Capacity Diagnostic Findings

NeighborWorks America

About B&W’s Capacity Diagnostic

• Examines an organization’s capacity relative to nonprofit best practices within nine categories:

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• Aspirations
• Strategy and Execution
• Functional Capacity
• Business Model
• People
• Systems, Processes and Infrastructure
• Structure
• Culture 
• Race, Equity, Diversity and Inclusion

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• Enables organizations to identify strengths, areas suitable for quick fixes, and opportunities for more significant reform. �

2

NeighborWorks: Survey Participation

3

Total Respondents=66

Level

Divisional Grouping

NeighborWorks: Survey Participation

4

Total Respondents=66

Tenure

Location

Overall Diagnostic Ratings

5

NW has solid capacity across virtually all org dimensions.

The only area that was rated below moderate level of capacity was marketing/ communications. Distinctive areas were risk management and staff.

All stakeholders are strongly committed to the mission.

Commitment to the mission by staff, leadership and board was all consistently identified as a strength. Mission of the organization is a motivating factor for all.

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Ratings indicate there is not a strong performance culture.

Programs are not evaluated, refined and managed for impact. Individual talent is not proactively managed and accountability is inconsistent.

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Tactical execution is stronger than strategic thinking.

Business processes, risk management, financial controls are all strong. NW gets lower marks on setting priorities, using priorities to guide decision making, and using assets strategically.

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Agility and innovation is hampered by strong process focus.

Generally score lower on items assessing innovation, collaboration, and using data to drive decision making across domains.

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6

Key Themes

Subgroup comparisons

• Directors and Senior Directors rated NeighborWorks lower than did VP’s and above across a number of dimensions (strategy, growth/risk, diversification of revenue, network management, leadership, and systems/processes)
• Individuals in the COO division rated NeighborWorks more negatively than the other two divisions across a number of dimensions (strategy, program management, diversification of revenue, HR, and systems/processes)
• Respondents with only 3-5 years at NeighborWorks rated its capacity more negatively across most dimensions. However, the sample size in this group was small (n=6) so the results should be interpreted cautiously.
• Individuals in the field rated NeighborWorks more negatively than those in DC (strategy, program management, HR, diversified revenue, systems/process, and culture)

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7

Strongest Areas of Capacity

8

12%

88%

18%

81%

Please indicate your level of agreement…

Our officers and senior leaders are highly committed to the organization and its mission. (3.88)

Our staff is highly committed to the organization and its mission. (3.79)

11%

82%

moderately agree

strongly agree

moderately agree

strongly agree

moderately agree

strongly agree

* Those marking D/K were excluded from these counts.

We take legal and regulatory compliance seriously as an organization. (3.75)

Strongest Areas of Capacity (continued)

9

12%

82%

19%

78%

Please indicate your level of agreement…

We have access to legal counsel and use these resources appropriately. (3.73)

20%

74%

Our officers and senior leaders are comprised of individuals with racially and gender diverse backgrounds. (3.72)

moderately agree

strongly agree

moderately agree

strongly agree

moderately agree

strongly agree

* Those marking D/K were excluded from these counts.

We make our financial performance transparent to internal and external stakeholders through publishing information such as 990's, audited financials, annual reports, and audit findings. (3.67)

Strongest Areas of Capacity (continued)

10

23%

70%

30%

66%

Please indicate your level of agreement…

Our staff is drawn from racially and gender diverse backgrounds and experiences. (3.63)

20%

70%

Our staff frequently goes above and beyond their day to day job responsibilities and expectations. (3.63)

moderately agree

strongly agree

moderately agree

strongly agree

moderately agree

strongly agree

* Those marking D/K were excluded from these counts.

We provide professional development and growth opportunities for staff. (3.58)

Weakest Areas of Capacity

11

57%

16%

45%

32%

Please indicate your level of agreement…

We proactively identify high performers within our organization and create tailored development/retention plans for these employees. (1.76)

44%

28%

We ground all our marketing and communications decisions and strategies on high-quality market research and data. (1.88)

Do not agree

Slightly agree

Do not agree

Slightly agree

Do not agree

Slightly agree

* Those marking D/K were excluded from these counts.

Our organizational policies, systems and processes encourage innovation. (1.79)

Weakest Areas of Capacity

12

47%

21%

48%

19%

Please indicate your level of agreement…

We apply our strategy consistently across the entire organization. (1.88)

47%

19%

We have an organization-wide mar/comm plan with metrics in place that are tightly linked to the organizational strategy and priorities. (1.90)

Do not agree

Slightly agree

Do not agree

Slightly agree

Do not agree

Slightly agree

* Those marking D/K were excluded from these counts.

We can measure the return on our investments of time and money across private, public, and earned revenue efforts. (1.91)

Weakest Areas of Capacity (continued)

13

44%

22%

41%

33%

Please indicate your level of agreement…

We have a good internal system for tracking our interactions with external stakeholders. (1.92)

41%

26%

We have well-designed and user-friendly knowledge systems in place to capture, document, and disseminate knowledge internally in all relevant areas. (1.92)

Do not agree

Slightly agree

Do not agree

Slightly agree

Do not agree

Slightly agree

* Those marking D/K were excluded from these counts.

We have a detailed implementation plan in place that drives decision-making at all levels. (1.97)

Diagnostic Results by Category

14

Aspirations (2.85)

15

High

Mod

Basic

Comments on NeighborWorks’ aspirations

Themes:

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• Aspirations are broad and not well prioritized

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• Organizational goals aren’t linked to activities and resources

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• There isn’t clear alignment around goals across the organization

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16

Example Comments:

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“The current plan is so broad it is of little value in helping us prioritize and focus.”

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“Our impact indicators feel detached from the programming and strategies we employ.”

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“What good is it to have ‘overall organizational aspirations’ when few below the officer/SVP level know what they are?”

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Strategy and Execution (2.51)

17

Mod

Basic

Comments on NeighborWorks’ strategy and execution

Themes:

• Activity not outcomes are measured

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• Are generally tactical rather than strategic

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• Strategy and activities aren’t aligned

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18

Example Comments:

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“We are much better at measuring inputs and outputs than measuring and driving to community impacts.”

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“Our work seems more tactical in nature than strategic. We have a rinse and repeat approach that makes our programming stale.”

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“Our plan sits on the shelf and isn’t connected to the work being performed.”

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Program Management (2.67)

19

Mod

Basic

High

Comments on NeighborWorks’ program management

Themes:

• Programs are added, but never discontinued

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• There isn’t a process for continual program innovation/improvement

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• Program assessment is inconsistent and not focused on impact

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20

Example Comments:

“Taking things off the plate is not a NeighborWorks strength. We struggle with making these tough decisions”

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“We don’t change very often or very well.”

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“We focus overall too much on widgets rather than true impact.”

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Marketing and Communications (2.44)

21

Mod

Basic

Comments on NeighborWorks’ marketing and communications

Themes:

• NeighborWorks keeps a low marketing profile

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• Mar/comm is not well integrated with the rest of the organization and not always responsive

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• The member site has not been effectively managed

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22

Example Comments:

“I don’t believe we have conclusively decided to market ourselves to an external audience.”

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“There is often little connection between how mar/comm goals relate to organizational goals. We need a much more collaborative and responsive orientation

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“The member site is a difficult platform to manage/search/navigate/understand and it has not been kept updated through the years.”

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Human Resources (2.66)

23

Mod

Basic

High

Comments on NeighborWorks’ human resources

Themes:

• Need work around recruiting, developing and retaining talent

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• Performance review system does not motivate and reward high performance.

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24

Example Comments:

“Too much time is spent on HR busy work as opposed to talent cultivation and real professional development.”

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“Our performance management process continues to be a pain point. The process is more about a number than real feedback.”

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External Affairs (3.01)

25

Mod

Basic

High

Comments on NeighborWorks’ external affairs

Themes:

• While care must be taken, more could be done around building partnerships and engaging stakeholders

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• Approach to thought leadership needs to be decided upon.

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26

Example Comments:

“Given our funding, we need to be careful around policy issues. But we need to expand our reach and be more intentional around engaging partners for specific initiatives”

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“We have ceded a lot of our thought leadership position in the last 10 years. Do we want it back? Not sure.”

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Growth/Risk (3.33)

27

Mod

Basic

High

Comments on NeighborWorks’ growth/risk

Themes:

• Risk management is strong, but can impede agility and impact

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28

Example Comments:

“If anything, we are too focused on risk. We would do better to take a risk management rather than risk avoidance approach.”

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Diversified Revenue (2.52)

29

Mod

Basic

Comments on NeighborWorks’ diversified revenue

Themes:

• Federal appropriation creates perceived constraints around pursuing other funding sources

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• More focused and consistent effort should be applied across the organization

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30

Example Comments:

“The federal appropriation is the 800 pound gorilla which impacts how we think about other sources.”

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”Our resource development department is small without a lot of bandwidth. Fundraising efforts should be cultivated throughout the organization.”

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Network Management (3.22)

31

Mod

High

Comments on NeighborWorks’ network management

Themes:

• More input should be sought from members on how we best support them

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32

Example Comments:

“It would be important to hear from them what THEY think about the various ways we interact with them.”

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Staff (3.37)

33

Mod

High

Comments on NeighborWorks’ staff

Themes:

• Staff is a core asset of NeighborWorks

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• Collaboration across staff could be improved

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• Responsiveness and accountability is inconsistent

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34

Example Comments:

“Our staff are our stars. They are the hardest working most mission driven people I’ve encountered.”

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“More can be done to facilitate collaboration across divisions. There is no space for innovation.”

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“We have tended to shy away from holding staff accountable and instead keep tapping those who deliver, making them even more overloaded and stressed out.”

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Exec and Senior Leadership (3.18)

35

Mod

High

Comments on NeighborWorks’ executive and senior leadership

Themes:

• Leadership group is generally seen as effective

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• Degree of collaboration varies based on the leader

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36

Example Comments:

“They are all highly functional and excellent to work with.”

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“Each officer holds their direct reports to different standards. Some get away with not being collaborative or responsive to the detriment of staff morale and collaboration.”

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Governance (2.95)

37

Mod

High

Basic

Comments on NeighborWorks’ governance

Themes:

• Board is not a typical nonprofit board which limits their role

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• Staff has limited insight into the Board engagement and contribution

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38

Example Comments:

“Our statutory Board is and organizational ‘wildcard’ that we can’t control or influence.”

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“The board is held very distant from staff. There is not a lot of information about their interest, views and priorities.”

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Systems and Processes (2.52)

39

Mod

Basic

Comments on NeighborWorks’ systems and processes

Themes:

• Systems and processes do not support innovation

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• Procurement process is a particular stumbling block.

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• There isn’t a robust, easy to use knowledge management system.

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40

Example Comments:

“Innovation happens only because of sheer will and persistence of staff. Our seeming desire to manage zero risk is putting severe constraints on our ability to be nimble and innovative.”

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“Our centralized procurement function had restricted our ability to pivot, respond, and innovate.”

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“We have so much information. It is hard to stay on top of it, call out what is relevant, and make connections across data sources.”

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Infrastructure (2.81)

41

Mod

Basic

High

Comments on NeighborWorks’ infrastructure

Themes:

• Focus is on security rather leveraging technology tools

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• CRM system is underutilized

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• Space needs should be re-evaluated following the pandemic

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42

Example Comments:

“We have infrastructure, but our security policies prevent us from utilizing tech tools for maximum efficiency.”

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“Our CRM system must be cultivated, updated, and utilized across divisions.”

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“I’m unsure whether our physical office space will be appropriate going forward.”

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Structure (2.81)

43

Mod

Basic

Comments on NeighborWorks’ structure

Themes:

• Programs and units are fairly siloed

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• Organization is management heavy

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44

Example Comments:

“There is a need to dismantle the silos, but first we need to acknowledge they exist and identify the obstacles they create.”

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“There are too many layers of management from top to bottom.”

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Culture (2.72)

45

Mod

Basic

Comments on NeighborWorks’ culture

Themes:

• Improvements have been made under current leadership

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• Values are not readily apparent in day to day behavior

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46

Example Comments:

“We have come such a long way in the last few years and that is because of caring, consistent and strong leadership.”

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“I’m not sure there is clarity about what our corporate values are. If you asked staff, we would probably all have different answers.”

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REDI (3.01)

47

Mod

High

Comments on REDI

Themes:

• Genuine progress has been made with more yet to go

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• Work is not well communicated throughout the organization

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48

Example Comments:

“It’s a work in progress but we are certainly further along than we were three years ago.”

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“REDI is treated like a program, not a corporate value that is integrated into our work. It has been silent for some time.”

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