Capacity Development and Transition

• UNDPs Commitment to Capacity Development and Transition

• Capacity Development Assessment• Capacity Development Planning• Capacity Development Results• Transition Planning• Capacity Development web-based Toolkit

May 2012

UNDP-Global Fund Partnership - 3 dimensions

1. Implementation Support UNDP serves as interim Principal Recipient (PR) in

countries facing exceptional circumstances.

2. Capacity Development While serving as interim PR, developing the

capacity of one or several national entities to take over the PR role when they are ready and as soon as circumstances permit.

3. Policy Engagement Integrate human rights, gender, sexual diversity in GF

programmes as part of UNDP’s substantive engagement and mandate as UNAIDS co-sponsor

3. Capacity development support to Gov’ts, national CSOs expanded + smooth transitions

• Transitions as PR in 4 countries, in another 10 process started

• 12 countries have formally approved costed Capacity Development Plans under implementation – 4 to be finalized early 2012

• Change in UNDP approach to grant negotiations: CD must be funded out of grant

• Support to COs on capacity development from BDP/HIV Global Fund Team, in close cooperation with CDG

• CD toolkit and web ‘app’ in the works for early 2012

What is Capacity Development?

UNDP defines capacity development as;• the process through which individuals, organizations, and societies

obtain, strengthen, and maintain the capabilities to set and achieve their own development objectives over time.

Based on this definition, some fundamental concepts of capacity development are:

 • Multi-level: individual, institutional, and societal levels.• Results-based: measurable capacity development improvements• Change focus: requires managed change • Sustainable: strengthened capacities must sustainable &

adaptable.• Ownership: owned by the target organisation and its

stakeholders. 

Capacity Development for Impeccable Grant Management

• Structures and Programs aligned to Policy and Strategy• Strong Leadership (MoH, CCM, CSOs)• Oversight and Accountability Mechanisms (CCM, Internal Audit, user groups

etc.)• Clear Mandates, Functions, Roles and Responsibilities • Strengthening (Country )Systems

– Results Based Management (RBM)– Simplified Standard Operating Procedures (SOPs)– Manuals + Standard Templates and Documents + Guidance– Checks and balances (spot checks, site visits etc)– Software solutions (information management, reporting, procurement tracking etc.) – Increasing compliance levels (targets, recognition, name and shame, sanctions)

• Setting Standards / Awareness Raising of Requirements• Human Resource Management (mapping + attracting and retaining +

incentives)• Technical Assistance and Skills Training• Accreditation / Certification (Procurement CIPs - Financial Management)• Knowledge Management; best practice / fit; Lessons Learned; Case Studies• Coaching, Mentoring and on the Job Training

CD for Grant Management -Critical Success Factors

• Ownership – Endogenous Process• Common Vision and Leadership (GF,

Counterparts & UNDP)• Capacity Development Results (measurable

indicators)• Systems +• Inflexible / Prescriptive (FM & PSM)• Flexible - Country Context• Resources• Coordination / Integration / Partnership• Managing Change

Capacity Development Process

ENGAGE

•Analyze Stakeholders •Confirm Institutional Stakeholders

•Define Capacity Development Team and Roles

•Plan and Manage Communications

ASSESS

•Plan•Scope•Review Evidence•Conduct assessment•Verify•Draft report•Review

PLAN

•Organize•Review documentation•Outline objectives•Define indicators• Identify interventions•Prioritize/ Schedule•Budget•Draft plan report•Review•Move to implementation

IMPLEMENT

•Prepare•Confirm resourcing•Confirm oversight• Implement interventions•Monitor•Adapt

EVALUATE

•Capture lessons learned•Establish feed-back mechanisms

• Integrate in planning cycle

Capacity for What?

There are five functional capacity areas required for National Disease Management Programs including Global Fund Principal Recipient (PR) roles:

• Programme Management – successfully direct the operations of an

organisation to meet its objectives.• Sub-recipient Management (Contract Management) – ensure effective

oversight, management, and control of Sub-recipient activities to deliver planned results.

• Financial Management & Systems – plan, direct, and control financial resources to enable and influence the effective and efficient delivery of organisational objectives.

• Pharmaceutical & Health Product Management (Procurement and Supply Chain Management) – ensure the continuous and reliable availability of sufficient quantities of quality-assured, effective products and services to end-users, procured at the lowest possible prices in accordance with national & international laws.

• Monitoring & Evaluation – collecting, storing, analysing and transforming data into strategic information to be used by management to make decisions.

Scope of Program Management Capacities

• Legal status: legally registered organisation; authority to enter into a grant agreement; etc.

• Management and organisation: effective programme implementation; support and commitment within the organisation; clear organisational leadership, accountability, and responsibilities; etc.

• Infrastructure and information systems: functional information technology systems for communications; capacity and staff for programmatic reporting; etc.

• Technical expertise: sufficient staff with requisite HIV, TB, Malaria, and health system strengthening expertise to implement and monitor the programme.

Scope of Sub-recipient Capacities

• Sub-recipient selection: adequate procedures and criteria in place for transparent selection of sub-recipients;

• Sub-recipient capacity assessment: adequate plans, resources, staffing, and operational procedures to conduct sub-recipient capacity assessments;

• Sub-recipient management and oversight: effective sub-recipient agreements; procedures for sub-recipient planning, managing, monitoring, and reviewing; etc.

Scope of Financial Management Capacities

• Organization of the financial management function: clearly defined accounting and finance organisational structures; etc.

• Budget system: robust procedures to create, review, and update budgets; authorized policies for expenses tracking; etc.

• Accounting system: ability to absorb planned increase in transactions; Chart of Accounts with necessary levels of detail to monitor expenditures; integration of accounting and financial systems; etc

• Treasury system: ability to absorb planned increased payment activity; appropriate controls over management of cash; adequate cash forecasting; etc

• Purchasing system (for non-health products): adequate processes, procedures, and oversight for procuring non-health products;

• Assets management system: adequate safeguards to protect assets; current fixed asset and inventory register; periodic physical inventories;

• Audit arrangements: sufficient external audit arrangements; effective internal audit arrangements, structure, staffing, independence, reporting, and plans.

Scope of Procurement and Supply Chain Management Capacities (1)

• Management and coordination: adequate organisational structure, staffing, and management for procurement functions; etc

• Procurement policies and systems: adequate procurement policies and procedures; competitive, efficient, and transparent procurement processes; etc

• Intellectual Property Rights: membership in the World Trade Organisation; patent laws covering pharmaceuticals; etc

• Quality assurance systems and capacity: established national drug regulatory authority function; effective quality control; etc

• Product selection: appropriate responsibilities and procedures for product selection; etc

• Management information systems: effective systems to track stock levels and consumption data; etc

• Forecasting: effective responsibilities, systems, and procedures for forecasting; etc

Scope of Procurement and Supply Chain Management Capacities (2)

• Receipt and storage: effective responsibilities, systems, and procedures for receipt and storage of goods; etc.

• Distribution: documented product distribution schedule; sufficient staff, vehicles, and storage capacity for distribution; etc.

• Rational drug use: national treatment guidelines in place and available where needed; etc.

• Other health products (non-pharmaceutical): adequate quality assurance procedures for non-durable products; etc.

Scope of Monitoring and Evaluation Capacities (1)

• Indicators: clear and measurable indicators with baselines, targets, measurement methods, etc.

• M&E budget: comprehensive, adequate, and feasible budget; resource sources and gaps;

• M&E work plan: effective M&E plan with clearly defined activities, timelines, financial resource estimates, etc.

• M&E coordination: M&E management arrangements; effective M&E stakeholder and technical working groups; etc.

• M&E human resources: adequate M&E human resource staffing and skill levels; adequate structures, etc.

• M&E tools and guidelines: M&E guidelines and standard operating procedures; etc.

Scope of Monitoring and Evaluation Capacities (2)

• Routine data collection, analysis and reporting: effective data collection, analysis and reporting processes, including data repository, backup system, etc.

• Data quality assurance and M&E related supportive supervision: feasible and comprehensive data quality assurance strategy; etc.

• Evaluation, operational research, surveys, surveillance, special studies: schedules for program evaluations, etc.

• Evaluation: adequate systems for independent evaluations etc.

• Information products, dissemination and use: clear information products and dissemination methods?

• Alignment with and contribution to national M&E system: M&E plan linked to national strategy; etc.

Capacity Assessment Tools

• There are some tools that provide a framework for rapidly diagnosing (assessing, reviewing, etc.)

• The tools provides a structure to capture current and targeted capacity levels for each component within these five functional capacity areas, as well as evidence, needs, and recommendations. The tool should be adapted for each context.

• The results of this rapid capacity diagnosis exercise will provide an outline of the priority capacity development needs that can inform grant applications and capacity development actions.

Scoring of current and target levels of capacity

The scoring of capacity levels follows the Global Fund assessment scale as follows:

• C2 – capacity gaps pose major risks• C1 – capacity gaps pose risks which cannot be

addressed in 3-6 months• B2 – capacity gaps pose some minor risks that

must be completed prior to implementation• B1 – Capacity gaps pose minor risks and must be

strengthened concurrently with implementation• A2 – capacities and systems fully satisfy

minimum requirements• A1 – capacities and systems exceed the minimum

requirements

Example of Rapid Assessment Tool - Programming

Programme Management

Capacity: Effectively plan, manage, monitor, and forecast PMU operations with clear roles & responsibilities and transparent decision-making

PlanningCurren

t Capaci

ty

Target Capaci

ty

Target

Date

Existing Evidence

Capacity NeedsRecommendatio

ns

Points to Consider: Currency and use of

strategic and annual plans

Tracking of actuals against plan

Use of historical data analysis and forecasting data in planning

Coordination and integration of Global Fund programme planning with national strategic planning for the three diseases

Example Indicator SustainabilityPlans for sustainable financing from funds, donors, and national resources

Capacity Development: Examples of Objectives

The following are examples of capacity development objectives were identified to address cross-SR capacity development needs. SR-specific capacity development needs are addressed through these objectives, as well as others appropriate to each SR.

1. Cross-organisational programme management coordination and collaboration – ensure that management across organisations, and within the units of MOH, are coordinated with integrated plans and schedules in addressing common issues, actively managing and overseeing the capacity development plan, and in aligning implementation activities

2. Strengthened Provincial management, accountability, & oversight – strengthen Provincial risk and results-management competencies, levels of accountability, and active oversight

3. Improved Provincial and District performance and staff satisfaction – Improve results-based performance at the Province and District levels, and increase staff job satisfaction through performance metrics, clear roles and responsibilities, non-financial incentives, and surveys

4. Cross-organisational M&E coordination and collaboration – coordination and collaboration across SRs and other relevant partners with regard to active management and oversight of M&E initiatives

5. Comprehensive, accurate, and timely data capture and reporting from District and Provincial levels – provide comprehensive, accurately, and timely M&E data capture and reporting, including performance metrics, improved analytics, integrated databases, and knowledge platforms

Capacity Development Plan

• Defining appropriate indicators: are key to ensuring success in capacity development interventions. The number of indicators should be as few as possible, easily measurable, SMART, and should consider qualitative and quantitative, process and output/outcome indicators, as well as those related to performance and behavioural aspects.

• Identifying short-term objectives: to build confidence, experience, and demonstrate results and value, it is important to schedule and plan for short-term objectives in the capacity development plan

• Coordinating with existing strategies and plans: capacity development plans should not stand alone, but should be developed with knowledge of, and integrated with existing national strategies and plans. 

• Transitioning towards implementation: a plan is only of use if it is implemented; and an important consideration of capacity development planning is to ensure on-going ownership and responsibility.

• Considering change proponents and resisters: there will be supporters and adversaries; the objective should be to engage both parties in a joint effort to plan and implement change.

• Consider transition: in the context of a Global Fund financed programme, while defining the plan, identify possible milestones for transition of the PR role from UNDP to the CCM-nominated national entity.

• Define realistic schedules and timelines: consideration should be given to the time required to review and approve the capacity development plan.  In addition, the scheduling of funding for the plan may take time, and for Global Fund financing, will need to sync with the timing of grant funding. 

Implementation

• Prepare for implementation: confirm implementation arrangements including plan and schedule, communications and knowledge sharing, results and indicators, management roles, and responsibilities.

• Ensure availability of resources: clarify financial and human resource levels and scheduling required for the plan.

• Confirm capacity development oversight: those responsible are identified and available to oversee the implementation, and monitor indicators and progress. From a Global Fund perspective this includes the CCM and stakeholder working groups. The LFA can support in monitoring financial and programmatic deliveries on behalf of the Global Fund Secretariat.

• Implement the capacity development plan: manage inputs and resources to execute programme interventions.

• Conduct regular monitoring: ensure regular monitoring of activities and reporting to management and oversight groups.

• Adapt the plan and alter course: adjust the programme of work as necessary during implementation to more effectively and efficiently achieve results.

• Evaluate transition indicators and opportunities: in the case of Global Fund programmes, during implementation monitoring and management reviews, measure transition indicators and consider appropriate transition milestones.

Potential Scope for Transition Process

• Confirm the timing of transition planning: transition planning should be at the earliest opportunity and closely linked to capacity development planning

• Organize the transition planning process: confirm the approach for planning, including key responsibilities, scheduling etc.

• Managing transition: transition is owned both by the prospective PR(s), and by UNDP; each organization will need effective management arrangements to jointly control and coordinate transition activities.

• Identify milestone indicators, transition scheduling, and risks: based on documents and processes including the CD plan and scheduling of Global Fund grants, identify milestone indicators for transition, scheduling and risk management.

• Develop an estimated budget: detail budget requirements for transitioning functions.

• Draft the transition plan report: document elements of transition, management arrangements and responsibilities, and the budget.

• Conduct integrated reviews: review the transition plan and budgets with senior management, functional managers, and stakeholders to finalize, approve, and gain support.

• Move toward implementation: confirm approach, responsibilities, and funding required to initiate and implement the transition plan.

CD and Transition - Lessons Learnt

• Capacity Development and Transition Plans must be integral part of the grant from the get-go – with adequate budget allocated

• MoH leadership and ownership, with support from strong CCM

• Multi-partner engagement, UNDP cannot do it alone• Co-PR transition arrangement (UNDP and MoH) before full

hand-over• Strengthening systems, not just training, and broader focus

than just capacity to implement GF grants• Important focus on systems for financial management and

risk mitigation• Early ‘selection’ of national PR• Transition is a longer term objective in some countries

Capacity Development Toolkit:To support national entities in

implementation of national responses to HIV and AIDS, TB and

Malaria

http://www.undp-globalfund-capacitydevelopment.org/

Features of Capacity Development “Toolkit”

• More systematic approach to CD and Transition• Functional/Operational Capacities: Programme

management; Sub-Recipient Management; Financial Management; Procurement & Supply Chain Management; M&E

• Targets Government entities and NGOs • Based country experiences – especially Zambia,

Zimbabwe & Haiti• Strengthens systems and procedures – not just

training• Indicators to track progress and results• Web-Based, makes it accessible & adaptable to

country context

http://www.undp-globalfund-capacitydevelopment.org/