Business Operations: The Engine of the UN

The future: Post 2015 and Business Ops Operational Excellence Partnerships Data Revolution Business Operations Programme

QCPR and Business Operations QCPR Business Operations Consolidation of support services Greater collaboration in procurement Decision power delegated to OMT Common and standardized system of cost control Reduce the nr. of parallel project implementation units Increased use of national public and private systems Redirect efficiency savings into programmes (Feasibility Study) ERP Interoperability Establishment of common premises Prioritize the availability of financial and human resources Funding mechanisms for innovation 11 mandates for H-BO

Most Frequent Common Services 2014

Most Frequent Common Services 2014 Any analysis done?

Main Obstacles for CS Development

Operationalization QCPR One Programme Common Budgetary Framework + One UN Fund Operating as One Commun- icating as One One annual UN Country Results Report (programme, funding, operations, communications) Result Groups OMTCountry CG One Leader (RC and UNCT) Joint National/UN Steering Committee

HLCM UNDG Proc B O S UNCT ICT HRFIN… Harmonised BO policies, procedures Country level solutions UNCT Data, Policy Input HLCM-UNDG and the BOS

Medium Term strategic framework Derives from UNDAF/One Programme Same cycle as UNDAF Voluntary Reflects only Common Operations Flexible and scalable to local need What is the BOS?

BoS = Scalable- Pick and chose service lines as locally needed

Milestones BOS Development 2 weeks 3 weeks 2 weeks 4 weeks 3 days 2 weeks 4 days 1 hour Average Time

Why do the BOS? Enhanced Management Control Better PrioritizationFocused Investment time and money Enhanced Ability to Track and Report Enhanced Management InformationResults beyond a single year Enhanced Quality of Business Operations Service quality managementAccess to services Lower Operational Costs Reduction of duplication of work processes;Reduction of transaction costs; Enhanced linkages Programmes and Operations Partially derives from UNDAFBetter match programme demand and service supply

Light vs regular BOS Baseline and Needs Analysis are mandatory Cost Benefit Analysis – Quantitative: more labor required, but more accurate – Qualitative: Less labor required, but less accurate Suggested approach: Hybrid- use quantitative for select set of services (ex. Procurement)

Modalities for BOS implementation Lead Agency Internal service provider OMT led One Agency (supplier) to other agencies (clients) Traditional model CS Outsourced External service provider One agency manages the contract Requires min. supplier base in market Integrated Service Center Internal Service provider Single service window Dedicated unit proving services to client agencies Requires robust analysis and min. critical mass

Challenges Capacity needed for development BOS Need to scale in accordance with capacity Political buy-in: RC, UNCT and OMT need to be fully aware and use the BOS as a management tool Focus should be on achievement activities- UNDG/HLCM can help what is feasible based on global practice Financial investment needed for BOS implementation

Scoping the BoS Flexibility- based on in country capacity and need, the UNCT/OMT can select multiple or just one outcome area (ex. Procurement); Time Requirement: 3-6 months end-to-end over a 5 year cycle to develop the BoS, including analysis; Time requirement may be higher or lower depending on the scope of the BoS (depends on capacity available and need).

Link BOS- Programmes

Support UNDG Website: operations/ UNDG/DOCO: – Lars Tushuizen- Business Operations Specialist Luigi de Munnik- Business Operations Specialist

To unlock UNDG support… Mail to the Director of DOCO – Informing UNDG that the UNCT has decided to move forward on the BOS – Cc Chairs of UNDG Business Operations WG Jens Wandel: Jean Yves le Saux: Cc Chairs of DOCO advisors to UNDG Bus Ops

14 pilots LIC countries, MIC and Post Conflict Countries Support UNDG and HLCM- Technical, QA, Mission, Political BOS Pilots (2013)

BOS Pilot Status – March 2015

BOS Pilot Status-Detailed BOS completed (10) – Bosnia & Herzegovina – Ethiopia – Jamaica – Lesotho – Liberia – Malawi – Moldova – Rwanda – Tanzania – Denmark (Copenhagen) On Track (4) – Afghanistan Estimated completion: Q – Brazil Estimated completion: Q – South Africa Estimated completion: Q – Iraq (due to local dynamics- civil unrest) Cancelled (1)

BOS Pilots per Region

BO Areas under the BOS

BOS Self-Starters

Integrated Service Center Brazil pilot

Some notes upfront Brazil is a unique BOS pilot No other BOS pilot are using the Integrated Service Center concept No other ISC planned until assessment completed Similar set-ups: Viet Nam, Copenhagen

JOF Service lines Eight participants UNAIDS, UNDP, UNDSS, UNEP, UNESCO, UNFPA, UNOPS and UN Women.

Cost Benefit- Monetary & Labor

Brazil-Single Service Window Single Service Window Cap. dedicated Common Operations- free up agency cap. Single rule set for clients- simplification, transparency Reduced cost ( leverage common volumes for services) Less process duplication (contract, client/supplier man Independent- Fair prioritization, accountability Consolidation- No common operations outside the JoF Supplements Agency, Regional and Global service models (different services)

Brazil- Integrated Service Center BOS Brazil Copenhagen Viet Nam -- WARNING – ISC NOT FOR ALL COUNTRIES

Regulatory Framework

But do they do anything at HQ?

Status of implementation of Procurement Network recommendations (2011, BASELINE) AfDB FAO IFAD ILO ITU PAHO UNDP UNFPA UNHCR UNICEF UNOPS UNRWA UN Sec WFP WHO WIPO WMO 1 L0LNAAALAALL0AAAA 2 A0ANAAA00000AAAAA 3 A00N0AA AAA 4 000A A A0ANAAA0A00ANAANN 6 AAAAAAAAAAAAAAAAA 7 AAAAAAAAAAAAAAAAA 8 AAAAAAALAAAAALAAA Legend: A Action required L Limited action required / initiated 0 No action required UN Cooperation Second review LTAs 4 5 Restrictions Procurement services N No action foreseen / intended 6Integration of ‘guidelines‘ 7Communication on ‘guidelines‘ 8Table of Contents

Status of implementation of Procurement Network recommendations (Sep 2012) AfDB FAO IFAD ILO ITU PAHO UNDP UNFPA UNHCR UNICEF UNOPS UNRWA UN Sec WFP WHO WIPO WMO 1 L0LLALL0A0LL0LAAA 2 A0ALA0L000000AAAA 3 L00LA0L AAA 4 00LL LNNLALL0L00ANLANN 6 AAALALL0A0AANAAAA 7 AAALALL0 L 0AANAAAA 8 AALLNAL0LAAAALAAA Legend: A Action required L Limited action required / initiated 0 No action required UN Cooperation Second review LTAs 4 5 Restrictions Procurement services N 6Integration of ‘guidelines‘ 7Communication on ‘guidelines‘ 8Table of ContentsNo action foreseen / intended

Status of implementation of Procurement Network recommendations (Sep 2013) Legend: A Action required L Limited action required / initiated 0 No action required UN Cooperation Second review LTAs 4 5 Restrictions Procurement services N 6Integration of ‘guidelines‘ 7Communication on ‘guidelines‘ 8Table of ContentsNo action foreseen / intended AfDB FAO IFAD ILO ITU PAHO UNDP UNFPA UNHCR UNICEF UNOPS UNRWA UN Sec WFP WHO WIPO WMO 100LLNLL0L0LL0LALA 2N0AL AANA 3000LN ALA 400LL N0NLNLL0000ANLALN 6NLALNLL0A0AANAANA 7N0ALNLL000AANAANA 8NALLNAL0LALAALALA

Status of implementation of Procurement Network Recommendations (January, 2014) Legend: A Action required L Limited action required / initiated 0 No action required UN Cooperation Second review LTAs 4 5 Restrictions Procurement services N 6Integration of ‘guidelines‘ 7Communication on ‘guidelines‘ 8Table of ContentsNo action foreseen / intended AfDB FAO IFAD ILO ITU PAHO UNAIDS UNDP UNESCO UNFPA UNHCR UNICEF UNOPS UNRWA UN Sec UNWomen WFP WHO WIPO WMO 100LLNLLL00L00L00LALA 2N0LL00N AANA 3000LN0L ALA 400LL00L N0LLNLNLN0000ANLLALN 6N0LLN0LL00A0LAN0AANA 7N0LLN0LL00000AN0AANA 8NLLLN0LLL0LA0AA0LALA Newly joined agencies

Status of implementation of Procurement Network recommendations (September, 2014) Newly joined agencies A Action required 1. UN Cooperation5. Procurement Services9. Common Glossary of Terms L Limited action required/Action initiated 2. Waive Second Review6. Integration of "guidelines" 0 No action required 3. Sharing LTAs7. Communication on "guidelines" N No action foreseen/intended 4. No Restrictions8. Table of Contents AfDB FAO IFAD ILO ITU PAHO UNAIDS UNDP UNESCO UNFPA UNHCR UNICEF UNOPS UNRWA UN Sec UNWomen WFP WHO WIPO WMO UNIDO 100L0NLL000L00L00LLLA0 2L0L000N ALLA N0L LLA0 400L000L N0L0NLN0N0000LN0L0LN0 6N0L0N0L000A00LNLAL0AL 7N0L0N0LL00000LNLAL0AL 8NLL0N0L0L0LL0LA0LLLAA 9 LL 0 A LLLL0L L0 0 A