a gateway on capacity development

Issue 19 Advancing the policy and practice of October 2003 capacity development in international cooperation

In this Issue Capacity development: • Introducing the DAC study on capacity 2 the why's and how's • A new model for promoting change: responsive entrepreneurship 3 What does capacity look like? How can you develop capacity bottom-up? What is the driv- • The capacity for survival ing force behind successful capacity development? Does better capacity necessarily lead to Capacity lessons from NGOs 6 better performance?

• Investing in successful reorganisation Questions of this kind are daily challenges the study team hope to identify promising A regional experience from the Caribbean 8 for practitioners, policy-makers and academ- patterns of action that support the develop- ics working on capacity development. ment of capacity in a variety of environments. • Performance amidst conflict, epidemics Despite the existence of an extensive body and poverty 10 of writing on capacity development, the Four case summaries are presented here, answers are still not clear. For a start, the with an introduction to the study written by • Selected bibliography 11 international development community has Heather Baser. The first article, by Franklin paid relatively little attention to the why's McDonald, focuses on an innovative model and how's of capacity development. for promoting change in the Environmental Moreover, the bulk of the literature has been Action Programme (ENACT) in Jamaica and written from the vantage point of an explains how this model differs from more 'outsider' supporting the organisational conventional approaches. Based on his expe- change processes and not from the perspec- rience in , Bangladesh and Pakistan, tive of those involved in such processes. Niloy Banerjee dissects what it takes for a non-governmental organisation to both It was this kind of reflection that prompted a survive and be sustainable, and examines study entitled 'Capacities, Change and the capacities that this involves. The third Performance'. This study, led by ECDPM, is article, by Dr Vasantha Chase, looks at the currently one of the main activities being investments required by the reorganisation undertaken under the aegis of the Network of the Environment and Sustainable on Governance, operating under the Development Unit (ESDU) of the Development Assistance Committee (DAC) of Organisation of Eastern Caribbean States the Organisation for Economic Cooperation and the role played by regional stakeholders and Development (OECD). A number of in supporting this process. The fourth contri- organisations in developing countries are bution is an abstract of a study on how the involved in the current work and feed the Lacor Hospital in Northern not only studies with analysis and lessons learned. survived, but became a centre of excellence This issue of Capacity.org presents the first in an environment characterised by civil war, cases that have come out of it. epidemics and extreme poverty. Alongside these contributions, there is a brief list of The cases record and analyse stories told by relevant literature. Finally, we would like to members of a variety of organisations about draw your attention to the updated how and why capacity develops. They focus Capacity.org website, which lists new, down- on key or core capacities and the dynamics of loadable resources from the CIDA (Canadian change in them that produce good and International Development Agency) extranet sustained performance. Through their work, site on capacity development. Capacity.org Issue 19 page 2

Introducing the DAC study on capacity

The lack of capacity in low-income countries organisational change and performance. It supporting them.The researchers hope to is one of the main constraints preventing addresses such questions as: draw conclusions that will help to guide the them from meeting Millennium work of organisations involved in capacity Development Goals and reducing poverty. • What is capacity? development, both international and local. But even people involved in capacity • What change strategies are effective in development activities have only a limited developing capacity? The heart of the analytical framework for understanding of how capacity actually • Does better capacity necessarily mean the case studies is the interrelationship develops. Practical guidance on how to better performance? between capacity, change and performance. stimulate the process is equally scarce. In • What can outsiders such as develop- This dynamic is shaped by four factors, addition, though the terms capacity and ment organisations do to encourage namely the external context, stakeholders, capacity development are in common use, the development of capacity and internal features and resources, and interpretation of their meaning tends to enhance performance? external interventions.These are set out in vary from one setting to another. the graph below. The study assumes that all countries wish to As the welcome letter mentions, it is this develop capacity.The methodology includes The researchers plan to perform about 20 kind of reflection that has prompted a DAC a survey of relevant literature, a review of a field cases to assess how the process of study entitled Capacities, Change and selection of existing case studies, and field capacity development works in both low- Performance.The study seeks both to work on new cases.The case studies will be income and industrialised countries.These provide practical guidance on capacity and written from the perspective of those cases will pay particular attention to factors capacity development and, more specifically, involved in processes of change, and not, as that encourage capacity, and examine how to foster a better understanding of the in most development literature, from the capacity development differs from one interrelationships between capacity, vantage point of a development agency context to another, and why efforts to

The simplified analytical framework

External context Stake-holders

Core variables

Capacities

Endogenous Change and Performance adaptation

External intervention Internal features and resources More details about the analytical framework of the study can be found in the Methodology of the study available at www.ecdpm.org

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develop capacity succeed in some contexts The products of the study will include: - development cooperation literature on better than in others.The final report will institutional development and identify promising patterns of action to • A two-part final report, including the management; support the development of capacity and findings of the case work and the litera- - literature on management and assess their relevance to other environments. ture on the what, how and why of organisation e.g. organisational capacity and performance improvement design, core competencies and There are three main audiences for the processes, as well as the implications networks, most of which has been study: both for those involved directly and for produced by the private sector. the outside organisations supporting • One or more training modules, depend- • the members of the donor community them. ing on demand. who are sponsoring it, • Customised reports for specific target • people working in developing or transi- groups. We welcome your comments on the capacity tion countries with an interest in capac- • A selection of case studies. study in general and on the articles included ity development, and • A compendium of tools and frame- here. Background documents for the study • organisations involved in cases which works. can be found on the complementary web have a particular interest in learning. • A partially annotated list of resource pages of Capacity.org and on the ECDPM's materials including literature from website www.ecdpm.org (Donor Reform). The researchers are keen to seek these three main sources: groups' views on their work and on how it can - development cooperation literature on be made more relevant.The study team also capacity issues, e.g. the UNDP study on By Heather Baser, ECDPM Programme Coordinator hopes to engage in more focused discussions Reforming Technical Cooperation; and Study Leader, e-mail [email protected] with local networks, particularly in . A new model for promoting change: responsive entrepreneurship

The Environmental Action (ENACT) Approaches From the beginning, the ENACT Programme Programme was set up to assist Jamaican One of the most common approaches to has followed a different approach. Based on public, private and non-profit organisations promoting change is mainstreaming,in key guiding principles developed with to improve their ability to identify and solve which policies and programmes are centrally stakeholders during the planning phase, national environmental problems. It was one determined and, at least in theory, applied the ENACT team's intent has been to of the first donor-sponsored interventions in uniformly. All operational staff are required enhance the capabilities of others to deliver Jamaica to make capacity-building its core to integrate activities relating to a new programmes that are supportive of sustain- objective. The programme falls under the policy into their work and senior managers able development. What was needed was National Environment and Planning Agency, are expected to oversee this. The dynamic is something that was both demand-driven an executive agency of the Jamaican govern- one of supply and enlightened enforcement. ment created in 2001 under the Public Sector The onus is on the targeted staff to comply. Modernisation Programme. The Programme is supported by both the Canadian and the A less intrusive approach is based on the Jamaican governments. principle of social marketing, in which targeted staff are seen as clients who are ENACT works with a wide spectrum of free to buy into or at least accept the organisations, levels and tactics, all with the programme or service on offer. The empha- goal of creating a critical mass of capabili- sis here is on persuasion or the creation of ties and performance improvements. Its demand, on building awareness and on model for promoting change and develop- inducing officials to try something that has ing capacity provides a challenging contrast wider social benefits. The onus is on the Photo: ENACT According to John Robinson, a recent Canadian to more conventional approaches. provider to make the case for the adoption High Commissioner to Jamaica, the ENACT of the programme. Programme ‘produces like crazy’.

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has been more proactive and has sought out latent demands. In others, especially as its credibility has increased, it has balanced supply and demand.

Partnership The resulting relationships between ENACT and various groups frequently take the form of a partnership, with both sides contribut- ing ideas, resources and legitimacy. Most interventions rely on dialogue, facilitation, demonstrations, accommodation and some persuasion. The partnership normally goes beyond the traditional quick fix of a capac- ity assessment, followed by a short consul- tancy or an injection of resources. Instead, ENACT tries to become a co-creator of results by defining goals in terms of client results rather than consultant products and matching the project scope to what the Photo: ENACT client is ready to do. ENACT plays the role of “Coffee Industry Board reviewing material for a Code of Paractice’. Workshop in Linstead (2001) to improve environmental performance in the coffee industry of Jamaica. a catalyst or coordinator. and suited to Jamaican conditions. ENACT which clients are introduced to ideas and Most efforts at capacity development that has focussed on adding value to others' practices that generate a broader social are unconnected to specific projects suffer programmes. ENACT has developed a value. And finally, it includes an element of from a lack of unallocated funds and process to proactively nurture pockets of partnership in which both parties combine process support, specially within the public energy, interest and commitment and try to their resources to achieve a common goal. sector. Staff at the middle levels of govern- respond to the needs of the groups The term 'responsive entrepreneurship' may ment organisations cannot usually get involved. ENACT is as much responsive as it best capture the nature of the ENACT access to seed money for services, work- is proactive. approach. shops, publications or expert advice. In the Jamaican context, it is not easy to fund The ENACT team members used their The ENACT experience leads us to think a innovation through regular channels. The networks and access to people to seek out little more about the nature of 'demand' ENACT team injects resources into the opportunities. In ENACT terms, this was for capacity development. In the early system by supplying small amounts of called working with 'primacy processes' or stages, much of the demand for ENACT's funding and advice, such as for workshops those activities that were already in place. services was latent, in the sense that with the Coffee Industry Board or for an The emphasis was on responding to real as groups or organisations showed limited environmental stewardship action plan for opposed to 'constructed' needs, a pattern of interest, but were willing to collaborate a particular agency. In such cases, ENACT behaviour that is new inside the govern- with outside groups if approached appro- acts as a capability investor trying to shift ment of Jamaica and within the interna- priately and directly. Later, this pattern the balance towards innovation and organi- tional donor community. became more varied as ENACT staff came sational change. The organisations and into contact with demands not directly groups concerned must already have New model aimed at ENACT participation. Finally, demonstrated commitment and a willing- What emerged over time was an ENACT ENACT received more and more specific ness to achieve results. The provision of approach that combined a variety of requests for it to participate in projects financial resources thus follows results elements into a coherent process. It bears and activities. rather than precedes them. some resemblance to a venture fund model, in which initiatives come from the By 2003, all three patterns were in a shift- ENACT does not take on controversial or participants rather than the investor. It also ing mix. Much of ENACT's effectiveness has politically intractable issues connected to has some similarities with consulting work, depended on its ability to adapt manage- the enhancement of capabilities and where enhancing the client's organisational ment strategies to deal with a varying performance. Thus, it does not threaten the effectiveness is the priority. It draws from pattern of demand over time. In some situ- prerogatives, mandates or vested interests the techniques of social marketing, in ations and on some issues, the programme of powerful groups such as public-sector

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unions or central government agencies. The ENACT team's approach to publicising By Franklin McDonald, Chief Executive Officer of Also, it does not press for the reform of its role and achievements is generally low the National Environment and Planning Agency, legislation governing environmental and key. On the one hand, it disseminates the Government of Jamaica, sustainable development. ENACT Programme image and 'brand' e-mail: [email protected] through documents, workshops and other In some ways, ENACT is a stealth public events with the objective of bolster- For more information about the ENACT programme specialising in 'middle-up and ing the image of support, Jamaicanisation Programme, please visit its website at down' initiatives, i.e. addressing those inter- and partnership. On the other hand, the www.enact.org.jm or send an e-mail to: ventions largely controlled by senior and team takes care to adopt a discrete profile [email protected]. middle managers in the public sector who in terms of taking individual or ride below the political radar screen. programme credit. Publicity for successes References Although few of ENACT's initiatives repre- is passed on to partners through whom sent dramatic breakthroughs in capability and with whom the ENACT unit works. The • Shaffer, R. 2002. High-Impact Consulting: and performance, they are increasingly ENACT Programme Manager, in particular, How Clients and Consultants Can Work important on a cumulative basis. is careful to avoid public attention. Too Together to Achieve Extraordinary Results. much intrusive or publicity-grabbing S.I.: Jossey-Bass. This book espouses a style of Over time and through its partnerships, the behaviour is likely to undermine the very relating to partners which includes defining ENACT Programme has converged with and legitimacy and credibility that are needed goals in terms of client results rather than reinforced the major reforms underway in to be effective. consultant products, matching the project the country. ENACT is part of the technical scope to what the client is ready to do, team advising the Cabinet on matters Conclusion aiming for rapid-fire success to generate related to environmental management and In conclusion, we believe that ENACT repre- momentum, building a partnership to sustainable development. ENACT is also a sents a model of change that is both inno- achieve and learn and, finally, leveraging partner of the Local Government Reform vative and unusual. We hope that it resources and getting more results with initiative led by the Ministry of Local provides some food for thought for other fewer consultants. Government, as well as of the Modernisation organisations on how they might develop of the Planning Framework for Jamaica led capacity for change, not only in the environ- • Morgan, P. Organising for Large-Scale System by the Ministry of Land and Environment. mental sector, but in other areas as well. Change: The ENACT Case in Jamaica (draft). Mimeo.

Photo: ENACT “Wolmers Preparatory School creating it’s own environmental messages’. Workshop (2001) to launch a set of six posters developed under the National Environmental Communications Campaign.

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The capacity for survival Capacity lessons from NGOs

Background that the organisation survives in the short Capacity for survival: a tactical approach Non-governmental organisations (NGOs) run, but also that it is sustainable in the to funding are growing increasingly important in the longer term. So there is a need for capacities Most donors' internal policies allow for very field of development.They are diverse both to execute programmes and to keep build- little support to grantees for institution- in terms of organisational form, structure ing the institution by hiring quality staff, building. Some donors do not fund beyond and culture and in terms of the issues they deploying systems and hardware and, there- two years. Some do not fund infrastructure. cover. Correspondingly, the capacities that fore, finding predictable and sustained Others do not believe in funding a general NGOs need to deliver on their mandate sources of funding. Staffers in NGOs, as in support endowment.Yet an NGO leader has range across a broad spectrum.When asked, other organisations, have legitimate con- little choice but to think in terms of build- NGOs themselves list an interesting set of cerns about their jobs and security of pay. ings (to avoid recurring rents), vehicles, capacities that make them sustainable and Organisations that cannot demonstrate a salaries with steady increments (to retain effective. trend of positive growth are likely to lose competent staff), provident funds (a com- their staff, with the best ones usually mon staff demand in countries with no state This article, emerging from research under- departing first. Conversely, if a leadership is social safety net), accident insurance and so taken as part of a broader assessment of able to deliver on the above, the organisa- on.Then there is the need to demonstrate a capacity development across a wide range tion is usually well-placed to perform well in possible career growth path to employees - of contexts and organisations, looks at accomplishing its core mission. again, with the aim of retaining the best. NGOs from the inside-out - the capacities that NGOs consider critical to their effective Inherent to the capacity for survival are cer- Such compulsions require the leadership of functioning.With NGOs now delivering tain other elements that the leadership of NGOs to be tactical in seeking donors, hedg- approximately 12 per cent of global flows of successful NGOs demonstrate. ing risks and spreading costs among donors aid and technical cooperation,1 it is clearly in a manner that takes care of the 'unfund- useful to understand their workings and Capacity for survival: being 'donor savvy' ables'. Besides these capabilities, the leader- dynamics. The leadership of successful NGOs tends to ship needs to have a good 'antenna' for the have a reasonable level of contact with general funding environment. This article draws primarily from the experi- donors and a relationship of equality with ence of NGOs in the South Asia region, i.e. key staff at donor agencies.This ensures a Capacity for survival: the element of trust medium-sized to large organisations with level of comfort on both sides and it is not Successful NGO leaders often demonstrate annual budgets of a quarter of a million dol- uncommon to find donors lining up behind the capacity to convince donors to allow them lars and above, and employing anywhere a leader because of the 'comfort', even if the a certain degree of flexibility with the end-use between 25 and a few hundred people. person is known to be autocratic, say. of funding.This could entail, for example, the diversion of funds from a steady programme The capacity for survival and Capacity for survival: mapping out a to an emergency (say,floods), or committing sustainability growth path resources to an activity that seems justifiably The capacity for survival is one of the funda- Successful NGOs are distinguished by the important, but is not part of the agreed plan mental capacities that distinguish successful fact that their leaders have a very clear men- between an NGO and its donor. NGOs. Organisations that worry about next tal model of the organisation and its mis- month's rent rarely accomplish their mis- sion throughout its life cycle.This allows A host of other capacities also distinguish sions effectively. More likely, they tend to them to retain a degree of flexibility to add successful NGOs. Many are key drivers or suffer significant distractions. In a recent modules as opportunities arise, i.e. to reap members of networks or network-like paper, a group of NGO leaders from around windfalls. For example, in India, where the arrangements.The use of networks has the world listed 'sustainability' as the top rapidly globalising economy led to the proven to be a strategic 'force multiplier' in challenge in a heap of eight challenges faced advent of large numbers of private corpora- obtaining wider outreach. by civil-society organisations.2 tions in the 1990s, many NGOs have been open to partnerships with the private sector The capacity for being perceived as legitimate The implications for capacity are straightfor- despite having had long-standing ideologi- Successful NGOs have an informal sphere of ward.The leadership must not only ensure cal opposition to private capital. credibility in the constituencies they serve.

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For their constituents, NGOs embody the optimism that prevailing status quos will change.This legitimacy comes from demon- strating capability and leadership in a num- ber of areas e.g. intellectual capability, capa- bility for empowering, capability for rhetoric against a status quo, capability of ensuring funding, and so on. Internally, the legitimacy derived from imagery ('the leader travels overseas, meets many important people, knows many donors on first name terms, etc.') also plays an important part.

The capacity for political neutrality Part of the legitimacy question derives from the capacity for maintaining equidistance from political parties of different hues while engaging in work that is essentially political in nature.There is, however, a caveat in that the need to be neutral is highly context-spe- Photo: Sudhendu Patil cific.While development-oriented NGOs in Meeting of the Women's Cooperative Society in progress: Pairokar Vikas Samity", Jaipur, Rajasthan, India. India need to demonstrate political neutral- ity, in Pakistan and Bangladesh, an element lem.This pressure has often led to path- the highly stratified nature of society is of political dexterity is more important than breaking, locally appropriate innovation - reflected among the poor.The poor continue strict neutrality. sometimes with globally acclaimed results. to have factional, i.e. caste-based, tribal and ethnic, identities and aspirations that distract Capacity for breakthrough under adversity: Capacity for delivering on diverse donor them from their primary aspiration of moving the key informal innovation and (national) statutory requirements out of poverty.These also create competing Over the decades, many successful organisa- Successful NGOs are characterised by an interest groups among the poor that dilute tional performances have hinged on key amazing degree of capability in their admin- effective action.The capacity to manage dis- breakthroughs either in concept or in istrative structures for delivering on multi- parate group ambitions and harmonise these process.These innovations have then been ple requirements. As in the world of bilateral under a general plan for alleviating poverty is taken to scale by others adopting these and multilateral aid, donors to NGOs impose a key requirement for a successful NGO. breakthroughs and mainstreaming them. multiple budgeting, reporting and auditing For example, Grameen Bank's innovation of requirements on grant recipients. Whilst this article is based on broad general- lending on the guarantee of peer pressure isations, this discernible set of common rather than against collateral; the The national government also demands characteristics is valid across many NGOs in Bangladeshi,Thai and Indian examples of compliance with local statutory regulations. different countries. using religious leaders to spread successful In India, for example, this includes preparing contraception messages; the Brazilian Bolsa and filing an audited balance sheet; a form 1 Second Round Table on 'Reforming Technical Escola innovation of paying mothers rather for the Ministry of Finance on grant utilisa- Cooperation for Capacity Development', Turin, than the school system a subsidy for educa- tion (including grants from all sources) to UNDP, 2001. http://capacity.undp.org tion, all fall in this category. keep grants from being treated as 'income' 2 Paper of the Civil Society Group, First meeting of and hence attracting income tax; and a dis- the Resource Network on HIV/AIDS, Many highly successful programmes and closure to the Ministry of the Interior speci- Johannesburg, UNDP, 2003. institutions demonstrate this capability at fying the amount, source and end-use of all some stage in their organisational life funds of foreign origin. Each of these is a By Niloy Banerjee, Consultant, cycles.The key informal innovation usually complex exercise. Additionally, frequent trips e-mail: [email protected] involves a novel 'tweak' to an existing (and need to be made to government offices in accepted) paradigm, including sometimes order to release tranches of agreed grants. Reference turning it on its head.This also has implica- tions for the legitimacy of the leader. Often, Capacity for harmonising diverse group • Banerjee, N. A Note on Capabilities that make the leader is the one to whom the staff will identities and aspirations for Success at the Level of Community Based turn when faced with an intractable prob- In a number of countries in Asia and Africa, Organizations (draft). Mimeo.

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Investing in successful reorganisation A regional experience from the Caribbean

Although most - if not all - organisations At the same time, we have tried to main- • Crafting the organisation's role and are reorganised and refocused from time tain our operating space by managing and contribution. The ESDU is in the fortu- to time, there is no guarantee that this will balancing the behaviour of our stakehold- nate position of being able to concen- automatically improve their performance. ers - earning legitimacy and trust from the trate on the needs of one group of Surveys of US businesses undergoing reor- Member States, attracting outside support, stakeholders, i.e. the OECS Member ganisations suggest, for example, that no restraining donor initiatives and using States. They and the staff have gradu- more than one third of them actually outside support to retain our independ- ally developed a consensus about the succeed. Here at the Environment and ence. Maintaining an enabling environment organisation's mandate as a facilitator Sustainable Development Unit (ESDU) of is a crucial part of the capability and or bridge supporting the efforts of the the Organisation of Eastern Caribbean performance puzzle. Member States in utilising and manag- States (OECS), the feeling is that we have ing natural resources. We only perform succeeded. But it has not been without tasks which the Member States them- blood, sweat and tears. Peter Morgan, who did the case study for selves cannot carry out. The answer to the ECDPM, writes: the question 'capacity for what?' is What follows is a summary of the ideas therefore clear. presented in a case study performed by the "For those who favour either the blood ECDPM, and of our own experience. In transfusion method of organisational • Aligning the organisation's direction and presenting it, I recognise the contributions improvement, i.e. injecting some institu- design. In order to enhance interper- made by many - the staff of ESDU, our tional support here or there into an organ- sonal and interfunctional coordination clients (largely OECS Member States), the isation in the hope of improving its and communication, we have devised organisation's senior management and the general health, or the fast-food approach, an organisational structure that is virtu- funders who support us. The reorganisation i.e. a little training on the side, the insights ally flat, with overlapping job responsi- has required imagination, effort, thought, from the ESDU case provide an interesting bilities. All staff are expected to discipline and staying power. In short, it has new perspective." understand the full range of the ESDU's needed purposeful organisational invest- activities. Each staff member blends ment by all these parties. generalist skills, such as facilitation, The experiments we have performed with with more technical ones, such as The ESDU is located in Castries, Saint Lucia, improving our capacities and performance coastal zone management. Ad-hoc and was founded in 1986 as the regional have lasted for most of the seven-year period teams or quality circles are formed implementing arm for GTZ-funded projects from 1996 to the present. The changes imple- around projects or problems. (German Technical Cooperation). It has mented during this period have affected the since become a facilitating and bridging organisation's mandate, management style • Recruiting and developing ESDU staff. The organisation responding to the needs of and structure, and include: core of the group has remained in place the nine OECS Member States.1 With a staff from 1996 to 2003. Access to meaningful of thirteen, the ESDU has a simple organi- • Taking ownership of the ESDU as an work rather than career opportunities is sational structure and adequate funding to organisation. We have reversed the all key to this continuity. A culture of skills implement its second five-year operational too frequent aid relationship (where acquisition in which staff acquire indi- plan (2001-2006). ownership means compliance) and vidual and organisational competences encouraged funding agencies to respond through regular work has also played a We have the advantage of having direct to initiatives we put forward and needs role, and has been more important than and clear relationships with our key stake- we express. We have also integrated two formal training. holders, together with a supportive director lines of strategic thinking into our work: at the OECS secretariat. This helps to create first, the positioning view, to look at our • Creating a collective, team-based incentives to meet the needs of the role and potential contributions to the approach to our work. We have spent a Member States and fosters an enabling Eastern Caribbean and, second, the great deal of time getting our internal environment in which we are encouraged resource-based view, to focus on our dynamics straight. A shared allegiance to constantly improve our capacities and comparative advantage based on our to personally held values such as performance. internal resources and capacities. sustainable development and the

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potential of the Eastern Caribbean has social learning, i.e. how better to inter- matching our supply with different helped to create group cohesion. The act with colleagues in an effort to kinds of demand has been critical to our organisation has not only reinforced improve everybody's performance. stability and sustainability. and validated these values, but has also provided staff with an opportunity to • Generating an upward spiral of capabili- • Provide buffers. Small organisations or put them into practice in their daily ties and performance. Organisations can sub-units need to be carefully nurtured. work. This has given staff a continuing easily get locked into systemic patterns We have attracted a degree of resent- sense of professional purpose. In most from which they find it difficult to ment and criticism from other groups cases, the staff also agree on both escape. A few manage to generate an within the secretariat, who feel they do programme ends and organisational upward spiral that builds on strength. not have as much access to resources and means, most of which are symbolised Here at the ESDU, we like to think that opportunities as we do. Our determina- by the mission statement. In addition, we fall into the latter category. tion, coupled with the support of our we have made sustained efforts to Stakeholders, especially the Member stakeholders and the senior management reduce the disparities and segmenta- States, have rewarded us by investing at the secretariat, have helped us to hold tion within the unit and to value the more resources and more trust in the our course and maintain our capacity. contribution of all. unit. Staff have responded by identifying more with the ESDU, and the OECS as a • Start anywhere. Asking 'where to start?' • Finding the right leadership style. It whole, and committing themselves to its may prove to be a misleading question. would be unthinkable to try to lead goals and way of working. The unit's For us, the answer was 'just about such an organisation using a command psyche has grown stronger and more anywhere'. We tried something and and control approach or a hub and expectant of good performance. We have learned about the results. We developed spokes model. Empowerment of staff become our own enabling environment. momentum. We got a sense of the over- through delegation and trust is critical. all system at work. Then we tried again As the Head of the ESDU, I have had to On the basis of the experience gained at to intervene at those points where big learn to avoid micromanagement. Staff the ESDU, I would like to make some gains could reasonably be expected. have had to learn to identify with the suggestions that other organisations may organisation as a whole and to share find useful: While we have made significant progress at responsibility for its overall manage- the ESDU over the years, this has taken longer ment, i.e. to develop a sense of organi- • Learn from inside the organisation. The than expected. Maintaining our strategic sational citizenship. Decision-making staff of the ESDU already tacitly knew a direction during this period has required has become more collective. great deal about how to improve our patience on the part of our stakeholders, our capabilities and performance. The chal- senior management, our colleagues in the • Learning how to learn collectively. At the lenge was to create an environment other divisions and units of the secretariat, heart of enhancing capabilities and that would encourage these insights to and our funders. It has also demanded a great performance lies some form of learning emerge and be given serious considera- deal on the part of staff who have had to and unlearning. Staff, both individually tion. Creating a climate for effective perform for the Member States while going and collectively, must learn both how to internal dialogue and learning is critical through what are often demanding changes perform existing activities better and to improving performance. in approaches. The challenge for other organi- how to perform new ones well. They sations is to develop and nurture this kind of must also learn to give up certain prac- • Don't expect even progress. Our experi- adherence to purpose. More information on: tices that have long been effective. Our ence confirms what is now widely http://www.oecs.org/units.htm staff seem to need to learn constantly known about capacity development and collectively. They spend considerable strategies. They do not emerge in a fully 1 Grenada, Anguilla, Antigua and Barbuda, the time brainstorming about ways to solve articulated state. For the most part, they British Virgin Islands, Dominica, Montserrat, St. problems and improve working meth- are neither programmable nor linear. Kitts and Nevis, St. Lucia, and Saint Vincent and ods. They try to learn about aspects of Ideas and action steps appear slowly the Grenadines. the organisation that are not part of and in fits and starts. At the ESDU, we their current work assignments. tried things out, experimented, argued By Dr Vasantha Chase, Head of the ESDU, Learning is part of their real work and about this and that, improved here and e-mail: [email protected] not a supplement as and when time there and, above all, built on improve- allows. Learning focuses as much on the ments that appeared to work. Reference future as on the past and on capitalising on opportunities as much as on solving • Match supply and demand. • Morgan, P. Building Capabilities for problems. Learning thus extends beyond Organisations can expand too fast and Performance: The OECS/ESDU Case (draft). the normal, safe technical issues to try too many things. In our own case, Mimeo.

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Performance amidst conflict, epidemics and poverty

St. Mary's Hospital (known locally as Lacor values. In addition and more on the world have been essential to under- Hospital) in the District of Northern technical side, the hospital makes an standing the broader environment and Uganda is a former Catholic enormous investment in training, partly surviving in very different and at times hospital which is now fully integrated into as a means of attracting staff to an exceedingly difficult political periods. In the Ugandan health system. The case study otherwise unappealing location. addition, the hospital has been able to describes how the hospital has grown into Thirteen to fifteen percent of the build contacts that have proved valu- a centre of excellence, setting an example annual budget is reserved for training, able in raising operating funds to to the rest of the Ugandan health system including both in-house teaching and subsidise operations. and helping to build healthcare capacity for outside training. the whole country. With 470 beds, Lacor is This set of competences has evolved slowly the second biggest medical centre in • The ability to adapt. The hospital's guid- over the years and is tightly linked to the Uganda. It is an extraordinary example of ing principle is to respond to the deeply rooted value system. It has helped the capacity development, adaptation and demands of its key stakeholders. This organisation to survive even during the most performance in a region characterised by a implies learning processes that enable difficult times. Lacor was one of the few 17-year civil war, extreme poverty and the hospital to acquire knowledge, to hospitals in the world to deal successfully outbreaks of virulent epidemics. reflect and to apply the lessons of expe- with Ebola virus disease, even though it rience. It also means a rejection of resulted in the deaths of 150 patients and the Dr Piero Corti (from ) and his Canadian conservatism in the form of dogmas, loss of 14 experienced staff, including Dr wife, Dr Lucille Teasdale, began the Lacor old habits and outdated procedures. Corti's designated successor. The hospital's hospital in the early 1960s. Dr Corti formu- staff and board are aware that they can over- lated a clear mandate for the hospital: to • The ability to self-regulate. Although come such adversities only by further devel- offer the best possible service to the largest Lacor has established formal adminis- oping their capacities, maintaining their core possible number of people at the lowest trative and professional standards, the values and stabilising their finances. possible cost. Dr Teasdale imprinted an atti- management prefers to encourage the tude of care and love for patients on the staff to take responsibility for their own The case study, entitled Resilience and high staff. The two founders' tireless dedication performance. Control systems play a performance amidst conflict, epidemics and and hard work has set an example for the secondary role. poverty by Volker Hauck, is forthcoming and staff and developed into a value system will be available from the ECDPM's website: which still guides the hospital. • The ability to network and collect intelli- www.ecdpm.org (Donor Reform). gence. Throughout the history of the Information on St Mary's Lacor Hospital: The full case study analyses the key compe- hospital, contacts with the outside http://www.lhospital.org/index_eng.htm tences underpinning the hospital's excel- lent performance. Here are the five most important:

• The ability to transfer the founders' values to others in the organisation. This inter- nalisation process takes place primarily on the job, through the power of example and regular staff meetings. It is supported by an incentive package and a manage- ment approach that shares responsibility and involves staff at all levels.

• The ability to reproduce the organisa- tion. An inner core of some 15 to 20 people supervise new staff members and act as the guardians of the organi- Photo: Brother Elio Croce, Lacor Hospital sation's working culture and core Lacor Hospital new paed patients waiting for MD visit

ISSN 1566-6603 Capacity.org Issue 19 page 11 Selected bibliography The below list of books and articles contains some some genuine insights that have real explanatory Horton, D. (et al.) 2003. Evaluating Capacity selected references taken from a much larger power for capacity development. Particular topics Development - Experiences from Research and resource collection which is being put together in of interest are the tension in most organisations Development Organizations around the World. S.I.: support of the broader program of research carried between symbolic and performance objectives and ISNAR, IDRC, CTA. out by ECDPM for its Study on Capacities, Change the ways in which certain environmental factors This book tries to explain how the ISNAR and Performance. The list tries to reflect the cross- such as rules, norms and social patterns of behav- Evaluating Capacity Development Project has disciplinary contents of its source and goes beyond iour affect organisational behaviour. used an action-learning approach, bringing the usual suspects in the capacity literature. For the together people from various countries and most part, the development cooperation community Fuchs, P.H.(et al.). 2000. "Strategic Integration: different types of organizations. It is based on six makes little use of the insights of other disciplines. Competing in the Age of Capabilities". California case studies of organizational capacity evalua- This list assumes that insights into the complex Management Review, Vol. 42, No. 3. tions in Ghana, Cuba, Nicaragua, Viet Nam, the process of organizing people into productive forms of This article focuses on the issue of organizational Philippines and Bangladesh. As project team collective action in developing countries can come alignment and integration using data from a members conducted six evaluation studies over from many sources in addition to the going strands number of American private sector firms. The the course of three years, project participants of thinking in the international development litera- thesis here is that effective performance arises learned a great deal about capacity development ture. References are thus made to material from from the ability of organizations to synthesize and the process of evaluation. The authors use three main sources including the development coop- their positioning (i.e. direction, product/market examples and lessons drawn from the evaluation eration literature on capacity issues, e.g., the UNDP focus) and executional capability (i.e. resources, studies as a basis for making more general study on Reforming Technical Cooperation; the over- operational capabilities and organizational conclusions regarding how capacity development all development cooperation literature on institu- culture) into a cohesive strategy. In the view of efforts and evaluation can help organizations to tional development and management; the global the authors, it is the systems perspective and a achieve their missions. literature on management and organising, e.g. combination of comprehensiveness and align- http://web.idrc.ca/ev_en.php?ID=31556_201&ID2= organisational design, core competencies and ment that accounts for good performance. A DO_TOPIC networks. Where available, links to full or partial on- useful reminder that a focus on the process of line versions of some documents are included. 'capacity-building' by itself is not sufficient. More materials related to the ISNAR project at: http://proquest.umi.com/pqdlink?Ver=1&Exp=01- http://www.isnar.cgiar.org/evaluation.htm and Baron, J.N., and M.T. Hannan. 2002. 08-2008&FMT=TG&DID=000000054054058& http://www.capacity.org/Web_Capacity/Web/UK_ "Organizational Blueprints for Success in High- REQ=1&Cert=D1%2f6uQVjSmmN6q%2bMUlpGjcrr Content/Navigation.nsf/index2.htm?OpenPage Tech Start-Ups: Lessons From The Stanford Project hcjoniyKAcxaR2J7KzZPoIiY21NBDMXMIFugkOQ%2b on Emerging Companies" California Management dx24SqFCrqRW9Mf0EQLNUQ-- Johnston, M., and S.J. Kpundeh. 2002. Building Review, vol. 44, no. 3. a Clean Machine: Anti-Corruption Coalitions and This research looked at a provocative assumption: Grindle, M.E. 1997. 'Divergent Cultures: When Sustainable Reforms (World Bank Institute Working that in a period of rapid change ('Internet Speed'), Public Organisations Perform Well in Developing Paper). Washington: Word Bank Institute. systematic capacity building is an unproductive Countries', World Development, Vol. 25. This is an excellent piece on encouraging organi- waste of a leader's time ("during a hurricane, even This article is based on a 1994 study for the UNDP sational and personal change through the pres- turkeys can fly"). The research looked at nearly 200 that looked at the factors driving effectiveness in sure of coalitions. In particular, the analysis of a technology start-ups in sectors such as computers, a variety of public-sector organisations. The two broad repertoire of incentives to sustain such biotechnology and telecommunications. The results authors found that the type of task, the salary coalitions is one of the best anywhere. This work- of the study reject the above assumption. Small levels and the client had less impact on perform- ing paper can also be read with profit by practi- organizations in the private sector turned out to be ance than the nature of the organisational tioners interested in narrower capacity issues. This very 'path dependent' meaning that the relevance culture. More specifically, the organisational paper is clearly written and is a pleasure to read. and direction of their early organizational blueprints mystique, management style and operational http://www.worldbank.org/wbi/publications/ mattered a great deal in terms of eventual perform- autonomy, particularly with respect to personnel wbi37208.pdf ance. Capacity building, in short, turned out to be issues, appeared to matter more. the main event. A wonderful article for those inter- Kaplan, A., 1997. Capacity Building: Shifting ested in organizational issues in the private sector. Hesselmark, O., Un-Building Capacity: Some the paradigms of practice, Community http://www.haas.berkeley.edu/News/cmr/baron.pdf Cases from Africa, EGDI Working Paper 1999:1 Development Resource Association publication. A pithy little (15 pages) article that looks at the Brief eleven page series of insights into organiza- Dimaggio, P.J., and W. Powell. 1991. The New systems dynamics of financial, organizational and tional capacity building. This article makes a Institutionalism in Organisational Analysis. S.I.: human issues that can lead to the 'un-building' or convincing case why conventional external inter- University of Chicago Press. the collapse of capacity. The report focuses in ventions, mostly funded by donors, so often miss This is a dense, 400-page collection of academic particular on the issues of lack of recurrent costs, the mark and produce little in the way of sustain- articles on the new institutionalism and its implica- politicization, donor exit strategies, external able organizational change. tions for organisational analysis. Whilst it is clearly dysfunctions and others that act against sustain- http://www.cdra.org.za/Publications/Various_ not a book for practitioners, buried within it are ability. Useful piece. Articles/shifting%20the%20paradigms.htm

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Kaplan, A. 1999. The Development of create, an undue focus on intermediary activities, ity processes, product development, benchmarking, Capacity. New York: United Nations Non- an emphasis on information over communication human resources and effective boards and supervi- Governmental Liaison Service. and education, an ignorance of the existing incen- sion. The final two chapters are of particular inter- This booklet (57 pages) is a classic statement of tive system, a preoccupation with sort-term results est, especially the comparison between NGO and the organisational development approach to and a decoupling of measurement activities from private-sector approaches in the US to the mentor- capacity development, with particular relevance broader issues of strategy and culture. Kerr's article ing of small, growing organisations. to smaller, indigenous NGOs. It is a relentless is a case study in dysfunctions. dissection of the dysfunctions of the conven- Smillie, I., J. Hailey. 2001. Managing for tional, project-oriented, technical assistance inter- Leonard, D.K. 1987. 'The Political Realities of Change: Leadership, Strategy and Management in ventions sponsored by the international donor African Management', World Development, Vol. 15. Asian NGOs. S.I.: Earthscan. community. It makes a case for more facilitative, This is an insightful article from an author who This study, funded by the Aga Khan Foundation learning-based empowerment strategies that has spent a good deal of time and effort trying to Canada, looks at the reasons for the good perform- respond creatively to on-going processes. It also understand the operational constraints facing ance of nine NGOs in South Asia. Two of these are contains a useful analysis of the 'hard' versus African managers. Leonard looks at the patron- from Bangladesh, three are from India and four are 'soft' elements of capacity and a plea for less client pressures on managers, on their constant from Pakistan. Among the management issues aris- organisational engineering and more systems search for legitimacy and external support, and ing from the analysis are relationships with govern- appreciation of organisational life. This is a useful their need for projects that can be both politically ments, the tension between formal and informal read for anyone who is about to design an inter- and developmentally productive. Leonard takes structures, and between products and processes. vention in support of capacity development. aim at the relentless technical rationality that http://www.unsystem.org/ngls/documents/publi- pervades donor approaches and its continuing Ulrich, D., "Organizing Around Capabilities" in cations.en/develop.dossier/dd.05/dc.contents.htm record of failure in most organisational settings. Hesselbein, F., Goldsmith, M., and Beckhard, R.. He argues for capacity reforms that flow with 1997. The Organization of the Future. S.I.: The Kerr, S. 2003. "The Best-Laid Incentive Plans" rather than against the logic of African organisa- Drucker Foundation/Jossey-Bass Publishers. Harvard Business Review. tional and social reality. This is a refreshing change A brief (7 page) article which tries to shift the This short (10 pages) article shows how perform- from the regular fare of donor advocacy for various focus in organizational thinking away from the ance measures can easily assess the wrong activi- 'lifeboat' solutions to capacity issues in Africa. conventional categories such as structure, roles, ties and in the process, provide incentives for systems and accountabilities and towards that of employees to game the system and reduce existing Letts, C.W., W.P. Ryan, and A. Grossman.1999. capabilities. From this perspective, organizations levels of performance. Indeed, many of the High Performance Non-profit Organisations: should be looked at as bundles or portfolios of dysfunctional practices outlined in the article are Managing Upstream for Greater Impact. S.I.: Wiley capabilities that change over time to meet present in most current efforts at performance Nonprofit Series. changing needs. The article, in effect, calls for measurement systems in development cooperation Most analyses of NGOs focus on their role and their reversing most current assessment frameworks. A - indicators (or 'vindicators') determined at a central programmes. This book emphasises capacity-build- neat summary for busy practitioners. level by technical staff without lower-level staff ing, i.e. creating and sustaining effective organisa- participation or understanding, lack of awareness tions in the non-profit sector that can perform and Compiled by Peter Morgan, ECDPM Programme of the games that certain measurement 'rules' deliver these programmes. The authors look at qual- Associate, e-mail: [email protected]

The European Centre for Development Policy and experiences from the South, so as to ensure that This issue is one of the activities of the study on Management (ECDPM) launched Capacity.org as a discussions are rooted in reality. Capacities, change and performance executed under tool for development researchers, practitioners and the aegis of the Network on Governance of the decision-makers. As a website and a newsletter, Our aim is to make Capacity.org a joint effort, mobil- Development Assistance Committee (DAC) and with Capacity.org combines information on capacity devel- ising and sharing a range of capacities and expertise. financial contributions from the Department for opment policy and practice within international Interested individuals and organisations can help International Development (DFID), the Canadian development cooperation with debate on policy issues make Capacity.org an effective communication tool International Development Agency (CIDA) and the and practical experiences. It acts as a platform for dia- for people seeking to alleviate poverty through Ministry of Foreign Affairs of the Netherlands (DGIS). logue by providing a channel for informed review and capacity development by contributing information, synthesis of the complex issues faced by development lessons, ideas, opinions and feedback. Any offers of Comments, suggestions and requests should be practitioners and policy-makers. co-finance or for linking up with related initiatives addressed to Volker Hauck, are very welcome. European Centre for Development Policy Focusing on both the 'why' and the 'how' of capacity Management (ECDPM) development, Capacity.org seeks to unravel the com- Onze Lieve Vrouweplein 21, plexity of ideas and practices underpinning the term NL-6211 HE Maastricht, The Netherlands, 'capacity development'.To achieve this, the editors www.capacity.org Tel +31 (0)43 350 29 00, Fax +31 (0)43 350 29 02, particularly encourage the exchange of perspectives E-Mail [email protected], website www.ecdpm.org

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