The 6 Areas of Organizational Effectiveness

The SEEP Network is the first organization to develop a framework to support microfinance associations and networks in evaluating their organizations for optimal success. The framework, which was developed in close collaboration with associations around the world, looks at six overarching capacity areas-governance, operations, financial viability, human resources, external relations, and service delivery. Within each capacity area, SEEP has identified specific standards of excellence. They reflect the optimal state of operations within each capacity area and are considered essential for association success. Along with these standards, associations can access practical tools developed by SEEP for each capacity area based on its own experience and that of associations around the world.

Governance		Financial Viability		External Relations
STANDARD OF EXCELLENCE: Association membership is representative of the market and is defined and held accountable by common standards of performance and practice. The association has a participatory decision-making process supported by transparent and consensus-oriented systems. The board of directors is accountable to the membership and provides effective leadership in fulfilling the association’s mission.		STANDARD OF EXCELLENCE: Financial planning is an integral part of short- and long-term organizational plans, and appropriate financial performance measures are used to set goals and monitor performance. Financial performance measures—associated with earned income, the development of operating reserves and operational efficiency—are strong and show positive trends. Financial administration processes are transparent and provide the necessary level of control to ensure that resources are used efficiently and for their intended purpose.		STANDARD OF EXCELLENCE: The association successfully draws guidance and information from its close contacts with a diverse range of microfinance industry stakeholders to achieve its organizational objectives. The association has a clear communications strategy that effectively targets a diverse range of microfinance stakeholders. The association is recognized as an important and capable representative of the microfinance sector and effectively advocates on behalf of its members.
Service Delivery		Human Resources		Operations
STANDARD OF EXCELLENCE: The association is market oriented and responsive to changing conditions. The association’s core services are well designed and reflect its comparative advantage. The association is driven by the needs and demands of its members.		STANDARD OF EXCELLENCE: Association leaders consistently demonstrate success in carrying out the mission of the organization and are influential in shaping the future of the sector. Personnel management policies and processes are clearly documented and communicated, and adequately meet the needs of the association in its present stage of development. The association prioritizes the professional development of its staff. The association has a dynamic and open organizational culture.		STANDARD OF EXCELLENCE: The association utilizes a comprehensive and participatory system of planning to define its priorities and organize activities in the short and long term. Systems are in place to ensure efficient flow of information, compliance, and transparency. The association monitors and evaluates its performance on a regular basis and utilizes information gathered to make improvements and ensure accountability.