September 2006

September 2006

Application of UNDP’s

Capacity Development Process and

Capacity Diagnostics Methodology

2

Context

UNDP’s Capacity Development Process and Capacity Diagnostics

Methodology draw upon prior UNDP, UN system, and partner

organisation capacity development and assessment documents,

case studies and reviews, at the level of both the enabling

environment and the institution. The methodology materials,

consisting of the Practice Notes on Capacity Development and

Capacity Assessment, User’s Guide and Supporting Tool, have

benefited from a technical review provided by representatives from

the Bureau for Development Policy as well as from the Regional

Bureaux.

All of the input provided has enriched both the process and the

product, and we look forward to this being a continuous learning

process for all of us.

3

Introduction

Purpose of Presentation

Frame capacity diagnostics within UNDP’s capacity development process

Familiarize audience with UNDP’s “default” capacity diagnostics methodology

Enable practitioners to apply the methodology – from designing a diagnostic, to conducting an assessment exercise, to interpreting results

Audience UN Country OfficesRegional ProgrammesGovernment PartnersRegional Institutions and Experts

Related Materials

Capacity Development Practice Note Capacity Assessment Practice NoteCapacity Assessment User’s GuideCapacity Assessment Supporting Tool

4

Focus of this Presentation

Capacity Development Process – Focus on “Assess Capacity Assets and Needs” and “Define Capacity Development Strategies”

Capacity Diagnostics Framework

Supporting Content –

User’s Guide and Supporting Tool

User’s Guide

Supporting Tool

5

Capacity Developmen

t Process

Step 1:Engage Partners

and Build Consensus

Step 3: Define CD Strategies*

Step 4:Implement CD

Strategies

Step 2:Assess

Capacity Assets and Needs*

Step 5:Monitor &

Evaluate CD Strategies

Assess Capacity Assets and Needs and Define Capacity Development Strategies

* Focus of this presentation.

6

UNDP Definitions Related to Capacity (cont…)

Capacity Assessment: An analysis of current capacities

against desired future capacities; this assessment

generates an understanding of capacity assets and needs

which in turn leads to the formulation of capacity

development strategies

7

Capacity Developmen

t Process


and Build Consensus


Step 4:Implement CD

Strategies

Step 2:Assess


Step 5:Monitor &


Step 2: Assess Capacity Assets and Needs


Description

Conducted along three dimensions: points of entry, core issues and functional capacities. Existing process and framework can be applied to any sector, e.g., health or education

Key Activities

2a. Mobilize and design

2b. Conduct the capacity assessment

2c. Summarize and interpret results

8

UNDP “Default” Capacity Assessment Framework

Co

re I

ssu

es

Points of Entry

Environmental Resources

Physical Resources

Public Engagement

Mutual Accountability Mechanisms

Leadership

Financial Resources

Human Resources

Enabling

EnvironmentOrg’l

Functional Capacities*

Formulate Policy & Strategy

Analyze a Situation & Create a Vision

Monitor & Evaluate

Budget, Manage & Implement

Individual

Engage in Multi-

Stakeholder Dialogue

Primary Areas of Capacity Assessment Focus – Specific Assessment Questions and Indicators Available for Each Cross Section

Policy & Legal Framework

Human Rights Overlay any Capacity Assessment

* Technical capacities complement the functional capacities.

9

UNDP “Default” Capacity Assessment Framework: Points of Entry

Point of Entry Description

Enabling Environment Comprises a variety of elements that can facilitate or constrain the development of capacity, including overall policies, rules and norms, values governing the mandates, priorities, modes of operation, etc. within and across sectors. Such elements create incentives or constraints that determine the “rules of the game” for interaction between them and can affect the performance of individual and sector organisations. Alternatively known as the societal or institutional level; it is not necessarily synonymous with the national level.

Organisational Generally focuses on the internal workings of an organisation in order to establish or improve specific capacities. Rarely, if ever, sufficient to explore capacity issues at this level alone.

Individual Generally conducted within the context of an organisational assessment, carried out through performance management systems and are the responsibility of the countries concerned.

Capacity resides on different levels – enabling environment, organisation and individual – and needs to be assessed across these levels. A capacity assessment team selects one level as its point of entry (and may “zoom in” or “zoom out” from that level as needed). Having a clearly articulated purpose for a capacity diagnostic helps define the point of entry.

Zooming In and Zooming Out

Capacity Levels Enabling

Environment Organisational Individual

Zoom Out

Zoom In

10

UNDP “Default” Capacity Assessment Framework: Core Issues

Core Issue Description

Leadership Capacity to foster ownership; manage relationships with key external stakeholders, including the ability to negotiate; develop, communicate and give direction on vision, mission and values; develop and implement a system for overall management; and create an environment that motivates and supports individuals

Financial Resources National and local capacities to negotiate, manage, utilize and monitor internal financial resources as well as DBS in ways that best support the human development agenda and achieve the MDGs, including capacities for the management of development finance and development cooperation

The Core Issues are those that UNDP most frequently encounters. Not all of these will necessarily be analysed in any given assessment, but they provide a comprehensive set of issues from which a capacity assessment team may choose as it defines its scope.

Environmental Resources Capacity to manage environment and natural resource and energy sectors, to integrate environmental and energy dimensions into poverty reduction strategies and national development frameworks, and to strengthen the role of communities in promoting sustainable development

Human Rights Capacities regarding promotion and protection of human rights, including gender rights, and the application of a human-rights-based approach to development planning and programming; creation of sustainable institutional systems; the application of human rights in law and reality; effective systems for societal monitoring of human rights enforcement; transparent mechanisms to correct human rights violations; and specific measures for affirmative action for addressing structural issues that perpetuate inequality and discrimination

Human Resources Capacity for development of recruitment and promotion policies; performance assessment and management mechanisms; incentives (monetary and non-monetary); monitoring and evaluation mechanisms; and training

Physical Resources Capacity to build, maintain and manage physical resources; does not include accounting of the number of bridges but the capacity to construct and provide continuing services necessary to keep them operational

Policy and Legal Framework Capacity to develop and sustain a policy and legal framework that is independent, impartial and fair – a system that is critical to the alleviation of poverty and achievement of the MDGs

Public Engagement 1) Capacity for inclusion, participation, equity and empowerment of individuals; and 2) mobilization, access and use of information and knowledge


Capacity to ensure accountability through prevention and enforcement; strengthening of national integrity institutions; increasing public participation; and building coalitions; and working with the international community

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UNDP “Default” Capacity Assessment Framework: Functional Capacities

Functional Capacity Description

To Engage in Multi-Stakeholder Dialogue

Capacity to engage and build consensus among all stakeholders, including relevant public and societal agents, as well as external partners. Specific skills include the ability to identify, motivate and mobilize stakeholders; create partnerships and networks; raise awareness; develop an enabling environment that engages civil society and the private sector; manage large group processes and open dialogue; mediate divergent interests; and establish collaborative mechanisms

To Formulate Policy and Strategy

Abilities to analyze a range of development parameters that may affect needs and performance in a given area; explore different perspectives; conduct long-term strategizing; and set objectives

To Budget, Manage and Implement

Process management capacities essential in the implementation of any type of policy, legislation, strategy and programme, including budget formulation; execution aspects of programme and project implementation; mobilization and management of human, material and financial resources; selection of technologies; and procurement of equipment

Specific functional capacities are necessary for the successful creation and management of policies, legislations, strategies and programmes. UNDP has chosen to prioritise the functional capacities below, which exist at all three points of entry, for all core issues and across sectors.

To Monitor and Evaluate Abilities to monitor progress, measure results and codify lessons, for learning and feedback to ensure accountability to partners and the ultimate beneficiaries of development. It also covers results-based management and monitoring and evaluation systems, as a means of reporting to donors.

To Assess a Situation and Create a Vision

Abilities to effectively access, gather, analyze and synthesize data and information, and translate it into a vision for the future. Specifically, it includes the ability to define the state of current capacities, and assess those against a desired future state, thus articulating the capacity needs that can lead to capacity development strategies

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Assess Capacity Assets and Needs – Benefits

• Brings rigor and a systematic method for assessing existing capacity assets and needs

• Provides a comprehensive view of the issues that could be addressed in a capacity assessment

• Provides a structure for discussion about the scale and scope of the capacity assessment exercise and about expectations of the capacity development effort more generally

• Provides a method for generating quantitative as well as qualitative data to support the development of a capacity development action plan

• Makes sense of complex development situations, when it is not always obvious where best to intervene to promote capacity development

13

Assess Capacity Assets and Needs – Operational Considerations

• Understand that capacity diagnostic is a set of activities, not a solution

• Leverage the framework as a point of departure for a capacity diagnostic – it is flexible and needs to be customized by the assessment team to suit its specific needs/context

• Define desired capacities prior to undertaking the diagnostic, as they do not emerge from a capacity diagnostic

• Do not necessarily expect “surprises” from the diagnostic, but rather confirmation and consensus

• Leave prioritization of investment until after the assessment of capacities has been completed

• Consider a capacity diagnostic as a dynamic, ongoing process… not a one-time event

14

Capacity Developmen

t Process


and Build Consensus


Step 4:Implement CD

Strategies

Step 2:Assess


Step 5:Monitor &


Step 3: Define Capacity Development Strategies


DescriptionThe formulation of capacity development strategy options suggested by capacity assessment data, evidence and analysis. Includes short to medium (1 year +) strategic initiatives and immediate quick impact activities (<1 year)

Key Activities3a. Define capacity development

strategies

3b. Define progress indicators for capacity development strategies and capacity development

3c. Cost capacity development strategies and capacity development

15

Capacity Diagnostics:Needs and capacity assessments, indicators and measurement, local R&D…

Knowledge Services and Learning:Large group, technical and tertiary education, on-the job skills transfer, focus groups…

Leadership Development:One-on-one coaching, mentoring, management skills development…

Institutional Reform and Change Management:Process facilitation, performance management, functional reviews, PAR in transitions, procurement…

Multi-Stakeholder Engagement Processes:Institutional twinning, e-networks, community dialogues, integrated planning and problem analysis…

Mutual Accountability Mechanisms:M&E processes, social watch, peer and partner reviews…

Incentive Systems:Salary supplements, non-monetary benefits, pay and compensation...

Capacity Development Strategies

Note: Case-driven concept notes for each capacity development strategies are expected to be published in the fourth quarter of 2006.

16

Capacity Developmen

t Process


and Build Consensus


Step 4:Implement CD

Strategies

Step 2:Assess


Step 5:Monitor &


Capacity Development Process


Key Activities




3a. Define capacity development strategies



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2a. Mobilize and Design

• Clarify objectives and expectations with primary clients

• Identify and engage national/local stakeholders throughout the process – design, assessment, interpretation and dialogue – to ensure ongoing success

• Use UNDP Capacity Assessment Framework to suit local needs

• Define the scale and scope of the capacity assessment by selecting point of entry, core issue(s) and functional capacity(ies)

• Determine data collection and analysis approach

• Review existing sources and knowledge

• Determine how the assessment will be conducted (team, location)

• Cost the capacity assessment exercise (based on team composition, duration and depth)

It is important for local participants to gain ownership of the exercise and for stakeholders to be identified and engaged appropriately – providing political and administrative oversight, assisting in the design and implementation, and ensuring thorough analysis and follow-up.

18

UNDP “Default” Capacity Assessment Framework

Co

re I

ssu

es

Points of Entry

Environmental Resources

Physical Resources

Public Engagement


Leadership

Financial Resources

Human Resources

Enabling

EnvironmentOrg’l

Functional Capacities*


Analyze a Situation & Create a Vision

Monitor & Evaluate

Budget, Manage & Implement

Individual

Engage in Multi-

Stakeholder Dialogue

Primary Areas of Capacity Assessment Focus – Specific Assessment Questions and Indicators Available for Each Cross Section


The Capacity Assessment Framework is flexible enough to meet the needs of most capacity assessment situations.

It is incumbent upon a capacity assessment team to design the framework to suit local needs.

It is not mandated that the entire framework is used in any given assessment.

Comments

Human Rights Overlay any Capacity Assessment

* Technical capacities complement the functional capacities.

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Design Considerations

• Select one cross-section to all 100 cross-sections

• Once a point of entry has been determined, use either a core issue(s) or a cross-cutting functional capacity(ies) as the primary driver of the assessment

• Go into more depth on any given cross-section, e.g., split “Budget, Manage & Implement” into three sub-capacities

• Formulate questions as appropriate – use questions in User’s Guide; develop additional questions; break down questions provided into more sub-questions

• Customize according to how much time is allotted for a given project – one week assessment or a three-month assessment

It is incumbent upon a capacity assessment team to design the framework to suit local needs.

20

Quantitative Data vs. Qualitative Information

Advantages

• May be seen as more “legitimate” than the qualitative element

• Easier to compare capacity levels across different core issues and functional capacities

Disadvantages

• May be used for comparison purposes that are not valid

Quantitative Data Qualitative Information Advantages

• Provides context for qualitative element

• Creates repository of “institutional memory”

Disadvantages

• More difficult to compare capacity levels across core issues and cross-cutting capacities

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Illustration: Designing a Capacity Assessment

Visioning and Strategic Planning Capacities

“During the process of developing the UNDAF, a perceived gap in national-level visioning and strategic planning has been identified.”

Considerations

1. Use the UNDP Capacity Assessment Framework as a framework for discussion

2. Define scope and scale of capacity assessment by selecting point of entry, core issue(s) and cross-cutting functional capacity(ies)

3. Focus efforts on a handful of dimensions (issues and capacities) that cover a majority of the scope and scale; although a capacity assessment may feasibly include all issues and capacities

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Point of Entry Enabling environment at the national level

Core Issue(s) All Core Issues

Functional Capacity(ies)

Analyse a Situation and Create a Vision

Formulate Policy and Strategy

Possible Approach

Within the context of the enabling environment, use the capacities as drivers of the assessment – applying both capacities to all relevant core issues

Take a UN system approach, with appropriate agencies responsible for various core issues, e.g., UNDP manages Leadership, Policy & Legal Framework and Mutual Accountability Mechanisms; UNICEF manages Public Engagement; and UNEP manages Environmental Resources

23

Capacity Developmen

t Process


and Build Consensus

Step 3: Define CD Strategies

Step 4:Implement CD

Strategies

Step 2:Assess

Capacity Assets and Needs

Step 5:Monitor &




Key Activities







24

2b. Conduct the Capacity Assessment

• Define desired future capacities – by articulating key questions

• Define capacity levels

• Assess existing capacity levels

Viable capacity development strategies nurture and reinforce existing capacities. The capacity assessment uses existing capacities as the starting point, and throughout the process, identifies capacity needs against pre-determined desired capacities.

25

Articulating Capacity Assessment Questions – User’s Guide

Contents

1.Overview and Key Operational Considerations

2.Assess Capacity Assets and Needs

3.Define Capacity Development Strategies and Actions

4.Questions and Indicators by Core Issue

5.Annexes

A step-by-step guide to conducting a capacity assessment

Includes instructions for conducting a capacity assessment and specifically for using the supporting tool

Includes illustrative questions and indicators for each cross-section of the “default” framework (cross section of point of entry, core issue and functional capacity)

26

Articulating Capacity Assessment Questions

“During the process of developing the UNDAF, a perceived gap in national-level visioning and strategic planning has been identified.”

Point of Entry Enabling Environment at the national level

Core Issue Leadership

Functional Capacity Formulate Policy and Strategy

Considerations1. Begin by leveraging questions in the User’s Guide

2. Adapt questions to assessment objectives: modify, add to, delete questions as necessary

Request – Illustration #1: Visioning and Strategic Planning

Overall Question (from the User’s Guide)

• Do authorities have the capacity to develop integrated policies and plans linked to resources?

Additional Questions (from the User’s Guide)

• Do authorities have the capacity to formulate policies, legislations, strategies and programmes?

Revised Questions “Unbundle” questions aboveConsider additional questions: Do authorities have the capacity to:• Identify weaknesses of existing plans (areas that need improvement)?• Formulate strategy that incorporates plans for implementation? • Identify dependencies across sectors? Develop policy that addresses these

dependencies?

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Levels

Defining Capacity Levels

Considerations1. Adjust definition of each capacity level as the context dictates

2. Ensure consensus on what each capacity level means

3. Determine how to assign levels… or how will the questions be answered

a. Identify appropriate indicators

b. Find data, e.g., from policy documents, reports, statistics, interviews, observable practices

4. Determine what will be done with results – will they be used to compare across entities (e.g., ministries, districts, communities)

5. Determine whether qualitative information will be captured as well

1 No evidence of relevant capacity

2 Anecdotal evidence of capacity

3 Partially developed capacity

4 Widespread, but not comprehensive, evidence of capacity

5 Fully developed capacity

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Capacity Developmen

t Process


and Build Consensus


Step 4:Implement CD

Strategies

Step 2:Assess


Step 5:Monitor &




Key Activities







29

2c. Summarize and Interpret Results

• Summarize results

• Compare against desired level of capacity and interpret findings

Once the assessment has been completed for selected cross-sections, the assessment team compares the assessment results against the desired level of capacity, as determined during the Mobilize and Design phase. This comparison helps the team determine the level of improvement required, which in turn will provide direction in terms of which areas to focus capacity development strategies


30

Illustration: Interpreting the Results

Core Issues

Budget Manage Implement Avg

Leadership

3.4 3.0 3.2 3.2

HR 1.3 1.7 1.5 1.5

1. Leadership is relatively strong within all capacities assessed

2. Human resource-related capacities are less strong

Core Issues

Budget Manage Implement Avg

Leadership 4.0 1.0 1.3 2.1

HR 4.2 1.3 1.4 2.3


1. Capacity to budget is strong across issues

2. However, capacity to manage and implement may need improvement

31

Supporting Tool

An excel spreadsheet to support a capacity assessment, including separate worksheets for each step of the assessment and an overall summary

32

User’s Guide and Supporting Tool – Benefits

• Provides instructions for conducting a capacity assessment

• Offers a starting point for capacity assessment exercises

– Provides overall and detailed questions for each cross-section of the Capacity Assessment Framework

– Provides indicators for each cross-section

• Provides a tool for data collection and analysis

33

User’s Guide and Supporting Tool – Operational Considerations

• Adapt questions and indicators as appropriate

– Questions and indicators provided are intended to serve as thought-starters

– Given the contextual demands of any assessment, it is expected that these questions and indicators will be tailored, added to or deleted to address context-specific needs

– They do not represent an exhaustive set of questions and indicators for any capacity assessment

• Use the supporting tool as needed for data collection and analysis. It need not be used, however – pen and paper are a sufficient approach for data capture

• While the overall Capacity Development process is mandated, the specific questions and indicators in the User’s Guide and Supporting Tool are not

34

Potential Pitfalls……………………………………and Responses

• Assessment fatigue

• Skepticism about value and validity of results emerging from a capacity assessment

• Suspicion that capacity assessments are being used by senior management for re-profiling or retrenchment

• Disconnect between capacity assessment and formulation of capacity development strategies: basing strategy formulation on “guesstimates” of capacity gaps

• Facilitation level: too much may lead to “coached” outcomes; too little may result in a “wish list” of capacity development strategies

• “Zoom in” on the issues

• Importance of building consensus

• Assessments for overall development effectiveness

• Focus on the link between assessment results and capacity development strategies

• Endogenous process, ownership

35

Good Practices• Consider capacity assessments as a normal part of good management that can assist stakeholders in enhancing capacity and improving performance and that can add value to the processes of needs identification, planning, implementation, monitoring and evaluation, rather than treating them as stand-alone activities

• Ensure that any assessment is nationally and/or locally led, although external facilitation is the most effective way to make the assessment as objective as possible

• Engage stakeholders from the outset to ensure appropriate design and buy-in, and where appropriate, to encourage self-assessment

• Budget for capacity assessments as an ongoing part of institutional reform and change management

• Use capacity assessments to galvanize interest for change and to promote organisational learning and empowerment

• Incorporate lessons learned on an ongoing basis into a capacity assessment by taking an iterative approach to the overall process

• Remain flexible, ensuring optimal use of existing information sources while taking opportunities to build synergies with other ongoing initiatives/processes

• Encourage an open and honest assessment process to ensure fairness and acceptance of the assessment’s procedures and results

36

Supplementary Capacity Assessment Methodologies – Select ListMethodology / Tool Purpose

General

Venture Philanthropy Partners (McKinsey) Capacity Assessment Grid

Assess non-profits’ organizational capacity, including identifying strengths and areas for improvement, measuring changes in cpaacity over time, and drawing out different views within the organization

EFQM Excellence Model Comprised of nine main aspects requiring consideration in any organizational analysis, grouped into Enablers and Results

Thematic

UNDP Civil Society Organization Capacity Assessment Tool

Assess CSO commitment to UNDP principles of participatory human development and democratic governance

Assess CSO capacity for project management

UNDP Generic Participatory, Result-oriented Self Assessment (PROSE) Tool for CSOs engaged in policy advocacy

Assess in-depth the capacities of CSOs in Africa to engage in policy analysis, policy dialogue, policy advocacy, and the monitoring and review of the performance of public policies

OECD/DAC Joint Venture on Procurement Offer a standardized instrument which developing countries and donors can use to assess the quality and effectiveness of national procurement systems

UNDP Aid Effectiveness In process – adaptation of the corporate tool to support assessment of capacity to manage aid effectively

Sector

OECD/DAC Good Practice Guidance on Strategic Environmental Assessment (SEA)

An analytical and participatory approaches to strategic decision-making that aim to integrate environmental considerations into policies, plans and programmes and evaluate the inter linkages with economic and social considerations

UNDP GEF National Capacity Self Assessment Assess functional capacities from an environmental perspective, as input into environmental and overall policy and programme planning

37

• Breakout groups

38

Capacity Diagnostics and Development PlanningCapacity diagnostics provide valuable input into the formulation of capacity development policies and strategies, at the level of MDG-based development strategies, poverty reduction strategies and the CCA/UNDAF.

Millennium Project Needs Assessment and Capacity Assessment are complementary in nature.

Needs Assessments focus on “interventions,” i.e., what needs to improve, and the financial requirements to fund the interventions.

Capacity Assessments focus on the current and desired levels of capacity in a given enabling environment or organisation, the gap between them, and most important, the resulting capacity development strategies – how the improvements will occur and how much such will cost to undertake.

Millennium Development Goal-Based Development

Strategies

Capacity Assessments can be applied in developing the medium-term poverty reduction strategy (PRS), with capacity assets and needs assessed over a shorter time horizon, and strategic initiatives and quick impact activities similarly developed over a shorter time horizon.

Note: it is not possible to create a one-to-one relation between a capacity gap and a desired poverty reduction outcome.

Poverty Reduction Strategies

UNDP’s capacity development process and “default” capacity assessment methodology are mandated by UNDP.

The “default” Capacity Assessment Framework can be used to underpin the analysis in priority areas of engagement for the UN in a country.

Such would be included in a CCA process, and the resulting capacity development strategies would be reflected in the UNDAF, and UN common programmes or agency specific programmes and projects that follow.

CCA and UNDAF

39

Adapting the UNDP Capacity Development Process

• Capacity development process, including capacity assessment

“Non-Negotiables” Rationale

• Process is mandated by UNDP to improve consistency and increase impact of work

• Definitions of capacity, capacity development and capacity assessment

• This content was developed in consultation with internal partners (e.g., UNDG Working Group on Capacity Development) as well as external partners (e.g., OECD DAC GovNet)

• Capacity development strategies • Similar to the capacity development process, this content is mandated by UNDP

• Capacity assessment framework

Available for Adaptation Rationale

• Scope and scale of the assessment (point of entry, core issue(s) cross-cutting capacity(ies)) are determined by the local context

• Specific questions are determined by the assessment objectives

• Application of the capacity development strategies • Application is determined by the local context

40

Kemal Dervis’s Statement to the Executive Board, 11 Sept 2006

Long-term development should be a nationally led and managed process that

builds upon existing capacity in designing and implementing effective strategies

to further boost capacity development. Our approach in nurturing MDG-

based national development strategies integrates capacity diagnostics

and strategies into the heart of that process. Capacity development must

be taken into the core of development planning, policy and financing if it

is not to be an ineffective add-on or after-thought. Even when requested to

do so, UNDP should operate in a way where we do not provide direct support

services in the short to medium term without a capacity-development exit

strategy. Here it is also important to mention the vital role that South-South

cooperation has in capacity development, bringing as it does a unique transfer

of skills between developing countries themselves.

41

• Capacity is often viewed as exogenous to a government or country rather than an endogenous course of action that builds on existing capacities and assets

• Capacity is commonly defined in numbers of people in a given sector based on globally defined ratios of human resources to a given service (e.g., 1 doctor:2,500 patients) despite very different contexts

• Lack of capacity therefore is the common refrain with much less focus on the utilisation of this capacity.

• Capacity “building” focuses on knowledge and skills rarely strategic competencies

• Capacity development is a simple event or series of inputs that can easily be resolved through short-term training often defined and delivered by external partners

• Capacity is defined at the sectoral level, e.g., teachers, doctors, economists with often no reference to the relationships between and across inter-dependent sectors. Yet, development outcomes e.g. “justice for all” is achieved through the contributions of police, prisons, internal security, justice, etc.

• Capacity is about the people or human resources in a country and less about the organizational systems and the enabling environment. And yet, where poor organizational systems exist, the utilisation of the human resources is often constrained

The Capacity Myth

42

• Step 3

43

Capacity Developmen

t Process


and Build Consensus


Step 4:Implement CD

Strategies

Step 2:Assess


Step 5:Monitor &




Key Activities







44

Capacity Diagnostics:Needs and capacity assessments, indicators and measurement, local R&D…

Knowledge Services and Learning:Large group, technical and tertiary education, on-the job skills transfer, focus groups…

Leadership Development:One-on-one coaching, mentoring, management skills development…

Institutional Reform and Change Management:Process facilitation, performance management, functional reviews, PAR in transitions, procurement…

Multi-Stakeholder Engagement Processes:Institutional twinning, e-networks, community dialogues, integrated planning and problem analysis…

Mutual Accountability Mechanisms:M&E processes, social watch, peer and partner reviews…

Incentive Systems:Salary supplements, non-monetary benefits, pay and compensation...

3a. Define Capacity Development Strategies

Note: Case-driven concept notes for each capacity development strategies are expected to be published in the fourth quarter of 2006.


45

• Endogenous process

• Opportune timing

• Political economy and power differentials

• Incentives

• A ‘best fit’ approach

1. A long-term process which cannot be rushed

2. Require respect for value systems and must

foster self-esteem

3. A learning process without blueprints

4. Not power neutral and challenges existing

mindsets and power differentials

5. Promote development and is sustainable

6. Establish positive incentives

7. Integrate external inputs into national priorities,

processes and systems

8. Build upon existing capacities rather than

creating new ones

9. Stay engaged under difficult circumstances

10. Remain accountable to ultimate beneficiaries

Default Principles* Key Considerations

*Benchmarks for these principles are referenced in the UNDP Capacity Development Practice Note

Key Considerations and Default Principles for Capacity Development


46

Capacity Developmen

t Process


and Build Consensus


Step 4:Implement CD

Strategies

Step 2:Assess


Step 5:Monitor &




Key Activities







47

3b. Define Progress Indicators

• Define indicators for capacity development strategies = output

• Define indicators for capacity development = outcome

• Determine baselines and set targets for each indicator

Capacity development should be accompanied by indicators against which to measure progress. The challenge is to go beyond monitoring and evaluation that is project- or programme-based and viewed in terms of outputs, to monitoring and evaluation that is viewed in terms of outcomes.


48

3b. Define Progress Indicators

TYPE WHAT IS MEASURED INDICATORS

CD Strategies

(Output Level)

Implementation of activities

Capacity Development

(Outcome Level)

Effort, or products and services generated by Capacity Development projects and programmes

Development effectiveness, or results in terms of access, usage and stakeholder satisfaction from products and services generated by projects and programmes

Use of outputs and sustained production of benefits

INPUTS Experts Equipment Funds

OUTPUTS Studies

completed People trained

OUTCOMES Income

increased Jobs created

IMPACT Health conditions

improved Longevity increased


49

Capacity Developmen

t Process


and Build Consensus


Step 4:Implement CD

Strategies

Step 2:Assess


Step 5:Monitor &




Key Activities







50

3c. Cost Capacity Development Strategies and Capacity Development


• Use input-based budgeting process for shorter-term capacity development actions and strategies; this is based on known, quantifiable inputs, e.g., number of consultant-days, number of consultation sessions, translation costs

• Less straight-forward is the process for determining or projecting costs required for longer-term capacity development. If an assessment team feels that these costs cannot be accurately projected, it is suggested that this costing exercise be limited to an actual costing of inputs in order to avoid any issues of credibility or legitimacy

The best developed policies and programmes will go nowhere without appropriate funding. It is critical that the capacity development strategy options and related action plans are accurately costed in order for the team to realistically determine the extent of funding required for implementation.

What approaches have you used to cost capacity development strategies and capacity development?

What challenges have you faced?

51

• CDG Content and Resources

52

Theoretical and Case Study Publications

• Capacity for Development: New Solutions to Old Problems

• Developing Capacity through Technical Cooperation

• Ownership, Leadership, and Transformation: Can We Do Better for Capacity Development?

• Capacity Development Strategies: Let the Evidence Speak (A Case Book) (forthcoming)

Policy and Practice Notes

• Practice Note on Capacity Development

• Practice Note on Capacity Assessment

• Practice Notes on Aid Management, Procurement Capacities, Private Sector Development and PPP (forthcoming)

• Practice Note on Localizing the MDGs (forthcoming)

UNDP Capacity Development Resources

Supporting Content

53

Resource Guides and Tools

• UNDP Capacity Assessment User’s Guide and Supporting Tool

• UNDP Guidelines on Direct Budget Support, SWAps & Basket Funds

• Guide on Leadership for Human Development

• Toolkit on Localising the MDGs

• Toolkit on Private Sector Development

• UNDP-LEAD Leadership Modules

• CD Resource Catalogue On Measuring Capacities: An Illustrative Guide to Benchmarks and Indicators

• A CD Guide on Applying a Human Rights-Based Approach

• Toolkit for CD in South-South Cooperation (forthcoming)

• CSO Capacity Assessment Tools (forthcoming)

CD Expert Rosters

• Database of external consultants, organisations, and agencies with CD expertise

• Sub-communities of practice, i.e. leadership, strategic planning

• www.capacity.undp.org/roster

CD Websites

• www.capacity.undp.org

• www.capacity.org

• http://topics.developmentgateway.org/mdg

• www.capacity.undp.org/roster

UNDP Capacity Development Resources (cont.)

Supporting Content

http://www.capacity.undp.org/roster


http://www.capacity.undp.org/

http://www.capacity.org/

http://topics.developmentgateway.org/mdg

http://topics.developmentgateway.org/mdg



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• Illustrations

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Scope of Assessment


Visioning and Strategic Planning Capacities“During the process of developing the UNDAF, a perceived gap in national-level visioning and strategic planning has been identified.”


Core Issue(s) All Core Issues



Formulate Policy and Strategy

Possible Approach

Within the context of the enabling environment, use the capacities as drivers of the assessment – applying both capacities to all relevant core issues

Take a UN system approach, with appropriate agencies responsible for various core issues, e.g., UNDP manages Leadership, Policy & Legal Framework and Mutual Accountability Mechanisms; UNICEF manages Public Engagement; and UNEP manages Environmental Resources

Request – Illustration #1

ILLUSTRATIVE

Considerations1. Use the UNDP Capacity Assessment Framework as a framework for discussion



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Scope of Assessment


Leadership and Anti-Corruption“A country is in the midst of a political transition. New leadership has emerged based on an anti-corruption platform and a promise of a “clean” government. The president must now appoint leaders capable of leading this effort in each of their respective areas. The government has requested support in establishing its new leadership. ”


Core Issue(s) Leadership



Public Engagement


Engage in Multi-Stakeholder Dialogue


Possible Approach

Assess the capacity to lead a national dialogue and create a vision for societal development.

May involve an assessment of the requirements of various leadership posts; does not however involve an assessment of any individual leader

Civil service training will be a likely outcome


ILLUSTRATIVE




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Scope of Assessment


Judicial Leadership“Country is in the midst of a political transition; among the changes are the opening up of the justice system that had previously been closed (justice for all instead of justice for the few). The government has requested support in developing a plan to support the new justice system.”

Point of Entry Enabling environment at the national level, with zoom to the sub-national level

Core Issue(s) Leadership – to understand abilities of executive, legislative and judicial branches to interact and cooperate

Policy & Legal Framework – to understand capacities to develop, put in place and manage a strong framework for equal access to justice

Mutual Accountability Mechanisms – to gauge capacities to put in place mechanisms that can ensure a responsive, transparent, and accountable judicial system


All capacities

Possible Approach

Begin with a review at the national level, and then move to the district level for a review of district courts


ILLUSTRATIVE




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Scope of Assessment


MDG Adaptation“The Minister of Education has recently been granted a significant amount of ODA to adapt a national plan and implement it at the local level to address MDG #2: Achieve universal primary education. Assume inter-ministerial coordination is well under way and an assessment of this capacity is not required.”

Point of Entry Organisational level (ministry) with “zoom in” to individual level to capture individual capacities to implement at the local level

Core Issue(s) Human Resources – to understand teachers’ capacities at the local level and incentive systems

Financial Resources – to understand capacity to manage significant influx of ODA funds

Public Engagement – to understand current level of family and community participation in encouraging enrolment and maintaining attendance

Physical Resources – to gauge infrastructure in place, e.g., number of schools, availability and accessibility of public transport



Budget, Manage and Implement

Possible Approach

Focus on localisation of the plan, specifically ability to create a local-level plan and capacities to implement it


ILLUSTRATIVE




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Scope of Assessment


Food Insecurity and Environmental Protection“A province in the Sahel is experiencing ongoing drought, desertification and food insecurity. The provincial government has asked for support in developing a plan to address food insecurity and environmental degradation and the link between them.”

Point of Entry Sub-national enabling environment

Core Issue(s) Environmental Resources – to understand provincial capacities to manage environmental degradation


All capacities

Possible Approach

Start with focus on capacities to develop a plan (including engaging multiple stakeholders, assessing the situation, and creating a vision and policy), but be sure to assess capacities to implement and monitor programme as well


ILLUSTRATIVE




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Scope of Assessment


Programme Management“Minister of Public Service is responsible for managing 14 programmes housed in several different ministries. Minister requests support in understanding what capacities are required to manage these multiple programmes and how to develop such capacities.”

Point of Entry Organisational level (ministry) with “zoom out” to enabling environment

Core Issue(s) Leadership – to understand capacities within the Ministry of Public Service to develop and give direction; to develop and implement a system for overall management, and to create an environment that motivates and supports individuals

Human Resources – to gauge capacities within partner ministries to programme manage, monitor and evaluate


Budget, Manage and Implement

Monitor & Evaluate

Possible Approach

Assess capacity of individual ministries and capacity of Public Service ministry to ensure cross-ministry coordination


ILLUSTRATIVE




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• Supporting Tool Slides

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Cost CD ActionsDefine Progress

IndicatorsDefine CD

Strategies/ActionsAssess Capacity

Assets and Needs

Instructions for Using the Supporting Tool

The User begins in the “Step 1. Capacity Assessment” tab. The User selects the Core Issues and Point of Entry using the drop down menus (starting with cells D6 and D9, and continuing below). The User may select from one to all of the core issues. The Overall Questions for the cross-cutting capacities for the given cross section of core issue and point of entry are automatically populated in the worksheet. The User can use these questions, delete them, and/or add more questions (space currently provided for adding up to five questions per cross-cutting capacity in each cross-section).

Instructions – Draft Supporting Tool Extract – Draft


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IndicatorsDefine CD


Assets and Needs

Instructions for Using the Supporting Tool

Supporting Tool Extract – Draft


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IndicatorsDefine CD


Assets and Needs

User’s Guide – Instructions for Using the Supporting Tool

The User moves to “Step 2. CD Strategies” tab. The cross-cutting capacity questions and capacity level ratings are automatically carried forward from the Step 1 tab – in the exact order in which they appear in Step 1 (they cannot be edited in Step 2). At either the level of individual questions within each cross-section or at the level of the overall cross-section, the User enters strategic initiatives and quick impact initiatives.



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IndicatorsDefine CD


Assets and Needs


The User moves to “Step 3. Indicators” tab. The cross-cutting capacity questions, capacity level ratings, and strategic and quick impact initiatives are automatically carried forward from Steps 1 and 2 – again, in the exact order in which they appear in those Steps. The User starts with capacity development and enters indicators for each target capacity, along with baseline data and targets. The User then moves to capacity development strategies and enters indicators for each initiative, again along with baseline data and targets.



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IndicatorsDefine CD


Assets and Needs


The User moves to “Step 4. Cost and Prioritize” tab. The cross-cutting capacity questions, capacity level ratings, and strategic and quick impact initiatives are automatically carried forward from Steps 1, 2 and 3 – again, in the exact order in which they appear in those Steps. The User calculates costs (outside of the Tool) and enters this amount for each capacity development initiative.



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• Variations

68

Capacity Developmen

t Process


and Build Consensus


Step 4:Implement CD

Strategies

Step 2:Assess


Step 5:Monitor &




Key Activities







69

Capacity Developmen

t Process


and Build Consensus


Step 4:Implement CD

Strategies

Step 2:Assess


Step 5:Monitor &





Key Activities







70

Capacity Developmen

t Process


and Build Consensus


Step 4:Implement CD

Strategies

Step 2:Assess


Step 5:Monitor &




Key Activities







71

Capacity Developmen

t Process


and Build Consensus


Step 4:Implement CD

Strategies

Step 2:Assess


Step 5:Monitor &




Key Activities







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Potential Pitfalls

Addressing Common Pitfalls

•Assessment fatigue

•Skepticism about value and validity of results emerging from a capacity assessment

•Suspicion that capacity assessments are being used by senior management for re-profiling or retrenchment

•Disconnect between capacity assessment and formulation of capacity development strategies: basing strategy formulation on “guesstimates” of capacity gaps

•Facilitation level: too much may lead to “coached” outcomes; too little may result in a “wish list” of capacity development strategies

What are some good practices in addressing each of these issues?

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Potential Pitfalls•Assessment fatigue

•Skepticism about value and validity of results emerging from a capacity assessment

•Suspicion that capacity assessments are being used by senior management for re-profiling or retrenchment


•Facilitation level: too much may lead to “coached” outcomes; too little may result in a “wish list” of capacity development strategies

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Potential Pitfalls


•Assessment fatigue “zoom in” on the issues

•Skepticism about value and validity of results emerging from a capacity assessment importance of agreement

•Suspicion that capacity assessments are being used by senior management for re-profiling or retrenchment assessments for overall development effectiveness


•Facilitation level: too much may lead to “coached” outcomes; too little may result in a “wish list” of capacity development strategies endogenous process, ownership

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• RBA-Specific Slides

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Background

UNDP’s Capacity Development Process and Capacity Diagnostics Methodology draw upon prior UNDP, UN system, and partner organisation capacity development and assessment documents, case studies and reviews, at the level of both the enabling environment and the institution. The methodology materials, consisting of the Practice Notes on Capacity Development and Capacity Assessment, User’s Guide and Supporting Tool, have benefited from a technical review provided by representatives from the Bureau for Development Policy as well as from the Regional Bureaux.

Further RBA Consultations

• RBA/CDG/SACI working session, including Cap2015, PPPUE, Governance and HIV Groups (June 2006)

• Presentation to Implementation Working Group (July 2006)

• Presentation to Millennium Project (July 2006)

• RBA/CDG/SACI and Cap2015 working session (July 2006)

All of the input provided has enriched both the process and the product, and we look forward to this being a continuous learning process for all of us.

RBA Adaptation

77


Phase 1:Engage

Partners and Build

Consensus

Phase 3: Define CD Strategies

Phase 4:Implement CD

Strategies

Phase 2:Assess

Capacity Assets and

Needs

Phase 5:Monitor &


Capacity Development

Process

RBA Adaptation

78

Applying the UNDP Capacity Development Process

• Capacity development process, including capacity assessment

“Non-Negotiables” Rationale

• Process is mandated by UNDP to improve consistency and increase impact of work

• Definitions of capacity, capacity development and capacity assessment

• This content was developed in consultation with internal partners (e.g., UNDG Working Group on Capacity Development) as well as external partners (e.g., OECD DAC GovNet)

• Capacity development strategies • Similar to the capacity development process, this content is mandated by UNDP

• Capacity assessment framework

Available for Customization Rationale

• Scope and scale of the assessment (point of entry, core issue(s) cross-cutting capacity(ies)) are determined by the local context

• Specific questions are determined by the assessment objectives

• Application of the capacity development strategies • Application is determined by the local context

RBA Adaptation

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Day 2

Reflections on Day 1

Capacity Development Process with Illustrative Country Scenarios (cont)

Review of Supplementary Capacity Assessment Tools


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Phase 2c: Summarize and Interpret Results

Phase 3a: Define Capacity Development Strategies

Illustrative Country Scenario


81


Phase 3b: Define Progress Indicators

Illustrative Country Scenario


Documents

September 2006