UNDG Business Operations The BOS framework

Advanced Business Operations Training

Kabul, Afghanistan November 2014.

Results Matrix

Content for the Results matrix directly drawn from the Operations Analysis;

• Baseline Assessment - existing Business Solutions (incl. Common Services to be continued;

• Needs and Requirements Analysis - new Business Solutions (incl. Common Services) and KPI’s;

• Cost Benefit Analysis - prioritization of proposed business solutions.

Scope

Results Matrix could have max 6-7 “Pillars”, for each thematic area in Business Operations.

• Pillar 1: Common Procurement

• Pillar 2: Common Human Resources

• Pillar 3: Common ICT

• Pillar 4: Common Logistics and Transport

• Pillar 5: Common Administration

• Pillar 6: Common Finance

• Pillar 7: Common Security

Based on Human and

Fin Resources

Its ok to do just 1-2

outcomes !

Outcomes and Outputs for the BoS

Outcome statement

• Each pillar - one high level outcome statement

• Outcome statement- reflects the intended result of that operational support services over the five year period.

Output statement

• Each outcome statement is sub-divided (“broken down”) into max 3-5 sub-components called “Outputs”

• Outputs together are needed to make that outcome come true .

Template Log Frame

Template Log Frame

Results Narrative

The narrative describes shortly in words the context of the issue the harmonization is to address and the intent of the outcome, and how the outcome results in solutions addressing the issue. Recommended length of the narrative is 0,5-1 page per outcome.

The Baseline Assessment, Needs Analysis and Requirements Analysis and Cost Benefit Analysis in chapter 2 provide the focus for the narrative, describing the intended result of the proposed business solution.

The BoS document

1. Introduction – 1 page

2. Signatory page – 1 page

3. Operational analysis results

• Baseline Analysis results (existing services) - 2-3 pages

• Needs Analysis (new services) - 2-3 pages

• Cost Benefit Analysis- 1 page

• BoS- Scope of services (prioritized list of services)- 1 page

4. Results framework- narrative outcomes & outputs – 4-5 pages

5. Budget BoS (outcome & output level)- 0,5 page

6. Governance – 1 page

7. Monitoring, Evaluation and Reporting – 0,5 page

Appendix A: Results Framework tables

Total B

oS =

15-20 pages

max

Business Operations Strategy (BOS): Monitoring, Evaluation, Reporting

Rationale for BO M&E Framework• Accountability – request of member states (QCPR)

– …to further harmonize business operations and pursue higher quality,

more effective, and cost-efficient support services in all programme

countries, and to report on concrete achievements by end 2014

• Respond to country support needs– Standardized Key Performance Indicators (KPIs) to measure progress in

business operations (BO) harmonization

– Nearly 2 in 3 BOS country pilots had none [BOS Survey 2013]

– Support regular reporting of progress against baseline, aligned with

UNDAF

• Ensure stakeholder engagement– Buy-in, ownership of UNDG agencies, UNCTs

Why is this important?

• Member states are asking for efficiency• Every donor raises it at every meeting• Not only our word for it– but figures• Appears to not only be about savings but the

ability to tell constituents that the UN is efficient• Funding is getting linked to it. So, key for all

organizations• Solid programmes need good back office

operations

Purpose

• Enable UNCTs, OMTs to – Plan, monitor, report, and evaluate progress of BO

harmonization

– Use best practice key performance indicators (KPIs)

– Demonstrate the value of business operations harmonization

for the delivery of development results

• Enable UN System (UNDG) to– Report at the global level about the quality, effectiveness, and

efficiency of common business operations.

– In line with indicator frameworks for QCPR and SOPs for

Delivering as One.

Why important now?

• UNCTs struggling to demonstrate measurable results in highly

competitive market

• Made complex in multi-stakeholder programme and operations

situations and increasing focus on policy and advocacy changes

• UN has long claimed that:

• Risks – Credibility, Country Partner expectations, Donor fatigue

• Time to show

Harmonized business solutions will

Secure sizeable, sustainable savings and efficiency gains, will

Contribute to development results

Effectiveness:

The capability of producing a desired result

Efficiency:

The extent to which time, effort, and funds are well-used to produce a desired result. It is measured by the ratio of output to input.

Quality:

An assessment about the extent to which a result meets established standards.

Source: Common UN Procurement at the Country Level, UNDG and HLCM.

The Framework: Key principle

• UNCTs, OMTs have flexibility to choose which of 7 business

operations areas to work on– Based on operations analysis and country factors

• Once agreed, for each business operations area– Minimum set of required results and KPIs, driven by QCPR strategic

goals

– Broader set of optional results and indicators to tailor country

frameworks to country situations

• Standardization enables aggregation of quantitative results from

country to global levels Quality assurance and Accountability

KPIs..?• Performance Indicator - The quantitative or

qualitative basis by which results are assessed

• Key Performance Indicator - A performance

indicator that is critical for monitoring the

performance of a strategic objective or outcome

important to the growth of the organization – Normally 4 to 10 KPIs

– Driven by overall strategic goals Provide visibility into the

performance of individuals, teams, departments and

organizations

– Enable decision-makers to take action

Management of BOH

Output Mgmt2 The UNCT and OMT apply good practices for effective leadership and mgmt of harmonizedBO

p7, p30 

2.a No. Good BO practices applied at country level out of 10 [scored]  

Consolidates 10 good practices:» Leadership» Working arrangements» Incentives» Analysis and Evidence  

Good Management Practices:Self-assessed by OMT, score out of 10

1. OMT chaired by a Head of Agency

2. An OMT capacity assessment conducted and skills development plan prepared

3. A baseline analysis of spending on major categories of goods and services

4. A cost-benefit analysis for proposed common business solutions conducted

5. Priorities for common business operations agreed by the UNCT

6. The OMT has approved work plan with links to UNDAF results

7. OMT task teams with lead agencies and responsible for specific OMT results

8. OMT matters and regular progress reports a standing item for UNCT meetings

9. Summary of annual BO progress, KPI included in RCAR

10. PAS process for OMT includes responsibilities for BOH

Effective Procurement

Proc1. By [yr] collaborative procurement services achieve est. cost-savings of $x USD

p8-9, p32

1.a Estimated savings [USD] through collaborative procurement

 

Measures savings from discounts from collaborative procurement by UN agencies. 

Procurement savings calculation (Annex) Calculation and Target

For each good or service covered by collaborative procurement 

Savings = (A – A+1) x V

[all figures in USD]

 Where:- A is the unit cost of the good or service

in the baseline year in USD- A+1 is the unit cost of the good or

service under the LTA in USD- V is the volume of the good or service

procured in the year.

 

Calculated annually, for each year of LTA

Savings for programme cycle are sum of savings from each year under LTA

Target determined by OMT, based on procurement estimates or from BOS CBA

 Data Source

- Baseline of procurement volume and spending for each good and service targeted for collaborative procurement [USD]

 - Annual update of procurement volume and spending using collaborative procurement procedures [USD]

See:

(1) HLCM-UNDG, Common UN Procurement at the Country Level, 2012, 3.3.

 (2) UNDG, Guidance note on developing UN Business Operations Strategy (BOS), DRAFT, Ch2.

 (3) HLCM Procurement Network, UN Collaborative Procurement Log.

Efficient Procurement

Proc3. By [yr] collaborative procurement reduces transaction costs

p10, p33

3.a Estimated transaction costs avoided [USD] from use of collaborative procurement

 

Must have activity-based costing at of standard procurement action with and without an LTA.

Procurement Output

Proc5.Common LTAs assessed and established for agreed categories of goods and services p9, p36

5.b Value of POs raised against common LTAs and contracts [USD]

Most frequently used method to

secure cost reductions and efficiency gains

Block...

Block...

Reviews Reports

- Informal consultations between OMT and internal and external ‘customers’ to assess progress, constraints,

lessons

Step 2. OMT annual review [Nov]

OMT Annual Report- Describes actual results achieved or major activities delivered against planned OMT results and indicators- OMT uses evidence and feedback from internal and external customers to show how BOH results are contributing to expected UNDAF results

Step 3.UNCT Annual Review [Dec]

Step 4. UNDG Reviews, consultation and information sharing[Jan-Mar]

Resident Coordinator’s Annual Report (RCAR) and UNDAF Annual Results Report (as appropriate) - Summary of key results achieved in BOH (based on OMT Annual Report)- From 3 to 5 KPIs based on available data- Lessons, good practices that can be taken to scale- Major institutional challenges and bottlenecks for Operating as One- Recommendations to adjust overall BOS and/or BO priorities and

work plans

UNDG Reviews- Progress reports for Secretary General and CEB that aggregate selected BOH results and KPIs- Synthesis report of RCARs [DOCO]- Global progress review of BOH [UNDG CS Reference Grouo]- Consultation and information sharing with HLCM and UNDESA

Plans

Draft OMT work plan for following year

UNCT advice and Input

UN Business Operations Harmonization (BOH): Mechanisms and responsibilities for progress monitoring and reporting

Step 1. OMT reviews [Regular]

OMT Reviews- Notes for the record to highlight implementation progress and constraints against outputs, activities in OMT work plan - Identify key issues for attention of UNCT and Implementing Partners

UNCT briefings by OMT Chair

Final OMT work plan for following year

Step 5. Global review by GA, ECOSOC and QCPR [every 4 years]

Global Reviews- QCPR Resolutions - Reports of the Secretary General- Reports for QCPR by HLCM, DESA

UNDG-approved HQ Plans of Action to address challenges

and bottlenecks for Operating as One

QCPR Action Plans and monitoring frameworks for

simplification and harmonization of business

practices

Global [Meta]

Headquarters [Macro]

Country [Micro]

Monitoring and Reporting (1) Micro level: UNCT and OMT

Step 1. Routine monitoring and reviews against OMT work plan

Chairs of OMT Task Teams accountable to Chair OMT to implement

specific activities under OMT work plan. 

Step 2. OMT annual review and report

OMT chair accountable to RC and UNCT to implement agreed priorities

and work plan for BOH 

Step 3. UNCT Annual Review

The RC, UNCT accountable for achievement of BO results

• Define expected results and targets for Business Operations

harmonization

• Monitor and provide management feedback and guidance to OMT

• Report on KPIs in RCAR and UNDAF Annual Results Report

Ethiopia-BOS Results Frameworks

In your groups…

• Choose 2 business operations areas [procurement plus one other]

• Review the results frameworks and discuss…

1. Linkage with the business operations analysis

- How transparent, logical?

2. Quality of results and indicators - how SMART?

3. Identify up to 3 results and indicators that can be strengthened