1. CARE Honduras CO Summary Report December 2006
Jennie Perzon
Jennifer Jaramillo

2. Outline Background Initial Findings Honduras Current Situation
ADP Project Objectives
ADP Deliverables Approach
Country Office Approach
Assumptions
Initial Findings Honduras
Journey
Current State – External Environment
Current State – Financial Overview
Current State – Pressures
Key Success Factors
Lessons Learned
Current Situation
Recommended Activities for Key Challenges
Support Activities by ADP team
Financial Analysis
Transition Planning
Change Management
Outcomes
Contact information
© 2006 Accenture. All rights reserved.

3. Project Objectives
The ADP project objectives are to collaboratively address short-term and long-term CARE goals for handling organizational impact as a result of reduced resources.
Provide support to the four selected COs in addressing the impact of reduced resources, particularly FFP resources
Document and package approaches, tools, and lessons learned for a globally relevant methodology that other CARE COs can use in the future
Guiding Principles
Balance CO’s immediate needs with globally relevant resources and priorities
CARE and ADP collaboratively team together to achieve project objectives
Align project with ongoing initiatives including the CARE USA Strategic Plan, CO Entry/Exit Criteria, and CO Business Models
Engage key stakeholders for consultation
Share knowledge and mutual learning across the organization
Facilitate re-use of approaches, processes, and tools
© 2006 Accenture. All rights reserved.

4. ADP Project - Deliverables Approach
Key findings
CO Summary
Interim Recommendations and Activities
Global Report
Context (Industry and CARE Strategy)
Reference Documentation
Project Overview and Approach
Guiding Principles
Assumptions
CO Summary x 4
Key Findings
Lessons Learned
Key Success Factors
Conclusions & Recommendations
Key Deliverables
Support Materials (Templates, Tools and Checklists)
Final Workshop Presentation
Angola
Complete
Key Findings
CO Summary
Interim Recommendations and Activities
Tajikistan
Complete
Key Findings
CO Summary
Interim Recommendations and Activities
Bolivia
Complete
Honduras
Key Findings
CO Summary
Interim Recommendations and Activities
© 2006 Accenture. All rights reserved.

5. Country Office Approach
Develop an understanding of current operations
By using a top-down approach conduct meetings / workshops and Interviews with key people in CO
Review of relevant documentation (strategy, process, policy etc.)
Sub-office and field visits
Develop an understanding of the environment in which the CO operates
Social, political, economical situation and trends
Donor and NGO environment and trends
Conduct analysis to identify CO’s key challenges and goals
Impact of removal of resources
Focus on Operations (Admin, Finance and HR)
Alignment with findings from ATL HQ meetings
Validate and prioritize challenges
Meetings, workshops and document review with key stakeholders
Short term vs. long term priorities
Collaboratively develop solutions and recommended activities
Work with relevant people in CO to develop and implement (tools & templates)
Focus on change management (org structure, R&R, Communication, training etc.)
Facilitate knowledge sharing
Communicate lessons learned
Share Key Success factors
Document findings
CO Summary
Input to global report
Validate with CO SMT, RMU, ATL HQ
Wk.1-2
Wk.3-4
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6. Assumptions
The ADP project is not involved in the definition of the long-term direction of CARE Honduras and the Central American region.
The main focus of the tools and templates that the ADP project develops during this CO visit are focused on short term transition activities for Honduras. However, it is the intent that these tools and templates can be re-used for any future change initiatives in any of the impacted countries, as defined in the regionalisation plan.
© 2006 Accenture. All rights reserved.

7. Increase program impact
Journey
Increase program impact
Transform
Improve and strengthen
CARE Honduras vision
Stabilize
Maintain and Repeat
Innovative programs with high impact
Focus on continuous improvement
Proactive, learning organization
Continue towards CARE’s mission and vision
Honduras CO is here
Restructure
Build the foundation
Increased skills and capacity
Create standard processes
Refine operational structure
(iterative process)
Analyze
Determine the change
Strategic Planning
Identify vision
Flexible and agile organisation
Regional Mgmt and SMT lead transition process
Transparent process with staff
Consistent Communication
Financial Analysis
Determine impact on Program Support Structures
Align analysis of Title II funding removal with regionalisation initiatives
CARE’s presence and operations (Strategic Plan)
Trend towards development programs
Removal of large infrastructure / service delivery funding
© 2006 Accenture. All rights reserved.
Timeline

8. Current State – External Environment
Economic
Unemployment is high
Tax and legal implications for working cross-country
Tariff barrier implications
Improved infrastructure and communications within the region
External competition from big box companies expected
Depreciation of currency
Environment
Disaster prone country (ie. Hurricanes, earthquakes, etc)
Political
Cost of Living increases determined by government
CAFTA agreement signed by 4 CA countries. Activities began in April 06.
Drastic changes when government changes hands
Unstable government (corruption, resignations, etc)
Social
Disparity gap between rich and poor continues to grow
Strong human capital
Out migration of human capital
Corporate Social Responsibility (CSR) being promoted
Security issues (unsafe environment)
Engagement in civil society
Honduras
Donors
Central America is not a priority to donors
Decrease in revenue from donors
Method of channeling money to the region has changed (through governments and local NGOs)
Starting to access private sector as a donor source
NGO/PVO
Other alliance PVOs still monetize
Other alliance PVOs also have planned Title II funding until 2009
CARE offers a competitive benefits compared to other NGOs
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9. Current State – Financial Overview
FY07
FY08
Committed Funding
$ 5,362,081
$ 2,523,452
Committed and Likely Funding
$ 6,028,121
$ 3,141,873
Committed, Likely, and Not Committed Funding
$ 6,644,396
$ 3,758,150
SPC levels if remained constant
$ 742,780
SPC % of Committed
14%
29%
Title II Funding
Title II Funding currently makes up almost 30% of the CO portfolio
Ends in Sept 07 (Q1 FY08)
Forecast for Major Transition Points
End of FY07
© 2006 Accenture. All rights reserved.

10. Current State – Pressures
The people in the CO are currently working under the influence of a series of pressures. Staff perception of change is key to the success of change initiatives. Addressing these as part of the transition activities will assist in achieving a smooth transition to a regional structure after the removal of Title II funding. **Input from change management survey (almost 30 managers) in Honduras and from interviews with over 10 management level staff
Sources of Current Pressure
Description of Impact
Regionalization
Undefined timeline and milestones for the overall process
Timeline and activities that do exist are not communicated well
Unclear transitional leadership
Unclear understanding of regional roles (interaction and handoffs)
Perception that communicated benefits of regionalization are not being realized (ie. cost savings, attracting donors, etc)
Perception that regional structure removes financial support from the COs
Perception that regional structure delays operative process in the CO
Causes staff to question how and where they fit in the organization’s future
Increases day to day workload on staff
Instills fear about future job security, some people leaving organisation
Dependent on the rest of the region for activities; Long decision making process
Removal of Title II funding
Generates anxiety about the future and image of CARE. Historically, Title II funding had been as high as 75% of the CO budget.
Anxiety over poverty reduction for beneficiaries in areas where CARE will no longer be working.
Unclear how costs will be covered after the funding is removed
Large concurrent initiatives
(Regionalization, Title II, new strategy, etc)
Many leads for many efforts; confusion around who has the answers
Perception of unreachable leadership
Decision makers and decision making process is not clear
Priorities are not clear
Requires proactive dependency management to ensure ongoing integration
Dilutes the perceived importance of change initiatives
Budget Constraints
Reduced satisfaction with employee benefits because of long wait for a minimal salary increase and the removal of employee bonus
Decreases staff morale and resilience
Reduces career development opportunities because of lack of funding for training
Generates anxiety about the CO’s financial situation
© 2006 Accenture. All rights reserved.

11. Key Success Factors
CARE Honduras has started some aspects of the transition process. Below are a number of positive actions taken which will also form key success factors for future activities.
Responsible planning for Title II phase out June 07 (program focus)
Sustainability model built in
Exit strategy developed early (with involvement from SO’s)
Success of programming will aid in obtaining future funding
Change Management Workshop
Identification of key focus areas, strengths and weaknesses
Honduras format to be used in rest of region
Transition in 2005 (Title II funding reduction) was responsibly conducted
Workshops for staff (both staying and leaving)
Staff viewed experience as ‘special’
Engagement of key back office staff in regionalisation process
HR, Finance, Admin
Positive working Relationships within CO
Program Support (Admin, HR, Fin, IT) seen as one cohesive unit (engaged in proposals together)
Program Support maintains good relationship with National Program Director (reporting line is to Regional Leads)
Program has developed learning groups (ex. Education)
Team building Events
Good relationship and presence with other PVO’s and NGO’s and donors
Participation in Alianza
Active member of International Cooperation Agency (ACI)
Alliance for Food For Peace
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12. Lessons Learned
CARE Honduras has started some aspects of the transition process. Below are a number of lessons learned from the process to date in addition to some recommendations on future focus areas.
Ensure thorough Planning for Transition
Alignment of Regional and CO specific activities
Assignment of key responsibilities
Alignment of communication with transition activities
Allocation of adequate resources and capacity for expectations
Ensure Broad Financial Analysis
Development of future scenarios (worst case, likely case, best case)
Ensure realistic and accurate planning and evaluation of pipeline
Understanding of impact to Back office Structure (Program Support)
Identification of priority SPC cost saving areas
Balance Financial viability vs. Quality of program (services)
Balance impact on quality of service to program area
Conduct thorough volume needs analysis
Monitoring and evaluation throughout the process
Communicate (Consistent, Clear and Honest Communication)
Develop Communication plan and assign responsibilities
Use various communication methods
Holistic communications to include all the benefits to regionalization (ie. Beyond ‘cost savings’)
Salary situation
Maintain motivation of team
Reduction in team motivation due to perceptions/concerns of job insecurity among staff
Ensure work/life balance throughout the process
Develop and communicate transparent process for re-structuring
© 2006 Accenture. All rights reserved.

13. CO Transitions Framework – Key Focus Areas for Honduras
Strategy & Vision
Governance
Programs
CI strategy impact on identifying future state
CARE USA strategy
RMU and CO strategy
CARE Leadership from RMU and Atlanta
Any governance processes or bodies to oversee CO Transition
Donor and program impact on operations
Program dependency on operations (requirements)
Impact of operational change
CONTEXT
Country Operations
Finance
Processes
Policies and procedures
Workload
Organization Structure
Roles and responsibilities
Reporting lines
Job descriptions
Staff Development
Skill analysis
Capacity development
Change Management
Communications
Leadership
Retention and motivation
Funding pipeline
SPC
Scenario analysis
Talent Management
Knowledge Sharing
Monitoring & Evaluation
SUPPORTING
ACTIVITIES
Talent management
Succession planning
Core competency development
Identify key success factors and lessons learned
Share transition process with other CARE COs
Share within CO / RMU
Measure success and impact of transition
Measure success of ongoing operations
Integrate metrics into CARE’s broader M&E and reporting mechanisms
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14. Current Situation – Summary
Challenges
Goals and Objectives
Coordinating regionalization efforts with transition
Managing dependencies on other COs in the Central America Region
Maintaining Program Support quality during transition (re-structure) activities
Unclear how to implement changes
No specific timeframe for transition and regionalization efforts
Understanding of Transition Planning concept / activities within Regional and Honduras Mgmt Team
Clear and efficient processes for transition (re-structure)
High quality program support services
Clear ownership and responsibilities
Country Operations
Title II Funding will end in Honduras and Guatemala
Unclear coverage of current SPC cost structure with future funding pipeline
Dependencies on regional SPC coverage from other COs in the region
High level financial analysis of future financial situation
Graphical presentation of various scenarios
Understanding of implications on SPC (Cost structure, Org Structure, timing)
Financial Analysis
Structure of strategic support services not defined (Regional and CO level)
Current standardization process underway
Need skills analysis (current v. future)
Unclear roles and responsibilities
Volume/Needs analysis has not been determined
Clear roles and responsibilities
Ownership and accountability for functions and processes
Flexibility in staffing
Organizational Structure
Lack of communication to staff
Fear of staff loss before scheduled end dates
Concern around lack of motivation
Work/life balance
Retention of best people
Motivated staff and increased team spirit
Integration of further communication into existing plans
Increased staff retention
Transparent organisation
Change Management
© 2006 Accenture. All rights reserved.

15. Current Situation – Country Operations
Challenges
Recommended Activities
Benefits
Coordinating regionalization efforts with transition (ie. SCALA online, etc)
Managing dependencies on other COs in the Central America Region
Maintaining Program Support quality during transition (re-structure) activities
Unclear how to implement changes
Get out of ‘project mode’
No specific timeframe for transition and regionalization efforts
Schedule and conduct a Transition Planning workshop with key stakeholders
Identify specific activities for the CARE CO
Identify timeframe for each activity
Determine resources needed for activities
Determine owner of activities
Identify risks if activities are not completed
Develop monitoring and evaluation criteria
Ensure regionalization and Title II activities are aligned and coordinated
Systematic approach to transition
Incorporate lessons learned from other transitions (Angola, Peru, Tajikistan, Bolivia, etc)
All key stakeholders have input (National Office, Sub Office, Program and Program Support)
Tool to prioritize activities and mitigate risks
Minimize timeframe for transition activities
Limit impact to programs; Work in partnership with program support
Clear roles and responsibilities for transition process
Key Focus Areas
Planning
Engaging key people
Timing
Tools & Resources
CARE contacts
© 2006 Accenture. All rights reserved.

16. Current Situation – Financial Analysis
Challenges
Recommended Activities
Benefits
Title II Funding will end in Honduras and Guatemala
Unclear coverage of current SPC cost structure with future funding pipeline
Dependencies on SPC coverage from other COs in the region
Unknown timeframe for transition
Conduct detailed financial analysis
Breakdown financial activity by quarter (Differ between CARE and partner income)
Determine amount of SPC cost adjustment
Determine sources of SPC including % of total
Develop potential budget scenarios (ie. Best case, likely case, worst case)
Understand the amount and timing of cost adjustment for SPC
Ensure broad financial analysis by assessing all options
Key Focus Areas
SPC
Tools & Resources
Financial Analysis report from Angola, Peru, Tajikistan, Niger
© 2006 Accenture. All rights reserved.

17. Current Situation – Change Management
Challenges
Recommended Activities
Benefits
Lack of understanding of Regionalisation timeline, impact and implications for CARE Honduras
Limited of understanding about Title II program ending impacts and implications for CARE Honduras
Retention is a concern and some people leaving organisation
Organisation and staff unsettled due to rumours
Lack of motivation of team to perform in new roles (likely to happen in new structure – some work/life balance concerns in current state)
Increase communication (utilizing existing forums)
Leadership teams to lead and inspire a positive culture
Ensure transparency across all processes (especially for re-structuring process, selection criteria and timing)
Conduct a Stakeholder Analysis to determine current awareness levels (including external audiences)
Develop Communication Plan
Develop Communication Calendar (align with transition plan)
Assign Responsibilities
Align and incorporate into existing communication methods
Motivated staff
Increased Staff retention
Maintains respect for people and individuals
Transparent organisation
Effective organisational transition
Reduced confusion and disappointment
Tools & Resources
Survey results from Honduras
Existing Comms Plan (Title II exit strategy)
CARE Communication Guides / standards
Key Focus Areas
Regionalisation
Title II Program ending
Potential re-structure
Dependencies
Regionalization plan and milestones
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18. Support Activities – Financial Analysis
Objective
Understand future financial situation for CARE Honduras
Understand implications to SPC
Outcome
Developed macro financial analysis on portfolio, SPC recovery rates, and cost structures
Developed understanding of SPC implications based on future funding and recovery rates
Knowledge share on financial analysis components
Process and tool for use in future financial analysis
Direct input for timeframe required for transition
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19. Financial Analysis
DRAFT
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20. Support Activities – Change Management
Objective:
To collaboratively workshop training on change management for the transition
Engage key staff in order to transfer “know-how” on the communications management
Incorporate lessons learned from other re-structures and transitions (Angola, Tajikistan, Bolivia, etc)
Outcome
Conducted high level Change Management and Communications Overview and Discussion
“Know-how” of key transition communication concepts
User-friendly tools and templates
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21. Communication Plan
DRAFT
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22. Outcomes Global Benefits
Continued to develop additional tools and templates for inclusion in the global report
Insight and documentation of Honduras’s Key Success Factors and Lessons Learned
Country Office Benefits
Insight to the CO team in how to approach key challenges ahead
Targeted workshops and meetings for key priorities focusing on both skill building and deliverables
Financial Analysis
Transition Planning
Change Management (incl. Communications)
Guidelines, templates and other support materials to be used in developing and implementing solutions
© 2006 Accenture. All rights reserved.

23. Thank You
Thank you for graciously hosting us. Please do not hesitate to contact us with questions or comments at anytime.
We look forward to your continued progress.
Jennie Perzon
Skype: jennie.perzon
Mobile: (Sweden)
Jennifer Jaramillo
Skype: jennifer.jaramillo
Mobile: (US)    
© 2006 Accenture. All rights reserved.