Final Report Constraints Analysis for Common UN Business …€¦ · · 2018-01-05Final Report...

FinalReport

ConstraintsAnalysisforCommonUNBusinessOperationsattheCountry

Level

ByAndersVoigt,24May2016

ConstraintsAnalysisforCommonBusinessOperationsattheCountryLevel

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TableofContents

EXECUTIVESUMMARY.................................................................................................3

1)INTRODUCTION........................................................................................................41.1BACKGROUNDANDCONTEXT................................................................................................................................41.2SCOPEOFTHESTUDY..............................................................................................................................................41.3METHODOFTHESTUDY.........................................................................................................................................41.4LIMITATIONSOFTHESTUDY.................................................................................................................................5

2)RECOMMENDATIONSANDFINDINGS........................................................................52.1STRUCTURE..............................................................................................................................................................5 2.1.1Harmonisation..................................................................................................................................6 2.1.2HorizontalandVerticalOptimisationInitiatives..................................................................7 2.1.3Headquartersinvolvement...........................................................................................................8 2.1.4Quality................................................................................................................................................11 2.1.5Incentives..........................................................................................................................................12 2.1.6OMTs...................................................................................................................................................15 2.1.7Commonbasicstandardagreements....................................................................................172.2POLICY.....................................................................................................................................................................17 2.2.1Headquarterscommitmenttocommonbusinessoperations.......................................17 2.2.2Policyperceptions.............................................................................................................................17 2.2.3Communicationofpolicies..........................................................................................................19 2.2.4MOUs...................................................................................................................................................21 2.2.5Mutualrecognition.......................................................................................................................21 2.2.6Procurementpolicies...................................................................................................................22 2.2.7HRpolicies.........................................................................................................................................23 2.2.8ITpolicies.........................................................................................................................................24 2.2.9Logisticspolicies............................................................................................................................24 2.2.10Financepolicies............................................................................................................................25 2.2.11Facilitypolicies............................................................................................................................26 2.2.12UNSecretariat..............................................................................................................................262.3CAPACITY................................................................................................................................................................27 2.3.1OMTcapacity..................................................................................................................................27 2.3.2Headquarterscapacity...................................................................................................................28 2.3.3Funding.................................................................................................................................................282.4TECHNOLOGY.........................................................................................................................................................29 2.4.1Commonstandards.......................................................................................................................29 2.3.2Digitalplatforms...............................................................................................................................30

3)CONCLUSION..........................................................................................................31Annexes(I)TermsofReferenceforConstraintsAnalysisconsultancy(II)ConstraintsAnalysisSurveyData


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EXECUTIVESUMMARYThisstudyexaminesconstraintsforcommonUNbusinessoperationsatthecountrylevel.Itfocusonfourcategories:Structure,Policy,CapacityandTechnologyandprovides42recommendationsonhowUNDGandHLCMcanbetterenablecommonbusinessoperations.Thestudyidentifiesstructuralconstraints-includingincentives-asthemostsignificantconstraintforcommonUNbusinessoperationsatthecountrylevel.ThisstudyacknowledgesthatthereisawidespreadopinionthatUNorganisations’policiesconstituteaconstraint,howeveritalsoconcludesthattherearelimitedconcreteexamplesandevidencethatindicatethatpolicyobstaclescannotbeovercomewhenthereiswillingnessandleadershipatthecountrylevel.Capacityandtechnologyarenotfoundtoconstitutenoteworthyconstraintsforcommonbusinessoperations.ItsrecommendationstoUNDGandHLCMinclude:

- ClarifytocountrylevelpractitionersthepurposeofHarmonisation,andguidethemtowardsDivisionofLabourwhenthisisthebetterrouteofaction

- EnabledivisionoflabourthroughMutualRecognitionofeachother’ssystems- Studyhowtocreateanincentivestructurethatrewardscommonbusiness

operationsandfacilitatequalitysupportservices- OpenUNorganisations’verticalservicecentrestootherUNorganisations- Studythequality/clientsatisfactiondifferencesbetweenLeadAgencymodels

anddedicatedservicecentres(bothverticalservicecentresandhorizontalintegratedservicecentres)

- IncreaseHeadquartersinvolvementintheBOSandstrengthenUNDGcapacitytoscaleinnovationsderivingfromthecountrylevelBOSs

- Createacommonplatformfordigitalinnovationsinsupportservicedelivery- HarmoniseUNstandardsforIThardwareandsoftware


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1)INTRODUCTION1.1BackgroundandcontextThisstudyispartoftheUnitedNationsDevelopmentGroup(UNDG)BusinessOperationsWorkingGroup’s(BOWG)AnnualWorkPlanfor2016,andoriginatesfromtherecommendationintheMid-TermEvaluationoftheUNDGBusinessOperationsStrategyPilotProgramme(BOSEvaluation)toundertakeastudytoidentifybarrierstoimplementationofcommonbusinessoperations.ThestudyexaminesthenatureoftheconstraintsforcommonUnitedNationsbusinessoperationsatthecountrylevel,andrecommendswaysforUNDGandHCLMtohelpremoveorovercometheseconstraints.11.2ScopeofthestudyThestudyfocusesonconstraintsforcommonUNbusinessoperationsatthecountrylevel.ThestudydoesnotlookatconstraintsforcommonbusinessoperationsatHeadquarterslevel.Anditdoesnotlookatagency-specificconstraints.1.3MethodofthestudyTheConstraintAnalysisstudyfocusesonfourcategories;Structure,Policy,Capacity,andTechnology.Thestudywasundertakenthroughthefollowingfoursteps:Step1.Deskreviewofexistingstudiesandopeninterviewswithselect stakeholdersatHeadquartersandcountrylevel.Step2.Surveyforbusinessoperationspractitionersatcountrylevel.Step3.In-depthinterviewswithbusinessoperationspractitionersatcountrylevel.Step4.Analysisandreporting.Afifth,validation,stepwasaddedwhenitbecameapparentthatthestudy’sconclusionwentcontrarytoestablishedunderstandingofpolicyasasignificantconstraint.WiththesupportoftheUNSystemStaffCollegeandUNDGDOCO,theirjointLeadershipandTrainingofTrainersinBusinessOperations9-13May2016inTurinwasusedtovalidatethestudy’sconclusion.‘UNCommonbusinessoperations’aresupportservicesbetweenorsharedbytwoormoreUNorganisations.

1ForthefullTermsofReferencefortheConstraintAnalysisCommonBusinessOperationsCountry


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‘Constraint’isbroadlyusedasrangingfromcomplicatingtofullypreventingcommonbusinessoperations.Todistinguishbetweenjointandintegratedservices,thisstudyborrowsUSDepartmentofDefenceterminologyanddefines‘joint’astwoormoreUnitsorUNorganisationswithseparatereportinglinesworkingtogethertodeliveraservice/result.‘Integration’iswhenstafforunitsfromdifferentorganisationscometogetherandworkwithinonestructure/reportinglineandtogetheroperateasawholetodeliveraservice/result.1.4LimitationsofthisstudyAstheUNDGBOWGoverseessixdifferentservicelines,thetimeavailableforthisconsultancydidnotallowforanin-depthanalysisofeachserviceline.InsteaditwasagreedtopredominantlyinterviewOMTMembers,whobyjobfunctiontendtobegeneralistsratherthanservicelinespecialists.Furthermore,aseeminglycommontraitamongthepeopleselectedforinterviewswasasuccessfultrackrecordingeneralandincommonbusinessoperationsinparticular.SotheintervieweesmaydisproportionallyhavebeenprofessionalswhohavefoundwaystomanageandovercomeconstraintsintheUNsystem–includingcommonbusinessoperations.2)FINDINGSANDRECOMMENDATIONS2.1STRUCTURETheUNorganisationswerecreatedadhocbytheUNMemberStatesasglobalevents,politicalrequirements,anddevelopmentneedsevolvedduringthesecondhalfofthelastcentury.Asaresult,UNorganisationshavedifferentmandates,governancesystems,commandandcontrolstructures,financialcycles,rewardandsanctionsystemsetc.Furthermore,eachUNorganisationhasdevelopeditsownorganisationalculturebasedondecadesofformalandinformalcompromisesonissuessuchasefficiencynorms,qualityexpectations,riskappetites,andmore.TheUNorganisationswerenotinitiallydesignedtoworkas‘one’,andwhiletherearemanysimilaritiestheyarefundamentallydifferentorganisations.Thisstudyconsiderstheaboveevidentandwillnotseektosubstantiatethisfurther.ThischapterwillinsteadfocusonmanifestationsofstructuraldifferencesasconstraintsforcommonUNbusinessoperations,astheyhavebeenidentifiedbyparticipants


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throughoutthisstudyandsuggestsmallstructurechangesthatwillfurtherenablecommonbusinessoperations.2.1.1HarmonisationInrecentyearstheUNhasundertakenseveralreforminitiativesunderheadingssuchasReform,Coherence,HarmonisationandDeliveringasOne(DaO).TheseinitiativeshavegenerallysoughttoincreasetheUN’sabilitytoworkjointly.Inthesurveyundertakenforthisstudytherewere243respondentsfrom25UNorganisations(includingIOM).Whenaskedwhatmadetherespondentsdocommonbusinessoperationsatthecountrylevel,27%ofthesurveytakersrespondedthatthemostimportantfactorwas‘forthesakeofharmonisation”.Ifharmonisationisconsideredanendinitsown,ratherthanameantoanend,thentheUNSystem–orrathertheUNorganisations-maynotadequatelyhavecommunicatedinternallytheintentionoftheQCPRrecommendationsthatledtothesereforms.Severalreports,includingtherecent“UNSystemInteroperabilityStudyMainReport”(ERPStudy)2,discuss‘reformfatigue’intheUN.Theexistenceofreformfatiguecanperhapsbepartiallyexplainedbythefactthatsomanydonotunderstandtherationalebehindthereform.Concretely,thisauthorhaswitnessed12procurementstaffsittingaroundatabledrafting,together,theTermsofReference(ToR)foracommonLongTermArrangement(LTA).Ifthatishowstaffatthecountrylevelperceive‘harmonisation’,thenreformfatiguemaybethelogicaloutcome.The12procurementstaffcouldin12differentroomshavewritten12ToRsinsteadof1,andinmuchlesstime.AndtheseprofessionalsallthoughttheywerefollowingUNDGguidelinestoharmonise.Thisunderstandingofharmonisationasliterallyworkingtogethermaybewidespread,asoneofthecountriesexaminedforthisstudyalsoreportedhavinghadpractisedthesameapproach.BothexamplesarefromDaOpilotcountries,sothismaymerelybeanearly-moverdisadvantage.Regardless,theUNDGshouldseektoensurethatthisisnotreplicatedinothercountries.TheUNDGcoulddothisbycommunicatingclearlytheobjectivesofreform3:whatharmonisationis(andwhatitisnot).Havingidentifiedtheobjectives,theUNDGcanthenguidecountrylevelpractitionersonwhendivisionoflabouranduseofcomparativeadvantagesthroughmutualrecognitionofeachother’ssystemsisthebestapproachtoreachtheseobjectives.

1. Recommendation:TheUNDGcoulddevelopacommunicationandoutreachstrategyatUNDGandagencyleveltoreemphasisewhatharmonisationis

2UNSystemInteroperabilityStudyMainReport,July2015byCapgenimi3ThisstudyassumesthatoptimizationistheobjectiveofUNreform


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andwhenitisthepreferablerouteofaction.

2. Recommendation.TheUNDGcouldalsomakeexplicittheoptionofoptimisationthroughDivisionofLabourandutilisationofeachother’sexistingsystemsandcomparativeadvantages,andindicatetopractitionerswhenthisisthepreferredrouteofactiontowardsoptimisation,ratherthanharmonisation.

2.1.2HorizontalandVerticalOptimisationInitiativesAroundtheworldUNorganisationspresentatthecountrylevelarecomingtogethertoseekinnovativeways,throughtheBusinessOperationsStrategy(BOS),todeliverbetterandmorecost-effectivecommonsupportservices.Thestudywillrefertothisbottom-upcountrylevelapproachasa‘horizontal’optimisationofUNsupportservicedelivery.ThiscanrangefrombasicsharingofLTAstoestablishinghorizontalintegratedservicecentres;suchastheJointOperationsFacilityinBrazilandtheGreenOneUNHouseCommonServiceUnitinVietnam.Simultaneously,manyofthesameagenciesthatareparticipatinginthehorizontaloptimisationexercisesareperformingtheirown‘vertical’optimisationofsupportservicedeliverywithintheirorganisationalstructures,andarecreatingverticalservicecentres-suchasWHO’sservicecentreinthePhilippines,UNICEFandUNHCRservicecentresinHungary,andUNDPinMalaysia4.Thehorizontaloptimisationandtheverticaloptimisationinitiativesbothseekbetterqualityandmorecost-effectivebusinessoperationsthatatthesametimeallowforflexibilityforagenciestorespondtolocalneedsinlinewiththeirmandate.Thehorizontaloptimizationshouldfocusonservicesthatmustbedonelocallywhiletheverticalshouldfocusonservicesthatarebetterdoneelsewhere.Thisstudyhasfoundnoindicationthattheseparallel‘horizontal’and‘vertical’approachesareanythingbutcomplementary.However,thehorizontalandverticalapproachesarecurrentlynotbeingactivelycoordinated.Thiscouldleadtobothhorizontalandverticalinitiativestryingtooptimisethesameservicesatthesametime.Furthermore,theverticalservicecentresseemdesignedtoserviceindividualorganisationsonly.Withalltheexpertiseandresourcesgoingintoverticalservicecentres,theUNorganisationsshouldconsidermakingtheseverticalservicecentresopenandavailabletoservemultipleifnotallUNorganisations.Thiswouldalsobenefitthehorizontaloptimisationeffortthattakesplaceatcountrylevel,byprovidingmoreserviceoptions.

4Thisisnotintendedtobeanexhaustivelistofverticalservicecentres.


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ThefutureoptimalUNsupportservicestructurecouldwellbeahybridapproachofhorizontalandverticaloptimisation–especiallyinstableenvironmentssuchasinmiddle-incomecountries.UNorganisationscouldcontinuetooptimisetheirverticalstructures,andatthecountrylevelcontinuetoworktogethertooptimisethehorizontalbusinessoperationsthroughtheBOSinitiative.ThiswaytheUNatcountrylevelcancontinuetotakelocalconditionsintoconsiderationandutilisethebestinnovationstocomeoutofothercountries’BOSaswellasthebestservicesavailablefromverticalservicecentres.MeanwhileHeadquarterscancontinuetoinvestinverticalefficiencygainsandalsohelpselect,support,controlandscalethebesthorizontalinnovationstoensureaglobalimpact.

3. Recommendation.UNDGcouldstudywhathorizontalandverticalservicescentrecurrentlyexistsandhowtheyaddvalueintermsofqualityandcosts.

4. Recommendation.UNDGcouldreviewhowbettertoaligntheglobal/regionalverticalservicecentredeliveryplatformswiththehorizontaloptimisationofbusinessoperations-includingthroughtheBOS.

5. Recommendation:VerticalsupportcentresshouldbeopenformultipleifnotallUNorganisationsasclients.Theservicecentresshouldthereforebedesignedinamannerthatallowstheagencytoaddtheirservicesinthemixofserviceoptionsavailabletootherorganisations,andtotheUNsystemsatcountrylevelwhentheydecideontheirhorizontaloptimisationofbusinessoperations.ThiswouldcreateaUNmarketplaceforsupportservices.

6. Recommendation.ToenableaUNmarketplaceforsupportservices,the

performanceofUNbusinessoperationsservicesshouldbemadetransparentandincludedinanIATIstyleplatform.Theensuingtransparencywillallowclientsatthecountryleveltochoosetheservicebestsuitedfortheirneeds(whenverticalservicecentresaremadeopentomultipleUNorganisations).

2.1.3HeadquartersinvolvementCurrentlytheBOSisacountrylevelinnovationutility.Whenwell-done,theBOSgeneratesinnovativewaystodeliversupportservicesatthecountrylevel.Butthereiscurrentlylittleheadquartersinvolvementtosupport,sortandprovidecontroloftheseinnovations.ThisalsomeansthatHeadquartersarenotsetuptoincorporateBOSinnovationswithintheirrespectiveorganisationalsystems,norareHeadquarterssufficientlysetuptoscaletheBOSinnovations.TheBOShasbeenaremarkablesuccessstory.21countrieshavecreatedaBOSand64moreareseekingtoadoptthemethodology.Butaswithanypilotstherearelimitationsandlessonslearned.


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Fromthisstudy’sperspective,afutureversionofBOSwillneedmoreHeadquarterssupportandcontrol.Theorganicbottom-upgrowthoftheBOShasledtoarichnessofinnovationaroundtheworldturningOMTsintoinnovationlabs.IthasliftedsomeOMTsfrombeingmandatorygatheringsoftransactionalprofessionalstoinnovativeforaforstrategicplanners.Thatinitselfmayhavebiggerlong-termimpactthanthestrategicbusinessoperationsplanssofarcreatedthroughtheBOS.ThefutureBOSstructureshouldbeabletomanagethemanyinnovations;selectwhicharegood,improvethem,andintegratethemintheportfolioofagencysupportedsupportservices.If,say,20countriesexperimentwithdifferenthelpdesksystems,itisobviousthatHeadquartersdivisionsthatconcurrentlyaretryingtoharmonisetheirsystemsandarecreatingverticalserviceintegrationwillstruggletosupportthe20differentsolutionsarisingfromsuchhorizontalintegration–regardlessoftheindividualmeritsofthe20solutions.ThefutureBOSstructureshouldthereforeenableHeadquarterstoselectandrefine1-3solutionsforeachofthedifferentcommonbusinessoperations,toenabletherespectiveagenciestoincorporatethesupportforthesesolutionsintheirbusinessoperationssystems,andtobringthesolutionstoscaleglobally.Withtheattempttocreatestandardisedcommonservicepackages,theUNDGistosomeextendworkingtowardsthelatterpart.However,withjustthreesuchpackagescompletedthereisclearlyroomtoincreasetheprioritisationofthis.Althoughmorethan50%ofsurveytakersfindUNDGpoliciesandguidelinessupportiveforcommonbusinessoperations,theBOSdoesnotappeartobesufficiencyanchoredandsupportedatHeadquarterslevel.DOCOhaslimitedcapacitytosupportandscalethemanyinnovationsarisingfromtheBOSexercises.ThismeansthatthefullpoweroftheUNorganisationalstructuresarenotbeingutilised.Ifaninnovation–likethecurrencyexchangebestpracticeidentifiedinRwanda,ortheservicedeliverystructurethatledtorecordhighclientsatisfactioninVietnam5–couldbeverified,supportedandthenscaledbyHeadquarters,thentheimpactofhorizontalapproachessuchastheBOScouldbetrulytransformativeandinfullalignmentwithandinsupportoftheoptimisationworkbeingdoneatHeadquarters.

5Reportedly,theUNsysteminRwandahasreceivedUSD3millionmorecashinhandinthelast12months,fromallagenciesadoptinganalreadyexisting(WFP)practice:obtain3spotpriceatHQlevelAND3spotpricesatcountrylevel.VietnamclientsatisfactionfromtheirCommonServicesUnitisat4.8onascalefrom1to5,following1000+responsestoautomaticone-clicksurveysfollowingcompletionofservicedelivery.


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TobetterconnecttheBOSthehorizontalharmonisationinitiativeswithHeadquartersandtoprovidebettersupporttothecountrylevel,DOCO’scapacityshouldbestrengthened.Oneoptionisincreasedfunding.Anotherisarotationalsecondmentofexpertpractitionersonshort-termassignments.WiththemanyUNDGparticipatingagenciestakingturnstoprovideasecondedexpert,thisset-upwouldconstituteatinydisruptionfortherespectiveHeadquarters,whileatthesametimeitwoulddrasticallyincreasetheUNsystem’ssupportcapacityforcommonbusinessoperations.IncreasedDOCObusinessoperationscapacitywouldallowforaconcertedefforttogather,testandscalethebestservicedeliverymodalitiescreatedatthecountrylevel.Furthermore,thesecondedstaffwouldbeexposedtomultipleservicedeliverysolutionsratherthancontinueworkingonthesamesolutionstheyhavebeenworkingonforyears,andmaythereforereturntotheirUNorganisationswithnewperspectivesandskillsthatwouldaddvaluetotheorganisation.

7. Recommendation.TheUNDGefforttocreateCommonServicePackagesshouldbeincreased.AtthetimeofwritingtherearetwosuchCommonServicePackagesavailable.TheUNDGcouldagreeonanexplicittarget,say,50scalablecommonservicespackagesbyendof2017,andmakethenecessaryresourcesavailabletoreachthattarget.

8. Recommendation:UNorganisationsshouldincreasethecapacityofUNDGforsupportingcommonbusinessoperations,eitherthroughincreasedfundingorthroughsecondmentofexpertpractitionerswithcountrylevelexperienceinProcurement,IT,HR,Logistics,FinanceandFacilityServices.SuchexpertisecouldbemadeavailablefromUNorganisationson6monthsrotationalassignments.TheycouldsupporttheworkcurrentlybeingledbytheUNDGTaskTeamonStandardisedCommonServicesPackages.ThisextracapacitycouldalsoprovidesupporttocountriesadoptinghorizontaloptimisationthroughaBOSprocess.

Headquarterssupportisalsowelcometoensurethatcommonbusinessoperationsareconductedinasupportiveenvironment.Thisincludeshavingauditsthatarewell-informedofcommoninitiativesandtheUNorganisations’supportforthem.Auditperformsakeyroleasitistheonlyfunctionthatactuallycheckstheself-reportedresultsoftheUNCTs.Accordingly,auditcouldplayanimportantroleinhelpingtheUNenhancetheperformanceoftheDaOinstrumentsingeneral,andtheBOSinparticular.Unfortunately,theauditfunctioniscurrentlynotconsideredwellequippedtodealwiththeBOS,andthereseemstobeanopportunitytotransformtheauditfunctionintoaconstructiveassessmentthatcanengageinperformanceaudits,validatetheimpactofcommonoperationsandrecommendhowUNCTscanimprovetheirBOSperformance.


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9. Recommendation:TheUNDGshouldseektotrainauditonBOSandcommonbusinessoperations,andseektheirsupporttoassessperformance(bothonqualityandcost)ofcommonbusinessoperationsasprimaryobjectiveandcomplianceasasecondary.

2.1.4QualityThesurveyconductedfoundthatqualityconcernsarethemainfactorsindecidingwhethertodocommonbusinessoperations.Only25%ratedpriceastheirfirstconcern.Perhapsnotunrelatedtothequalityconcernbyclients,61%ofsurveyrespondentsreportthatclientsatisfactionisnotmeasuredforcommonservices.Andforthosethatdo,itsmeasurementseemtorelyonanecdotalfeedbackandannualyear-endsurveys.Qualitymonitoringoughttobeanessentialbasisforthenextgenerationofhighlyefficient,effectiveoperationalsupportservices.

10. Recommendation:CurrentlymostBOSresultsframeworksfocusoncosts,andcorrespondinglyhavecostavoidanceasakeyindicator.Butiftheclientsoftheservicesaremoreconcernedaboutqualityfactorsthanprice,perhapsfutureBOSshouldfocusequallyonquality,andconsiderincludingaqualityindicatorinBOS-likeClientSatisfaction-aswellasacostavoidanceindicator.

11. Recommendation.IncludeClientSatisfactionasanindicatorintheindividualperformanceevaluationofallstaffinvolvedindeliveryofcommonsupportservices.Onesuchset-upistheVietnammodel.

Withqualityfactorsbeingidentifiedasthemainconcernsbyclientrespondentsperhapsthemodelofprovidingcommonservicesasaperipheryactivityratherthanacoreactivityshouldbereconsidered.ItwouldbeinterestingtocompareclientsatisfactionratingsarisingfromLeadAgencyapproacheswiththeratingsfromdedicatedservicecentres.

12. Recommendation.Studythequality/clientsatisfactiondifferencesbetweendedicatedservicecentres6whereservicesisthecoreactivity,andLeadAgencymodelswereprovisionofcommonservicesisaperipheryactivity

6Suchas,possibly,Brazil,Vietnam,CapeVerdeandCopenhagen

“I’mopentocommonservices.ButIdon’twanttohavetogothroughantiquatedprocessesthat[hisagency]streamlinedyearsago.Idon’twantservicesthatcometoolateformetodelivertheresultsthatIammeasuredon.ThenIratherdoitmyself.Evenifitcostsmore.Afterallitistheresultsthatwedeliverforourbeneficiariesthatmatters.”

CountryLevelHeadofaUNAgency


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ThecurrentAgencyLeadapproachdoesnotseemstodeliverservicesthatmeetclients’qualityexpectations.Toensuresufficientqualityinservicedeliveryandtopreventmultipleduplicatestructuresdeliveringthesameservicesatcountrylevel,theUNDGshouldconsiderthehorizontalintegratedservicecentremodelandattempttoidentifytheorganisation(s)thathavethemostupdatedtechnologyandthemoststreamlinedbusinessprocesses,andthereforecanoperatethesecentreswiththehighestqualitysupportservicesatthelowestcostformultipleclients.TheseservicesneednotbeprovidedbyaUNorganisation.HoweverifdeliveredbyUNentities,theUNDGshouldensurethattherightservicedeliveryplatformsarechosen.OnesuchorganisationcouldbeUNOPS.

13. Recommendation.TosupplementservicesdeliveredthroughAgencyLeadmodels,theUNDGcouldseektoidentify(UN)organisationsthathavesupportservicesasamandate/corefunction,andcanprovidethemanagementfocus,skill-setsandsystemstoprovidequalityservicesthroughintegratedservicecentres.

2.1.5IncentivesStudysubjectshaverepeatedlymentioned‘staffwillingnessandagencywillingness’astheprimaryconstraintsforcommonbusinessoperations.Andclientsofcommonservicesreportthatitisthequalityofservicesthatistheirlargestconcern(ratherthanprice,whichwasthestudy’sinitialassumption).Itseemsthatincentivestructuresarenotstrongenoughtoprovidequalitycommonbusinessoperationsservices.TheBOSEvaluationalsofoundthat‘lackofleadershipandwilltoimplementAgencies’commitmenttoBOSwasaconstraint.Thestrongestincentivesidentifiedforcommonbusinessoperationsare;‘MoreServicesattheSameorLessCosts’(84%),‘GoodworkingrelationshipswithUNcolleagues’(75%),and‘itmakesagency-specificworkeasier’(58%).Inyouropinion,whatarethemainincentivesfordoingcommonbusinessoperationsatthecountrylevel?


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Untilnow,commonserviceshavepredominantlybeenexecutedthroughaLeadAgencyapproach,whereOperationsstafffromoneUNorganisationprovidesservicestootherorganisations.Commonservicesprovidedarecommonlyperceivedas‘add-onwork’,seentobe‘inaddition’tostaff’s‘normaljob’,andseeminglywithlimitedincentivestodoso.OftherespondersfromtheUNorganisationthattraditionallydoesthemostCommonServices,lessthan9%ofrespondersperceivedCommonServicestobe‘goodfortheircareer’.Thatis3%lessthantheaverage-whichincludesstaffinorganisationsthatdoesnotprovidecommonservices.Severalrespondentshavementionedthattheydonothavetimetodocommonbusinessoperations‘inadditiontotheirnormalwork’.Butofthebusinessoperationspractitionerssurveyed,morethanhalfofrespondentsspendlessthanonehourperweekoncommonbusinessoperations.Thiscouldindicatethatcommonbusinessoperationsarenotbeingprioritised.Whenaskedwhethertheirorganisationsprioritisedcommonbusinessoperations,24%reportedthattheircountryofficemanagementgives‘limited’or‘verylimited’prioritytocommonbusinessoperations.Meanwhile31%reportedthatitwas‘priority’or‘highpriority’.Amixedpicture.AsthereisnosignificantvariancebetweentheanswersfromthedifferentUNorganisations’,thedifferenceappearstobedowntoindividualmanagersoftheindividualcountryofficesand,accordingly,personalpreferencesratherthanstructuralincentives.

14. Recommendation.UNDGshouldcommissionastudyanalyzingcurrentincentivestructuresforcommonbusinessoperationsandidentifyingwaystoreinforcetheincentivestructurethatrewardperformanceoncommonbusiness


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operations.(Relatedtorecommendations9,12)

15. Recommendation.Pilotperformancepayinservicecentres.Bothverticalandhorizontalservicecentresseemideallocationstopioneerthenewprovisioninstaffrulesonperformancepay.Ifstaffinthesecentresreceivedabonusforhighclientsatisfactionandincreasedclientuptake,itwouldalignorganisationalandindividualincentivesandencourageaclientorientedserviceculture.

CommonbusinessoperationshavebeenfoundtoleadtoanoverallreductionofcostsfortheUNsystematthecountrylevel7.Butitdoesnotleadtoanevenreductionincostsamongagencies,andinfactsomeagenciesmayevenseeaninitialorpermanentincreaseintheircostsfromdoingcommonbusinessoperations8.Furthermore,agenciesthatdoexperienceacost-savingmayseethesavedfundsredistributedtoothercountryofficesandthereforemaynotthemselvesbenefitfromtheefficiencygain9.IntheConstraintssurvey,36%reportedthattheydonotgettokeeplocallyanysavingsgeneratedfromcommonbusinessoperations.Andmerely38%reportsthattheydecidelocallyonthesizeoftheiradmin/operationsbudgetsinthefirstplace.Withnodirectbudgetcontrolnorbenefitfromsavings,itshouldbenosurpriseifthesemanagersdonotinvesttimeandmoneyintogeneratingsavingsandcostavoidancethroughcommonbusinessoperations.BusinessoperationspractitionersreportthattheycannotgetUNCTstofundcostsavinginitiativesevenwhenthereisaclear,documentedreturnoninvestmentandimminentbreak-evenpoints.UNDGDOCOhasinitiatedaseedmoneyinitiativeandaninnovationfundthattosomeextendmitigatethis.ButtheverynecessityforaDOCOfundsuggeststhatUNCTs,structurally,donothavesufficientincentivestoprioritiseefficiencygains.

16. Recommendations.UNorganisationstoidentifymechanismsthatallowofficesthatsuccessfullyreducetheirlocalcoststhroughcommonbusinessoperationstore-investthesavingslocally.

17. Recommendation.Ensurethattheincentivesystemstartswiththetop,andthattheHeadsofAgenciesatcountrylevelaregivenanincentivetospendmanagementtimeonachievingefficiency.Onewaycouldbetogiveeachofficealumpsumforsupportservicesthatisbasedontheirprogrammesize,countrydevelopmentlevel(andsimilar),andallowthemtospendthismoneyas

7BOSEvaluation8Havingawiderrangeofand/orhigherqualitybusinessoperationsavailablemaywellbeworthapotentialincreaseincost,asitcouldleadtobetterprogrammedeliveryandhigherfundinguptake.9Otherthanfromcostsavoidedthroughreductionsintransactioncostsforprocesseswheretherelevantstaffarenotletgo,butinsteadretainedtodootherservices.


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theyseefit.Thiscouldpotentiallyaccelerateinnovativehorizontalapproachestowardscost-effectiveness.

UNResidentCoordinatorsmayhavethelongestandmostchallengingjobdescriptionofanyUNstaff,sothisstudyisreluctanttorecommendaddingresponsibilitiestoit.HoweverthereiscurrentlynotasinglebusinessoperationsindicatorintheRC’sevaluation.UNDGshouldconsiderabusinessoperationsindicatorintheperformanceevaluationoftheResidentCoordinatorsinordertostrengthentheaccountabilityframeworkforcommonbusinessoperations.

18. Recommendation.Tostrengthentheprioritisationofbusinessoperations,theUNDGshouldconsiderincludingabusinessoperationsindicatorintheResidentCoordinators’performanceevaluation.

SeveralOMTMembershavethroughoutthisstudyexpressedtheirfrustrationwiththeabsenceofrecognitionfortheworkdoneintheOMT.TheycallforanaccountabilityframeworkwhereUNCTandOMTmembersarerewarded(andsanctioned)basedontheirperformance.WhilethisstudyfindsthatcountrylevelimplementationofcommonbusinessoperationsisdefactoledbyOMTs,theOMTmembers’individualincentivesdonotseemtobealignedwithUNsystemobjectives10.Asanexample:IfanOperationsManagerhas7staffshedoesnothaveanyincentivestoseekcommonbusinessoperationssolutionsifthisleadtoherstaffbeingreducedto,say,4asherJobDescriptioninevitablywillchangeandquitepossiblybedowngraded.Also,usingthesamelogic,thisOperations/AdministrationManagermaynothaveanincentivetoreportpositivelytoherHeadofAgencyontheservicesreceivedthroughcommonbusinessoperations,whichinturnwillimpactnegativelyonUNCTperceptionsofcommonbusinessoperationsandtheHeadsofAgencies’reportingtotheirrespectiveHeadquarters.

19. Recommendation.MakeisstandardthatOMTMembersareofficiallynominatedbytheirHeadsofAgencies.

20. Recommendation.MakeitstandardthatOMTworkisincludedinnominatedOMTMembers’performanceappraisalswithinputfromtheOMTChairfornormalOMTMembers,andinputbytheRCfortheOMTChair.

2.1.6OMTsServingintheOMTandasOMTChairisgenerallyperceivedas‘extrawork’.Thereisno10ItisassumedthattheQCPRrecommendationsareUNsystemobjectives.


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compensationandoftennoacknowledgementforOMTwork.EveninDaOcountries,someHeadsofAgenciesatcountrylevelreportedlydeclinetoincludetheOMTworkintheirAdministration/OperationsManager’sperformanceappraisals.SomewhatsurprisinglythereisacommonuncertaintyaboutwhocanbetheChairoftheOMT.SomebelievetheOMTcanonlybechairedbyaUNDPstaff,andarethereforereluctanttotakeoverincaseswheretheleadershipoftheOMTdoesnotmeetexpectations.AsofMarch2016theUNDGprovidesonitswebsiteageneric,recommendedTermsofReferenceforOMTs.AstheOMTisastandingfeatureoftheUNcoordinationsystem,perhapsUNDGcouldalsoprepareashortonlinetrainingfornew(andcurrent)OMTmembers.

21. Recommendation.UNDGshouldcreateabasiconlineinductiononUNcoordinationsystemforOMTs.ThiscouldincludethegenericOMTToR,introductiontoUNDG/DOCOsupportopportunities,UNDAF,BOS,RBMforOperations

ThereislimitedabilitytocommunicatedirectlywithandbetweenOMTs.CommunicationtakesplaceeitherthroughRCOs,theUNorganisations’respectivestructures,orthroughpersonalnetworks.ThislimitstheUNDG’sabilitytocommunicateaconcertedefforttowardsharmonisation,anditalsolimitstheopportunityforOMTstocommunicatewitheachother.Ifoptimisationofcommonbusinessoperationsistobescaled,includingtheBOS,theUNDGshouldfacilitateknowledgesharingbetweenOMTsandenabledirecttechnicalcommunicationfromUNDGtotheOMTprofessionals.

22. Recommendation.UNDGshouldcreateandmaintainacloud-basedsystemtocommunicatewithOMTsandtofacilitatepeer-to-peercollaborationamongOMTs.ThiscouldbedoneinconjunctionwithanonlineportalforresultsmeasurementderivedfromaccumulatedBOSresultsframeworks.ThissystemshouldseektofacilitateOMT-to-OMTcommunicationandknowledgesharing.

2.1.7CommonBasicStandardAgreementsTheUNorganisationsatcountrylevelhavemultipledifferentbasicstandardsagreements11withthehostgovernments.Asaresult,thedisparitiesbetweenthedifferentUNorganisations’governmentbasicstandardagreementscreateunnecessarycomplicationsforsomecommonbusinessoperations;suchascustomsclearance,protocol,premisesmanagement,import/exportofprogrammesuppliesandstaffpersonaleffects,drivinglicenseconversion,vehicleuse,statusofinternationalstaff.

11The‘basicstandardagreement’referstothelegalframeworkforaUNorganisation’spresenceinacountry.AmongotherthingsitdescribestheUN’immunitiesandprivilegesinthecountry.DifferentUNorganisationsrefertothistypeofagreementswithdifferentnames.


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IftheUNorganisationsaretooperateasone,theyshouldsharethesamelegalfoundation.TheUNDGshouldthereforeseektobenefitfromthebestgovernmentbasicstandardagreementsnegotiatedbyaUNorganisationinagivencountry.Currently,ifthememberstatesthroughtheQCPRwishtheUNtoworkbettertogetherascountrylevel,thenitshouldbepossibletoaskthemtosupportthateachcountryshouldhaveonebasicstandardagreementwiththeUNorganisationsintheirrespectivecountries.

23. Recommendation.EnsurethattheUNorganisationspresentinacountryarecoveredbyonebasicstandardagreement.SincetheUNMemberStatesthroughtheQCPRhaverequestedthattheUNSystemadoptCommonPremisesandotherCommonBusinessOperationsatthecountrylevel,andthisisbeingheldbackbythediversityofbasicstandardagreementsatcountrylevel,theMemberStatesshouldbegiventheopportunitytosupportaresolutionthatcallforUNorganisationsinacountrytobehostedthroughthesamebasicstandardagreement.Theagreementcanbenegotiatedcountrybycountry,butthereshouldbeoneforeachcountry.

2.2POLICY2.2.1Headquarterscommitmenttocommonbusinessoperations70%oftheBOSEvaluationstudysubjectsfoundthattheirorganisationhaveprovidedinconsistentmessagingwithregardtowhethertheyshouldengageincommonbusinessoperationsornot.Thedatafromthepresentconstraintsanalysissurveydoesnotsupportthisparticularfinding.Whendirectlyaskedbythepresentsurvey,40%foundthattheirorganisationsprovidethemclearandconsistentmessagingonwhethertoengageincommonbusinessoperations.Only20%donot.WhileitisclearlyaproblemthatoneinfiveexpressesinconsistencyinthecommunicationreceivedfromtheirUNorganisation,itissignificantlylessseriousthantheBOSEvaluation’sinitiallyfinding.2.2.2PolicyperceptionsAsperbelowtable,respondentstothissurvey-inaverage-seepoliciesasbeingneitherenablingorconstrainingwithFacilityServices,Procurement,andLogisticsbeingslightlyabove‘neutral’andFinance,HRandITbeingslightlybelow.Auditwasseenastheleastenabling.


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Towhatdegreedoesyourorganisation'spolicyandproceduresconstrainyouinimplementingcommonbusinessoperations?

TheBOSEvaluationfoundthatdisconnectbetweentheprocessesandregulationsofHeadquartersandtheagreedharmonisationstrategiesforcommonservicesatthecountrylevelwasabarrierforBOS.IntheDESASurvey,73%ofOMTsreportedthatdifferentpoliciesandprocedureshavepreventedtheUNcountryteamfromfurtherharmonizingbusinesspractices.Inotherwords,theDESASurveyandtheBOSEvaluation’sfindingsaresimilaronpolicyconstraints.Yet,theDESASurveyalsomentionsthatwhenaskedtospecifywhatrulesorregulationsorpoliciesandprocedurespresentedabarrier“Onlyafewrespondentsofferedexamplesofhowregulationsandrulesorpoliciesandprocedureshavepresentedabarriertotheharmonizationofbusinesspractices.”Interestingly,thisstudyhasexperiencedthesameinabilityofintervieweestoidentifyactualpolicyconstraints.Thisstudyhasrepeatedlyraisedthepolicyconstraintissueinitssurveyandinitsinterviewsandhasexperiencedanabsenceofconcretepolicyconstraintsresponses.Withrepeatedstatementsfromintervieweesthat‘ifthereisawill,thereisaway’,thisstudygenerallyconcludesthatalthoughthereisawidespreadnarrativethatpolicyconstitutesasignificantbarrier/constraintsforcommonbusinessoperations,thisis

“Onlyafewrespondentsofferedexamplesofhowregulationsandrulesorpoliciesandprocedureshavepresentedabarriertotheharmonizationofbusinesspractices.”

QCPROMTSurveyJanuary2016


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notdirectlysupportedbyevidence,andthestudythereforerecommendsthatUNorganisations’policiesshouldnotbeoveremphasisedasaconstraintforcommonbusinessoperations.ThisconclusionwastestedatajointUNSystemStaffCollegeandUNDG/DOCOToTcourseonLeadershipinBusinessOperations9-13May2016inTurin34businessoperationspractitionerswereaskedto1)identifypolicyconstraintsforcommonbusinessoperations,2)identifycountrylevelworkarounds,and3)suggestHQsolutions.TheexerciseconductedinTurindidnotchangetheaboveconclusion.Havingsaidthis,theconclusionisnottobeunderstoodasiftheUNDGandHLCMcannotprovideamoreenablingpolicyenvironmentthatthepresent.Therestofthechapterwillfocusonthis.2.2.3CommunicationofpoliciesoncommonbusinessoperationsThemostremarkablefromthedataintheprevioustable12istheevenspread:38%findsITpoliciesconstrainingwhile35%findthemenabling.Oneconclusionfromthiscouldbethatthecommunicationofenablingpoliciesforcommonbusinessoperationshasbeeninconsistentinsuccessfullyreachingitstargetaudience.Asapotentialremedyforthis,intervieweeshighlightedtheHLCM’sProcurementNetwork’sPowerPointpresentationonHeadquartersprogressonharmonisationofjointprocurementasaveryeffectivetooltochangeperceptionsofpolicyconstraints,asitshowsvisuallyhowtherespectiveUNorganisationshaveagreedtofacilitatecommonprocurementintheirpolicies.Thecountrylevelpractitionerscanthenusethisasastartingpointfornegotiationswithreluctantmid-levelmanagementatcountrylevelandHeadquarters.Thereisalsolimitedclarityonwhocantakewhatdecisions.Ascommonbusinessoperationsisstillseenasoutsidethenormalwayofdoingbusiness,riskadversedecision-makersareinclinedtopushbasiccommonbusinessoperationsdecisionupwardsintheorganisationaldecisiontrees.ThisputspressureonHeadquartersservicelinemid-levelmanagers,whoareaskedtotakeresponsibilityforlocalagreementthattheycannotnotfullyunderstand.Unsurprisinglythisisaroutethatleadstonegative12Page17.Towhatdegreedoesyourorganisation'spolicyandproceduresconstrainyouinimplementingcommonbusinessoperations?

“Commonbusinessoperationsisstillculturallyseenbyourorganisationsasoutsidethe‘normaltransactions’.SoHQsaremoreinvolved[inCommonServicesMOUs]thanincontractingwiththirdpartiesforamountsupto10,even100timeshigherandwithmuchhigherrisks.”

OperationsManageratcountrylevel


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answersifansweredatall.ThisstudyhascometolearnthatUNICEFiscurrentlyworkingonaninitiativethatclarifieswheredecisionsforcommonbusinessoperationscanbetaken.Thisisverycommendable,asitwilltakeawayuncertaintyfromriskadversestaff.

24. Recommendation.TheHLCMNetworksshouldfollowtheleadoftheHLCMProcurementNetworkincreatingvisualcommunicationtoolsthatdemonstratestheprogressmadeonharmonisationatHeadquarterswithinthesixservicelines.ThiscouldbecommunicatedthroughtheDOCOonlineplatform.

25. Recommendation.TheUNorganisationsshouldspecifywheretheircountrylevelmanagementcantakedecisionsoncommonbusinessoperationslocallyandwheretheyneedHeadquartersguidance.UNICEFisworkingonsuchaguideline,andthiscouldbeconsideredagoodpracticeforallUNDGorganisations.

Businessoperationspractitionersinthefieldoftenencountercolleaguesthatclaimtobeunawareoftheirrespectiveorganisation’sagreementtocooperate.IthasbeensuggestedthataccesstodocumentationthatdemonstratesthedifferentUNorganisations’commitmenttoconductcommonbusinessoperationswouldcounterthis.Theycallforacommonrepositorycontainingthesignaturesoftherespectiveorganisations’executives.ThisrepositorycouldalsobeincludedintheOMTinduction,discussedabove.

26. Recommendation.HLCM/UNDGshouldincludeintheirwebsitedocumentationthatdemonstratesthecommitmenttocommonbusinessoperationsbytheUNorganisations’Executives.

AgeneralobservationraisedbyintervieweesisthatUNorganisations’policyontheirstandardbusinessoperationstendstobeinseparatedocumentsfromtheirpolicyoncommonbusinessoperations.Thisinevitablyleadstodiscrepanciesbetweenthedocuments,asUNorganisations’newcommitmentstocommonbusinessoperationsarenotimmediatelyincludedintheoldbutstillvalidagency-specificbusinessguidelines.

27. Recommendation.UNDGtorequestthatallnewguidancedocumentsfromHeadquartersareexplicitlyalignedwiththerespectiveorganisation’scommitmenttocommonbusinessoperations.Ifguidanceispublishedon,say,‘PerDiemratesforCounterparts’,thedocumentshouldincludeexplicitreferencetohowthiscanbedonejointly.


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2.2.4MOUsMemorandumofUnderstandings(MOUs)isthetraditionaltoolusedintheUNSystemtoprovidethelegalandfinancialframeworkforcommonservices.TheERPstudydiscussesMOUsandsuggeststhatthey“(…)addscostsanddelaytowhatcouldotherwisebeastraightforwardtransaction.”CurrentlyitisadauntingtaskfromthecountryleveltofacilitatethenegotiationofvariationstothestandardMOUtextbetweenmultipleheadquarterslegaldivisionslocatedindifferentgeographicallocationsandtimezones.YetwithoutanMOU,decisionmakersmayfindthemselvesexposedtoriskstheydonotunderstandandthereforeoptforthesafetyofthefamiliaragency-centricapproach.ThelegalframeworkshouldeitherbeasimpleagreementsignedatHeadquarterslevelsbetweentheExecutives(preferableincludingmutualrecognition)underwhichdecision-makingshouldbedelegatedtothecountrylevel,whereagreementscouldbenegotiatedandapprovedquickly,withouttheinvolvementofmultiplelegaldepartments.

28. Recommendation.UpdatethecommonbusinessoperationsMOUssotheyallowforseveraldifferentoptions,aswellasforinnovation.ForthepremisesMOU,thetemplatesshouldfacilitateachoicebetweenPublicPrivatePartnerships,Governmenthosting,andinnovationsnotyetdiscovered,inadditiontotheLandlord/Tenantrelationshipcurrentlyincluded.FortheCommonServicesMOU,thecreationofhorizontalservicescentresandmutualrecognitionshouldbeaddedinasimplegenericMOUthatallowsthecountryleveltotakedecisionsastheyseeappropriateforthelocalcondition.

29. Recommendation.TheUNDGorganisationscouldalsoconsideraceilingbelowwhichtheyarewillingtodelegatefullauthoritytothecountrylevelHeadofAgenciestoengageincommonserviceswithoutLegalapprovalfromHeadquarters.Suchasceilingcouldbesetat$100,000orrelativetotheleveloftheHeadofOfficeorthesizeoftheCountryProgramme.

2.2.5MutualRecognitionWiththeUNorganisations’structuralandculturaldifferences,afocusonharmonisedbusinessoperationswillinevitablyencounterpolicyconstraints.Howeverwehavealsofoundthatwherethereiswillingnessandleadershiptheseconstraintscanbeovercome.Furthermore,wehavefoundthatharmonisationisnotalwaysthebestpathtooptimisationatthecountrylevel.ThesignificanteffortrequiredatHeadquartersleveltofullyharmonisemaytherefore


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bedisproportionatetotheobstaclesthiswillremove.WhiletheUNDGcanwellchosepolicyareasforfurtherharmonisation,thebiggestimpactforcommonbusinessoperationsatthecountrylevelwouldcomefromafacilitateddivisionoflabourbycreatingalegalframeworkthatrecognisesandacceptthedifferencesbetweentheUNorganisations’systems.AllUNorganisationsgenerallyadheretothesamerulesandregulationsandtothesameprinciples,suchasPublicProcurementPrinciples.Allorganisationsareauditedasperthesameinternationalstandards,andmanyshareExecutiveBoards.Butorganisationstendtointeractwitheachotherasiftheyarehigh-riskthirdpartyentitiesforwhichthefullextendoforganisationalcontrolmechanismsmustbeutilised.Bycreatingalegalframeworkthatallowsforrecognitionofeachothersystems,theUNDGwillallowtheUNorganisationstobenefitfromeachother’scomparativeadvantageswhendivisionoflabouristhebetterapproachtooptimizationthanharmonization,andwhenanMOUisnotworthitstransactioncosts.

30. Recommendation.UNDGshouldcreatealegalframeworkthatallowformutualrecognitionofeachother’ssystemssowenolongerneedtoprocessinter-agencytransactionsasiftherewereconductedwithahigh-riskthirdparty.

TheremainingpartofthePolicychapterwilllookintothesixUNDGsupportservicelines:Procurement,HR,IT,Logistics,FinanceandFacilityservices.AsageneralobservationmanydifferencesamongtheUNorganisations’policiesandpracticeshavebeensuggestedthroughoutthisstudy.Theywouldallberelevant,iftheUNsoughttoharmonisepolicesandpracticesforthesakeofharmonisation.However,asthisstudyconsidersoptimisationofbusinessoperationstheendgoalforharmonisationandcommonbusinessoperations,differencesarenotnecessarilyseenasconstraints.2.2.6Procurementpolicies50%ofsurveyrespondentsfoundProcurementpoliciestobeEnablingorVeryEnablingforcommonbusinessoperations.ThismakesprocurementpoliciesthemostenablingofthesixUNDGservicelines.Aconstraintraisedisthedifferencesintheapprovalceilingsforprocurement.I.e.ifasmallUNorganisationhasa$10,000ceilingforprocurementapproval,theybelievetheycannotprocure,say,a$20,000itemthroughalargerorganisationthathasa$50,000procurementapprovalceiling.

31. Recommendation.SeekMutualRecognitionofeachother’sprocurementprocesses-includingceilingsandgeneraltermsandconditions.Ifasmall


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agencydoesnothaveprocurementexpertsitisprudentthattheirHeadquartersimposeacertainceilingforprocurementapproval.Howeverifthereisanotheragencyinthesamecountrywithdedicatedprocurementstaffledbyhighlytrainedprofessionals,transferringthesmallagency’scellingtothelargeragencybecomenonsensical.Insteadthesmalleragency’sHeadquartersshouldrecognisethecomparativeadvantagesoftheotherlargerorganisationandrecognisetheirprocurementceilings(aslongastheyarewithintheoverallbudgetapprovalauthorityofthesmalleragency’sHeadofOffice).

2.2.7HRpolicies28%ofsurveyrespondersfoundthatHRpoliciesareenablingorveryenablingforcommonbusinessoperations.ThismakesHRpolicies(alongwithFinance)thepoliciesthatareperceivedtobetheleastenablingofcommonbusinessoperationsofthesixservicelines.Butitmayalsobetheareawherecommonbusinessoperationsatthecountrylevelhastheleastpossibleimpact.Differencesinpoliciesinclude:Recruitment.Differentrules/interpretationofgenderparityinrecruitmentpanelsanddifferentrulesforwhenonecandoexternal/internaladvertisementarementionedasconstraintsforcommonrecruitment.Yetmanycountriesdoutilisejointrecruitmentpanelsandlendtechnicalsubjectmatterexpertstoeachotherwhenandwhereitaddsvalue.TherearedifferentinterpretationsofUNstaffentitlements.TheseincludeR&R,Homeleave,supportindealingwithhostgovernmentauthorities.Whilethesedifferencesmayverywellbeirritants,thisstudydoesnotconsiderthemconstraintsforcommonbusinessoperationsatthecountrylevel.Rostersforconsultantshavebeenattemptedinmanycountries.Yetsuchrostershaveseeminglylimitedaddedvalue,andhightransactioncosts–bothinestablishingtherosterandintherecurringmanagement.Thisstudyfundamentallyquestionsthevalueaddedofhorizontalrostersforconsultants.Havingsaidthat,shouldtherebeabusinesscaseforsuchrosters,thedifferenceinsourcingofconsultantswouldindeedbeaconstraint–unlessMutualRecognitionwasadopted.SomeorganisationsconsiderthesourcingofconsultantstobeanHRprocessandothersaProcurementprocess.Thisleadstoobviousbarriersforjointhorizontalsourcingofconsultants.Thisstudyinsteadrecommendsverticalrostersforconsultants,astheparticularexpertisesoughtfromconsultantsaremoremandatethangeographicallyrelated.ForsomeUNorganisations,consultancyratesaredeterminedaspartofthetenderingprocesswhereothersoperatewithfixedscales.Thisreportedlyconstitutesaconstraint


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increatingcommonTORsforconsultancies.ThiscouldbeharmonisedatHeadquarterslevels,howeveritisadvisedtocarefullyconsidertheimpactatcountrylevelversustheeffortrequiredtoharmoniseatheadquarterslevel.ThereisalsoadifferencebetweentheperceptionofservicecontractsbetweenthedifferentUNorganisations,andsomeorganisationsdonotcommunicatetotheirservicecontractholdersthattheyarenotUNstaff.WhilethiscanbeanotherirritantbetweenUNorganisations,thisstudydoesnotconsideritaconstraintforcommonbusinessoperations.Thisisobviouslyanareathatcouldbeharmonised.Butthevaluedaddedfordoingsodoesnotseemtojustifythetransactioncostsandtheimpactontheorganisationsthatdefactorelyonconsultantsaslow-coststafftodelivertheirmandates.2.2.8ITpoliciesITpoliciesranksfourthofthesixservicelinesintermsofcommonbusinessoperations,with35%ofrespondentsratingITpoliciesas‘enabling’or‘veryenabling’.Yetapproximatelythesamenumberofrespondentsfindthem‘constraining’or‘veryconstraining’.Thishasbeendiscussedabove.MostUNorganisationshavegenericITpolicies13thatdonotspecifymuch.Thisinturnrequiresmid-levelmanagerstointerpretpolicies,andintangiblefactorssuchasprecedenceandcorporateculturebecomeconcreteconstraints.Butatitsheartitisaquestionofinterpretation.ThisgoesforaccessandotherITsecuritypolicies.Aswithotherservicelines;ifthereisawillthereisaway.TheestablishmentoftheintegratedOneUNITTeaminVietnam,withthesupportoftheUNDGITReferenceGroup,hasdemonstratedthis.2.2.9LogisticspoliciesLogisticsarethethirdmostenablingpoliciesforcommonbusinessoperationswith41%findingthemenablingofveryenabling.Differencesidentifiedare:DifferentUNorganisationssupportdifferentGovernmentministriesthathavedifferentrequirementsandprocesses.Thisdoesnotpreventcolocationofwarehouses,butnecessitatesparallelsupplychainmanagementsystems.AndthedifferentUNorganisationshavedifferentsupplychainmanagementsoftware,whichtheyareobligedtouseforglobalreporting.

13WithWHOandUNICEFasnotableexceptions.Theremaywellbeothers.


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DifferentUNorganisationshavedifferentinsuranceapproachesandcontracts.Thisisperceivedasaconstraintforsharingassetsandstaffsuchasvehiclesanddrivers.

32. Recommendation.TheHLCM/UNDGshouldseekoptimisationofinsuranceframeworkseitherthroughharmonisationorbyidentifyingandsharingthebestcurrentpractices.Oncethisisdone,aportalforinsuranceagreementscouldbecreatedfortheUNorganisationsatcountryleveltoutilise.

DifferentUNorganisationshavedifferentstandardforvehicles,andheadsofofficedrivescarsfromdifferentbrands.ManyUNorganisationsdonothaveatraditionfor‘managedvehiclefleets’andchooseinsteadtomitigateagainstspikesindemandbyhavingalargercapacitythanotherwisenecessary.Thereisalsoaverylimiteduptakeintechnologytomanagefleets.Combined,thismakescommonfleetmanagementdifficulttoinitiateathereisamanagerialandtechnologicalaswellasaculturalbarriertoovercome.ThisstudyhaslearnedthatUNDP,UNFPAandUNICEFarecurrentlyundertakingpilotsforcommonfleetmanagement.

33. Recommendation.UNDGshouldidentifyandprovidethecountrylevelwithoptionsforfleetmanagementusingoff-the-shelfcurrentdigitaltechnology.

2.2.10FinancepoliciesSurveyrespondentsfindthatfinancepoliciesaretheleastenablingforcommonbusinessoperations,with28%findingthemenabling/veryenabling.Differencesinclude:DifferentHeadquartersbankingagreementsconstraincommonbankingset-upsatthecountrylevel.Whilethereareobviousbenefitsfromverticalalignmentofbankingarrangement,thebenefitsfromhorizontalbankingagreementarelessclear.Commonbankingarrangementsdoesnotseemanareawherejointhorizontalinitiativesshouldbeprioritisedattheexpenseofverticalintegration.HeadquarterspreferenceforparticularcurrencyexchangemodalitiesandtheresultingcentralisationofcurrencyexchangepolicypreventsUNofficesatthecountryleveltoobtainthebestexchangerateslocally.TheexamplesfromRwandawhere,simply,addingthreelocallyobtainedspotpricestothemixofquotationsobtainedbyHeadquartersledtosignificantimprovementsinrates14.Thispractice,ifbroughttoscale,couldpotentiallyhavethesinglehighestmonetaryimpactfortheUNDGofany

14SeetheRwanda2013-2018BOS


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UNreforminitiativestodate.

34. Recommendation.UNDGshouldreviewtheRwandamodelforcurrencyexchangeandifitindeedleadstothepromisedincreasesinthepriceobtainedforthesaleofdollars,themodelshouldbemadeavailablegloballyforallcountryoffices.

Respondentsalsoreportthattheyarenotabletoacceptpaymentforcommonserviceswithoutclassifyingthefundsasa‘contribution’withtheirsystemsautomaticallydeductingtheirorganisation’scontributionmanagementfeesfromthepayment,asifitwasadonation.Thisleadstoincreasedcostsand/orpreventssomeotherwisecapableUNorganisationsfromprovidingcommonbusinessoperations.

35. Recommendation:UNorganisationstoincorporatetheabilitytoreceivepaymentforcommonservicesfromotherUNorganisationswithouthavingtoaddacontributionmanagementfee.Thisneedstobereflectedinpolicies,processes,andERPsystems.

2.2.11Facilityservices48%ofsurveytakersfindfacilitiesservicespoliciestobe‘enabling’or‘veryenabling’.Thatmakesfacilityservicetheleadingserviceline(alongwithProcurement)forcommonbusinessoperations.Thedifferencesidentifiedare:DifferentIPSASinterpretationsanddifferentceilingsforassetsand‘attractiveitems’,anddifferentdepreciationpractices.TheMOUprocessisseenasdifficulttonavigatefromthecountrylevel,withmanyoftheagenciesthatarenotdirectpartytotheUNDGMOUsexperiencinginconsistentsupportfortheMOUtemplatesfromtheirdifferentregionalofficesandHeadquartersdivisions.Pleaseseerecommendation28above.2.2.12CommonbusinessoperationswithUNSecretariatentitiesIngeneral,specializedagenciesseemtoreportbiggerpolicyconstraintsthanthefundsandagencies.AndthehighestpolicyconstraintforcommonbusinessoperationsisreportedlytherulesofUNSecretariatentities.ThestudyfindsthattheSecretariat’scontrolssystemsinmanyinstancesdoesnotallowforcommonbusinessoperations.ThereisvirtuallynorecognitionbytheUNSecretariatoftheinternalcontrolsoftheUNfundsandprogrammesandspecialised


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agencies,andallcontractsthereforeneedtobereviewedagainbySecretariatpanels,whichleadstounnecessarilyhightransactioncostsforUNSecretariatentitiestoengageincommonbusinessoperations.Havingsaidthat,commonbusinessoperationsdoworkwhentheUNSecretariatentitytakestheleadandusestheirownsystemsandthenallowstheothermoreflexibleorganisationstopiggybacktheircontracts.Travelisonesuchexample.

36. Recommendation.UNDGshoulddevelopaMoUwiththeUNSecretariatentitiesforcommonbusinessoperations.

2.3CAPACITY2.3.1OMTcapacityCountrylevelOMTcapacityvariestosuchadegreethatitmaynotbepossibletoprovideageneralassessmentofOMTcapacities.HoweverthereshouldbetrainingtoolseasilyavailabletoOMTandUNCTmemberstolimitthevarietyofknowledgeaboutwhattheOMTissupposedtodoingeneral,andaboutavailabletoolssuchastheBOS.Furthermore,havingaminimumknowledgeoftheUNcoordinationsystem-includingthemandatesofUNCTsandOMTs-shouldperhapsbeamandatoryrequirementformembershipofUNCTsandOMTs.

37. Recommendation.CreateamandatoryonlinecertificatedinductiononthecoordinationsystemforOMTsincludingtheroleandmandateoftheOMTs,toolssuchastheUNDAFandBOS.

TheBOSEvaluationfoundthattheOMTshavealimitedcapacitytoconducttheBOSadequately.Whiletheconductedsurveydoesnotsupportthisfinding,thisstudyneverthelesssupportstheBOSEvaluationfindingthatOMTsstruggletoembraceRBMtechniquesincludingResultsFrameworksandMonitoringandEvaluationmethods.ThisisbasedonthecombinedexperienceoftheconsultantteamandinterviewsofseveralseniorbusinessoperationsprofessionalswhohaveconductedaBOS.Anothercapacityconstraintconsistentlyraisedistimeavailableforcommonbusinessoperations.Yetmorethanhalfofthesurveyrespondersreportedthattheyspendlessthanonehouraweekoncommonbusinessoperations.Soperhapsitisratherapriorityissueinlinewiththewillingness/incentivesdiscussionabove.


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38. Recommendation.WhenBOSisintroducedincountries,DOCOshouldcontinuetofacilitatetrainingofRBMskillsfortheOMTs.

39. Recommendation.UNorganisationsshouldconsiderincludingasessiononRBMforbusinessoperationsstaffwhentheyundertaketheirhabitualRBMtrainingsofprogrammestaffatthecountrylevel.

2.3.2HeadquarterscapacityUNorganisations’Headquartershavetremendouscapacitythroughtheirhighlyeducatedbusinessoperationsexpertsintheirmanydivisions.Howeverthiscapacitydoesnotdirectlysupportcommonbusinessoperationsinnovationsatthecountrylevel.Insteadthiscapacityismostlyfocusedonensuringverticalcontrol.CapacityforcommonbusinessoperationsatthecountrylevelwouldgreatlyimproveifHeadquarterscapacitywereguidedtowardssupportingOMTs.Pleaseseerecommendation7.2.3.3FundingTheDESA‘ReportonQCPRMonitoringSurveyofOMT2015’(DESASurvey)foundthat“Forty-fourpercentofallrespondingOMTsbelievethatthelackoffinancialresourceshasalsopreventedtheUNCTfromharmonizingbusinesspractices.“WhereUNCTsroutinelyapprovefundingtosupportUNDAFcreation,theyarereportedlymorereluctanttofundBOSinitiativesevenwhentheBOSarefoundtoleadtoreturnsmanytimestheinvestments.MaybethatisbecausetheHeadsofAgenciessittingintheUNCTdonotfullydecideonthesizeoftheirbudgetsforbusinessoperationsand/ordonotgettokeepsavingsgenerated,aspreviouslydiscussedabove.Anirritantoftenraisedthroughoutthisstudyistheinabilityofsmallerorganisationstocommittoandpayforcommonbusinessoperationsatthecountrylevel.ItiscommonthatsmallerUNorganisationsdonothavestaffcapacitytocontributetocommonbusinessoperationsandoftenonlypartiallypay–andsometimetheydonotpayatall-forsomecommonservices.Supposedlythisisbecausetheycannottakethedecisionlocally,orhavenotbeenallocatedfundsfromtheirRegionalOfficeorHeadquarters.Thisleadstoasenseof‘freeriding’amongtheOperations/AdministrationManagersofthelargeragencies.Theyfeelthattheypersonally,andthebigdevelopmentagenciesthattheyworkfor,carrythelargestload.Suchfrustrationisunderstandable.HoweveronreflectionandfromaUNsystemperspectivethisstudyhasnotfoundthatsuch‘freeriding’bythesmallestorganisationsisanegativething.Onthecontrary:benefitingfromeachother’scomparativeadvantagesisoneofthepotentialaddedvaluesfromcommonbusinessoperations.


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2.4TECHNOLOGY73%ofsurveyrespondentsreportthattheyhavenotexperiencedanytechnologicalconstraintforcommonbusinessoperations.Ofthosethatdidreportconstraints,manyreferredtospeedofinternetconnectionandERPs.Internetspeedisnotconsideredacommonbusinessoperationsissueperseforthepurposeofthisstudy,andasamuchmoreextensivestudythanthepresenthasrecentlyreviewedtheERPquestion,thisstudywillnotattempttoaddtothatdiscussion.2.4.1CommonstandardsTraditionallyUNorganisationshaveinvestedinhardwareandsoftwarethatbestfittheirorganisations’criteria.Theyhavedonesowithoutincludinginter-operabilitywithotherUNorganisationsasanimportantcriterion.AsaresultstheUNhaveERPsystems,videoandtelephoneconferencingequipment,radios,etc.thatcannoteasilytalktoeachother.Thismeanswehavemultipleincompatibleandpotentiallyunderutilisedset-upsatthecountryleveltoenablethedifferentorganisationstospeaktotheirrespectiveHeadquarters.IftheUNsystemcouldagreeoncommonstandardsandimplementacompatibilityrequirementthiswouldallow,say,UNIDOHeadquartersinViennatohavevideoconferencingcapabilitywithotherUNorganisationsForcomputerhardwareandsoftwarethedifferencesbetweentheUNorganisationsarereportedlylarge,andmayreflectthedifferentfundingsituationsofthedifferentorganisations.ButcurrentlytheagencieswiththemostupdatedMicrosoftOfficesoftwarepackagescannotrunthesoftwareonthehardwareoftheagencieswiththeleastambitiousreplacementpolicies.

40. Recommendation:UNDGshouldharmonisestandardsforIThardwareandsoftwarea)Forradios,theUNDGshouldengagetheUNSecretariatandUNDSSandensurethattheUNhascommonstandardsforradios.ItcouldbemadeaglobalMinimumOperatingSecurityStandardrequirementthatallUNradiosarefullycompatible.b)ForIThardwareandsoftware,theUNDGITReferenceGroupcouldbeaskedtocompileanexhaustivelistofhardwareandsoftwarecategorieswhereastandardisationwouldbenefittheUNsystemandallowforcommonbusinessoperations.Thisshouldalsoincludeacost/benefitanalysis.Issuessuggestedtothisstudyinclude:ERPs,firewalls,switches,PABX,radios,


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videoandteleconferencingequipment,laptops,printers,servers,commonauthentication,lackofcommonplatformsforintranet,jointdatabases,knowledgesharing&projectmanagement(suchasSharePoint),MicrosoftOfficeversion,mobilephones&mobilephoneoperatingsystems.

Fortechnologythefuturemaybeabetterinvestmentoftimeandresourcesthanthepresent.TherestofthischapterwillthereforefocusonhowtheUNDGcouldcreateanenablingenvironmentforcommonbusinessoperationsthroughtechnology.2.4.2DigitalplatformsTheUN’sexternalenvironmentisrapidlyexpandingapp-deliveredservicesolutions,andtheUNisincorporatingthistechnologyinitsprogrammes.MeanwhileUNbusinessoperationsdonotseemtohavebenefittedyet.Thelistofbasicserviceswherepaper-and-pensolutionsarestillbeingusedislong.Itincludesmanagementofattendance,transportation/fleetmanagement,telephonecallreimbursement,travel,assetmanagement,projectmonitoring,cheques,certifications,andprobablymore.ClearlytheUNcouldbenefitfromfacilitatinga‘disruption’inservicemodalities.CurrentlytheUNsystemdoesnotprovideanenvironmentthatwillenabledigitalinnovationstobebroughttoscaletothecommonbenefitofall.Evenifoneagencyweretocomeupwitha‘killerapp’,therestoftheUNDGwouldnothaveaccess,asourmain21stcenturyinfrastructures-ourcloud-basedITsystems-areclosedofffromeachother.AddtothisthefactthatsomeUNorganisationsstilldonotprovidetheirstaffwithsmartphones,andwehaveanenvironmentthatdoesnotfosterdigitalinnovationinUNbusinessoperations.Theproductivitygainfromenablingstaffatcountryleveltofindinnovativedigitalsolutionsmaybesignificant.Ifwecouldencourageappsthatfacilitatebasicservices,andscalethemtroughacommonlyaccessibleplatform,thenwecouldbothreleasededicatedstafftimeandstartgeneratingrealtimedataonefficiencyandquality(clientsatisfaction).Thisinturncouldfacilitatemanagers’focusonqualityratherthancontrolofsuchlow-riskinternaltransactions.

41. Recommendation.UNDGshouldenablecontrolledaccesstoeachother’scloudsthroughmutualrecognitionofeachother’sauthenticationcontrols–suchasthroughCommonConnect.Thiswillcreateacommonplatformforinnovativebusinesssolutions

42. Recommendation.UNDGshouldseektoensurethatITdepartments,InnovationUnits,andbusinessoperationteamsaredirectedtowardsdevelopingpractical,scalableappsforbasicsupportservices


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3.CONCLUSIONThisstudyhasfoundthatwhenthereiswillingnessandleadershipthereisopportunitytodocommonbusinessoperationsatthecountrylevelinallservicelines.Thestudyidentifiesstructuralconstraints-includingincentives-asthemostsignificantconstraintforcommonUNbusinessoperationsatthecountrylevel.ItacknowledgesthatthereisawidespreadopinionthatUNorganisations’policiesconstituteaconstraint,howeverisalsoconcludesthatthereareverylimitedconcreteexamplesandevidencethatindicatethatpolicyobstaclescannotbeovercomewhenthereiswillingnessandleadershipatthecountrylevel.Capacityandtechnologyarenotfoundtoconstitutenoteworthyconstraintsforcommonbusinessoperations.ItrecommendsthatUNDGshouldcontinuetofocuson‘fitforpurpose’,andratherthansolelyfocusonharmonisationofpoliciesandpractices,theUNDGshouldseektofacilitateoptimisationofbusinessoperationsbydivisionoflabourthroughmutualrecognitionofeachother’ssystems,specialisationandcomparativeadvantages.Whendonewell,theBOSserveasacountrylevelinnovationutility.ButHeadquartersarecurrentlynotsufficientlyinvolvedfortheinnovationstobebroughttoscale.Qualityfactorsarefoundtobethebiggestconcernforclientsofcommonbusinessoperationsservices.ThisstudysuggeststhatthetraditionalLeadAgencyapproachtoCommonServices–wheresupportservicesisaperipheryactivityratherthanacoreactivity-andtheabsenceofquality/clientsatisfactionindicatorsinbusinessoperationsmanagement,leadstothecurrentsituationwherecommonservicesdonotmeetclients’qualityexpectations.Withthecurrentreformandoptimisationtrends,theUNshouldprepareforafuturewherethetraditionalcommonserviceprovidersreducetheirlocalsupportservicecapacity(i.e.staffing)andincreasinglyprovidesupportservicesoffshorethroughverticalservicecentres.Assomeserviceswillalwaysneedtobedeliveredlocally,theUNDGshouldconsiderhorizontallyintegratedservicecentresatthecountrylevel,asmultipleparallelstructuresdeliveringthesameservicesatthesamelocationswillneverachievemaximumefficiency.TheVietnamandBrazilsetupsaretwosuchexamplesthatcouldbefurtherstudied.Last,withoutchangetothecurrentincentivestructure,avoluntaryanddecentralisedapproachmaynotbeaseffectiveasamanagedapproachtooptimisationofcommonbusinessoperationsatthecountrylevel.NotunlikethefindingsoftheERPStudy,thisstudyfindsthatgenuineoptimisationwillnothappenwiththecurrentvoluntaryapproachmanagedbyactorswhosejobsecurityisnegativelyaffectedbytheverychangestheyareaskedtoimplement.


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Author

AndersVoigthasworkedwithUNICEF,UNDP,WHO,UNHCRandtheWorldBankindifferentbusinessoperationsfunctions.Recentlyhehelpeddesignedandestablisha

horizontalintegratedservicecentreintheGreenOneUNHouseinVietnam.Manythankstothe243surveytakerswhoprovideddataforthisstudy,andspecialthankstotheUNcolleagueswhocontributedtothisstudy:

1. UNDGTaskForceonConstraintsforCommonBusinessOperations:MsDianeKepler,MrOliverBuehler,MsLidiaTutarinova,MsHidekoHadzialic,MsLoriIssa

2. MrRemoLalli,HLCM3. MrRonnyLindstroem,HLCM4. MsDianeKepler–ChairUNDGTaskForceforStandardizedCommonServices

Packages5. MrCharlesHavekost,ChairITCReferenceGroup6. MsDinaJerkovic,TTCPChair,WFP7. MrOliverBuehler,UNFPANewYork8. MsLoriIssaUNICEFNewYork9. MrMarkBeatyUNICEFNewYork10. MsLidiaTutarinova,WFPRome11. MrLarsTushuizenUNDGDOCO12. MrLuigiDemunnik,UNDGDOCO13. MrSebastianRottmair,UNOPS14. MsMonaFolkeson,RCOTanzania15. MrAntoniaBaez,WFP,OMTChairTanzania16. MrPhilipWilson,UNICEFTanzania17. MrGurelGurkan,UNOPS,OMTProcurementGrouplead,Ethiopia18. MrJanvierWussinu,UNDP,Co-ChairEthiopia19. MrAnselmeMotcho,UNICEFPakistan20. MrNguyenTruongGiang,OneUNITManagerVietnam21. MrHartmutPfortner,UNICEFandOMTChairVietnam22. MsMariaHelenaMizuno,UNFPABrazil23. MrYvesSassenrath,UNFPABrazil24. MsRobertaMartinsGuragna,RCOBrazil25. MrAlaaAl-Alami,UNICEFEthiopia26. MrKamranBaig,UNCityCopenhagen27. MrGeorgeOtoo,RCORwanda28. MrJohanDittrichHallberg,RCOMoldova29. ParticipantsintheUNSSCandUNDG/DOCOLeadershipandToTforBusiness

Operationscourse9-13May2016inTurin

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