ITC Change Mgmt. Report

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Change ManagementProgress Report



November 2007

Original: English

© International Trade Centre 2007



Change Management Progress Report

Table of Contents

I. ITC’s operating environment is changing 1 Background to the change process 1 Responding to clients needs and expectations 1 ITC’s key challenges 5

II. ITC’s strategic thrust 7 New core competences 7 Business lines 7 ITC’s new conceptual framework 9

III. Implementing change 11 Identity and core values 11 ITC branding 12 Communications 13 Consolidated Programme Document 13 Strategic planning and project management 15 Results based management 17 Human resources development 18 Governance structure 19 Programme support functions 19

IV. Priorities for 2008 20



Changemanagement:Progressreport 1

I. ITC’s operating environment is

changing

Background to the change process

ThenewmanagementteamofITCtookovertheorganizationinJune2006andindoingso took stock of the historical performance of the organization, the changing businessenvironment and the recommendations of the Danish-led evaluation. The most criticalrecommendations of the evaluation were that the organization was relevant, had clearcomparative advantages in the field of Trade Related Technical Assistance (TRTA) andcompetitiveadvantageinanumberofitstoolsandservices.However,needsofclientsanda

changingbusiness environment required theorganization todevelopa changemanagementstrategytobuildcommonvaluesamongstaffatalllevelsandtostrengthenkeymanagementfunctions. The recommendations called foran organization with more emphasis on country-specificactivities,aresultsbasedmanagement(RBM)culture,andaperformancemanagementframework.TheJAGendorsedtheserecommendationsinApril2006.

Theseniormanagementteamalsoneededtotakeintoaccounttwoparticularchallenges:thegrowingnumberoforganizationsofferingTRTAandITC’sneedtoestablishitselfasthepre-eminentAidforTradeorganizationinthemultilateralsystem;andtheshiftofdecision-makingandresourceallocationtothecountrylevelinlinewiththespiritofthe2005OECD-DACParisDeclarationonAidEffectiveness.

Resultsofaclientsurvey(seebelow)alsohighlightedakeychallengeforITCtodevelop

a good client relationship management (CRM) mechanism, and to create more solutions-oriented rather than supply-driven responses to clients. This implies the need for morecomprehensive andrefinedmethodsof needsassessment and relationshipbuildingwith ITCclients toserve them better.ITC clients also face the challengeof needing tomove beyondinformation and awareness building to the building of real capacity. This requires theorganization tomove beyondstrategy to implementation anddevelopment support, requiringcloserpartnerships.

Against this background, the organization has over the last 15 months drawn on theevaluation’s recommendations, and the recommendationsof thepreviousevaluations of ITCdatingbackfrom1977,todevelopachangemanagementprogrammeandimplementareformprocess.Anewstructure,whichisnearingcompletionattheendof2007,willrecognizethisandwillcommitresourcestomeettheneedsofITC’sclients’growingrequests.

Thepresentdocumentupdatesourstakeholdersonprogressachievedsofarandsetsoutthenextstepsinthechangeprocess.

Responding to clients needs and expectations

ITCconductedanin-depthclientsurveyforthefirsttime,duringSeptemberandOctober2007.Theobjectiveofthesurveywastodeterminehowwellourcurrentofferingcorrespondedtoclients’needsandhowwellourcorporateobjectiveswerebeingdeliveredtoclients.



Theclientsurveywasdesignedtocontributetotheoverallchangemanagementprocesswiththefollowingspecificobjectives:

1. ToprovideinsightsintothebusinessenvironmentinwhichITCisoperating.

2. Tohelpdevelopa targetedmarketingstrategy,planandprogrammetoachieveITC’sstrategicobjectives.

3. ToidentifyandunderstandthedriversofITC’sbrand/reputationandimage.

4. To monitor the relevance, utilization and performance of ITC products anddeliverymodes.

5. ToobtainfeedbacktohelpdirectfutureITCproductandprogrammeofferings.

Over1,500respondentsfromall regions, representingtrade support institutions(TSIs),businessenterprisesandgovernmentagencies,completedthesurvey.

Onthewhole,ourclientsappreciatedITC’sproductsandservices:overall,38%ofthemratedITCpositively intermsofhelping theirorganization toachievepositiveresults inexportdevelopment. A smallminority gave negative ratings. Among categories of respondents, theTSIswerethemostpositive.

Clients’ rating of ITC in helping them to achieve export development results (%)

Source:ITCClients’Survey2007,Dalberg/Globescan.

NB:TradeSupportOrganizations(TSOs)=TradeSupportInstitutions(TSIs)

The white space in this chart represents "don't know" or no answer.

2 Changemanagement:Progressreport



ThetopthreedescriptorsofITC(measuredbynumberoftimesmentionedinanswertoanopenquestion)were“informative”,“helpful”and“international/global”.

When respondents were askedan openquestionabouttheirmajortradechallenges todevelop exports from client'scountry/company, theresultswereasin thechartbelow.Whenlooking atLeastDevelopedCountries (LDCs)asa group,Export financingwas ratedas thenumbertwochallenge.

Main challenges to developing exports





ITC’s ratings on key issues are shown next. ITC is considered efficient in serving itsclientsbutshouldengagewiththembetterinordertoidentifyneedsandtailorsolutions—whicharethemostimportantfactorsinoverallperformance.Thequarteredchartofimportanceandperformancehighlights(‘focus’—topleft)theneedforITCtorefineitsunderstandingofclientneeds,presentintegratedsolutionsandensurefollowup.TheseconclusionsbroadlyconfirmtheresultsoftheITCevaluation.

Rating of ITC’s performance on key issues





ITC’s key challenges

TheoverridingobjectiveofthechangemanagementprocessisforITCtobetterserveitsclients.ThisisreflectedinanewexpressionofITC’smandate:“ExportImpactforGood”.

Thethreefundamentalpillarsofthereformprocessare:

Focus

ITC needs to focus its interventions based on systematic and thorough needsassessmentsatcountry,regionalandgloballevels.Partnershipsareessential.Theorganizationwillhavetostrengthenitsnetworkofpartnerships,includingwithTSIs,andputinplaceactionplanswithwell-definedresponsibilitiesandcommitments.ITCwillalsorelyonthisnetworkofalliances to establish an efficient monitoring and evaluation system to track progress in itsactivities.

Integration

ITC will develop integrated programmes in countries that would most benefit from aholisticapproachtoidentifyingandfocusingontheirtradeneeds.Theseprogrammesarebeingdesignedandimplementedinclosecollaborationwiththerespectivegovernmentsandprivatesectors.Theyencompassacustomized,comprehensivearrayofplannedtechnicalassistanceinitiativeswhich,whenimplementedtogether,createcapacityandimproveacountry’soverallexportperformance.

Scale

TheConsolidatedProgrammeDocument(CPD)illustratesITC’spipelineofpre-qualifiedtechnicalassistanceprojects(proposedtobefinancedfromextra-budgetaryresources)totalingUS$130 million for the biennium 2008-2009. Of this, we have projected implementation ofUS$80million inourbudgetdocumentpresented totheUNandWTO.Thiswill requireus toscaleupouractivities(fromUS$55millioninthe2006-2007biennium).

Toachievegreaterimpact,wehaveproposedlargerintegratedprogrammeswithacriticalmassandbasedoncountries’needs.Partnershipswillbecriticaltosuccess:partnershipswithold andnewdonorsand with other internationalorganizations, like UNCTAD andWTO withwhich we are organically linked, and also UNIDO, World Bank, the Regional DevelopmentBanks,theAfricanUnion,UNRegionalCommissionsandtheOneUNcountryprogrammes.Ineachcase,ITCismakingalreadysignificantprogressinsigningMemorandaofUnderstandinganddevelopingjointprogrammes,wherenoneexistedbefore.

Inaddition, contributing to the MillenniumDevelopment Goals (MDGs) isbecoming anessentialfunctionofITC.AsanUNdevelopmentorganization,ITCiscommittedtopromotingthefulfillmentoftheMDGs.ITCbelievesthatwealthgeneratedbytradecanbeinterdependentwith, and mutually reinforced by, social development and environmental protection. TheorganizationintendstoincreasinglydetermineindicatorsrelatedtotheMDGsaspartofitsworkand to monitor the achievement of results. More emphasis on the MDGs is leading ITC tostrengtheneffectivehumanresourcesinthisfield.




Finally,aresultsbasedmanagement(RBM)andperformancemanagementsystemisanintegralpartofthechangemanagementprocess.ITC,togetherwithitsstakeholders,believesinresults and impact. RBM will require an approach to the organization’s work that ensuresimprovedqualityandrelevanceofitsservices.Programmeswillneedtobemoreclient-focused,emphasizingtheachievementofagreedoutputsandoutcomesforclientcountries.Resultswillbe essential elements in thechange process, and extremely important in building trust andconfidencewithitsstakeholders.




II. ITC’s strategic thrust

New core competences

AsclearlyhighlightedbytheDanish-ledevaluation,refocusingtheorganizationonitscorecompetencies, in terms of products and services delivery, is a priority. Efforts have beenparticularlyfocusedonthedefinitionofITC’snewbusinesslines—asthesecompetencesarereferred to—during the second andthirdquartersof2007.Thecornerstones of this exercisehavebeenthefollowingprinciples:

Alignment with key strategic objectives

Engineeringthefuturebusinesslinessothattheirgoals,objectives,andresultsprovidemeasurableoutcomesandoutputsthatenableustoreachourobjectives.

Focus on core business

Makingsurethatournewbusinesslinesreflectourintenttoconcentrateouractivitiesonspecificcompetenciestodeliverourmission.

Integration and scale

Ensuringthatouractivitiesarebetterintegratedtoprovidesolutionstoourclients,notjustproductsandservices.

Relevance and impact

Atpolicymaker,TSIand,especially,atenterpriselevel,tobemoreclient-oriented.

Business lines

InitiatedinJune2007,theprocessinvolvedthefollowingsteps:

Acriticalreviewoftheexisting17linesofbusiness,plusthenumeroustoolsandserviceofferings

Aseriesofworkshopsonlinesofbusinessinvolvingmorethan40staff

Coreteamscreatedtodefinethefuturebusinesslines

Thedefinitionofgoals,objectivesandresultsforeachbusinessline

The definition of output and outcome indicators, in line with objectives andexpectedresults,andananalysisofthecrossdependenciesacrossbusinesslines.

Theresultofthisworkhasbeenthedefinitionoffivenewbusinesslinesthatwillshape

ITC.




Export strategy

This business line helps policymakers and governments, as well as enterprises, todevelop successful export development strategies, compatible with national planningframeworksanddiagnosticstudies(suchastheDiagnosticTradeIntegrationStudy(DTIS)forLDCs).ItalsoplaysakeyroleindevelopingassessmentmethodologiesandtoolstobeusedbyITC for project and programme development. It will provide the methodologies and tools tomonitorandcontrolimplementation.TheobjectiveisthatITCdevelopsapproachestostrategydevelopmentthatarefullyconsistentacrossnational,sectoralandenterpriselevelsandwherebestpracticeispromotedacrossaglobalnetwork.

Business in trade policy

Thepurposeofthisbusinesslineistoensurethatbusinessprioritiesareintegratedintonationaltradepolicies,and that theneedsofbusiness— andespeciallyofsmallandmediumenterprises (SMEs) — are taken into consideration in the negotiation of international tradeagreements.Linkingthebusinesssector,especiallySMEs,throughtheirrepresentativeTSIs,topolicymakersisakeysuccessfactorforthecreationofaconducivebusinessenvironment.

This business line will play a pivotal role at the interface with governments andbeneficiaries.ItwillensureamuchstrongerITCpresenceintheoveralldebateonkeystrategicissues that impact export success. By getting more closely involved with policymakers andgovernmentswithcounselingandsupportforbusiness,ITCwillbeinamuchbetterpositiontoformulateexport programmes that provide practicalsolutions,basedonamore in-depthandcoherent understanding of client stakeholder demands and the trade policy environment inwhichbusinessoperates.

Trade intelligence

This business line provides trade related information, research and analysis to helppolicymakers andenterprises tobuild national and regional capacities tomake betterexportdecisions.

This business line worksclosely with all other business lines todeliver effective tradeintelligenceservices.

TSI strengthening

Thisbusiness lineplaysa critical role through the development ofTSI networks. Itwillfurther develop,andbetter implement, benchmarking methodologies andtools for TSIs tobeabletonetworkandmeasuretheirownperformanceataninternationallevel.ITCwillchannelthemajorityofitstechnicalsupportservicesthroughTSIstoensurethewidestdisseminationandmostsustainabletransferofknowledgeandexpertise,closetothefinalusers.

ThebusinesslineplaysadualroleinITC’sstrategy:

Toguaranteesustainableexportersupportatnational/regional/sectorallevel;

Asachannelforourexportservicesdelivery, inorder toreachout tothelargestnumberofexportingSMEs.




Exporter competitiveness

Thisbusinesslinedevelopsandoffersproductsandservicesrespondingtothespecificneedsofexportingenterprises,withtheaimofmakingthemmorecompetitive.Theseservicesaredeliveredwithandthroughintermediaryorganizations(theTSIs)bycertifyingtrainersandprogrammes. Issues covered will include enterprise management, procurement and supplychainmanagement,qualityandstandards,exportpackaging,logisticsanddistribution,aswellasmarketingandbusinessenvironmentsolutions.

Cross dependencies

The business lines will work closely together in a sequenced, coordinated manner todeliversolutionstoITC’scustomers,withaviewtoensuringthebestsynergiesatprogrammedeliverylevel.

ITC’s new conceptual frameworkConcurrent with the definition of ITC’s five business lines (core competences),

organizationalexpertsworkedbetweenSeptemberandDecember2007toassessITC’scurrentstructureandworkprocessandtoproposeoptionsforthemosteffectivestructuretodeliveritsservices.

Theproposedorganizationalstructureexpandsthenumberofregionalteamsenhancestherole of theregional country officesby closelyaligning them with theexport strategy andbusiness in trade policy business lines. In future, needs assessments and programmedevelopment will reflect this close cooperation. The other three business lines are dividedbetweentwootherdivisions,withworkprocessesdesignedtoensuregreatercollaboration.

Theneed to institutionalize a results-based culture and to support theorganization tomonitor and evaluate its effectiveness is also a key feature of the new structure. Greatersynergy with the communications and information services, as well as recognition thattechnologyshould beusedasasolution todisseminating both information and services, arealsofeaturesoftheneworganization.

TheDivisionofProgrammeSupportwillbereviewedin2008toensurethatoursupportservices arealigned to the functionsof theorganization.Wewill also be looking for greaterefficiencyinthesupportanddeliveryofservices.

Abetter-focusedorganization—focusingonourcorebusiness—willavoidduplicatingtheworkofotheragenciesandwillensurethatweintervenewherewecanmakeadifference,withtheultimateoutcomeofexportimpactforgood.

Linking ITC’s core competencies and Impact for Good




From products to solutions, from supply to demand driven

AstheclientsurveyandtheDanish-ledevaluationsuggest,providingasetofintegrated,coherentproductsandservicesisessentialforITC’sclients.Thebusinesslinesaredesignedtobring to bear ITC’s full range of talents, skills and resources on the needs of clients. Indevelopingandfurtherdeepeningthebusinesslines,ourapproachstartswiththeneedsof theclients and reverse-engineers theprocess,moving from a supply-driven toa demand-drivenapproach.

Towards relevant and measurable results

Aseriesofperformanceindicatorshasbeendevelopedforeachbusinessline,conformingto RBM practices, in order to ensure that our interventions are relevant and our impactmeasurable.A logical frameworkhasbeen developedfor the new businesslinesand willbefully aligned with the new Project Cycle Management framework under development forimplementationin2008.




III. Implementing change

Identity and core values

Inacompetitiveenvironment,ITCneedsanidentityandcorevaluesthatdifferentiateitfromothersandprovidesvisibilityvis-à-visitsstakeholders.FollowingthedeterminationofITC’sstrategicframework,workstartedondevelopingabrandidentitytoimprovethecommunicationofourworktoourclients,donorsandstaff.Throughaseriesoffacilitatedworkshops,nearly170staffandexternalstakeholderscontributedtothedefinitionofabrandblueprintthatarticulatesITC’svision,mission,andvalues.

“The development partner in export success”

ITC’svision statement sets ITC’sdirection and indicates the wish tobe recognizedas“The”preferredpartnerindevelopmentwork/assistance,targetingsuccessinexports,whichisITC’smarketsegment.

Inotherwords,thevisiondescribesthemarketwhereITCworks,itsindividualityandhowitcompetes(emphasisondevelopmentandexports).OneofthecomparativeadvantagesofITCisits“universality”asaUnitedNationsorganization.

ITC enables small business export success in developing countriesby providing, with partners, trade development solutions to theprivate sector, trade support institutions and policymakers

ITC’smissionstatementelaborateswhotheorganizationis,whatitdoes,howitdoesitswork and forwhom itdoes it. Themission describeshow ITC differentiates itself from otherdevelopmentprovidersintheTRTAfield.ItdescribesITC’suniqueproposition.

“Export Impact for Good”

Attheheartofwhatwestandforistheessenceorcredoofthebrand,“ExportImpactforGood”.ThecredodescribesITC’spromiseinthesimplestmannerandsitsattheheartofITC.Itcannotbecompromisedandisusedtoanchorandfiltertheorganization’sinitiatives.

“Vision, Integrity, Pragmatism, Excellence, Responsiveness”

Defining values will help ITC live up to its promises. These values reflect long-termcommitments and will drive the organization’s individual and collective behavior. BusinessdecisionsmustadheretoITCvalues.Whenindoubt,decisionsareguidedbyvalues.Valuescannot be compromised and will act as a benchmark to measure ITC’s performance andbehaviors.

The vision statements are written in the present tense as an affirmation of ITC’scommitmenttothem.Theorganizationrecognizesthattheydescribefutureaspirations.

Vision

Ourvision isshaped byourdynamism, innovation, andability to leadandvoiceinsightsofrealvaluetoourclientsandstakeholders.




Integrity Integrity is a shared UN value, fundamental to our operations andreflected in our impartiality and accountability to clients andstakeholders.Weadvocatemutualrespectandequityofopportunityintheworld.

Pragmatism Our pragmatic methodology is a perfect fusion of thinking and doing,whileensuringwehavetherightpartnerstodeliverresults.

Excellence Asa development agencyworking towards sustainable impact forourclients,ourabilitytocommunicatewithclarityandcredibilityisessentialtoourorganization’ssuccess.

Responsiveness Ourresponsivenessandflexibilityarebuiltaroundtheempathywehavefor our clients needs, and the commitment and drive to help themachieveexportsuccess.

ITC branding

The new ITC logo is directly inspired by the building blocks required for the effectivedeliveryofprogrammesindevelopingcountries.TheseblockssignifytheimportanceofworkingwithpartnerstomultiplyITC’s impact fromone toonetomany.Ineffect,thewholeisgreaterthan the sum of the parts. The choice of colors makes reference to ITC’s origins and itsrelationshipwithboththeUNandtheWTOandprovidesamoderncontemporaryfeelaswellasastrongplatformforco-brandingwithdonorsandtechnicalpartners.ItclearlycommunicatestheessenceoftheITCbrand:“ExportImpactforGood”.

In March 2008, the brand identity guidelines will be completed. Extensive trainingsessionswithstaffwillbeundertakentoensurethatthenewvaluesandcommunicationtools

areadoptedandthattheorganization’sworkreflectsitsvalues.ITCwillcontinuetoworkwithitspartnersatalllevelstoensurethatitsvaluesarewellunderstoodandwellcommunicated.

ITC’s new logo




Communications

ITC has initiated an extensive communications effort in support of the changemanagementprocess.This includesweeklybreakfastmeetingsamongmanagementandstaff,a weekly changemanagement newsletter anda website on the ITC intranet.Work has alsobegun to identify potential changes in the communications function in order to build acommunications platform that can serve clients more effectively. This review included anassessment of the communications function and top line recommendations on changes indirectioncoveringITC’swebsite,flagshipevents,publications,advocacy,publicrelationsandmediamanagement.Adecisionwas takento suspendwork inthisarea inanticipationoftherollout of the new brand identity and the organizational review. This will enable theongoingconsultancy work to support staff in the execution of their duties to ensure that there ismaximumownershipoftherecommendations.

Externally,extensiveconsultationshavebeenundertakenwithITCstakeholders,bothin

Genevaand abroad, and withUNCTAD and WTO.As identified by thefindingsof theclientsurvey,theneworganizationalstructurewillemphasizeanewapproachtoclientrelationshipmanagement.

Consolidated Programme Document

The Consolidated Programme Document (CPD) is also a response to the evaluation,which recommended a single programming framework encompassing all regular and extra-budgetary fundedactivities.With theCPD, ITC has also aligned theextra-budgetary fundingcycle(originally(JunetoMay)withthecalendar-yearregularbudgetcycle.

TheCPDisITC’scomprehensiveresponsetothechallengeofAidforTrade.Itseekstoconfirm the organizationas the pre-eminent multilateral team specializing in TRTA. It is theproductofa lengthyplanningprocess.TheprogrammesweredevelopedandvalidatedthroughathoroughprocessofconsultationwithITC’sstakeholders,startingwiththeJAGofApril2007wherestakeholdersfromdifferentregionsdebatedthepriorityneedsoftheirregions.

Bywayoffollowup,alargenumberofmissionswereconductedinallregionstohelpdetermine the most important trade development needs. For all the integrated countryprogrammes,theseconsultationswereheldatministeriallevel,withprivatesectorand,insomecases,withHeadsofGovernment.ITChasalsoreceivedHeadsofGovernmentinGenevaandalargenumberoftradedelegations,oftenheadedbyTradeMinisters.ThiswassupplementedbyITC’sparticipationinWTO’sthreeregionalAidforTrademeetingsduringSeptember(Peruand Philippines)andOctober (Tanzania). Thesemeetingsprovided the opportunity to further

discussandvalidateprogrammeproposals.TheWorldExportDevelopmentForuminMontreuxinOctober2007broughttogethermorethan200tradestakeholders—includingover30countryteams—withwhichprogrammingconsultationswerealsoheld.Finally,theproposalsintheCPDhave been refined through a series of regional andsub-regional consultations inGeneva towhichallthelocalmissionswereinvited.

TheCPD for2008-2009represents the validatedpipelineof requests forITC technicalassistance over the last several monthsand includesnewlydefined strategicapproaches tointegratedcountriesandregionalprogrammes.Thedocumentispresentedinsevenvolumes:onevolumeforeachofthefiveregions,onevolumepresentingITC’svisionandonevolumefortheindex.Eachregionalvolumeisfurtherbrokendownbysub-region,highlightingITC’ssub-regional strategy (analysis, including the identified trade challenges, and ITC’s proposedresponse).Followingtheanalysis,tablesdetailtheproposedprogrammes.Regionalorcountry

initiativesarelistedfirst,followedbyprogrammesrepresentingITC’sresponsetothepreviouslyidentifiedtradechallengesofpolicymakers,TSIsandenterprisesinthesub-region.ITChasalso




included details on resources committed, resources required, current donors and partnersinvolvedwiththeproject,aswellasmeasurementindicatorsfromITC’sstrategicframework.

Regional programme approach

ITC has focused on improving coordination and involvement from all ITC divisions toensurethesuccessfuldevelopmentoftheCPD.Emphasishasbeenputonlarger,multi-yearprojectstoensuremoresustainabilityandmeasurabilityofimpact.Inparticular,specialattentionhasfocusedonidentifyingprogrammesthatwouldhavehigherimpactthroughregionaldelivery,elaborating conditions to create such programmes, identifying criteria for deciding whetherdeliveryataregionallevelwouldbebest,andsuggestingmeansforeffectiveimplementationandcoordinationofregionalprogrammes.Threeprinciplesleadingtothedefinitionofaregionalprogrammehavebeendefined:

Toensure full ownershipby beneficiarycountries,theobjectives ofany regionalprogrammeneedtobealignedwithbothnationalandregionalobjectives.

To improve sustainability of impact, the geographical coverage of regionalprogrammes should be aligned as closely as possible to those of theRegionalEconomicCommissions(RECs).

RECscanplaytheroleofanchorforregionalprogrammesprovidedtheyhavethehumanandtechnicalresourcestodoso.Shouldthisnotbethecase,regionalornationalTSIsmaybeamoreappropriatepartner,though theprogrammeshouldalsoaddressthecapacityconstraintsoftheREC.

On this basis, ITC is developing new (and integrating current) programmes into itsregional programme framework. In 2008 work will continue to refine and standardize themethodology for implementing regional programmes, and ensuring it isaligned to other ITCinitiatives,includingthenewbusinesslines,thenewRBMsystem,programmeevaluationand

the CRM system. ITC’s planned regional programmes for 2008-2009, including resourcerequirements,arelistedintheappropriatevolumesoftheCPD.

Integrated country programme approach

AnintegratedcountryprogrammeapproachisfollowedwhenITCactivitieshavegreaterimpact from taking a holistic approach to improving a country’s trade performance. Thisapproach requires close collaboration with theGovernmentand business sector, taking intoaccount national export strategies or national trade initiativesplanned or under way. It alsoencompasses a customized, comprehensive array of planned technical assistance initiativeswhich, when implemented together, create capacity and contribute to improving a country’soverallexportperformance.TomaximizetheimpactofITC’srole,tradestrategyroadmapswill

bedevelopedfornewintegratedcountries.

ITC isalso developinga methodology andcriteria todeterminewhichcountrieswouldmostbenefitfromanintegratedcountryprogramme,basedonindepthneedsassessment.Theselection of countries to become part of the initiative is a consultative process, taking intoaccount a number of factors including: desire of the country to be part of the programme,government and private sector commitment to improving export development, and countrycapacitytopartnerwithITCtoimplementthevariousinitiatives.PriorityisgiventoLDCs,land-lockedandsmallislandstates,aswellasOneUNandpost-conflictcountries.

In 2008 ITC will refine and standardize the methodology for implementing integratedcountryprogrammes,ensuringitisalignedtootherITCinitiatives,includingthenewbusinesslines,thenewRBMsystem,programmeevaluationandtheCRMsystem.




Strategic planning and project management

ITC’smainchallengefor2008istodevelopastructuredlongrangeplanningprocessandto link itwith theannual plan.Tomeet this challenge,it will benecessary tostrengthenthe

strategic planning functions at the top level of the organization, and the monitoring andevaluationfunctionsthroughoutITC.

Strategic Plan 2008-2011

TheintroductionofastrategicplanningprocessatITCwillcoverthenexttwoUNbudgetbiennia.Developingastrategicplanwillprovideastrategicdirectiontotheorganizationinitscompetitive environment. In the light of ITC’s vision and mission, it will set targets to beachievedandidentifythefinancial,humanandorganizationalresourcesrequired.Itwillallowtheorganizationtosetupdisciplinedprocessestoachievetheseresults.Itwillalsocommittheorganization to measuring its performance. It will contribute to identifying and defining therelevantproductsandservicestobedevelopedandmarketedinthecontextofdemandfromour

beneficiariesanddonors.Itwillalsoaddressthecriticalissuesofdelivery(direct,online,orviaTSIs).

The four-year Strategic Planshould be finalized in the first quarter of 2008. It will bedevelopedintwostages:

The Strategic Brief—willdefineathemeandoutlinethestrategicdirectionoverthenextfouryears,takingaccountofthechangesinITC’soperatingenvironment,aswellasdonors’andclients’demandsandtheirimpacton ITC.DevelopedbytheOfficeoftheExecutiveDirector(OED),itwillincludethehigh-leveltargetsfortheorganizationanda roadmap toachieve these, includingorganizational, financialand human resources dimensions. ITC’s divisions and functions will use thestrategicbriefasanentrypointforthedevelopmentoftheirownrespectivefour-

yearstrategicplans.

Strategic Plan Reviews—willtakeplaceatalllevels.TheOEDStrategicPlanningTeamwillreviewandagreetheplanssubmittedbyalldivisionsandfunctionsandincorporatethemintoITC’sfour-yearStrategicPlan.

Monitoring progress

The firstyear of the Strategic Plan will be ITC’sAnnual Plan,whichwill contain moreoperational detail than the Strategic Plan. The Strategic Plan and the Annual Plan will beupdated,publishedandpresentedeveryyeartoITC’sstakeholders.

RBMwillbeanessentialcomponentofthestrategicplanningmonitoringandevaluationprocess. It will be linked to employees via the performance appraisal system through thecascadingoftargets from theobjectivesofITC,through thoseof divisions,down tothose foreach member of staff. In terms of monitoring and implementation and in order to facilitatedelivery, the Strategic Plan will be complemented by the implementation of a new projectmanagementtool(seebelow).

Project management

ITChas been working since 2006 on thepreparation of a Project Cycle Management(PCM) Manual, which is fully consistent with UN system models. The objective, to beimplementedin2008,istodevelopadisciplinedapproachtoprojectmanagementacrossthe

organization.




ThePCMmanualelaboratestwoconcepts:

TheProject Cycleasamanagementtool.Aprojectmovesthroughvariousdistinctphases during its life. Each phase is described in terms of processes required(flowcharts), decision points, criteria and responsibilities, as well as supporting

documentsandtheirtemplates.Thephasesoftheprojectcycleareasfollows.

The Logical Framework asananalytical tool.Any project orprogrammeshouldarticulateaninterventionlogicthatrelatesrationallyitsgoals,objectives,outputsandactivities.Thelogicalframeworkalsocomprisesindicators,targets,sourcesofverificationandassumptionsinapredefinedformat.

Project cycle and logical framework

Goal

Objectively

Verifiable

Indicators

Sources of

Verification

ObjectiveOutcomes

indicators

Sources of

Verification

ResultsOutputs

indicators

Sources of

Verification

Activities Means Costs

Assumptions

Project Cycle Logical Framework

ITC Policy

Setting

Concept

DesignImplementation

Evaluation

External trends

and Policies

Initiatives and

requests

Monitoring

Thecombinationof these twoconceptswillenhance organizational learningwithin ITC

and among its partners, and promote a common approach and clear consistent language.Particularemphasisisputontheassessmentof,andcontributionsto,thespecifictraderelatedneeds of countries as well as to the attainment of the trade related MDGs and, thus, ITCstrategic objectives. Compliance checklists for each phase are built in to assure qualitythroughouttheprojectcycleaspartof theperformanceassessmentframeworkandITC’sRBMpractice.Currently,fiveofthesevenchaptershavebeendrafted.Finalizationofthemanualandrollingoutofthemethodologiesisforeseentostartearlyin2008.

A disciplined strategic planning and project management process should drasticallyimprove ITC’s relevance, coherenceand impact. It should also contribute to creating a newdelivery-oriented culture in ITC and be a significant success factor towards delivering ITC’smissionandvision.




Results based management

ITC corporate quality standards

Theprogressivedevelopment ofa corporateculture basedonplanning forresults andmeasuring performance relies on the progress registered in the other change managementinitiatives, in particular in the areas of strategic planning and project management. Qualitystandardsarebeingdeterminedtoensurehighqualityandhighimpactatalllevelsofthelogicalframework:

Immediate objectives — aredetermined for eachproject.Tomeasurehow theseobjectivesaremet,aseriesofoutcomeindicatorsneedstobedeveloped.

Outcome indicators—shouldreflecttheperformanceofITC’scontributionaswellasthoseofitsimplementingpartners(e.g.TSIs).OutcomesareonlypartiallytheresultofITCactivities.So,foroutcomes,performanceisaresultofthecombinedpartnerandITCdeliveryefficiencyandeffectiveness.

Outputs — are the results achieved through the use of products and servicesdeveloped under ITC activities. These outputs are measurable through outputindicators(quantitativeandqualitative);theyareunderfullcontrolofITC.

AfirstseriesofquantitativeindicatorshavebeendevelopedrelatedtoITCsub-objectivesandembedded in ITC’s strategic framework.Thebusiness line development process puts astrongaccentonperformanceindicatorsandsetsdifferentlevelsofmeasurementtofulfilltheseobjectives.

Development objectives — have been defined in ITC’s strategic framework andendorsed by theUN General Assembly. They correspond to the three differentcategories of ITCclients. Progress towards these objectives will be periodicallymeasuredthroughtheclientsurveyprocess.

Resources required

Defining and implementing an RBM system is an on-going process that requires themobilizationofsignificanthumanandfinancialresources,aswellastheevaluationofhowtheseresources are being allocated and the impact that they are having. Availability of theseresourcesisapre-conditionforsuccessfulimplementationofthesystem.Theindicatorsthataredefined to ensuresuitable measurement of impact need to be validated throughsystematicreview.Therewillneedtobeaperformancereportingsystemthatsetsouttheimpactthattheallocationofresourcesishaving,aswellasmeasuringresourceinputs.ThiswillrequirethatITCreview,onaproject-byprojectbasis,boththeimpactofaprojectandallthecostsofaproject.

ITC’sproposedregularbudgetprogrammedocumentfor2008–2009is0.4%growth,orforpractical purposes zerogrowth, but it includesa request for a P4 position towork onRBMpractice.




New performance culture

Theexperienceofotherdevelopmentorganizationsclearlyshowsthatashiftinworkingcultureisindispensableforthesuccessofaresults-basedsystem.Thedevelopmentofanewset of corporate values as described in the present document is only the first step in thisdirection.Creatingaresults-orientedorganizationimpliesasignificantdeparturefromthestatusquo.RBMwillonlybeeffectivewithamuchlargerlevelofempowermentdelegatedtoITCstaffovertheallocationofresourcestoachieveobjectives,withclearlydefinedresponsibilitiesandaccountabilities.

Cost performance — all thecostsofprojectswill need tobe taken intoaccount,including staff members’ and consultants’ time, as well as overseas travel andaccommodationandtheuseofin-houseresources.

Performance assessment system — should be an integral part of RBM. Theobjectives of ITC and divisions identified through strategic planning will becascadeddowntoDirectors,ChiefsofSectionand individual staffmembersandreflected in the assessment of their performance.Thiswill provide the adequateleveloftransparencyrequiredtoensureaccountabilitymeasurement.

The establishment of the RBM system will require the active participation of ITC’snetworks,especiallyTSIs.Thesystemwillhavetoevolveandimproveovertime,assuccesswillrequiremultiplestakeholderstoparticipateanddedicatesufficientmanagementresources.

Human resources development

ITC’srelevanceandperformanceprimarilyreliesonitsownpeople.In thiscontext, theconsolidation of an efficient human resource function is a fundamental element for a morerelevantorganizationandtheintroductionofacompetencyframeworkforhumanresourcesisamustinthechangemanagementprocess.

Progressinthisareahasbeendependentonadvancementinup-streamelementsofthechange managementprocess,namely thedefinition of the organizational vision, missionandvalues,thedefinitionofthebusinesslines,andthefinalizationofthenewstructure.Followingthe definitionoftheorganizational structure,andonthe basisof thecompetencies and skillsidentifiedthroughthefivenewbusinesslines,theredesignofseniormanagers’jobdescriptionsiscurrentlyunderway.Thiswillenableadecisiononthenumberofpositionstobeadvertised,andinformationgatheringforthecompetencyframework.

Prioritiestobeundertakeninearly2008includetherevisionofstaffselectionpolicieswithaviewtomakingthemmorecompetency-basedandstreamlined.Theintentionistohavethemredefinedwhentheselectionprocessiscarriedoutfornewmanagementpositions,reflectingnewcompetenciesidentifiedthroughthebusinesslinesexercise.Otherkeyactivitiesrelatetothe finalization of the competency framework. A training strategy will be defined, andimplementedduringthefirsthalfof2008,toupdatecompetenciesanddevelopthosethatstaffarelacking.Thecompetency-basedperformanceappraisalsystemwillbedevelopedduringthecourse of2008,on the basisofprogressregisteredby the strategicplanningand monitoringfunction.

ITC’ssuccesswillbebasedonitsabilitytomotivateandemploycompetentstafftomeetthegoalsandobjectivesoftheorganization.




Governance structure

TheExternal Evaluation of ITC recommended a review of ITC’s governance structure.Duringthelastfewmonthsoptionshavebeendiscussedduringinformalregionalconsultations

andatastakeholders’retreaton19November2007.

Consultationswereheldtodiscussaproposaltocontinuetoconveneanannualtwo-dayJAGmeeting,toestablishaConsultativeBoardtoreplacetheexistingConsultativeCommitteeoftheITCGlobalTrustFund,andtosetupasingleITCTrustFund.TheConsultativeBoardwould meet two to three times per year. The Evaluation Report recommended that donorsshoulddiscussthisissue.

ITCtooktheinitiativetofollowupontherecommendationandhasfacilitatedtheprocessbyorganizingalargenumberofconsultationswithPermanentMissionsandtheconveningofastakeholders’ retreat on 19 November 2007. These consultations resulted in agreement tocontinueanannualmeetingoftheJAGandtoestablishaConsultativeBoard,andendorsementofasingleITCTrustFund.SomeissuesregardingtheestablishmentoftheConsultativeBoard

werestilldiscussedattheendof2007.

Programme support functions

Success of the change management process will require the organization to ensureeffectiveand efficientsupport for thenew business processes whilecomplying with UNandWTOadministrativerequirements.Thechangemanagementprocesshassetaroadmapforareview of the support functions of in the Division of Programme Support (DPS). Low-valueaddedandredundantadministrativeprocesseswillbecomeunsustainablewithinthecontextofthenewemphasisonlarger-scaleprogrammes,whilesmallerprojectswillimperativelyrequirevalue-added processing. ITC will need to increase its reliance on technology, increase the

qualityandrelevanceofitsdelivery,aswellasensuretheavailabilityofhigh-skilledstaffandefficientbusinessprocesses.

Asaresult,thechangemanagementprocesswillstrivetoincreaseefficiencyofsupportservices. Business processes must not only meet theUN regulatory framework but also bereviewed for performance.A plan for change will bedefined in2008. The firstphase, whichincludes streamlining of cross-functional processes which impact on delivery in the field, isscheduledforcompletioninSeptember2008.Asecondphase,whichincludesthepreparationand implementation of service-level agreements between DPS and technical divisions, isplannedforcompletioninDecember2008.

A critical look will also have to be taken at the organization’s procurement rules asdecision-makingonTRTAismovingtocountriesandITCwillhavetoensureitisnotexcluded

asaserviceprovider.




IV. Priorities for 2008

01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 06 07 08 09 10 11 12

Strategic Plan 2008-2011

Project Cycle

Mana ement

Results Based

Mana ement

Human Resources

Client survey

Communication

Client RelationshipMana ement Concept Design Implementation

Update

Concept

developmentImplementation

Training Roll out

Launch

Redeployment, training

2007 2008

Development Implementation

Strategic planning

Strategic planning will be developed in the first quarter of 2008. The next criticalchallengewillconsistoftrainingteamsintheorganizationtodevelopfour-yearstrategiesandplans, as well as an operational plan for 2008. Each division will be required to appoint aspecialist team to oversee the successful cascading down and completion of this process,workingincommunicationwithOED’sstrategicplanninggroup.These“gatekeepers”willalsoparticipate in theprojectplanningprocess andoversee the successful implementation of theplans,inthecontextofthenewRBMculture.

Project management cycle

Anewprojectmanagementcyclewillbeintroducedearlyin2008.Extensivetrainingwillberequired.ITCaimstodevelopexperttrainersatdivisionlevel,whowillinitiallybeabletohelpstaffimplementthenewconcept.

Result based management

RBMwillbecomeanintegralpartof,andwillbeimbeddedinto,thestrategicplanningandprojectmanagementprocesses.WorkisrequiredtodefinethefoundationsofanRBM-oriented

cultureandtraintheorganizationinaprocessofcontinuousimprovement.

Client survey

Havingsetabaselinein2007,ITCintendstosurveyourclientrequirementsonaregularbasisinordertomeasureprogressagainstthemilestonesset,basedontheinitialcommentsreceived.





Human resources

OneofITC’skeysuccessfactorsmovingforwardwillbetheeffectiveredeploymentofitshumanassets,inlinewiththeneworganizationalstructure.Nexttothis,asignificanttraininganddevelopmenteffortwillneedtobeputinplace,toensurethatteamsarefullyabletotakeonthenewchallenges,applyingITC’snewoperatingrulesinaprogressiveway.

Communication

ITCwillredeployitsneworganizationwithanewcommunicationsstrategyandtheofficiallaunchofitsnewITCidentityinthefirstpartof2008.Akeychallengeofthecommunicationteam will also be to enhance its web-based services in partnership with other parts of theorganization.

Client relationship management

Akeysuccessfactor for ITC istohaveabetterunderstandingofourclientneedsandrequirements.Theorganizationwillhavetodevelopa long-termapproachtoclientrelationshipmanagement.New methodologies andtools willbedevelopedto ensure ourproductofferingremainsrelevanttoclientneeds.

Challenges

The critical challenge for ITC will be to manage the change process without losingorganizationmomentum.Implementationofthefirstphasewillbeasuccessfactor.Decisionswillhavealsotobemadeinthefollowingareas:

Implementing the change management process of ITC’s programme supportfunctions(DPS).

StartinganewinitiativeonCRM.Thiswasforeseenfor2007butwasnotstartedduetoprioritizationofotherchangemanagementinitiativesunderway.

Roll out of thenew ITC brand identity,with thedesign andimplementation ofastrategyandcommunicationsplanforthenewITC,includingtheredesignofITC’swebsite.



Street address: ITC 54 56 rue de Montbrillant 1202 Geneva Switzerland Postal address: ITC Palais des Nations 1211 Geneva 10 Switzerland

The International Trade Centre (ITC) is the technical cooperation agency of the United Nations Conference on Trade andDevelopment (UNCTAD) and the World Trade Organization (WTO).

The Development Partner for Export Success

ITC Change Mgmt. Report

Documents

Transcript of ITC Change Mgmt. Report