UNDPBDPCDG

1
Introduction to UNDPs Capacity Diagnostics
Methodology

• UNDP/BDP/CDG
• July 2006

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Background
Overview
UNDPs Capacity Diagnostics Methodology draws
upon prior UNDP, UN system, and partner
organisation capacity assessment documents, case
studies and reviews, at the level of both the
enabling environment and the institution. The
methodology materials, consisting of the Capacity
Assessment Practice Note, Users 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.
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Introduction
Overview
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UNDP Definitions Related to Capacity
Overview
Capacity the ability of individuals,
institutions, and societies to perform functions,
solve problems, and set and achieve objectives in
a sustainable manner.
Capacity Development the process through which
the abilities to do so are obtained,
strengthened, adapted and maintained over time.
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.
Capacity, as defined by OECD/DAC in the DAC
Good Practice Paper, is the ability of people,
organisations and society as a whole to manage
successfully their own affairs.
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Linkages between Capacity Development Process and
Development Planning
Overview
Capacity 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.
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Focus of this Presentation
Overview
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Capacity Development Process
Capacity Development Process

• Discuss and reach relative agreement on
  development issues and challenges
• Define areas of focus and boundaries for capacity
  development

• Monitor based on CD progress indicators
• Ensure feedback loop
• Conduct impact evaluations

• Establish programme and advisory teams
• Facilitate institutions and networks to perform
  their functions
• Introduce techniques for efficient operational
  and financial management

• Mobilize and design
• Conduct the capacity assessment
• Summarize and interpret results

Ongoing engagement, dialogue and learning

• Define capacity development strategies
• Define progress indicators
• Cost capacity development strategies and capacity
  development

Focus of this presentation.
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Step 2 Assess Capacity Assets and Needs
Capacity Development Process Step 2 Assess
Capacity Assets and Needs
Description
An assessment of existing capacity assets and
needs. 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
Capacity Development Process
Key Activities
2a. Mobilize and design 2b. Conduct the capacity
assessment 2c. Summarize and interpret results
Focus of this presentation.
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Assess Capacity Assets and Needs
Step 2 Assess Capacity Assets and Needs
Benefits
Operational Considerations

• 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

• Understand that capacity assessment is a set of
  activities, not a solution
• Leverage the framework as a point of departure
  for a capacity assessment it is flexible and
  needs to be adapted by the assessment team to
  suit its specific needs/context
• Define desired capacities prior to undertaking
  the assessment, as they do not emerge from a
  capacity assessment
• Do not necessarily expect surprises from the
  assessment, but rather confirmation and consensus
• Leave prioritization of investment until after
  the assessment of capacities has been completed
• Consider capacity assessment as a dynamic,
  ongoing process not a one-time event

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2a. Mobilize and Design
Step 2 Assess Capacity Assets and Needs
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.

• 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
• Adapt UNDP Capacity Assessment Framework to 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)

See pages 21-26 for illustration.
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UNDP Default Capacity Assessment Framework
Step 2 Assess Capacity Assets and Needs
Comments
The Capacity Assessment Framework is flexible
enough for adaptation to the needs of most
capacity assessment situations. It is
incumbent upon a capacity assessment team to make
the necessary adaptations. It is not mandated
that the entire framework is used in any given
assessment.
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UNDP Default Capacity Assessment Framework
Points of Entry
Step 2 Assess Capacity Assets and Needs
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.

• 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.
Zoom In
Zooming In and Zooming Out
Capacity Levels ?
Enabling Environment
Organisational
Individual
Zoom Out
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UNDP Default Capacity Assessment Framework
Core Issues
Step 2 Assess Capacity Assets and Needs
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.

• Core Issue

Description
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UNDP Default Capacity Assessment Framework
Functional Capacities
Step 2 Assess Capacity Assets and Needs
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 and for all core issues.

• Functional Capacity

Description
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2b. Conduct the Capacity Assessment
Step 2 Assess Capacity Assets and Needs
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.

• Define desired capacities and capacity levels
• Articulate questions to understand existing
  capacity assets
• Assess capacity level

See page 27 for illustration. See page 28
for illustration.
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2c. Summarize and Interpret Results
Step 2 Assess Capacity Assets and Needs
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

• Summarize results
• Compare against desired level of capacity and
  interpret findings

See page 29 for illustration.
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Adaptation Considerations
Step 2 Assess Capacity Assets and Needs

• 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
  split Budget, Manage Implement into three
  sub-capacities
• Formulate questions as appropriate use
  questions in Users 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 make the necessary adaptations.
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Illustration Designing a Capacity Assessment
Step 2 Assess Capacity Assets and Needs
Considerations

• Use the UNDP Capacity Assessment Framework as a
  framework for discussion
• Define scope and scale of capacity assessment by
  selecting point of entry, core issue(s) and
  cross-cutting functional capacity(ies)
• 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

Scope of Assessment
Request Illustration 1
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.
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Illustration Designing a Capacity Assessment
Step 2 Assess Capacity Assets and Needs
Considerations

• Use the UNDP Capacity Assessment Framework as a
  framework for discussion
• Define scope and scale of capacity assessment by
  selecting point of entry, core issue(s) and
  cross-cutting functional capacity(ies)
• 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

Scope of Assessment
Request Illustration 2
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.
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Illustration Designing a Capacity Assessment
Step 2 Assess Capacity Assets and Needs
Considerations

• Use the UNDP Capacity Assessment Framework as a
  framework for discussion
• Define scope and scale of capacity assessment by
  selecting point of entry, core issue(s) and
  cross-cutting functional capacity(ies)
• 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

Scope of Assessment
Request Illustration 3
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.
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Illustration Designing a Capacity Assessment
Step 2 Assess Capacity Assets and Needs
Considerations

• Use the UNDP Capacity Assessment Framework as a
  framework for discussion
• Define scope and scale of capacity assessment by
  selecting point of entry, core issue(s) and
  cross-cutting functional capacity(ies)
• 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

Scope of Assessment
Request Illustration 4
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.
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Illustration Designing a Capacity Assessment
Step 2 Assess Capacity Assets and Needs
Considerations

• Use the UNDP Capacity Assessment Framework as a
  framework for discussion
• Define scope and scale of capacity assessment by
  selecting point of entry, core issue(s) and
  cross-cutting functional capacity(ies)
• 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

Scope of Assessment
Request Illustration 5
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.
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Illustration Designing a Capacity Assessment
Step 2 Assess Capacity Assets and Needs
Considerations

• Use the UNDP Capacity Assessment Framework as a
  framework for discussion
• Define scope and scale of capacity assessment by
  selecting point of entry, core issue(s) and
  cross-cutting functional capacity(ies)
• 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

Scope of Assessment
Request Illustration 6
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.
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Illustration Articulating Capacity Assessment
Questions
Step 2 Assess Capacity Assets and Needs
Considerations

• Begin by leveraging questions in the Users Guide
• Adapt questions to assessment objectives modify,
  add to, delete questions as necessary

Request
Request
Request Illustration 1 Visioning and
Strategic Planning
During the process of developing the UNDAF, a
perceived gap in national-level visioning and
strategic planning has been identified.
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Illustration Assessing the Capacity Level
Step 2 Assess Capacity Assets and Needs
Considerations

• Adjust definition of each capacity level as the
  context dictates
• Ensure consensus on what each capacity level
  means
• Determine how to assign levels or how will the
  questions be answered
• Identify appropriate indicators
• Find data, e.g., from policy documents, reports,
  statistics, interviews, observable practices
• Determine what will be done with results will
  they be used to compare across entities (e.g.,
  ministries, districts, communities)
• Determine whether qualitative information will be
  captured as well

Levels
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Illustration Interpreting the Results
Step 2 Assess Capacity Assets and Needs
Considerations

• Review results against desired capacities and
  capacity levels
• Determine whether capacity level is sufficient or
  needs improvement
• Use comparison as a way to focus resources
  important as team moves to next step (define
  capacity development strategies and actions)

Implications
Results

• Leadership is relatively strong within all
  capacities assessed
• Human resource-related capacities are less strong

• Capacity to budget is strong across issues
• However, capacity to manage and implement may
  need improvement

Existing level of capacity needs to be compared
against desired level of capacity to determine
area of focus going forward
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Quantitative Data vs. Qualitative Information
Step 2 Assess Capacity Assets and Needs
Quantitative Data
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

• 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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Good Practices
Step 2 Assess Capacity Assets and Needs

• 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
  assessments procedures and results

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Potential Pitfalls
Step 2 Assess Capacity Assets and Needs

• 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

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Step 3 Define Capacity Development Strategies
Capacity Development Process Step 3. Define
Capacity Development Strategies
Description
The 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 (lt1 year)
Capacity Development Process
Key Activities
3a. Define capacity development strategies
3b. Define progress indicators for capacity
development strategies and capacity
development 3c. Cost capacity development
strategies and capacity development
Focus of this presentation.
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Define Capacity Development Strategies
Step 3 Define Capacity Development Strategies
Benefits
Operational Considerations

• Provides UNDP capacity development strategies as
  starting point, as they are areas in which UNDP
  has a comparative advantage through its policy
  expertise, knowledge base and on-the-ground
  programme expertise
• Creates basis via indicators for monitoring
  and measuring progress

• Select capacity development strategies based on
  findings from a capacity assessment exercise
• Identify indicators that are measurable and
  distinct
• Use cost information to help prioritize actions
  but only after capacity assessment has been
  completed

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Step 3 Define Capacity Development Strategies
3a. Define Capacity Development Strategies

• Capacity Diagnostics
• Needs and capacity assessments, indicators and
  measurement, local RD
• 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
• ME processes, social watch, peer and partner
  reviews
• Incentive Systems

Note Case-driven concept notes for each capacity
development strategies are expected to be
published in the fourth quarter of 2006.
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3b. Define Progress Indicators
Step 3 Define Capacity Development Strategies
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.

• Define indicators for capacity development
  strategies output
• Define indicators for capacity development
  outcome
• Determine baselines and set targets for each
  indicator

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3c. Cost Capacity Development Strategies and
Capacity Development
Step 3 Define Capacity Development Strategies
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.

• 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

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Supporting Content
Capacity Development Process Supporting Content
Users Guide
Capacity Assessment Users Guide
Capacity Development Process
Supporting Tool
Focus of this presentation.
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Users Guide and Supporting Tool
Supporting Content
Benefits
Operational Considerations

• 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

• 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 Users Guide and Supporting Tool are not

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Users Guide
Supporting Content

• Contents
• Overview and Key Operational Considerations
• Assess Capacity Assets and Needs
• Define Capacity Development Strategies and
  Actions
• Questions and Indicators by Core Issue
• 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)
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Supporting Tool
Supporting Content
An excel spreadsheet to support a capacity
assessment, including separate worksheets for
each step of the assessment and an overall
summary
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UNDP Capacity Development Resources
Supporting Content

• 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)

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UNDP Capacity Development Resources (cont.)
Supporting Content

• Resource Guides and Tools
• UNDP Capacity Assessment Users 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