An organisational assessment is a systematic process for obtaining valid information about the performance of an organisation and the factors that affect performance. It differs from other types of evaluations because the assessment focuses on the organisation as the primary unit of analysis. Measuring something within an organisation can increase its importance: for example, a social service NGO that chooses to track the number of people it serves within a community may end up trying to increase the number of people it visits and to reduce the time spent with each person (with potential consequences for the quality of the services rendered).
Once an organisation has a clear picture of what it wants to measure, it will need to identify what indicators (quantitative and qualitative) to use to assess its performance. This can be one of the more challenging steps in the organisational assessment process as a plethora of potential indicators may appear useful, but weeding out the ones that really matter and that answer the assessment questions can be difficult.
A key decision that an organisation needs to make when undertaking an organisational assessment is whether to self-assess its performance, to fee an exterior evaluation, or to make use of a mixture of each approaches. Some benefits of a self- evaluation are that it encourages the organisation's possession of the evaluation, and thereby will increase the latter's acceptance of suggestions and dedication to the analysis 's suggestions. Nevertheless, drawbacks of the self- evaluation strategy are that exterior stakeholders might query the independence or validity of the findings and should worry that onerous points won't be tackled, resulting from potential sensitivities inside the organisation.