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Goal setting, determining responsibilities, leading, allocating resources, motivating and supervising staff members, and maintaining relations with stakeholders. These various activities can be grouped under three headings: strategic leadership, program and process management, and networking and linkages. Strategic leadership is the capacity to assess and interpret needs and opportunities outside the organization, to establish direction, to influence and align others towards a common aim, to motivate them and commit them to action, and to make them responsible for their performance.

Factors influencing organizational performance The organization's capacity. The first dimension that influences organizational performance, and which is the focus of this book, is capacity. As detailed in the next section on organizations, capacity includes the resources, knowledge, and processes employed by the organization to achieve its goals. These comprise the staffing, physical infrastructure, technology, and financial resources; strategic leadership, program and process management; and networks and linkages with other organizations and groups.

The framework for assessing organizational capacity and performance presented in this book is based on Institutional Assessment by Lusthaus, Anderson, and Murphy (1995) and recently updated by Lusthaus, Adrien, Anderson, Garden, and Montalvan (2002). Morton and colleagues (2000) applied this framework in evaluating a regional capacity development program in Latin America. Implications of the Latin American study for the planning, implementation, and evaluation of capacity development efforts are presented by Horton (2002), Mackay and Morton (2002, 2003), and Mackay et al.

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