Introduction to the NCAT
SEEP has developed a formal process for conducting organizational assessments of networks and associations devoted to microfinance and microenterprise development. The process uses qualitative research to evaluate networks in six areas of effectiveness: operations, financial viability, human resources, external relations, governance, and service delivery. The Network Capacity Assessment Tool is a diagnostic tool that provides a framework for assessing networks’ operations using performance indicators extracted from SEEP’s success strategies and from factors that have contributed to other networks’ success.
What are the uses of the NCAT?
• To identify the strengths and weaknesses of a network at a given point in time
• To establish training, technical assistance, or other interventions to strengthen institutional capacity
• To provide a benchmark against which a network’s organizational development can be measured over time
• To help donors identify areas to support and recognize areas of progress
How does it work?
The NCAT was designed to codify the results of an assessment, a process that includes analysis of key network documentation, a survey of network members, and on-site visits to a network office, as well as interviews and group discussions with network staff, management, board, members, and local donors and government agencies involved with microfinance.
Although the NCAT can be used for a number of purposes, it was developed to be a facilitated assessment. The subjectivity of the assessment has been reduced by defining indicators for each area of network effectiveness and assigning weights to each of the six areas. Within the six key areas of network of effectiveness, 71 scored indicators have been identified that together make up the NCAT score. Overviews of the six areas along with key indicators are as follows:
| Areas of Effectiveness: Key Indicators |
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Governance: Committed Board of Directors who are leaders in the industry; defined membership criteria; democratic participation of all members; common understanding of network’s goals understood by all stakeholders; driven by member demand; vision for future growth. Operations: Democratic decision-making structure and a well-defined organizational structure; systems exist for all major areas of operations; monitoring and evaluation of its network performance conducted. Financial Viability: Financial planning conducted and integrated into planning; sufficient emphasis on generating income from its services; diversified sources of income, transparent and efficient financial processes. Human Resources: Leadership is market-focused and shows initiative, staff are recruited and fairly compensated to reduce turnover; staff relations characterized by transparency; professional staff development prioritized. External Relations: Diverse contacts with microfinance, government, and private-sector organizations at many levels; perceived as credible and valuable; and is well positioned to influence government policies, positive image among stakeholders in the sector. Partnerships and strategic alliances are based on mutual advantage. Service Delivery: Offers services that are appropriate to member needs and to its own capacity; markets itself and its services; recognized as the main source of industry information in the market, members actively involved in defining network services; continual monitoring, evaluation, and reporting. |
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| Which networks have participated in the NCAT? |
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| The NCAT has been conducted over 25 times across the world for regional and country-level Microfinance Networks. The following networks have had NCAT’s performed in the past:
Country Level AEMFI – Ethiopia ;CMF – Nepal;REDIMIF – Guatemala; ALAFIA – Benin;GHAMFIN – Ghana; RFR – Ecuador; AMFA – Azerbaijan; MCPI – The Philippines; AMFISA – South Africa; AMFIU – Uganda; MFWG – Vietnam; PNSMF – Palestine; Regional- Level AFMIN – Africa; REDCAMIF – Central America; Sanabel – Middle East; SEEP |