Organizational Assessment Report
Client: Non-bank Credit Organization
Finance for Development LLC, Baku, Azerbaijan
Table of Contents:
2. Purpose of organizational assessment
3. Process involved in organizational assessment
4. Organizational assessment workbook with findings
Non-bank credit organization Finance for Development LLC - Organisational Assessment (OA) Report
Organizational assessment undertaken by David Alimbarashvili, MED Coordinator, DRC & Sabina Mikayilova, CEO of CC LLC – November - December, 2004
Venue: Offices of Fin-Dev LLC in Baku, Barda and Mingechevir, Azerbaijan
Recently Fin-Dev applied to ADB for a loan up to 1 million USD to expand its lending activities.
Currently Fin-Dev has 5 operational staff (loan officers), 5 support staff and 5 managerial staff.
Program status as of 1 November, 2004
Active Loans 396
Number of Active Clients 2435
Value of portfolio outstanding 547 991
Portfolio at risk 1.44%
At present organization operates only with group lending modality. The average loan amount is $ 365. In the nearest future the organization plans to introduce products of individual lending modality.
Fin-Dev has approached DRC’s non-bank credit organization “Caucasus Credit” (CC) with a request for a wholesale loan to expand its outreach. Based on a DRC grant, CC assessors (David Alimbarashvili and Sabina Mikayilova) carried out the organizational assessment exercise during November-December 2004. Organizational assessment is a precondition for CC to consider a wholesale lending loan.
The purpose of the exercise was:
1. To assess organizational capacity for Micro Enterprise Development (MED) assistance of the client and its compliance with strategic objectives of CC
2. To establish priorities for continued capacity development of the client, as risk mitigation strategy of CC.
3. Process involved in carrying out OA exercise:
3.1 An Organizational Assessment Workbook was shared with Fin-Dev’s project management team.
3.2 A work plan was devised outlining documents, reports etc., and required to complete the OA exercise.
3.3 The Assessors adopted a participatory approach in carrying out the exercise, which has involved consultations with: the chair of managing board, Barda and Mingechevir office managers, financial manager, admin, HR& MIS manager, loan officers, and support staff.
3.4 The Assessors used their judgment for cases where personal attributes are difficult to quantify. (For example: B. 1 Rate leadership, ability and art of delegation with in the organization).
4. Findings of the Organisational Assessment
4.1. Ratings and Structure of the OA
The OA covers five organisational themes, each theme divided into five areas of competency, and each competency area sub-divided into a number of dimensions. A common scale of rating is applied to themes, areas and dimensions, which can be summarised as follows: 1: Unacceptable; 2: Okay/Acceptable; 3: Average; 4: Good; 5: Excellent.
Section 4.2 constitutes an organisation map of Fin-Dev, i.e. a graphic summary of OA findings. A narrative of the OA findings is given in section 4.3, which includes general recommendations pertinent to areas of competency. Section 4.2 and 4.3 focuses on the OA’s five themes and respective areas of competency. The conclusions of the OA are summarised in section 4.4. To guide future capacity development efforts, CC has separately shared with FIN-DEV a detailed report on its assessment of dimensions within the various areas of competency.
4.2. Organisation Map