How the operational side of an organisation works is all about its people, policies, systems, practice and relationships. There are many aspects of operational activity, and increasingly providers need to ensure they are informed by good practice and build in evaluation to show how they are making a difference. This is often expected within their sectors and by funders.
CDNZ has a range of services and resources to support all these areas, through review, planning, advice and development. The following modules are based on key elements that can be separated or integrated depending on the needs of the organisation. An important first step in each case is assessing the needs of each organisation and building a relationship with the CEO and staff. CDNZ recommend mentoring is for the CEO and lead roles, to provide support through change and over time.
Key elements include:
- Strategic and business planning
- Policy development
- Service reviews and development
- Business case design
- Funding and financial management
- Workforce development (recruitment, retention, development, volunteers)
- Programme planning, evaluation and outcomes
- Improving quality
- Information technology systems & website
- Risk management
Our Approach
Operational activity is diverse and can include a whole organisation or a service/area specific focus. Understanding the needs of the organisation and their priorities for support and review is an important first step. Once identified CDNZ will work with the CEO and staff to review and develop policy and practice in areas of need, working towards creating a competent, sustainable operational model.
Key elements can be grouped into areas of interface to create broader components for review and development, which will naturally create synergy and efficiencies.
Operational Needs Assessment
CDNZ has designed a New Zealand specific Operational Needs Assessment Tool for the NGO and NFP sector. The process of implementing the tool involves building relationships with the CEO and senior team, working with them to identify needs and priorities and developing a capacity development plan ready for implementation across all operational aspects of the organisation.
A tailored Capacity Development Plan will set out an overview of the needs analysis, and identify areas for capacity development, with priorities. The plan is the start of a working relationship between CDNZ and the organisation, and once developed will be finalised in a joint process, to ensure the priorities fit the organisation’s needs, resources and timeframes.
Strategic and Business Planning
Development of strategy is the link between operational and governance parts of the organisation. It sets the direction of the organisation. Strategic Planning is frequently driven through the CEO and their relationship with the Board
Key elements include:
- creating a vision and mission
- goals
- objectives or actions
The process for developing the plan usually involves stakeholder consultation, internal and external, and the development of communication tools such as publishing the Strategic plan, development of website information, hosting a launch, and implementing a targeted dissemination plan.
The board of a NFP holds responsibility for setting the strategic direction of the organisation, therefore their role in leading and developing the strategy is vital. It is also vital that the CEO actively participates as it will be their role to implement the strategy and their knowledge of the operational side of the organisation will be critical in understanding the previous strengths and weaknesses and the opportunities for the future.
Business and Operational Planning
The development of a sustainable business or operational plan requires a structured process which will be tailored to each organisation, and developed with the support of the CDNZ Advisor, working with an identified lead or team within the NGO. There are a number of core elements to any plan, with variations on content depending on the nature of the business. Operational plans fall out of Strategic plans and can be updated more frequently than the Strategy if necessary. The preferred model for an organisation will depend on the model for their Strategic plan.
Key elements include:
- Strategic Direction
- Vision
- Mission
- Core values / philosophy / Kaupapa
- Strategic / organisational goals
- Environmental scan / context
- Core themes / objectives / priorities
- Outcomes framework
- Key performance indicators
- Evaluation and monitoring framework
- Operational capacity – current and future needs, building capacity model
- Structural model and evolution
- Action/activity plan
- Financial plan
- Sustainability – social and environmental outcomes as well as financial.
Business & Operational Planning Guideline
Policy Development
Reviewing and developing operational policy is an important part of ensuring effective operational systems. CDNZ can offer a policy review and development process which can be flexible to meet the range of needs in this area. This is based on document review, feedback from key staff on what works and doesn’t and redevelopment where needed. Ideally, to ensure a capacity building approach is used, the CDNZ Advisor will work with an internal lead person, who is responsible for overseeing implementation and monitoring of policy.
Service Reviews and Development
Reviewing specific services is a common entry point for CDNZ to work with organisations, as often either planned reviews are scheduled every few years or difficulties may arise in a specific service and help is sought to seek solutions and redesign services. Ideally service reviews will flow from a needs assessment but if this service is taken up as a first step it can link well into further needs assessment processes as priorities arise.
A service review process usually comprises a scoping exercise to assess the issues and to agree an appropriate review approach, such as key people to be involved internally and externally. This is followed by an agreed plan for review with implementation of a process of interviews or group discussions, review of relevant documents including good practice guidelines, and development of a report which summarises key themes and identifies development needs, strategies and priorities for action. Implementation of the plans recommendations can be supported through mentoring and review sessions over time, depending on the scale of the service.
Service Review & Development Guideline
Business Case Design
As a result of working with many community organisations, we have developed a module for business case design and development reflecting the needs of organisations as they have identified them to us. Members in the CDNZ team have also had significant involvement with funders, both government and philanthropic, so understand potential funder requirements. For small to medium sized organisations the challenge of sustainable funding is very real and support with funding applications and a clear funding plan can make all the difference. An executive summary, cost/saving schedules, volume trends, service pricing, budgets, collaboration considerations and organisational overviews are key ingredients to a successful business case funding application.
CDNZ can work with each organisation to develop business case models for specific funding applications and to support future applications as required.
Funding and Financial Management
A review of finances, like planning, can have a wide scope depending on the size and activities of the organisation. However, an independent review of systems in this area is normally a critical control exercise in any organisation. CDNZ’s financial Advisors can look at budgeting, accounting, banking, funding, cash flow and reporting systems and details. They can appraise levels of approval authority and ensure appropriate segregation of duties exist, and review payroll, purchasing and capital investment procedures, and ensure expenses are reasonable. Statutory requirements relating to Government and the Charities Commission can also be reviewed. While this type of appraisal will not qualify as a formal financial audit, it is designed to give trustees, funders and employees the confidence that finance is being managed at an appropriate level.
In addition to reviewing finances, budgeting is perhaps one of the key components of running a robust and sustainable organisation. CDNZ can work directly with key staff members (and trustees as appropriate) to develop clear budgeting frameworks.
Workforce Development
Workforce development is a broad area and will vary across organisations. It can include the recruitment and retention of staff and volunteers, professional and personal development planning and systems of employment and standards of practice. There are strong interfaces with quality improvement processes, human resource management and opportunities for development including leadership and peer support.
The CDNZ approach to workforce development planning is based on reviewing internal current policy and practice and, where relevant, benchmarking or comparing against best practice standards and guidelines (including professional bodies). In the health and social sectors in New Zealand there are many government-led policies and frameworks for workforce development that can be useful reference points.
CDNZ can work with the relevant lead staff to scope and develop tailored workforce plans including actions for implementation. There are likely to be useful peer support connections that lead off this approach.
Programme Planning, Evaluation and Outcomes Development
Planning for programme, project and service development and delivery is an ongoing and often overlooked aspect of operational activity. Simple tools can be used to assist organisations which, once familiar, can become every day tools to assist with clear planning and evaluation. This in turn supports output and outcome measurement.
CDNZ offers a range of tools and facilitated learning in how to use them. We also have specialist evaluators available to work on significant programme evaluations.
CDNZ can work with organisations (or groups of organisations), to facilitate a learning process for programme planning, project planning, evaluation and outcomes frameworks. This may include program logic models, project management tools, formative evaluation tools, concepts of organisational learning through evaluation and sample outcome models.
Improving Quality
Quality improvement is an area most organisations are interested in but can be overwhelmed by when considering which approach to take, whether to go for an accredited programme or how much to spend. All of the CDNZ capacity development approaches and services have an underlying aim to improve quality.
If an organisation has begun with an initial needs assessment, the capacity development plan that emerges will address many areas for improvement. However some organisations also feel the need for an actual quality improvement plan. CDNZ is able to offer simple tools and guidelines through its membership programme which organisations can use themselves at very little cost. Alternatively CDNZ can provide facilitated planning services to support implementation of these resources.
Information Technology Systems and Website Development
CDNZ have a specialised team with broad experience in information systems – both human and technologically based. Understanding an organisation’s current IT structure is a critical first step before any decisions are made about software and hardware investment. In fact, many NGOs and NFPs over-invest in this area compared to the outputs that are required. Simplicity balanced with robust and reliable data are the keys to efficient accounting and reporting systems. However, CDNZ’s contribution extends well beyond system design. Data security, back-up processes, continuity of operation, website design and accounting software and training can all be considered and CNDZ collaborates with a range of specialist support providers in these areas.
Risk Management
Developing a clear risk management plan is closely linked to business planning and any area involving systems review, it also sits in the governance area. CDNZ can build in risk management planning into other relevant services using simple models and resources, but the process of thinking about risk management and how to mitigate and manage risk is a useful and sometimes critical process.
