LOG Department Meeting 22/09/2017

AGENDA Finance Department Introduction 2018 Run Activities Budget Framework 2018 Team Axes Budget Framework 2018 Team Axes Budget Preparation Budget Management Process

AGENDA Finance Department Introduction 2018 Run Activities Budget Framework 2018 Team Axes Budget Framework 2018 Team Axes Budget Preparation Budget Management Process

HQ budget 2018 Process & planning

HQ budget 2018 What is NEW ? : DG & Finance will define for each Department a HQ Budget framework € then each Department Director will have to split it between each Unit (=Coordinator / Budget Holder) (see next slide) Why HQ budget Framework necessary ? Enable respect of the global HQ framework (RSA3 and OCB internal) Monitor & manage HQ growth (Board request) Give guidance to Budget holders / coordinators before they fill their HQ budget templates and limitate frustration when arbitrages must be done quickly Enable Department Directors to make arbitrages before DG reviews Ease the arbitrages during DG reviews Remark @ HQ projects : No (? Avoid) new projects in budget without preliminary explanation + Business Case and financial estimation approved by SteerCo & Sponsor dpt If framework allows it, creation of a « HQ projects envelop » under DG to face new needs during next year (tbc)

HQ budget 2018 What is NEW ? : DG & Finance will define for each Department a HQ Budget framework € then each Department Director will have to split it between each Unit (=Coordinator / Budget Holder) (see next slide) Why HQ budget Framework necessary ? Enable respect of the global HQ framework (RSA3 and OCB internal) Monitor & manage HQ growth (Board request) Give guidance to Budget holders / coordinators before they fill their HQ budget templates and limitate frustration when arbitrages must be done quickly Enable Department Directors to make arbitrages before DG reviews Ease the arbitrages during DG reviews Remark @ HQ projects : No (? Avoid) new projects in budget without preliminary explanation + Business Case and financial estimation approved by SteerCo & Sponsor dpt If framework allows it, creation of a « HQ projects envelop » under DG to face new needs during next year (tbc)

Planning HQ & OCB budget 2018 DG9 & Boards approval 5/9 12/12 > 19/12

Planning HQ & OCB budget 2018 OCB Sections budget 15/11 26/11 ARO’s & Missions budget DG9 & Boards approval 5/9 12/12 > 19/12

Planning HQ & OCB budget 2018 OCB Sections budget 15/11 26/11 ARO’s & Missions budget HQ Forecast 2017 update DG9 & Boards approval 5/9 > 22/9 5/9 12/12 > 19/12 Each Department & Director communicates major update FTE & € to Finance Critical items also analyzed by Finance performs specific

Planning HQ & OCB budget 2018 OCB Sections budget 15/11 26/11 ARO’s & Missions budget HQ Forecast 2017 update HQ Budget Framework by Department < RSA3 DG9 & Boards approval 5/9 > 22/9 5/9 30/9 12/12 > 19/12 Each Department & Director communicates major update FTE & € to Finance Critical items also analyzed by Finance performs specific Direction & Finance will assign a budget framework to each department >> Split FR / Non FR >> For non FR : will take into consideration : - FTE growth from 2017 recruitments - Projects approved - Strategic investments? - space allowed ?

Planning HQ & OCB budget 2018 OCB Sections budget 15/11 26/11 ARO’s & Missions budget HQ Forecast 2017 update HQ Budget Framework by Department < RSA3 HQ Framework by Unit (= Coordinator / Budget Holder) DG9 & Boards approval 5/9 > 22/9 5/9 30/9 1/10 > 9/10 12/12 > 19/12 Each Department & Director communicates major update FTE & € to Finance Critical items also analyzed by Finance performs specific Each Department Director to define how he wants to split the HQ Budget framework by Unit Share 2016 ? New projects ? Strategic investments ? Need help from HQ controllers ? > please ask ! Direction & Finance will assign a budget framework to each department >> Split FR / Non FR >> For non FR : will take into consideration : - FTE growth from 2017 recruitments - Projects approved - Strategic investments? - space allowed ?

Planning HQ & OCB budget 2018 OCB Sections budget 15/11 26/11 ARO’s & Missions budget HQ Forecast 2017 update HQ Budget Framework by Department < RSA3 HQ Framework by Unit (= Coordinator / Budget Holder) Finance finalize HQ budget templates DG9 & Boards approval 5/9 5/9 > 22/9 30/9 1/10 > 9/10 12/12 > 19/12 Each Department & Director communicates major update FTE & € to Finance Critical items also analyzed by Finance performs specific Each Department Director to define how he wants to split the HQ Budget framework by Unit Share 2016 ? New projects ? Strategic investments ? Need help from HQ controllers ? > please ask ! Direction & Finance will assign a budget framework to each department >> Split FR / Non FR >> For non FR : will take into consideration : - FTE growth from 2017 recruitments - Projects approved - Strategic investments? - space allowed ?

Planning HQ & OCB budget 2018 OCB Sections budget 15/11 26/11 ARO’s & Missions budget HQ Forecast 2017 update HQ Budget Framework by Department < RSA3 HQ Framework by Unit (= Coordinator / Budget Holder) Finance finalize HQ budget templates Departments submit HQ budgets < framework DG9 & Boards approval 5/9 5/9 > 22/9 30/9 1/10 > 9/10 23/10 > 8/11 12/12 > 19/12 Each Department & Director communicates major update FTE & € to Finance Critical items also analyzed by Finance performs specific Each Department Director to define how he wants to split the HQ Budget framework by Unit Share 2016 ? New projects ? Strategic investments ? Need help from HQ controllers ? > please ask ! Step 1 : Coordo & Budget holders fill HQ budgets templates < Framework Step 2 : Director revise budgets with all Budget hodlers - within framework ? - arbitration between Units ? Direction & Finance will assign a budget framework to each department >> Split FR / Non FR >> For non FR : will take into consideration : - FTE growth from 2017 recruitments - Projects approved - Strategic investments? - space allowed ? Step 3 : Submit budgets to Finance

Planning HQ & OCB budget 2018 OCB Sections budget 15/11 26/11 ARO’s & Missions budget HQ Forecast 2017 update HQ Budget Framework by Department < RSA3 HQ Framework by Unit (= Coordinator / Budget Holder) Finance finalize HQ budget templates Departments submit HQ budgets < framework Finance consolidates& controls OCB & HQ budgets DG9 & Boards approval 5/9 5/9 > 22/9 30/9 1/10 > 9/10 23/10 > 8/11 30/11 12/12 > 19/12 Each Department & Director communicates major update FTE & € to Finance Critical items also analyzed by Finance performs specific Each Department Director to define how he wants to split the HQ Budget framework by Unit Share 2016 ? New projects ? Strategic investments ? Need help from HQ controllers ? > please ask ! Step 1 : Coordo & Budget holders fill HQ budgets templates < Framework Reviews with Dpt Directors & Coordinators / Budget holders Step 2 : Director revise budgets with all Budget hodlers - within framework ? - arbitration between Units ? Direction & Finance will assign a budget framework to each department >> Split FR / Non FR >> For non FR : will take into consideration : - FTE growth from 2017 recruitments - Projects approved - Strategic investments? - space allowed ? Step 3 : Submit budgets to Finance

Planning HQ & OCB budget 2018 OCB Sections budget 15/11 26/11 ARO’s & Missions budget HQ Forecast 2017 update HQ Budget Framework by Department < RSA3 HQ Framework by Unit (= Coordinator / Budget Holder) Finance finalize HQ budget templates Departments submit HQ budgets < framework Finance consolidates& controls OCB & HQ budgets DG reviews HQ & OCB budgets & arbitrages DG9 & Boards approval 5/9 > 22/9 30/9 1/10 > 9/10 23/10 > 8/11 30/11 1/12 > 9/12 12/12 > 19/12 Each Department & Director communicates major update FTE & € to Finance Critical items also analyzed by Finance performs specific Each Department Director to define how he wants to split the HQ Budget framework by Unit Share 2016 ? New projects ? Strategic investments ? Need help from HQ controllers ? > please ask ! Step 1 : Coordo & Budget holders fill HQ budgets templates < Framework Reviews with Dpt Directors & Coordinators / Budget holders Direction & Finance will revise HQ & OCB Budgets 1st Draft review @ 1/12 Arbitrages - with Department directors - with OCB sections Final review @ 9/12 Step 2 : Director revise budgets with all Budget hodlers - within framework ? - arbitration between Units ? Direction & Finance will assign a budget framework to each department >> Split FR / Non FR >> For non FR : will take into consideration : - FTE growth from 2017 recruitments - Projects approved - Strategic investments? - space allowed ? Step 3 : Submit budgets to Finance

AGENDA Finance Department Introduction 2018 Run Activities Budget Framework 2018 Team Axes Budget Framework 2018 Team Axes Budget Preparation Budget Management Process

Budget Running activities Preparation overview Review 2017 Projects & FTEs Identify ideas 2nd & 3rd Line Projects 2018 Estimate 2018 budget per unit 2018 budget consolidation & confirmation B&O End September Mid-October End October End October Mid-January 2nd & 3rd Line Projects to be cancelled 2nd & 3rd Line Projects to be extended FTEs needs Tech Ref. Specialized techs MIO (6th Oct) Others New ideas from Field/FO/BO to be considered in 2018 Prioritization exercise for 3rd Line Projects Identify 2nd line projects to be budgeted FTE Needs Budget estimation per Project/Family/Unit LOG committee consolidate budget LOG committee arbitration if total amount exceed the budgetary framework 2-day working group to fine tune Change & Run activities

Budget Frame – Running Activities Mainly same budget as in 2017 – around 2.043.000€ 332.000€ for Change  1.771.000€ for Run with HR ,without 2nd line projects (ex. MUST, MFH, EBC, Kunduz,…) LOG Dept – 22 FTEs as 2017 + 1 FTE to propose + 1 FTE for Change Actual DirLOG/FO - 3 FTE DirLOG Assist Dept. FO Coordo RES – 2(+1) FTE Resource Coordo Info Manager (PM Sherlog) BO - 16 FTE BO Coordo TL Tech Innovation Officer 4 Tac Ref 6 Tech Ref 3 Specialist Techs MIO team – 8 FTE as in 2017 + 1-2 to propose (Deathline OPS 6th October) Actual 1 HFM 1 IT / TELECOM 2 Infrastructure 2 BioMed 1 NRG /CC 1 Mobility

Budget Frame – Running Activities Specific short term CDDs for project development – X months Equipment for 3rd line projects and tech support tools – X € External consultants for 3rd line projects (ex. MSF SIU) – X € Comms on 2nd/3rd line project (Translate, Printing, Videos,…) – X € Specific training for Staff to improve Field Support – X € IT tools development (ex. Track my Stuff, GMAO,LRS,…) – X € Overhead (COTL week, Events, Flight tickets, …) – X €

AGENDA Finance Department Introduction 2018 Run Activities Budget Framework 2018 Team Axes Budget Framework 2018 Team Axes Budget Preparation Budget Management Process

Some explanations We only focus on budget related to change activities meaning the implementation of the LOG Vision 2017-2020 through the Team Axes LOG Department budget on change activities for 2018 should be equal to 2017 budget (332 k€) LOG Committee has re-allocated 2017 budget per Middle Manager to Team Axes Budget only includes billable activities: consultancy, development print work. Internal FTE & fixed-term contracts are out of scope

2018 Team Axes Budget Framework LOG COMMUNITY Account Description Comment Budget 2017 Forecast 2017 613212 Autres conseils/ consult. non médic. Consultance spécialisée en communauté Marylin Pratt 3.000,00 47.000,00 615540 Content development Development de la plateforme/ customisation 52.500,00 TOTAL 102.500,00 MANAGEMENT SYSTEM CHANGE & CULTURE Account Description Comment Budget 2017 Forecast 2017 613212 Autres conseils/ consult. non médic. LOG Vision 30.000,00 40.000,00 6 Axes PMO 20.000,00 20.000,00 Distributed management – Vincent 30.000,00 Literature purchases TOTAL 90.000,00

2018 Team Axes Budget Framework FILED EMPOREMENT & INNOVATION CAPACITY Account Description Comment Budget 2017 Forecast 2017 TOTAL 0.00,00 TACTICAL CULTURE Account Description Comment Budget 2017 Forecast 2017 613212 Autres conseils/ consult. non médic. Pathway 2nd Phase 10.000,00 20.000,00 TOTAL 20.000,00

2018 Team Axes Budget Framework HR LOG REFORM Account Description Comment Budget 2017 Forecast 2017 615500 Design and printing work fees LOG job flyers – part sections comms kit 4.000,00 7.000,00 613212 Autres conseils/ consult. non médic. 16.000,00 TOTAL 23.000,00 INFORMATION & COMMUNCATION Account Description Comment Budget 2017 Forecast 2017 615500* Design and printing work fees Vision & Strategy brochure 6.500,00 9.500,00 LRS Development, Inventory tool, diagnostic app/ tools, JERI LOG, training support 615540 Content development 65.000,00 85.000,00 613300 Translations (written and simultaneous) Other work than LOGMAG 2.500,00 2.500,00 TOTAL 97.000,00 TOTAL ALL AXES 332.500,00

AGENDA Finance Department Introduction 2018 Run Activities Budget Framework 2018 Team Axes Budget Framework 2018 Team Axes Budget Preparation Budget Management Process

2018 Budget Preparation Team Axes are now in charge of budget management for the actions on the scope of their Axis Budget estimation for 2018 has to be ready for 27th of October 2017 actions postponed in 2018 Use previous budget estimation New actions for 2018 Rough estimation, with first prioritization of actions A template has been designed to help you collect and define all necessary information

2018 Budget Estimation Template

2018 Budget Preparation Overview Review of 2017 actions Identification of new 2018 actions Estimate 2018 budget by Team Axes 2018 budget consolidation & validation B&O preparation September/October September/October By 27 October By 9 November Mid-January Actions to be cancelled Action to be postponed New actions to be launched in 2018 Prioritization (MoSCoW) Budget estimation per actions FTE Needs Fixed-term contracts needs LOG committee consolidate budget estimation Team Axes meeting for transversal arbitration if total amount exceed the budgetary framework Prepare and facilitate the 2 days working group of BO

AGENDA Finance Department Introduction 2018 Run Activities Budget Framework 2018 Team Axes Budget Framework 2018 Team Axes Budget Preparation Budget Management Process 2018 Budget Management Process

Team Axe Representatives + Externals Process: Team Axe Budget Holder 1 Team Axe Budget Rep Actions Project Doers Project manager Finance uses 3 different roles Project Manager = Doer, no change Team Axis = Budget holder, but we need a SPOC to interact with Finance Department Steering committee = Team Axis, in some case (Sherlog) more than one Team Axis could be in charge Streering Committee Team Axe Representatives + Externals

Important information Team Axes as budget holders should respect engagement validation rules Team Axes are responsible to follow up on their budgets Re-forecasting requested by Finance Department should be discussed during general Team Axes meeting The LOG Committee remains in charge of the global LOG Department frame In case of unexpected expenses, Team Axes should consult each other in order to prevent budget overrun Don’t worry, Middle Managers will continue to support Team Axes as coaches

THANK YOU

GRAVEYARD

Finance process case 1: Team Axe Budget Holder Team Axe Budget Rep The Finance department requests one name as the Team Axe budget representative Team Axe Budget Holder Team Axe Budget Rep Strategic Axe Actions Doers Finance uses 3 different roles Project Manager = Doer, no change Team Axis = Budget holder, but we need a SPOC to interact with Finance Department Steering committee = Team Axis, in some case (Sherlog) more than one Team Axis could be in charge

Finance process case 2: project management approach The Finance department requests one name as the Team Axe budget representative Team Axe Budget Holder Team Axe Budget Rep Strategic Axe Actions Project manager Doer Finance uses 3 different roles Project Manager = Doer, no change Team Axis = Budget holder, but we need a SPOC to interact with Finance Department Steering committee = Team Axis, in some case (Sherlog) more than one Team Axis could be in charge

Finance process case 2: project management approach The Finance department requests A Steering Committee the Team Axe composes The Finance department requests one name as the Team Axe budget representative Steering Committee (Team Axe + ) Team Axe Budget Holder Team Axe Budget Rep Strategic Axe Actions Project manager Doer Finance uses 3 different roles Project Manager = Doer, no change Team Axis = Budget holder, but we need a SPOC to interact with Finance Department Steering committee = Team Axis, in some case (Sherlog) more than one Team Axis could be in charge

Year budget deadlines 27 october 2018 Team Axes dealine Admin work to Finance department 5/13 march 2018 Forecast 1 3/11 september 2018 Forecast 3 9 november 2018 LOG department budget input 4/12 june 2018 Forecast 2 X november 2019 LOG department budget input 2 november 2018 Team Axes aribitriation Finance uses 3 different roles Project Manager = Doer, no change Team Axis = Budget holder, but we need a SPOC to interact with Finance Department Steering committee = Team Axis, in some case (Sherlog) more than one Team Axis could be in charge

Role of the LOG Committee 5/13 march 2018 Forecast 1 LOG Committee Finance uses 3 different roles Project Manager = Doer, no change Team Axis = Budget holder, but we need a SPOC to interact with Finance Department Steering committee = Team Axis, in some case (Sherlog) more than one Team Axis could be in charge Validation of the forecast : increase/ decrease team axe internal reorganization inter team axes rebalancing

alignment with the HQ structure LOG department MSF HQ structure Steering Committee Budget Holder Project manager Team Axes (at least one) Doer Team Axis’ representative Finance uses 3 different roles Project Manager = Doer, no change Team Axis = Budget holder, but we need a SPOC to interact with Finance Department Steering committee = Team Axis, in some case (Sherlog) more than one Team Axis could be in charge

AGENDA Budget Framework for 2018 2018 Budget Preparation Budget management process Finance department presentation