The Impact of Outcome-based Assessment on Microenterprise Programs
The case study of 11 microenterprise programmes examines pressures faced by microfinance program staff and state funding agencies in the US Midwest adopting outcome based assessment. This new rationality was aimed at reducing budgets and to demonstrate programme success. This overview used the conceptual guidelines of resource dependency and institutional isomorphism with data derived from participant observation over three years, reviews of organizational records and interviews with key players.
Outcome based assessment was implemented by a Community Services Block Grant task force. Their methodologies chosen were chosen from three examples: MICROTEST, IKM and ROMA.
Findings and responses from assessed organizations were that:
- Instutional isomorphism* effects occurred because of the changing paradigm in the nonprofit sector towards a model that was more rationalized and focussed on outcome assessment;
- Resource dependency issues and funding affected the speed at which the new model was implemented;
- Common organizational responses were to go along with change and hope for the best and sometimes to embrace outcome assessment.
The investigation gave the following outputs:
- Allocations based on funding formulae will differentiate or eliminate programs;
- Coupling outcome measurements to funding can only be successful with accurate findings;
- Standardized outcome assessments can judge too quickly;
- Outcome assessment might be implemented to inform rather than determine funding - to discover and document best practice as a tool to communicate activities and achievements to stakeholders;
- Outcome assessment can be used as a way to keep an organization focused on its goals and to help shift the orientation of social service providers.
The need for legitimacy means that organizations will adopt structures and activities that are perceived as valid, proper, and up-to-date by external stakeholders. Established organizations then start to copy techniques from one another and begin to look very similar.
*The emerging common structures and approaches in the same field are called institutional isomorphism.
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