Organisational Capacity Assessment And Development(OCAD): An Indispensable Strategy For Organisational Survival And Operational Excellence
Introduction: Key actors in every corporate organisation desire to run the organisation perpetually, efficiently and effectively. However, recent trends have shown that most business organisations fail within the first three years of commencement of operations, while others gradually fail, consequently winding up activities before ten years. This ugly trend is indicative of the fact that most organisations fail to carry out Organisational Capacity Assessment and Development (OCAD) when necessary.
OCAD is a process whereby an assessor (external individual) administers an instrument that contains sets of structured questions to an organisation. The aim is to identify gaps in all areas (operations, governance, etc.) of the assessed organisation and provide ways to improve.
The ever-dynamic forces and factors in the operating environment of organisations are enormous. If not well managed, they will lead to poor performance. Experiences have shown that many organisations find it challenging to access local and international grants/supports/credit facilities due to unnoticed operational inefficiencies that can be discovered through OCAD. Vibrant and performance world economies take OCAD seriously.
Uses/Importance of OCAD
OCAD is conducted to determine the suitability or otherwise of an organisation when it intends to access credit/loan facility from a legal third party. It strategically repositions an organisation to positively respond to dynamics in the operating business environment. It is conducted to ascertain the strength of an organisation when planning to enter into a business partnership, joint venture/strategic business alliance with another organisation(s). It is a very effective project monitoring and evaluation technique. Identified gaps serve as inputs/objectives to pursue in subsequent strategic long-term/medium-term or short-term plans of the assessed organisation.
Features Of OCAD
The tool appraises all aspects of the organisation. The assessment is conducted by an expert who can quantitatively and qualitatively analyse data generated, using simple illustrations in the English language or any other official language. The validity period of the analysed data is stated. There is confidentiality of information provided by the respondent, who must be an individual who has full knowledge of the activities of the organisation being assessed. The OCAD tool is used for all categories of organisations. The respondent (representative of the organisation) must be as honest and accurate as possible. Any false or wrong information provided shall lead to misleading analysis, which consequently shall result in unreliable and invalid recommendation(s).
Conclusion
OCAD must be embraced and conducted periodically or as the need arises, in the same way that financial statements audit, tax and personal audits are conducted in organisations, especially, by small medium enterprises, which constitute more than 70% of Nigeria’s Gross Domestic Product. The collapse of more than thirty thousand (30,000) SMEs in Nigeria can be attributed to the absence of OCAD.
While commending the Federal Government of Nigeria’s recent intervention funds for SME development, it must be noted that OCAD specialists should be engaged in the implementation of the intervention scheme for it to achieve the desire result, which is economic growth and development.
