Capacity Building

Summary notes from Effective Capacity Building in Nonprofit Organizations
Prepared by McKinsey & Company, Published for VPP August 2001

A. Aspirations: An organization's mission, vision, and overarching
goals, which collectively articulate its common sense of purpose and direction

B. Strategy: The coherent set of actions and programs aimed at fulfilling the

organization's overarching goals

C. Organizational Skills: The sum of the organization's capabilities,
including such things (among others) as performance measurement,

planning, resource management, and external relationship building

D. Human Resources: The collective capabilities, experiences, potential and

commitment of the organization's board, management team, staff, and volunteers

E. Systems and Infrastructure: The organization's planning, decision making,

knowledge management, and administrative systems, as well as the physical

and technological assets that support the organization

F. Organizational Structure: The combination of governance, organizational design,

interfunctional coordination, and individual job descriptions that shapes the organization's
legal and management structure

G. Culture: The connective tissue that binds together the organization, including shared

values and practices, behavior norms, and most important, the organization's
orientation towards performance.