Nonprofit Capacity Building Tool #2 – Action Planning

3 Step 2: Prioritize CB Focus Areas. Using the Interrelationship Diagram tool, analyze the relationships/interplay among the capacity building focus areas you listed in Step 1 above. “Focus” is a best practice concept associated with capacity building efforts. Good capacity building efforts do not try to address all areas at once; instead, attention is focused on several areas, especially the right areas where attention, if given, can have an impact on others. These are often called “high leverage” areas. Therefore, an important step toward capacity building action planning is determining priorities among CB focus areas identified as needing attention. The Interrelationship Diagram is a tool that can be used to prioritize capacity building focus areas. In Step 1 of capacity building action planning, your association identified up to six CB focus areas for attention. These were determined by analyzing the results of the capacity assessment and considering the importance of the capacity building model, which emphasizes Mission, Vision and Strategy as a key driver of other capacity elements. Now your team will develop an interrelationship diagram for its CB focus areas, identifying and analyzing the cause and effect relationships that exist among these priority areas. This will help you focus on the “driving forces” among the CB focus areas. Driving forces are those that have the greatest, fundamental impact on the association’s capacity to achieve its mission. The logic of this process leads us to focus on the driving forces because actions that reinforce or increase the impact of the drivers can do the most to improve capacity. 1. Arrange your CB focus areas, identified for attention and listed in Step 1, in a circle using the format of the “Interrelationship Diagram Worksheet” on next page. 2. Then, taking the CB focus areas one at a time, look for “cause and effect” relationships between items. Beginning with one focus area, compare it to each of the other focus areas asking the following question: "Does this CB focus area drive or is it driven by the other areas displayed in the worksheet?” Draw a one-way arrow from the area that is the driver to the area that it influences. The arrow originating from one area and pointing to another indicates the first is the driver. Do this repeatedly until you have gone through all of the CB focus areas displayed in your interrelationship diagram. NOTE: It’s important to define the cause and effect relationship between each pair of CB focus areas. Also, you can only draw one arrow in between any two areas. (And there can only be a point on one end of the arrow!) Two-way arrows would lead to an endless loop that really doesn't provide new information. Make a decision as to which area is the driver. This is often the most valuable outcome of the interrelationship exercise. 3. After completing the Interrelationship Diagram, briefly discuss your results. Look to see which 2-3 CB focus areas have the most arrows originating from them. These are the drivers and will be considered as “top priority CB focus areas” in the action planning process. See the example of a completed Interrelationship Diagram on the page after the worksheet that follows.

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