Professional Documents
Culture Documents
Oxfam GB and Taylor & Francis, Ltd. are collaborating with JSTOR to digitize, preserve and extend access to
Development in Practice.
http://www.jstor.org
DemonstratingNGO
performance:problemsand
possibilities'
Alan Fowler
linearversuscontingent
Development:
change
Introduction
Recent years have seen developmentNGOs
making significantefforts to show how they
are performing, a trend impelled by three
factors:
* stricter requirementsattached to official
aid, which is a fast-growingproportionof
NGO funds;
* doubts about NGO claims to be more
effective thangovernments;
* post-ColdWar shifts in the role of NGOs,
which increase their own needs to know
what is being achieved,in orderto manage
the processes of organisational reorientationand transformation.
Almost withoutexception,NGOs are finding
it very difficult to come up with sound, costeffective methodsto show the resultsof their
development activities, or even to demonstrate their effectiveness as organisations.
These difficultiesariseboth fromkey features
of the aid system, and from the nature of
'non-profits'.
The first two sections of this article
summarisethe difficultiesin each of these two
areas,andconsidersolutionsthatareemerging
from recentexperience.A concludingsection
explores the link between accountabilityand
performance,and speculateson the range of
approacheswhich NGOs might use in the
future to prove that they are valuable and
effective agentsof development.
Demonstratingdevelopment
performance
The difficulty in measuringthe development
performanceof NGOs stems from the basic
58
Viewpoint:DemonstratingNGOperformance
F~~~~~~~~~~~-
tU
SNGO
Donors= Tax-based(government)
fundingsources
CO
j
NNGO = Northemn
NGO
SNGO =Southern NGO
CBOs =Community-based organisations
59
Alan Fowler
and an administrativenightmare,success in
simple projecttermsactuallymeans failurein
terms of creatingthe preconditionsnecessary
for benefits to be maintained,once external
resources are no longer there. Sustainability
demandsthat externally supportedprocesses
must become part and parcel of larger
economic, political, social, ecological, and
other systems. To be effective, projects, far
from insulating themselves, must be fully
integrated into their surroundings, both
contributingto and drawingfrom them.
Assessing development
performance:difficultiesand
possibilities
This situationcreates two critical difficulties
in assessing operationalperformance.Firstly,
the measures of development are very
complex, containingboth tangibleor physical
elements and intangiblefactorsof humanand
organisational processes and capacities.
Secondly, the possibility of attributingthe
cause of change to an NGO's work is very
restricted.
At present,two distinctapproaches- one
'scientific' (such as Carvalho and White
1993), the other 'interpretative' (such as
Marsdenet al. 1994) - arebeing followed to
tackle these areas of difficulty. The former
involves a systematic hunt for all sorts of
observableindicators,(proxy) measures,and
agreedbaselines.In this, attributingthe cause
of change to NGO support relies on
comparisonswith other (control)groups.The
interpretativeor contextualapproachconcentrates on gatheringand in some way reconciling the contending perceptions and
measureswhich are specific and meaningful
to the diverse actors involved, now increasingly referredto as 'stakeholders'.To do this,
participatorymethods are usually adopted,
whereby people define what measures are
significantto them and laterassess the degree
to which the NGO's supporthas contributed
to change.
Each approachhas merits and limitations.
The questionfor managersis whetherthereis
60
Viewpoint:DemonstratingNGOperformance
problems they face today as the basis for
planningandevaluation.
Whatmakesan NGO'bottomline'?
Assessing organisational
performance
In additionto showing what they achieve in
terms of development projects, NGOs also
need to assess their effectiveness as
organisations. This section examines
problems in assessing the performance of
'non-profits', and describes attempts being
madeby some NGOs to do this.
be
contextually
61
Alan Fowler
determinedandinterpreted.
* Questions should form the basis of the
assessmentapproach.
* Standardsmust derive from the various
constituenciesthatthe organisationserves.
* The process of organisationalassessment
shouldbe participatory.
A later approachto assessing Northern'nonprofits' relates their performance to the
'contractculture'which is shapingtheirrole,
position, and behaviour (Smith and Lipsky
1993; Hawley 1993), and which is rapidly
permeating the aid system (OECD 1993).
Here, measurementof performanceis linked
to qualityof service (Lawrie1993).
These analyses discuss the difficulties of
identifying an unambiguous non-profit
'bottom line', even when the organisation's
purpose is reasonably straightforward,for
example providing a direct welfare service
such as running a home for old people, or
shelter for homeless people. Development
NGOs are faced with an additionalobstacle,
since the 'product'of theirendeavours- for
instance,sustainabledevelopmentfor poverty
alleviation - is not produced by NGOs at
all, but by (poor) people themselves(Lewis,
et al. 1989).
Yet anothercomplicationarises for NGOs
because, in the South, the funds they use are
normally derived from foreign sources, a
phenomenon not known in the North. This
separates the political relationshipbetween
giver and receiver,and means thatthereis no
recognised system by which the (dis)satisfactionof those servedcan be fed back to
the funder, except via the NGO itself.4 In
other words, an alternative, separately
mandatedavenue for verifying the development NGO's own appraisalis not naturally
available. In the North, local or national
political processes can serve to monitor the
overallperformanceof a 'non-profit'.
It thus follows that 'non-profit'
performance must be judged from the
perspectives of those who affect or are
affected by the organisation'sbehaviour.No
universalstandardcan be applied. The NGO
62
Drawingan NGO'bottomline'
How can an NGO construct or draw its
organisational 'bottom line'? One method
involves carryingout a Social Audit,a process
of independent social accounting being
developed and tested by a UK NGO,
Traidcraft, in association with the New
Economics Foundation (Traidcraft 1994).
Since 1993, performancecriteriahave been
negotiatedwith key 'stakeholders':producers,
staff, consumers,and shareholders.In parallel
with the financialaudit,a processindependent
of Traidcraft obtains feedback on stakeholders' views aboutthe degree to which the
organisationhas met the standardspreviously
agreed.5Each year, togetherwith the financial
audit, the social audit is presented to the
AnnualGeneralMeeting,alongwithproposals
on how to tackle standardsthathave not been
met, andimproveon thosewhichhave.
In 1994, Oxfam (UK and Ireland)initiated
an Assembly of some 250 individualsdrawn
from diverse 'stakeholder' sectors
'partners' (i.e. groups and organisations
funded by Oxfam), advisers, associates,
volunteers, staff, senior managers, donors,
friends, and others - to deliberate and
provide advice on strategicissues facing the
organisation,such as whetheror not to work
on poverty-relief programmes in the UK
(Oxfam 1994). The Assembly is advisoryand
not a formal part of Oxfam's organisation.
Yet this step contains a clear moral
Viewpoint:DemonstratingNGOperformance
imperativeto take the Assembly seriously,or
risk being publicly deridedand writtenoff as
a dishonest organisation.The next step for
Oxfam would be to use an Assembly to help
it to define agreed standardsand measures
against which its organisationalperformance
would be assessed. Feedbackwould be made
availableat each subsequentAssembly.
These are examples where an NGO has
acknowledged that it serves a variety of
interest groups or users, giving rise to
multiple accountabilities, demands, and
expectations - which more often than not
are in conflict with each other.The usual way
in which NGO managers deal with
conflicting demands is to internalise the
differences, and try to manage the tensions.
This is stressful, not effective in the longer
term, and turns what could be a not
necessarily risk-free6opportunityfor mutual
learning between key 'stakeholders'into a
permanentheadache- and potentialsource
of awkwardpublicity,when expectationsare
too far apartto be satisfied.
Enabling 'stakeholders', who seldom
otherwisemeet, to come togetherandlisten to
the incompatibilityof the demands they are
placing on an NGO can be a healthy
experiencefor all concerned.And, if located
within the right process, such encounterscan
make a positive difference to the way the
NGO functions. This is particularlytrue for
turningNorth-SouthNGO relationshipsinto
effective partnerships.
In sum, the key to NGO organisational
assessment appearsto lie in identifying and
applyingas performancestandardsthe factors
and criteriawhich relevantpeople are likely
to use when making a judgement. This
approach to the problem of judging the
organisationalperformanceof 'non-profits'
looks promising,and now needs to be tested
with developmentNGOs.
63
Alan Fowler
Today's evidence suggests that not many
NGOs will be operating on the basis of
performance criteria negotiated with and
between their diverse 'stakeholders'.Yet to
be credible, this may well be the standard
against which professionalNGOs have to be
judged in future.
Notes
1 This is a shortenedand revised versionof a
longer paper presented at the IDPM/SCF
Conference on NGO Performance and
Accountability, held in Manchester,
England,in June 1994.
2 Here, Southern countries are those
receiving overseas developmentassistance
(ODA) before the collapse of the Soviet
Union. The Northern countries are those
providingODA.
3 This two-volume document contains
examples of the methodin practice,as well
as suggestionsfor improvement.
4 Independent evaluations have proven a
poor method for providing such feedback,
in termsof both qualityand timing.
5 More informationcan be obtaineddirectly
from Traidcraft Exchange, Kingsway,
Gateshead, Tyne and Wear, Newcastle
NE 11ONE, UK.
6 The (political)risk takenby Oxfam (UK/I)
in constituting the Assembly was
highlightedwhen the gathering'sadvice to
begin work in its home countrymadefrontpage headlines in The Guardian, which
arguedthat prevailinggovernmentpolicies
had turned the UK into a developing
country,in need of Oxfam's attention.
References
Carvalho, S. and H. White (1993)
PerformanceIndicators to Monitor Poverty
Reduction,WashingtonDC: The WorldBank
van Dijk, M-P. (1994) 'The effectiveness of
NGOs: insights from Danish, British and
Dutch impact studies', Schriften des
Deutschen Uebersee-InstitutsHamburg,No.
28, pp. 27/42, Hamburg
64
The author
Alan Fowler is a developmentconsultantwho
also specialises in organisationalissues in the
managementof aid. His address for correspondenceis: PO Box 59343, Nairobi,Kenya.
Tel: +254 (2) 751050; fax: +254 (2) 743274.
65