its main customers?
3. Are the roles and responsibilities of individuals
clear and agreed? Do up-to-date job
descriptions exist?
4. Are responsibilities for all the key functions
/processes of the organisation clearly allocated?
5. Are lines of management accountability clear?
Do mechanisms exist to ensure vertical
communication takes place?
6. Are there any significant areas of
overlap/duplication between parts of the
organisation? Do mechanisms exist to ensure
effective horizontal communication?
7. How frequently does the structure of the
organisation change? Is there a clearly expressed
rationale for the changes? How was the last
change planned and carried out?
8. What do people think about the current
structure? Are they happy with it?
What are the main criticisms of the structure?
How well balanced are workloads?
How well is work delegated?
9. Have other options for structuring the
organisation been considered? What are the
advantages and disadvantages of the alternatives.
10.What changes would make the greatest
impact on the efficiency and performance
of the organisation?
11.What are the number of management levels in
the organisation?
12. What are the average spans of control
at each level?
13.How centralised are processes and decision
making structures? Are these appropriate to the
organisation’s purpose?
Structure: Centralisation v.
Decentralisation
For Centralisation
1. Simplicity of co-ordination.
2. Broader perspective on issues means decisions
taken in overall interests of organisation as a
whole, not sub units.
3. Economises on managerial overheads by
avoiding duplication of activities.
4. Balances power of functional units by
centralising decisions-on resource allocation,
targets and key HR issues.
5. Speedy decision making and control
in times of crisis.
For Decentralisation
1. Reduces stress and load on senior management.
2. Increases senior management time for strategic
and long term planning.
3. Increases motivation and commitment at
middle levels.
4. Helps development of junior managers.
5. Allows greater flexibility to adapt to
changed circumstances.
6. Facilitates clearer accountability for performance
down the organisation.
Factors influencing degree of
centralisation
1. Degree of diversity of products/services.
2. Degree of diversity of goals,
dispersion, technology.
3. Risks of divergence from standard
procedures/controls.
4. Size and purpose of organisation.
5. Skills and attitudes of staff.
6. Capacity of senior management to
manage in a“delegated”organisation.
7. Legal and external framework.
8. Pace of change and need to react flexibility to
changing circumstances.
APPENDIX – Checklists for Use with Tool 2.1 - Open Systems Model
50
Promoting Institutional & Organisational Appraisal & Development
Checklist 8
Checklist on Outputs and Performance
1. What are the organisation's main products
or services?
2. What measures or indicators of output or
performance does the organisation have?
How often are these reviewed? Do they include
non-financial as well as financial measures?
3. What baseline of performance does the
organisation use? What outputs does it measure
- at what cost and with what outcomes?
4. Is there a performance management system?
Is it linked to the organisation's goals?
Does it cascade down to the individual level?
5. What assessment is made of the impact
of the organisation's services on the poorest
in society?
6. What feedback does the organisation receive
about customer or user levels of satisfaction
with its services?
7. What indicators or measures of user satisfaction
does the organisation use? Do these show an
improving trend?
8. Does the organisation benchmark its
performance with other similar organisations
or competitors?
9. Does the organisation plan and measure
its key operational (financial and nonfinancial)
results in order to predict and
improve future performance?
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The Department for International Development
(DFID) is the UK Government department
responsible for promoting sustainable development
and reducing poverty.
The central focus of the Government’s policy, based
on the 1997 and 2000 White Papers on International
Development, is a commitment to the internationally
agreed Millennium Development Goals, to be
achieved by 2015.
These seek to:
• Eradicate extreme poverty and hunger
• Achieve universal primary education
• Promote gender equality and empower women
• Reduce child mortality
• Improve maternal health
• Combat HIV/AIDS, malaria and other diseases
• Ensure environmental sustainability
• Develop a global partnership for development
DFID’s assistance is concentrated in the poorest
countries of sub-Saharan Africa and Asia, but also
contributes to poverty reduction and sustainable
development in middle-income countries, including
those in Latin America and Eastern Europe.
DFID works in partnership with governments
committed to the Millennium Development Goals,
with civil society, the private sector and the research
community. It also works with multilateral
institutions, including the World Bank, United
Nations agencies, and the European Commission.
Department for International Development
03/03 2K Produced for DFID by Chimera Design ISBN 1 86192 535 2
DFID has headquarters in London and East Kilbride, offices in many developing countries, and staff based in British
Embassies and High Commissions around the world. DFID’s headquarters are located at:
DFID
1 Palace Street
London SW1E 5HE
UK
DFID
Abercrombie House
Eaglesham Road
East Kilbride
Glasgow G75 8EA
UK
Tel: +44 (0)20 7023 0000
Fax: +44 (0)20 7023 0016
Website: www.dfid.gov.uk
E-mail: enquiry@dfid.gov.uk
Public Enquiry Point: 0845 300 4100
or +44 1355 84 3132
(if you are calling from abroad)