Integrated Capacity Development

We believe Integrated Capacity Development (ICD) must be well designed and executed in order to produce sustainable effects. The literature shows that this is a process that is only successful when built on a clear vision, a broad-based commitment and active stakeholder participation.

ICD takes place at three levels:

1. individual (professional development of individuals);
2. organisational (strengthening the operational capacity of organisations);
3. institutional (development of rules and conditions which allow organisations to function properly).

The three levels are interdependent so this requires an integrated approach combining individual development with organisational reforms and institutional changes in order to effectively use newly acquired knowledge and skills.

Individual development

At the individual level capacity development refers to the acquisition of knowledge, skills and insights, through education.

Organisational development

This is a process which enables an organisation to:

• set and achieve objectives;
• adapt to (new) developments;
• solve problems in a sustainable manner.

It includes individual capacity development as well as the strengthening of policies, management, processes, systems and facilities, all prerequisites for a well-functioning organisation.

Institutional development

Institutional development is about changing the external rules and enabling conditions which determine how organisations operate. There are formal rules (e.g. legal systems) and informal rules (e.g. customs and traditions), which operate at different levels (international, national and social).

Together, these 'rules of the game' are also referred to as the 'enabling environment'. Institutional development usually is beyond the scope of a project, unless a project has been specifically set up to change the institutional environment.
 
 

This graph is based on Lusthaus, Anderson, and Murphy(1995) and Lusthaus et. al. (2002)

Where does Integrated Capacity Development take place?

Institutional development takes place in the external environment of an organisation:

• administrative and legal systems;
• policies and politics;
• social and cultural environment;
• economic trends;
• networks.

Organisational development takes place in the internal environment and refers to internal factors which influence an organisation, such as:

• incentive and rewards system;
• 'climate' and 'culture';
• history and traditions;
• leadership and management style;
• clarity and acceptance of the organisation's mission;
• shared norms and values;
• organisational structure.

In addition, it focuses on an organisation's capacity to use resources, knowledge and processes:

• human resources;
• infrastructure;
• strategic leadership;
• programme and process management;
• networks and linkages with other organisations and groups.

Performance indicators

By doing so, NICHE aims to enhance organisational performance, i.e. an organisation's ability to meet its goals and achieve its mission. There should be a well-balanced mix of four performance indicators:

1. Effectiveness: does the organisation achieve its objectives?
2. Efficiency: what is the organisation's input in relation to the costs to achieve its objectives?
3. Relevance: do the organisation's objectives and activities reflect the needs and priorities of key-stakeholders?
4. Financial sustainability: is the organisation financially viable?

Investing in knowledge can take different shapes and forms depending on the level at which it takes place. Efforts must be anchored in the development strategies of the organisation. In addition, ICD needs to be flexible and adaptable to future needs and changes.

Support and innovation

There are several ways in which NICHE can support requesting organisations in relation to their ICD efforts. They are encouraged to come up with innovative context-specific solutions in addition to existing ones, such as:

• formal and informal education;
• training and hands-on experience;
• knowledge networks and local knowledge capture mechanisms;
• new technological applications;
• new forms of learning;
• sharing innovative solutions and policy experiences among stakeholders;
• new forms of evaluations;
• enhancing performance;
• strategic leadership;
• changing behaviour and generating skills.

Success factors

Finally, it is important that attention is paid to individual skills and to organisational procedures, but also to incentives and governance at the institutional level. ICD has the highest chance of success when there is a clear vision, a broad commitment and active stakeholder participation.

More information

Download the suggested reading list on ICD(82.5 kB)