1. Business Operations Strategy INTRODUCTION & EXPERIENCE SHARING OF RWA BOS – ETHIOPIA NOV 2014

2. THE QCPR:  QCPR is the primary instrument of the General Assembly to oversee the way the UN development system operates to support member states in their development efforts. Applies to all UN organizations.  The last QCPR was conducted in 2012, and the General Assembly has mandated the UN system with implementing its recommendations by 2016.  Calls for major changes in the UN development system to increase coherence and efficiency

3. KEY FINDINGS : The need to harmonize UN’s business operations( Operating as One, reduce TC, increase efficiency and effectiveness etc..) The need to establish strategic linkages with programme(early involvement in UNDAF process and design a plan that is aligned to the UNDAF Cycle for a more strategic support ) The need to improve the RBM of UN operations focusing on quality, effectiveness and cost-efficiency with evidence All those points recall the key points highlighted by the HLPR that recommended the DaO in 2006.

4. Some Key words of the HLP report 4 KeywordsOccurrences (in)effective(ly)(ness)99 (in)coheren(ce)(t)(tly)92 Coordinat(ed)(ion)60 Perform(ant)(ance)57 Result(s)51 Consult(ative)(ation)44 Improve(ment)41 Process(es)41 Consolidat(e)(ion)34 (in)efficien(t)(cy)(tly)29 Duplicat(e)(ing)(ion)20 Complement(ary)15 (in)consistenc(e)(y)13 Overlap(ing)13

5. THE UN

7. 1. Road Map 7 Integrated Approach – Programme & BO

8. What is the Business Operations Strategy (BoS) The Business Operations Strategy (BOS) is the results-based framework that: 1.Provides strategic, medium term focus for Operations 2.Covers Joint Business Operations initiatives 3.Derives partially from UNDAP and run parallel, in the same cycle 4.Enables Monitoring, Evaluation and Reporting on key outcomes such as reductions in transaction costs 5.Provides the basis for Budgetary Framework and Resource Mobilization

9. Why do a Business Operations Strategy  To enable focus on achieving efficiency gains from DaO/Self Starters  To strengthen linkages between Programmes and Operations/Support Services. Help identify needs at an early stage derived directly from UNDAF  To enhance One UN efficiency. Eliminate unnecessary redundancy, duplication of work processes( Procurement, Finance, HR, Admin etc…)  To improve quality of operations support services;

10. Characteristics  Flexibility- based on in country capacity and need, the UNCT/OMT can select multiple or just one outcome area (ex. Procurement);  Time Requirement: As per UNDG, 40-50 hours (4-5 days) over a 5 year cycle to develop the draft BoS, including analysis; in reality we spent about 8 months  Time requirement may be higher or lower depending on the scope of the BoS and available capacities in the Country.

11. Examples of Joint Business Operations

12. How to design a BoS

13. BoS, Programme and Joint Funding relations Business Operations Strategy (BOS) UNDAF Joint Funding Arrangements

14. Draft SOPs for DaO – standard organigramme of the pillars One Budgetary Framework Medium Term Common Budgetary Framework Joint Resource Mobilization Strategy One Fund and funding allocation mechanism One Programme UNDAP Joint results groups’ annual or bi-work plan(s) One UN country results reports Operating as One Business Operations Strategy Finance PROCU REMENT One UN House HR ICT Communicating as One Joint Comm unicatio ns Strateg y Common messaging and advocacy Commo n tools DRG OMT CCG Resident Coordinator and UN country team One Leader* Government of programme country Government and UN Joint Steering Committee *

15. New UNDG SOP on DaO Three changes are included in the new UNDG SOP on DaO that relates to BoS. They are: 1.OMT is elevated to Results Group status. 2.OMT is to be chaired by an UNCT member 3.UNCT is to include OMT Outcome in Country Results Report (this should be the BoS Outcome) –To harmonize UNCT reporting, the BoS Outcomes and Outputs have in Rwanda been incorporated into DI Monitor, also used for UNDAP

16. RWANDA BoS APPROACH  Feb 2010- EMERGENCY OMT PLAN DESIGNED IN 2010 UP TO 2012 ( END OF UNDAF CYCLE) YIELD $198,000 SAVINGS (EFFICIENCY & EFFECTIVENESS)  Mar 2013 - OMT BoS STRATEGIC RETREAT ORGANIZED WITH THE M&E AND PPOC TEAM ( PROGRAM PLANNING AND OVERSIGHT COMMITTEE)  July 2013 BoS FINALIZED AND INCORPORATED INTO THE UNDAP( $15 Million Saving target).

17. CURRENT STATUS  SO FAR 14 COUNTRY OFFICES ARE PILOT, 24 SELF STARTERS  RWANDA WAS THE ONLY CO THAT DID A FULLY FLEDGE BOS( 5 PILLARS)  LIKE ETHIOPIA & TANZANIA, RW BOS HAS BEEN QUALIFIED AS “BEST PRACTICE” BY DOCO AND THE TOOLS DEVELOPED IN RWANDA ARE BEING USED BY OTHER CO’S.  RWANDA IS SUPPORTING SOUTH AFRICA, BURUNDI, MOZAMBIQUE, BOTSWANA, UGANDA, DRC TO BUILD THEIR BOS. THE BOS WAS INCORPORATED INTO THE UNDAP IN JULY 2013 1.IMPLEMENTATION STARTED THIS YEAR BY THE “LOW HANGING FRUITS”

18. Rwanda BoS findings 1.Substantial reductions in transaction costs can be achieved through the Rwanda BoS – current estimate is about $15 Million 2.An accountability framework is needed to ensure active participation in One UN operational activities 3.UNCT commitment needed. OMT needs short and medium term support to implement BoS

19. SAVINGS PROTENTIAL  By 2018, the BoS will have resulted in efficiency gains and cost reductions worth $14,800,000  ICT (Common Internet Sces) : $1,5 Millions  Procurement: $1,6 Millions  Finance ( US$ exchange rate) $10, Millions  HR ( A part from JRF, there is no cash savings per say, but efficiency gains, improved quality of our staff, etc..)  One Un House $1,7 Millions  TOTAL ESTIMATED SAVING:$ 14,8 Millions

22. BoS Outcomes – Finance WG  Finance Outcome. By 2018, One UN financial operations in Rwanda has benefited from Best Practices and harmonized approaches resulting in USD 10 million savings.  ITC Outcome. By 2018, ITC operational costs for the One UN in Rwanda have been reduced by $1,5 million through harmonisation and sharing of systems and contracts.  Procurement Outcome. Improved Procurement Services achieves 5% LTA discounts on goods and services totaling US$1.4 million and creates efficiency gain of $81,500 annually on transactional costs by 2018.  HR Outcome. Improved Harmonized One UN human resource management by 2018.  One House Outcome. By 2018, all agencies are located in One House enabling centralised facility management, fleet management, warehouse management and compound security. This results in aggregated saving of $1.7 millions

23. DOL FOR COMMON SERVICES IMPLEMENTATION

25. CHALLENGES  Poor meeting participation from OMT/WG members  Lack of motivation  Staff time investment in designing BoS( fully fledge 5 pillars) was quite important  Only few staff have been leading the process  Capacity issues  Poor accountability framework ( JD’s and Result scorecard not updated) to drive results.

26. ACCOUNTABILITY FRAMEWORK  NEED CLEAR COMMITMENT FROM UNCT, INDIVIDUAL AGENCIES AND OMT/WG MEMBERS: UNCT: - Resource mobilization for the BoS. - Approve the BoS HR need request ( Operations Specialist in the RCO who serves as the secretary to OMT and represent the RCO towards delivering the BoS Outcome and Outputs.) AGENCIES : -Nominate in writing your staff to the OMT/WG’s, Update their JD’s, set one key result in their performance appraisal

27. ACCOUNTABILITY FRAMEWORK  OMT: The OMT is responsible for all Working Groups (WGs) and implementation of the BoS.,  Make sure each WG is chaired by an OMT Member.  The Chairs of the OMT WGs are responsible for updating the DI monitoring tool in preparation for this quarterly monitoring  Organize BoS capacity building trainings  Conduct quarterly monitoring of BoS progress and report to UNCT  STAFF: Fully participate to the various OMT/WG’s meetings and other assignments.

28. MOTIVATION MEASURES ( AWARD AND RECOGNITION)  IMPLEMENT INCENTIVES : AWARD PROGRAM ESTABLISHED TO REWARD GROUP AND INDIVIDUAL PERFORMANCES IN THOSE CATEGORIES: Client service Innovation Leadership Team winning spirit Exceptional achievement

29. AGENCIES WITH OMT ACCOUNTABILITY FRAMEWORK

30. MODEL OF MEETING PARTICIPATION DASHBOARD

31. QUESTIONS FOR REFLECTION  IF WE SUCCEED IN THE AREA OF EFFICIENCY GAINS AND IF WE REALIZE THROUGH LTA’S SOME REDUCTIONS IN OUR SERVICE COSTS, WHERE CAN WE FIND THOSE RESOURCES?  ??

32. UNITED NATIONS RWANDA p/a Office of the UN Resident Coordinator PO Box 445 - Kigali - Rwanda Tel: (+250) 590 403 Fax: (+250) 578 439 E-mail: rcoffice.rw@undp.org www.unrwanda.org