Guidance note on developing the UN Business Operations Strategy

Transcription

1 Guidance note on developing the UN Business Operations Strategy The Business Operations Strategy (BoS) aims to enhance the cost effectiveness and quality of operations back office processes such as procurement, ICT, HR, Logistics and Admin and Finance in support of the UNDAF. It is a voluntary framework focusing on Joint Business Operations (Incl. Common Services) allowing UN Country Teams to take a strategic, results oriented approach to planning, management and implementation of Harmonized Business Operations at the country level. The BoS is largely based on existing guidance, simplified and integrated in a single, coherent framework. This is supplemented with a limited number of instruments facilitating quantified cost benefit analysis, reinforced results-based planning and monitoring and evaluation of Common Business Operations. The BoS model allows for flexibility to scope the BoS to country needs and capacity, allowing for a localized approach that matches specific country capacity, needs and requirements. The BoS also includes a component aimed to reinforce the links between UN programmes and operational support needs. The primary audiences for this guidance note are UN Country teams, Operations Management Teams, Resident Coordinator s Offices as well as Business Operations practitioners. 1 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

2 Table of Contents 1. EXECUTIVE SUMMARY BACKGROUND CONTEXT THE BUSINESS OPERATIONS STRATEGY Principles of the Business Operations Strategy Why develop the Business Operations Strategy? What is the Business Operations Strategy? DESIGNING THE BUSINESS OPERATIONS STRATEGY Chapter 1: Introduction Background Principles of implementation Chapter 2: Business Operations Operations Analysis Baseline Analysis Needs Analysis Requirement Analysis Cost Benefit Analysis (CBA) Simplified Transaction Cost Analysis - Prioritization of Business Solutions Chapter 3: Strategic Planning: Results Framework and Results Narrative Results Matrix Business Operations (log frame) Results Narrative Business Operations Chapter 4: Monitoring, Evaluation and Reporting on Business Operations Chapter 5: Management and Accountability Business Operations Chapter 6: Budgetary Framework Business Operations Chapter 7: Operationalising the Business Operations Strategy APPENDIX A: RESULTS BASED MANAGEMENT: DEFINITION OF KEY TERMS APPENDIX B: TEMPLATES UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

3 1. Executive Summary The General Assembly and various ECOSOC resolutions 1 have consistently requested the UN System to harmonise Business Operations with the aim to reduce operational transaction cost and duplication of the operational support to programme delivery. In addition, the latest assessments executed in preparation for the QCPR and the Secretary General's Report in preparation for the QCPR, call for enhanced strategic planning and analytical processes to strengthen strategic focus and prioritization of harmonization efforts with a focus on the highest value added harmonization efforts, while improving Monitoring and Evaluation and Reporting mechanisms to demonstrate results achieved in the area of Business Operations harmonization. The UNDG strategic priorities focus on the development of operational models to facilitate the harmonisation agenda at country level. The Business Operations Strategy (BoS) is the UNDG response to the results requested by the GA. The BoS is a voluntary framework focusing on Joint Business Operations developed in close cooperation with country teams, allowing UN Country Teams to take a strategic, results oriented approach to planning, management and implementation of Harmonized Business Operations at the country level. The BoS is largely based on existing guidance 3, simplified and integrated in a single, coherent framework, supplemented with a limited number of instruments facilitating quantified cost benefit analysis and reinforced results-based planning and monitoring and evaluation of Common Business Operations. The BoS model allows for flexibility to scope the BoS to country needs and capacity, allowing for a localized approach matching specific country needs and requirements. The BoS also includes a component aimed to reinforce the links between UN programmes and operational support needs. More specifically the BoS framework includes the following components: Country level Operations Analysis including: - Baselines Assessment existing services; - Needs and Requirement Analysis deriving from programme needs (UNDAF) and non-programmatic regular operations; - Quantitative and Qualitative Cost Benefit Analysis; - Prioritization instrument based on the Cost Benefit Analysis. Results frame, including indicators, targets and baselines; Resourcing and Governance framework of Business Operations Operationalisation instruments aimed to ensure strong links between the strategy and the development and day-to-day management of Business Operations, including Common Services. Successful development and implementation of the Business Operations Strategy requires a minimum level of capacity and skills in the OMTs. Apart from technical operations skills, some degree of business analysis skills and RBM related skills are useful. In most cases, the work required is in addition to agency-specific responsibilities. Therefore, it is highly recommended for UNCTs/OMTs to consider the capacity and skills available to the OMT in terms of skills, 1 ECOSOC resolution E/2011/L.35, sections 11 and 12; ECOSOC resolution E/2011/L.35, sections 4 2 Ref DESA Business Operations Assessment (2012) and the SG Report in anticipation of the QCPR UNDG Common Services frameworks and the Process Approach Model to Business Operations 3 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

4 competencies and time before deciding to engage in the BoS development. The gains in terms of efficiency and (cost) effectiveness associated with the design of Common Operations solutions should ensure a positive rate of return on this investment in staff and financial resources. The UNDG Joint Funding and Business Operations Network, envisions the following global capacity development efforts in support of the roll-out of the BoS at the country level (subsequent to UNDG approval of the BoS framework): 1. Initial pilot support to 5 countries including technical support for BoS development; 2. Direct capacity development through (existing) training in Basic Business Operations and Advanced Business Operations courses, in cooperation with UNSSC; 3. On site and off site support mechanism through (existing) Business Operations resource pools managed through the UNDG support roster; 4. Help Desk function for Business Operations, based in DOCO (subject to availability of capacity in DOCO to manage this function) for direct questions of UNCTs/OMTs; 5. The JFBO anticipates a shared ownership of the BoS framework with the UNDG regional structures and anticipates further consultations with the HLCM and UNDG regional teams with regards to the roll-out in each respective region. 4 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

5 2. Background The TCPR 2007 and the subsequent ECOSOC resolution on Operational activities of the United Nations for international development cooperation (2011) call for identification and acceleration of the implementation of those business processes that promise the highest return from simplification and harmonization and encourages United Nations system organizations within their existing planning, budget and evaluation systems to report on their cost savings resulting from improvement of their business operations 4. Business Operations is a critical enabler for effective delivery of UN development programmes. Enhancing the link between UN programming efforts and the operational implications deriving from that programme effort enhances efficient and effective programme delivery. In addition, the ECOSOC resolution requests the UN to explore further ways to enhance cooperation, collaboration and coordination, including through the greater harmonization of strategic frameworks, instruments, modalities and partnership arrangements, emphasizing the importance of ensuring, greater consistency between the strategic frameworks developed by the United Nations agencies, funds and programmes 5. Along similar lines, the Secretary Generals 5 year Plan of Action (2012) called for a Second Generation of DaO, providing continued focus on reduction of transaction costs and increasingly efficient business operations. This Plan of Action was supplemented by the Secretary General's Report in anticipation of the QCPR , which urged for enhanced analysis and strategic planning and reporting of the Harmonization of Business Operations at the country level 6. Business Operations harmonization offers significant potential for transaction cost reductions. The results of harmonization, simplification or integration into common approaches include monetary gains such as cost reductions or non-monetary gains such as staff time cost reductions 1, enhanced reputation and quality of processes. The UNDG strategic priorities seek to operationalise these mandates by emphasizing the need for efficient business operations through simplification and harmonization where it adds value in order to provide better support to development effectiveness and impact of programmes. The UNDG Joint Funding and Business Operations Network 7 developed guidance and instruments in 2012 to operationalise the resolution with the aim to reinforce the linkages between the UN Programme (UNDAF) and UN Operations, enhance operational monitoring, evaluation and reporting efforts of said harmonization initiatives and advance the harmonization of Business Operations at the country level. 4 ECOSOC resolution E/2011/L.35, sections 11 and 12 5 ECOSOC resolution E/2011/L.35, sections 4 66 Ref DESA Business Operations Assessment (2012) and the SG Report in anticipation of the QCPR The Joint Funding and Business Operations Network (JFBO) was previously known as Country Office Business Operations Network (COBO) 5 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

6 3. Context The primary audiences for this guidance note are UN Country teams, Operations Management Teams, Resident Coordinator s Offices as well as Business operations practitioners. This Business Operations Strategy (BoS) is part of the UNDG framework for enhanced functioning of the UN System at the country level 8, guiding the harmonization effort in one its work streams "Common Services and Harmonised Business Practices". The BoS structures the development and management of business solution aiming to harmonise process and procedures at the country level (ex. HACT, harmonization of DSA rates) as well as common business solutions for operational support services (Common Services). Common Services include joint services in the areas of Procurement, ICT, HR, Logistics, Security etc. For further details regarding the framework and the supporting toolkit, kindly refer to This guidance note supports the UNCT in developing the Business Operations Strategy, which includes a medium term Operations Results Matrix and the M&E matrix reflecting the anticipated strategic outcomes of business operations at the country level for the coming UNDAF cycle. The medium term strategy is the basis for the annual work planning process undertaken by the OMT which operationalizes the strategy. The Business Operations Strategy follows the same cycle as the UNDAF. The Business Operations Strategy is a voluntary framework, meaning that the UN Country team can decide to undertake all or just some of the activities involved in this strategic planning exercise. It is however highly recommended to engage in the development of this medium term operational strategy given the potential added value it provides for reduced cost or enhanced quality and impact of UN operations, and ultimately, programme delivery at the country level. In addition, it is highly recommended to initiate the BoS process in conjunction with the development of the UN programme strategy at the country level (UNDAF). The BoS approach draws from the existing UNDG Common Services methodology (Process Approach Model- PAM), in particular PAM step 2: Operations Analysis and PAM Step 3: Strategic Planning. 8 From here onwards, this shall be referred to as the UNDG approach 6 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

7 4. The Business Operations Strategy 4.1 Principles of the Business Operations Strategy The Business Operations Strategy is based on the following principles: 1. The Business Operations Strategy is a voluntary instrument to be used at the country level by UNCTs/OMTs, to be developed in conjunction with the UNDAF; 2. The Business Operations Strategy covers Joint Business Operations initiatives only; 3. The Business Operations Strategy provides strategic, medium term focus and prioritization based on quantitative and qualitative Cost Benefit Analysis; 4. The Business Operations Strategy provides the basis for Monitoring and Reporting on progress and results of BO initiatives ; 5. The Business Operations Strategy provides the basis for Evaluation of implemented practices for further optimization if needed and for purposes of knowledge sharing; 6. The Business Operations Strategy provides the basis for Resource Mobilization (financial and human resources) in support of harmonization of Business Operations at the country level. 4.2 Why develop the Business Operations Strategy? The development of the Business Operations Strategy supports the development of harmonised Business Operations to achieve the following results: Enhanced linkages Programmes and Operations: The BoS has two components of operational support services - those deriving from UNDAF/programme and ongoing operations that do not derive directly from the programme. By analyzing the programme strategy through an operational lens and identifying the operations required to deliver the programme, the linkages between programme and operations are established. As both the UN Programme Strategy (UNDAF) and the Business Operations Strategy are on the same cycle, the development of the Business Operations Strategy enhances the linkages between the UNDAF and UN operations support to that programme strategy; Reduced Costs: The BoS provides a strategic focus on operational support services and initiatives aimed at harmonizing and/or simplifying business operations. It allows for multi-year planning of operations and facilitates strategic planning of the operational effort. The suite of operational instruments it comes with allow for enhanced identification of cost benefits of different initiatives, allowing facts based decision making and prioritization. It also facilitates monitoring and evaluation of the operational effort at the country level. It focuses on reduced lead times to execute processes through streamlining operational process, and reduced direct monetary cost for example by 7 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

8 leveraging UN System wide bargaining position when procuring goods and services. Anticipated cost reductions include: - Reduction of duplication of work processes at the agency level by providing the service through a single channel, rather than decentralized at the agency level (example ICT, Travel and building maintenance); - Reduction of transaction costs (time spent on activities) for the UN and partners, including the host government, due to harmonized operational procedures and standing agreements with vendors (e.g. VISA processes and Joint Long Term Agreements); - Enhanced leverage of UN bargaining position when procuring goods in larger quantities (ex. Office bulk goods, printing services). Enhanced Quality: By jointly procuring services in larger volumes, the UN increases it bargaining power with the service provider and enhances its ability to monitor and evaluate overall quality of service delivery of that service provider. Enhanced Operational Focus and prioritization: Instruments like Cost Benefit Analysis, Transaction Cost Analysis and Business Process Analysis provide light, easy to use tools to identify and prioritize high impact harmonization initiatives and facilitating monitoring and evaluation of harmonization initiatives against pre-established baselines. 4.3 What is the Business Operations Strategy? The Business Operations Strategy outlines the medium term strategic focus of UN Business Operations at the country level in one or more of the above mentioned categories in support of UNDAF implementation. It reflects high level outcomes of joint Business Operations 9 (not the agency level operations) that identify the intended result, and provides a breakdown of these high level results into lower level outputs. The Business Operations strategy provides the basis for annual work planning of the Operations Management Team and facilitates monitoring and evaluation, division of labor, accountabilities and resource mobilization in support of more strategic, cost effective business operations. The Business Operations Strategy has three components: A. Business Operations Results Framework, reflecting medium term outcomes and outputs in line with the UNDAF cycle; B. Monitoring and Evaluation Framework, reflecting outcome and output level indicators allowing for progress monitoring and evaluation of impact of business operations; C. Management Arrangements of UN Business Operations outlining the way the UN organizes itself in order to deliver cost effective operational support that meets UN Programme requirements; 9 Joint Business operations are Business Operations shared by one or more UN agencies. 8 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

9 For the purpose of the Business Operations Strategy, Business Operations are defined as jointly executed back-office support processes that support UN programme implementation at the country level 10. Examples of Business Operations include 11 : Examples of Common Services and Harmonized Business Practices Common ICT Services ICT Support Desk, Common VSAT, Joint VoIP infrastructure Radio and Telecommunications Common Domain & Website Common Procurement Services Office Supplies Fleet & Fuel Management (Light Vehicle) LTA s for workshop and conference facilities, standard business supplies etc Joint Review Board Procurement Common Human Resources Services Common Administration Services Common Finance Services Common Logistics and Transport Services Common Premises Common Security Services Common Protocol Services HACT Ref guidelines on 'Common UN Procurement at the Country Level' Staff Counseling and Training DSA harmonization for national staff Harmonized post descriptions Interagency recruitment Common UN Consultant Rosters, Common Learning Systems Mail services Translation services Common field housing and hotel/hostel arrangements Protocol services, Joint reception/registry, Pouch & express mail services, Maintenance Banking Travel Services Domestic Freight forwarding and Transit Storage Warehousing and distribution Air charter services Common Light Vehicle Fleet & Fleet Management Agency co-location (UN Common Premises/UN House) Common joint/field and provincial offices Building maintenance LTA s for security services Joint protocol staff for UN agencies 10 The Business Operations strategy does not include individual agencies business operations, it only reflects those business operations processes that are jointly executed. 11 Note that the exact types of Business Operations the UN Country Team prefers to engage in can and should be adjusted in accordance with country level requirements. 9 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

10 Annual Work Planning BoS Feedback Loop 5. Designing the Business Operations Strategy The Business Operations Strategy resembles the UNDAF in more than one way: it follows a similar - if lighter- process of analysis, results framework and M&E framework reflecting the Key Performance Indicators against which Business Operations are measured. The BOS also covers the same period and part of the content of the Business Operations Strategy derived directly from the UNDAF. The following graph provides an overview of the BOS process: Operations Analysis: 1. Baseline Analysis 2. Needs Analysis 3. Requirement Analysis 4. Cost Benefit Analysis (incl. BPM) Prioritization Harmonized Business Operations Medium Term Results Framework (incl. costing) Monitoring and Evaluation Framework OMT Work Plans 10 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

11 Template Business Operations Strategy The Business Operations Strategy reflects the following chapters: Chapter 1: Introduction 1.1 Background 1.2 Principles of implementation Signatory Page Chapter 2: Operations Analysis 2.1 Baseline Analysis 2.2 Needs Analysis 2.3 Requirements Analysis 2.4 Cost Benefit Analysis 2.5 Prioritization Chapter 3: Business Operations Results Framework (narratives) Chapter 4: Business Operations Monitoring, Evaluation and reporting Chapter 5: Business Operations Governance Mechanisms Chapter 6: Business Operations Budgetary Framework Chapter 7: Operationalising the Business Operations Strategy Chapter 1 sets the context of the Business Operations Strategy; Chapter 2 defines the results focus (referred to as "business solutions"), and prioritizes the results areas according to the outcome of costs and benefits for each suggested business solution. Chapter 3 translates the business solutions in specific result statements (outcomes, outputs) and adds a short narrative for each results area, drawing from chapter 2. It also adds a required budget per outcome/output; Chapter 4 defines outcome and output level indicators, targets and baselines, drawing from chapter 2; Chapter 5 outlines the Business Operations Governance mechanisms; Chapter 6 describes the resource requirements, including a resource map of existing resources, the resource gap and a resource mobilization strategy; Chapter 7outlines the operationalisation of the Business Operation Strategy focusing on how to leverage the BoS to focus work planning and develop and implement solutions, including the concepts of integrated (OMT) work plan and the use of the standardized MoU for Common Services. The BoS guidance document outlines the approaches for each of these chapters. 11 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

12 Chapter 1: Introduction 1.1 Background The background includes a short, general introduction to the national context and the role the UN System at the country level has vis-à-vis the national development environment. Note that this is only a high level summary of the national context. As the UNDAF has a more in depth analysis of the national development situation, it may be useful to refer to the UNDAF for details. The background also reflects a short statement on the purpose of the UN Business Strategy (ref section 3.2) and its links to the UN Programme Strategy. 1.2 Principles of implementation This section outlines a limited number of key principles underpinning the UN Business Operations Strategy. Examples of these principles include: The Business operations Strategy focuses on Common UN operations, e.g. operational processes that add value to the UN System as a whole. In addition to these system wide services, agencies may decide to continue agency-specific operational support services. The UN Business Operations supplement these agency level operations; The UNs commitment to harmonisation of Business Operations where this yields added value to the UN System and its partners, where added value is defined as reduction of costs (either direct monetary cost or time cost) or enhancement of quality of services provided; UN Business Operations Strategy reflects direct links to the UNDAF programme strategy outlining the way the UN plans to deliver its operational support to the programme; The UNs commitment to the principles of the Paris Declaration, including the use of national systems for operational services where possible; Chapter 2: Business Operations Operations Analysis The Operations Analysis is a critical analysis aimed to identify which harmonization initiatives add value to the country offices and prioritize the different initiatives that are identified as adding value to country level Business Operations. The Operations Analysis includes the following analysis: 12 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

13 Business Operations Analysis 1. Baseline Analysis: Current Service Offering (Supply) o Existing Business Operations Harmonization initiatives (incl. Common Services) Baseline analysis 2. Needs Analysis (Demand) o Programme related Needs (deducted from the UNDAF) o Non-programme related Needs (corporate requirements) 3. Requirements Analysis; 4. Cost Benefit Analysis (based on a Simplified Transaction Cost Analysis) for potential Business Operations Harmonization initiatives (including Common Services); 5. Last, the OMT prioritizes the added value harmonization initiatives; Based on the results of the Operations Analysis, the UNCT/OMT prepares the Results Matrix and the M&E framework, which guide Business Operations harmonization for the coming programme cycle. 2.1 Baseline Analysis Baseline Analysis includes a stock-taking and assessment of the current Business Operations Harmonization initiatives (including Common Services). The baseline analysis aims to provide an overview of the current status of existing Business Operations Harmonization initiatives (including Common Services). It identifies a few categories of basic information: Type of existing Common Service/ Harmonization effort Managing Entity (Service Manager) Clients (Agencies using service) Key Performance Indicators (KPI s) Performance Ranking against KPI s Modality (Outsourced/In House) Recommended Action (ref below) Table 1: Template Baseline Assessment 13 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

14 For the full template for the Baseline Analysis, please refer to Appendix B1 or to the UNDG Toolkit. Based on the performance of each Common Service, the Operations Management Team assesses the added value of the Common Service to the UN System, which will form the basis for the results framework and any recommended actions. Performance is measured against the agreed Key Performance Indicators (for more on Key Performance Indicators- ref the next section 2.3 Needs assessment): Recommended for expansion? If the CS is meeting or exceeding expectations, should other agencies be invited to participate? Should additional services be added to the service package? Recommended for Downscaling? Are there some areas of the CS that are not going as planned while others are? Recommended for Discontinuation? Are there unanticipated events or challenges that have prevented this CS from being established? Giving these challenges, should the CS be discontinued altogether? Recommended for adjustment/modification? Based on the performance it may be that the original design does not accommodate reality and leaves room for improvement. If this is the case, can the Common Service Design be modified to address any bottlenecks? Thus, while the assessment is fundamentally a review of what is in place; it will also be clear that as a part of these queries, there will be an initial opinion of the quality and necessity of the services in addition to a vision of where the services might be expanded or changed. These, along with any difficulties in achieving previous operational work plans (at both high and detailed levels) should be noted as a part of the initial assessment so as to provide a basis for further discussion and potential change. 2.2 Needs Analysis The Needs and Requirements Analysis identifies the need for operational support at the country level (demand). There may be a need for a specific process to be harmonised to reduce associated costs or enhance quality (for example, harmonising DSA rates for partners) or there may be benefit to delivering a service as a Common Service, rather than an agency based service. The Needs Analysis identifies and describes the need for existing and desired (new) joint operational support services. It takes the form of a short Needs Statement (narrative) for each suggested common business operation. The Needs Analysis focusses on the the need, not how the need ultimately is met, e.g. it focusses on the What andn When, not the How. The need needs for Business Operations derives from the baseline assessment of the existing common services and the need for new common services. Needs are determined keeping the following elements in mind: 14 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

15 (1) basic operational support (e.g. new staff requirements, potential new offices, etc.); (2) strategic operational support (professionalization and improvement of operational services as well as alignment with programmatic goals). Needs statements need to describe clearly what the service must deliver and by when it must be ready to deliver, in a measurable way The Needs Analysis uses the following template (note the template is the same as used for the Requirements analysis- the next step in the Operations Analysis): Name Business Operation/Ser vice Common Premises Sub- Office - Common ICT Needs Analysis Narrative Background: Utopia UNCT will include in its UNDAF a joint HIV/AIDS programme in Felurian Province. The inter-agency task team developing the programme concept has determined that because of the strong inter-linkage between the agency components of the programme, it will be desirable that the staff members are co-located in the UNAIDS office. The team would like to start working from the same location by month 6 in year To facilitate such a co-location certain support needs are identified: Need 1: In order to reap efficiency gains, the sub-office should take advantage of the new corporate inter-agency agreement with one VSAT connectivity provider and consolidate the agency internet connectivity arrangements into one shared connectivity arrangement with one VSAT and one ISP. The purpose of the arrangement will be to ensure sufficient bandwidth for all agencies at the best price possible and to facilitate increased use of VOIP telephony and internet based video conferencing. Need 1 description: Soonest possible and if necessary on a scaled basis, to have an ICT arrangement which will (1) rationalize the agency connectivity arrangements to one shared arrangement making use of fewest possible VSATs in accordance with the corporate inter-agency agreement and one ISP only; (2) ensure that all agencies have the necessary bandwidth available; (3) Facilitate widest possible use of VOIP telephony particularly for international phone calls (4) Facilitate widest possible usage of low cost internet video conferencing. Requirements Analysis & KPI's For the template for the Needs Analysis, kindly refer to Appendix B.2 or download it from the UNDG Toolkit. The Needs Analysis involves both programme and operations staff, as needs are derived from taking into account programmatic as well as operational needs. Some Business Operations derive directly from the Programme/UNDAF (Programme related Business Operations Harmonization initiatives (including Common Services)), while other business operations will be required, regardless of the programme size or design (Corporate Requirements). 15 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

16 Note that the needs and requirements analysis includes both existing and new Business Operations Harmonization initiatives (including Common Services). A. Programme related Needs for Business Operations Harmonization initiatives (including Common Services) The UNDAF will define a significant part of the operational back-office requirements for that cycle. As the Business Operations Strategy and the UNDAF Programme strategy are on the same cycle, it provides a good entreepoint to link the two closer together by deriving the back-office support requirements from the UNDAF results matrix. Note that this focuses on the identification of the back-office support service needs that will be provided as a Common Service (e.g. Joint Business Operations), not individual agencies' services 12. Examples include the HACT initiative or common procurement of commodities directly linked to the programme. In the UNDAF, each outcome is broken down into lower level outputs. The Figure 1: Relation UNDAF and BoS combinations of the outputs ensure the UN is able to deliver on the outcome. These outcomes and outputs are the basis for the analysis 13 : Approach: Business Operations Strategy Programme Related Business Operations (UNDAF) Common Premises needs for sub-office Common HR arrangements for a joint programme or sub-office Joint Procurement support for a particular programme 1. Select the UNDAF outcome for which the needs analysis is executed; Example: UNDAF Outcome: By 2025, malaria infection is reduced from 29% to 20 % in the three most malaria prone regions of Utopia. 2. Identify the outputs under the UNDAF outcome that are likely to impact the operational support requirements 14. HACT Ongoing Business Operations Common Procurement of bulk office goods, fuel, General ICT support Common Travel Desk Country level UN HQ /Common Premises 12 Depending on the preferences of the UN Country team, the Business Operations Strategies can include agency level back-office support, provided a complete operations strategy in support of the UNDAF, reflecting both Common Services as well as agency services. 13 For further details on the UNDAF RBM methodology kindly refer to UNDG RBM Handbook on 14 It is recommended to start the analysis of operational needs from the output level of the UNDAF, as the outcome level is likely not to provide enough detail. 16 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

17 Example: UNDAF Output 1: By 2025, 80% of the most vulnerable groups in the three most vulnerable provinces will have access to malaria prevention instruments, including bed nets and preventative chemical solutions. The targets and indicators in the log frame (results framework) and M&E framework of the UNDAF may further specify the interventions. 3. For each of the selected outputs in step 2, the Business Operations Harmonization initiatives (including Common Services) requirements are analysed for each Common Service Categories: Common Procurement Common Human Resources Common ICT Common Logistics and Transport Common Administration Common Finance Common Security The exact categories vary per country, based on the services that are in place or to be developed. The categories are an indication to guide the OMT thinking. The analysis should take into account direct programme needs (ex. Procurement needs) as well as general programme needs such as whether the UN requires additional sub offices or project offices, which would have a significant ICT, logistical and other operational support implications. The key point here is that the need is directly tied to a specific programme. Note that this focuses on the identification of the back-office support service needs that will be provided as a Common Service (e.g. Joint Business Operations), not individual agencies' services 15. The figure below illustrates this approach: 15 Depending on the preferences of the UN Country team, the Business Operations Strategies can include agency level back-office support, provided a complete operations strategy in support of the UNDAF, reflecting both Common Services as well as agency services. 17 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

18 Business Operations Strategy (BoS) UNDAF Operational Analysis Common Country Analysis Results Framework (Outcomes-Outputs) Results Framework (Outcomes-Outputs) Monitoring and Evaluation (Indicators) Monitoring and Evaluation (Indicators) Budgetary Framework Budgetary Framework Management Arrangements (including funding) Management Arrangements (including funding) Joint Funding Arrangements Figure 2: Relation between UNDAF and BoS This category includes services that currently are executed on an agency basis, but due to scaling up the programme or involvement of additional agencies, it may be more effective or cost efficient if it s provided through Business Operations Harmonization initiatives (including Common Services) at the UN System level instead. B. Other Business Operations Harmonization initiatives (including Common Services) In addition to programme related Business Operations Harmonization initiatives (including Common Services), there usually is scope for additional Business Operations Harmonization initiatives (including Common Services), which do not necessarily derive directly from the UNDAF. Examples include procurement of Generic Office supplies or fuel (Joint procurement), establishment of a Common Reception or Registry (Logistics), Joint recruitment processes and learning (Joint Human Resources). These operational processes support programme implementation but do not necessarily derive directly from individual programme needs. This category includes services that currently are executed on an agency basis, but due to scaling up the programme or involvement of additional agencies, it may be more effective or cost efficient if it s provided through Business Operations Harmonization initiatives (including Common Services) at the UN System level instead. Approach 1. Identify the other related needs (not directly deriving from the UNDAF) that the Common Service or harmonization effort is supposed to cover; Example: Common Reception, Maintenance, Office Bulk Goods, Fuel, Transport. 18 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

19 2. For each of needs in step 1, the Business Operations Harmonization initiatives (including Common Services) requirements are analysed for each Common Service Category: Procurement Human Resources Information and Communication Technology Logistics and Administration Finance Security Below is an example of a non-programmatic results chain, in this case focussing on Procurement. Note: the BoS usually would only cover the outcomes (specifies "What" the UNCT/OMT plans to realize in the coming cycle) and outputs (specifies "How" the UNCT/OMT plans to realise the outcome). The Annual Deliverable would be something you would see in the integrated Annual Work Plan of the OMT. However, in order to demonstrate what the full results chain would look like, the example below includes Annual Deliverables. Outcome 1: By 2015, the UN in Utopia has realized a reduction of UN Operating Costs by an average of 5% per year Output 1: By 2015, the UN System in Utopia has reduced cost of procurement by 4% through the development and implementation of Common Procurement initiatives o Annual Deliverable 2012: In year 1, cost reduced by 2% of baseline year 2012 through the establishment of three additional LTAs (established baseline Jan 2012: 5 LTAs in place, target Dec 2012: 8 LTAs in place) o Annual Deliverable 2013: In year 2, cost reduced by 1% of baseline year 2012 through the establishment of seven additional LTA s (established baseline Jan 2012: 5 LTAs in place, target Dec 2013: 12 LTAs in place) o Annual Deliverable 2014: In year 3, cost reduced by 1% of baseline year 2012 through the establishment of ten additional LTAs (established baseline Jan 2012: 5 LTAs in place, target Dec 2014: 15 LTA s in place) Output 2: By 2015, the UN System in Utopia has reduced operating cost by 2% through the development and implementation of Voice over IP o o Annual Deliverable 1: Annual Deliverable 2: For the full template for the Needs and Requirements Analysis, please refer to Appendix B2 or to the UNDG Toolkit. 2.3 Requirement Analysis The requirements Analysis identifies and describes requirements for existing and desired (new) joint operational support services. The requirements outline the parameters which the service 19 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

20 needs to meet in terms of quality, timeliness, or cost effectiveness, often expressed in the form of Kep performance Indicators (KPI s). The Requirements analysis yields a Requirement Statement for each service. Requirement statements need to be written in a measurable way that enables the direct development of relevant compliance measurements and other performance indicators. This ensures that expectations are clearly set. The requirements Analysis uses the same table as the Needs Analysis, and completes this table by completing the Requirements Analysis and KPI s column. For the template Needs and Requirements analysis please refer to Appendix B2. Name Business Operation/Ser vice Common Premises Sub- Office - Common ICT Needs Analysis Narrative Background: Utopia UNCT will include in its UNDAF a joint HIV/AIDS programme in Felurian Province. The inter-agency task team developing the programme concept has determined that because of the strong inter-linkage between the agency components of the programme, it will be desirable that the staff members are co-located in the UNAIDS office. The team would like to start working from the same location by month 6 in year To facilitate such a co-location certain support needs are identified: Need 1: In order to reap efficiency gains, the sub-office should take advantage of the new corporate inter-agency agreement with one VSAT connectivity provider and consolidate the agency internet connectivity arrangements into one shared connectivity arrangement with one VSAT and one ISP. The purpose of the arrangement will be to ensure sufficient bandwidth for all agencies at the best price possible and to facilitate increased use of VOIP telephony and internet based video conferencing. Need 1 description: Soonest possible and if necessary on a scaled basis, to have an ICT arrangement which will (1) rationalize the agency connectivity arrangements to one shared arrangement making use of fewest possible VSATs in accordance with the corporate inter-agency agreement and one ISP only; (2) ensure that all agencies have the necessary bandwidth available; (3) Facilitate widest possible use of VOIP telephony particularly for international phone calls (4) Facilitate widest possible usage of low cost internet video conferencing. Cost Effectiveness Indicator: Requirements Analysis & KPI's 1. Total operational cost of VSAT connectivity reduced by 8% 2. Total operations cost of telephone use reduced by 85% Service Quality Indicator: 1. Response time from ICT helpdesk on a request for connectivity support <3hours; 2. Uptime link min. 90% of time 3. Link speed meets agency requirements 90% of the time 4. Video conferencing capability available to agencies Efficiency indicator Number a VSAT arrangements reduced from 6 (1 per agency) to 1 (84% reduction in contract management cost) For each of the needs identified above, both programmatic and non-programmatic the OMT needs to describe the following in a short narrative: Requirement statements need to be written in a measurable way that enables the direct development of relevant compliance measurements and other performance indicators. This ensures that expectations are clearly set. Examples of Requirement Statements as follows: By a certain date (end of BoS cycle), each agency procuring the Common ICT Helpdesk services has access to timely and quality ICT Help Desk Support Services; By a certain date (end of BoS cycle), each agency procuring joint cleaning services for the shared premises has access to quality cleaning services; By a certain date (end of BoS cycle), each participating agencies' travel cost is reduced by X%; 20 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

21 By a certain date, all UN staff members will have access to a comprehensive and well structure M&E training programme. Key Performance Indicators: For each of the requirement statements you will have a set of indicators called Key Performance Indicators that sets the expectation of the exact level of service What should be a common required. As such KPI's specify the level of service instead of an agency expectations for harmonization initiatives and/or the service? expectations of participating agencies procuring services through a Common Service system. KPI's More than one agency are a powerful tool for monitoring the continued needs the service; added value and adherence to intended quality standards over time, especially if the performance is compared to previous years (trend analysis). KPI's establish a generic standard for each of the selected needs; KPI's help describe what function the service is required to perform to meet the identified need at the end of the Business Operation Strategy (medium term). Once the OMT establishes the Annual Work Plan each year, it can have incremental annual targets/kpi's that, at the end of the BoS cycle achieve, realise the intended result; The monetary and nonmonetary benefits of having the service jointly outweigh the cost of developing and delivering the service; There is a Quality Benefit in having the Service jointly. Keep things simple. No more than 2-3 KPI's are required unless specifically agreed to include more. Note: the cost of monitoring goes up with each KPI; When developing the Key Performance Indicators, it should be ensured that they can be measured in the first place, and that the cost of measurement and data collection are acceptable. If the cost is (too) high or expensive, one may chose to opt for a "proxy indicator". A proxy indicator is an indicator that doesn't directly measure the exact performance, but can be used as an approximate indication of performance. Using the example Requirement Statements above, examples of KPI's include: Time indicators for service quality such as timeliness of a service delivered: "Response time from ICT helpdesk on a request for support = <X hours>"; Perceived quality of a service to be delivered: "Positive response rate on cleanliness of office premises as per annual survey >75%"; Anticipated cost savings resulting from a joint service: "Travel cost reduction of 10% of total annual travel volume"; Access to a specified service: "X number of staff received basic M&E training through the Common Learning Programme". 21 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

22 2.4 Cost Benefit Analysis (CBA) This last step before developing the result matrix provides the analytical basis for the OMT/UNCT to make informed decisions which initiatives are prioritized, based on either cost savings, or enhanced quality of the business operations process and/or product/service. As some harmonization initiatives may require investment up front in order to implement the initiative, the cost benefit analysis provides details on the level of the required investment cost (both time and financial cost) which may influence the prioritization of each initiative. As such, the cost benefit analysis aims to assess the cost effectiveness of a proposed solution 16 : Cost-effectiveness is the extent to which the business solution has achieved or is expected to achieve its results at a lower cost compared with alternatives. Shortcomings in costeffectiveness occur when the program is not the least-cost alternative or approach to achieving the same or similar outputs and outcomes 17. Cost savings are results that increase cost effectiveness, and therefore increase the appeal of a suggested business solution. may be monetary (direct cost savings, for example in joint procurement initiatives) or non-monetary in nature (for example quality enhancements of services or reduced lead times for processes - resulting in less staff time involved in executing the process). The Cost Benefit Analysis aims to provide sufficient, rather than exhaustive, overview of the main cost elements that are involved in any process: direct cost of the process ($ value) and the labor cost, or time spent on executing the different actions that make up a process. The CBA therefore analyses three types of costs and benefits associated with each suggested Business Operations harmonization initiative (incl. Common Services): 1. Monetary Costs & Benefits- Direct Cost ($ value) 2. Labor costs (Non-Monetary Cost- time spent) 3. Other costs/benefits "...The Cost Benefit Analysis aims to provide a sufficient, rather than exhaustive, overview of the main cost elements associated with a process..." Cost Benefit analysis is a mandatory step of the BoS. However, not all Business Operations harmonization initiatives require the same level of detailed analysis. It is highly recommended that the higher the perceived complexity or investment cost, the more detailed the cost benefit analysis needs to be. The BoS uses two specific tools to assess these three (monetary, non-monetary and other) cost types: Business Process Mapping and Simplified Transaction Cost Analysis. 16 Within the UN System this is often (erroneously) referred to as efficient solutions, which is incorrect. Efficiency is the extent to which the business solution has converted or is expected to convert its resources/inputs (such as funds, expertise, time, etc.) economically into results in order to achieve the maximum possible outputs, outcomes, and impacts with the minimum possible inputs UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

23 The results of the Cost Benefit Analysis are reflected in a simple table. Kindly refer to Appendix B4 for the template of the Cost Benefit Analysis or download it from the UNDG Toolkit: Proposed Business Solution (incl. Common Services) Monetary Costs Benefits ($) Labor Costs Benefits Other Costs/Benefits A B C D E F Anticipated Anticipated Monetary Monetary Cost Benefit (One Time & Recurring $ Investment) (One Time & Recurring Benefits) Anticipated Labor Cost- Time Investment (One Time & Recurring Labor costs) Anticipated Labor Benefit: Time Reduction (One Time & Recurring Labor benefits) Anticipated Significant Other Cost Anticipated Significant Other Benefits Table 2: Template Cost Benefit Analysis Note that in most cases, the numbers would be backed up by the detailed analysis results from the Business Process Mapping Analysis and Simple Transaction Cost Analysis. The results of the cost benefit analysis may require the UNCT/OMT to fine-tune the KPI which was developed for this initiative during the requirement analysis 18. The Costs and Benefits associated with an existing or new business solution include One Time Costs/Benefits as well as Recurring Costs and Benefits. One Time Costs/Benefits: One Time Costs/Benefits are defined as One Off investments (costs) or benefits, meaning the costs occurs only once. An example includes the purchase of PaBX servers for the implementation of a VoIP solution for the UN, and/or the purchase of consultancy services of a company managing the implementation, or the cost of a Request for Proposal Process in case of a joint procurement initiative. A One Time benefits may be the selling of old servers that are replaced by the new PaBX servers. Recurring Costs/Benefits: Recurring Costs/Benefits are defined as Costs Benefits who recur every period, for example every billing cycle. For the Costs Benefit Analysis, recurring costs and benefits are calculated over the full cycle of the BoS e.g. they need to be added up to get one number. An example of a recurring cost is the service fees for a joint Backup Facility for the participating agencies 18 Ref section UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

24 An example of a recurring benefit is the implementation of a common procurement initiative for Fuel yields a cost reduction of USD every time fuel is procured (4 times a year). The cycle time for the BoS is 5 years, the total recurrent benefit used for the cost benefit analysis is 4x USD = USD per year x 5 years = USD for the cycle. Note: The Cost Benefits Analysis uses one total number for One Time and Recurring Costs (ref the template below), e.g. One Time Costs and Recurring Costs are added up, and One Time Benefit and Recurring Benefits are added up. The outline below provides guidance on how to populate each section of the template: Identification of Monetary Costs & Benefits Anticipated Monetary Cost: This part refers to the financial investment cost (if any) of the harmonization initiative. These costs are often associated with the procurement of goods or services in relation to the harmonization initiative. Recurrent costs are also reflected under this category. For example, if VoIP is to be implemented as a Common Service, one of the Monetary Costs for the procurement of goods would be the procurement of PaBX servers. An example of a service cost would be the recruitment of an ICT Consultancy firm to develop the technical solution and the integration plan. Monthly fees paid to a Service Provider to host the PaBX servers would be an example of a recurrent cost. Monetary costs do not include labor costs/time spent in a process. Labor and time costs are covered under non-monetary costs (ref below). Anticipated Monetary Benefit : Also referred to as cost savings, one of the potential benefits of the harmonization initiative is a reduction in financial resources associated with that process. This may be savings resulting from a reduction in prices (in the case of procurement) or reduction in operating costs (in the case of implementing VoIP it would be the reduction in telephone costs). In order to obtain an estimate of cost savings (current vs. projected costs), the cost of the proposed business solution will have to be compared with the costs of the existing business solution. For example, procurement-related harmonization efforts such as establishment of Long Term Agreements use the combined procurement volume of the UN System at the country level to procure certain commodities or services jointly resulting in a lower average price per unit or quantum discounts over the volume procured. The existing business solution could include an existing joint solution (such as a common service) or the costs of each agency obtaining the service independently. 24 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

25 Monetary Benefits do not include labor costs reductions /time gained due to the harmonization effort. Labor and time costs are covered under non-monetary costs (ref below). Last, the monetary benefit is multiplied by the number of agencies participating in the proposed business solution, as the benefit applies to each individual agency Identification of Labor Costs and Benefits Business Process Mapping and the Simplified Transaction Cost Analysis instruments are two simple tools that assist the UNCT/OMT in developing a facts-base upon which costs and benefits may be estimated prior to the actual development of the service. They are usually deployed to estimate time savings/labor cost savings by measuring the differences in time spent in executing different activities in a process and attributing a dollar value to these differences so that they can be used in a cost benefit analysis. Anticipated Labor Cost-Time Investment Developing and implementing the harmonized business operations initiative will cost time of one or more staff members. In order to ensure appropriate planning and allocation of human resources (time) to the development and implementation of the solution, including management of the business solution, an estimate of this time is required. The time spent on the design, implementation and management of the new business solution is converted into a dollar value using real time costing models, which converts the time spent on an activity in the process into a dollar value using wage scales of the staff member(s) involved in each activity in the process. Anticipated Labor Benefits - Time Reductions/Gains One of the anticipated benefits of developing and implementing a harmonized Business Operations initiative (incl. Common Services) is a reduction in the so-called cycle time, e.g. the time required to execute a process. This reduction materializes due to the elimination of duplication of functions and activities of a process that otherwise is executed by each agency individually. The new business solution replaces (parts of) individual agency processes thus freeing up staff time can be used for other purposes. In addition, harmonization efforts may also yield revisions of the different steps in a process, eliminating unnecessary steps or activities, therefore reducing time required to execute a process. In both cases the result is the same - a reduction in time spent on executing a process. The time reduction is converted into a dollar value using real time costing models, which converts the time spent on an activity in the process into a dollar value using wage scales of the staff member involved. In order to obtain an estimate of time saving/labor cost reduction (current vs. projected labor costs) and benefits, the time/labor cost of the proposed business solution is compared with the costs of the existing business solution. 25 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

26 Last, the total time reduction/labor cost reduction benefit is multiplied by the number of agencies participating in the proposed business solution, as the benefit applies to each individual agency. The outline below provides a short description of business process mapping a simple way to assess time savings/labor cost reduction estimates. Labor cost analysis- Business Process Mapping Business Process Mapping (BPM) is a simple way to graphically reflect the different steps in a (sub) process, such as "ICT Helpdesk Support" or "Procurement of Hotel and Conference Facilities", attributing a time requirement to each step/activity in the process. BPM maps out what are the steps are to get a particular job done, how many people and at what point are they involved, and how long do they take to complete the step. "...Many agencies have standard corporate business process maps for the main business processes of the agency that can be used, significantly reducing the time investment..." The process map provides a detailed overview of each step in the process, including the time required to finish each step. This is subsequently used to calculate the cost of a process by identifying the time required to execute each step and applying the real labor cost rate (based on standard UN wage scales) to each of the steps/activities. This subsequently yields a $ cost of the current process. This way, the cost of a a proposed solution can be easily compared to the costs of an existing process, so the gains can be identified. Often maps are developed using MS Visio, although it can be done in MS Word table as well. Below an example of a Visio Business Process Map, in this case covering the resource mobilization process at the country level: Table 3: Example Business Process Map (Visio) 26 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

27 The Business Process map is the core of the Simplified Transaction Cost Analysis. Once the maps are developed, most of the work is done: By comparing the map of the proposed solution to the map of the current situation, the differences in time requirements (cycle times) and $ value can be established. Labor cost Analysis builds on the Business Process Maps, by attributing a $ value to each activity in the process based on the time spent on each step. The time spent on each activity is converted into a $ cost, using the UN standard salary scale for the staff member(s) involved in the process. The annual full salary cost of a staff member is broken down into a daily cost by dividing the annual salary by 12 (monthly cost), then dividing by 22,5 to get to the daily cost 19. The daily cost is then divided by 9 (9 hour working day) to get the cost per hour of a staff member. Example: Procuring a retreat venue This example involves a simple process, involved a single staff member. In this case we use a simple table to map the process, rather than a Visio map as per above). Note that some processes involve multiple staff members and/or more steps and therefore the time requirements of each of the staff members involved should be added up. Labor cost analysis: Venue procurement Step Step 1: Identify potential venues Step 2: Contact the management of each venue to get quotes and Terms and Conditions for each venue Step 3: Evaluate all quotes and select a venue Step 4: Prepare documents for procurement committee approval Step 5: Inform the venue and sign the contract Step 6: Raise the Purchase Requisition/Purchase Order Step 7: Validate the invoiced amount against the contract Step 8: Pay the vendor TOTAL TIME REQUIRED TOTAL COST (ref below) Time cost (minutes) 30 minutes 45 minutes 60 minutes 45 minutes 50 minutes 15 minutes 10 minutes 15 minutes 270 Minutes (4,5h) 391,50 USD 19 22,5 is the average working days per month 27 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

28 The total time requirement to procure the venue is 270 minutes (4,5 hours). The activity is carried out by a P3 staff member. The salary scale of a P3 staff member in this duty station is 210,000 USD. The monthly cost for this staff member is 210,000USD/12 = 17,500 USD. The daily cost is 17,500/ =778 USD per day. The hourly cost is 778/9=87 USD. The labor cost associated with the process is simply the time spent on the process x the hourly cost: Therefore the total labor cost for procuring the venue is 4,5h x 87 USD= 391,50 USD. Generating a second table for the proposed solution, allows comparison of the time and labor cost involved you can compare the labor cost reductions (and their cost) to get a sense of the benefits/gains from the proposed solution. For the template of the Labor Cost Analysis, please refer to Appendix B3. For the Excel format of the template, please refer to the UNDG Toolkit. For a detailed technical guidance note of Business Process Analysis, please refer to the UNDG toolkit. The BoS includes a light approach and a regular approach, the choice of which depends on the intended result of the harmonization effort. Both approaches require at the very least a business process map of the proposed solution with the main difference being the level of detail of the analysis (number of steps), and the associated investment in terms of staff time. The time required per map varies significantly depending on the level of detail and the complexities of the process. Regular approach Ideally, the same process is mapped for each participating agency, describing the current situation and cost involved for each agency. Note that if the intent of the harmonization effort is to harmonize processes between agencies, one should not opt for the light solution, but map out the processes in detail for each agency as a basis for the re-engineering effort. Light approach "... An exhaustively detailed map is usually not requiredreflecting the main steps/activities in a process suffices in most cases..." In the light approach, the map of the proposed business solution is compared to a "generic" map that more or less reflects the current process for each agency. This method is less accurate as processes tend to be different between agencies, but it lowers the time requirement associated with the mapping effort. Regular Approach Nr of Business Multiple maps required (one for proposed solution, one for each Light Approach Two maps required (one proposed 20 In the UN a working month consists of 22,5 working days 28 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

29 Process Maps participating agency) solution, one generic map) Advantages More detailed cost benefit analysis and process maps; Agency level overview of costs and benefits. Lower staff time investment cost; Less detailed knowledge required of the assessed process(es). Disadvantages Higher capacity requirement in terms of staff cost; Higher knowledge requirements of the assessed process(es). Less detail in of the analysis; No agency level split-out of costs and benefits. When to use 1. The UNCT prefers to have the costs/benefits per agency to enhance the quality of the business case, providing an overview of the exact costs/benefits for each participating agency; 2. The harmonization effort requires significant capital or Human Resource investment and/or has high impact on strategic processes; 3. The aim of the harmonization effort is to streamline the process (process reengineering). The reengineering effort requires specific process maps for each of participating agencies, as each agency will have difference in the process, and hence differences in costs and benefits; 4. There is sufficient time, knowledge and expertise available and committed to the BPM and cost benefit analysis process. 1. The aim of the assessment is to get a general indication of the costs and benefits with just enough detail to make a factsbased decision on whether to develop and implement the proposed business solution, but no detailed analysis and agency level information is required; 2. The country level lacks capacity to be able to execute the regular analysis Identification of Other Costs/Benefits 29 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

30 Some costs and/or benefits are not expressed in monetary values, nor are they associated with reductions of cycle times, leading to lower labor cost. Yet these advantages may be significant, even if they cannot be monetized. If the UNCT/OMT feels the harmonization initiative or Common Services has this type of costs/benefits associated with it, they can be reflected in a narrative format under "Significant Other Costs/Benefits". Note this category does not aim to provide an exhaustive list of all costs and benefits, but rather offers the opportunity to highlight significant cost benefits that are relevant for the prioritization and decision making process. Examples of Significant Other Benefits include enhanced supplier relations, enhanced reputation for the UN System, enhanced visibility for UN System etc. Deterioration of reputation, lower visibility, cost of discontinuing a contract are examples of Significant Other Costs. For the template and an example of a Cost Benefit Analysis kindly refer Appendix B4 or to the UNDG Toolkit. 2.5 Simplified Transaction Cost Analysis - Prioritization of Business Solutions The Cost Benefit Analysis has identified the relative cost and added value of each of the harmonization efforts (including Common Services) and established a basis for prioritization. The last step is to prioritize, e.g. identify which harmonization initiatives should receive priority in the coming cycle. The priority is attributed based upon a simple ratio, commonly referred to as the "priority ratio" for each suggested business solution. The priority ratio is based on the results of the Cost Benefits Analysis and uses the following simple formula: Simplified Transaction Cost Analysis: Establishing the Priority Ratio Total Cost Ratio per business solution = Anticipated Monetary Cost ($ Investment cost) + Anticipated Non-Monetary Cost- Time Investment --- Add column A and C from the CBA template (ref Appendix B3); Total Benefit Ratio per business solution = Anticipated Monetary Benefit (total $ saving)+ Anticipated Non Monetary Benefit- Time/Labor cost saving--- Add column B and D from the CBA template (ref Appendix B3); Priority Ratio per business solution = Total Benefit Ratio/Total Cost Ratio; Priority Ratio is adjusted for Other costs and benefits (subjective adjustment). 30 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

31 The higher the priority ratio, the higher the priority the business solution receives. This ensures that the business solution with the highest benefits get attributed a higher priority score, taken into account the associated costs. For the template of the Cost Benefit Analysis, please refer to Appendix B4 or the UNDG Toolkit. Proposed Business Solution (incl. Common Services) Monetary Costs Benefits ($) Labor Costs Benefits Other Costs/Benefits Prioritization (Labor) A B C D E F G H I Anticipated Anticipated Cost Benefit Monetary Monetary Ratio Ratio Cost Benefit (A+C) (B+D) (One Time & Recurring $ Investment) (One Time & Recurring Benefits) Anticipated Labor Cost: Labor Time Investment (One Time & Recurring Labor costs) Anticipated Labor Benefit: Labor Time reduction (One Time & Recurring Labor benefits) Anticipated Significant Other Cost Anticipated Significant Other Benefits Priority Ratio: Benefit/Cost Ratio (H/G) The priority ratio itself provides a basis for prioritization. However, as the priority ratio only takes into account the monetary and non-monetary gains, the final prioritization should be made in the light of a number of (qualitative) considerations: Other costs and benefits (columns E and F in the template) (ref Appendix B3); Urgency of harmonization efforts in a particular field; Available financial resources required for up-front investment; Capacity available (time, skills and competencies of staff) at the country level to develop and implement business solution. Based on the priority scoring, the UNCT/OMT can select the higher value projects to be front loaded for execution (higher priority) and reflect this accordingly in the results matrix and narratives. Chapter 3: Strategic Planning: Results Framework and Results Narrative The Business Operations results framework is the basis for the Annual Work Plans which the OMT develops every year. It provides the focus of Business Operations by tying the Annual Work Plans to a strategic framework over a longer period of time, and allows for monitoring and evaluating the results achieved and focus interventions aimed enhancing under-performing services. The Results Framework translates the business solutions identified in the Cost Benefit Analysis in specific result statements (outcomes, outputs) and adds a short narrative for each results area, drawing from chapter 2. It also adds a required budget per outcome/output. 3.1 Results Matrix Business Operations (log frame) The content for the Results matrix is directly drawn from the Operations Analysis (chapter 2): 31 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

32 the Baseline Assessment existing Common Services (2.1) identifies the existing Business Solutions (incl. Common Services) in place and that are to be continued; The Needs and Requirements Analysis provide the result statements (outcome and outputs) for the proposed Business Solutions; The Cost Benefit Analysis provides the basis for prioritisation of proposed business solutions. Depending on the choices of the OMT/UNCT, the Business Operations Strategy would have max 6-7 Pillars, for each thematic area in Business Operations. The number of pillars depends on the results of Operations Analysis (e.g. the choice by the UNCT/OMT to develop and implement specific harmonization initiatives (incl. Common Services) 21 : 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 Each pillar has one high level outcome statement 22 that reflects the intended result of that operational support services over the five year period. Each outcome statement is sub-divided ( broken down ) into max 3-5 sub-components called Outputs that together are needed to make that outcome come true 23. The business solutions (Incl. Common Services) are the means by which the outcomes and outputs are realised. As such, they "operationalise" the high level results statements as reflected in the outcomes and outputs. Please refer to section 2.2 for an example results chain for Business Operations. For an example and template of a BoS Results Matrix, please refer to Appendix B5 or the UNDG toolkit. For additional explanation on RBM terminology (indicators, benchmarks, targets etc.), please refer to Appendix A or refer to the UNDG RBM Handbook on Results Narrative Business Operations 21 Please refer to section 4.3: What is a Business Operations Strategy for examples of harmonization initiatives in each category. 22 For further details on the UNDAF RBM methodology kindly refer to UNDG RBM Handbook on 23 For further details on the RBM methodology kindly refer to Appendix A of this document Results Based Management: Definition of Key Terms used in UN Country Programming and Business Operations and UNDG RBM Handbook on 32 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

33 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. Chapter 4: Monitoring, Evaluation and Reporting on Business Operations The Requirements Analysis in chapter 2 (2.3) provides the Key Performance Indicators (KPI's) that are the basis for the baselines and targets of the proposed Business Solutions. The KPI's, baseline and medium term target are added to the results matrix, for each outcome and output in the matrix. The results of the Operations Analysis will provide a focus for the indicators that allow the UNCT/OMT to monitor and report on progress of the harmonization initiatives outlined in the results framework and the Annual Work Plans. Each Common Service will have a set of max 3-5 indicators which reflect the progress against the work items and the on-going effectiveness of the harmonization effort. Note that for the current Business Operations Harmonization initiatives (including Common Services) elements of the Results Framework, the Key Performance Indicators should be reflected in the M&E matrix, as they provide a solid basis for the quality of the Services provided. The M&E section describes the M&E structures supporting the BoS, including the responsible entity, the planning and the frequency of M&E efforts and the relation to national M&E efforts and systems and follows the following principles: The OMT reports to the UNCT and is responsible for the monitoring, evaluation and reporting on the progress of implementation for each of the work streams; The joint M&E group consists of M&E representatives from different programme clusters and M&E focal point from Operations Management Team responsible for the Business Operations results; The M&E group is responsible for regular (usually annual) reviews of progress of the BoS using the results matrices and M&E matrices. Note that, in case the UNCT uses results based allocations of fund, the frequency of review of progress may be increased (for example bi-annual); The M&E focal point for the programme clusters and the OMT support their relevant programme clusters with the design of quality M&E matrices, reviewing and advising on targets, baselines and indicators; The joint M&E group works on the basis of the integrated M&E plan and calendar, derived from the integrated programme M&E matrices of the different work streams. 33 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

34 The OMT reports to the UNCT with the same frequency as the programme units reports against their UNDAF. At the end of the cycle, the OMT executes an evaluation of the results reflected in the log frame, at the same time as the UNDAF evaluation takes place. For an example and template of a BoS Results Matrix, including M&E components, please refer to Appendix B4 or the UNDG toolkit. Chapter 5: Management and Accountability Business Operations There are various governance options for Business Operations at the country level. The final choice of the form and format of the Operation Management Team lies with the UN Country Team and OMT and will vary from country to country, based on local needs. The below reflects the most frequently encountered governance structure, with an Operations Management Team in charge of the day-to-day management of Business Operations, on behalf of the UNCT, supported by functional Task Teams that deal with specific specialist areas. It is highly recommended that the performance appraisal of the staff member involved in any of the below platforms reflects their role and results to be achieved, as this plays a critical role in terms of incentive and accountability. The graph below reflects a regular governance structure for Business Operations at the country level: UNCT Resident Coordinator s Office Operations Management Team (OMT) TWG Procurement (ad hoc) TWG Human Resources (ad hoc) TWG CP and Field Presences (Ad Hoc) TWG Logistics (Ad Hoc) TWG Harmonization (ad hoc) Figure 3 Governance structure Business Operations 34 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

35 UN Country Team (UNCT) The UN Country Team holds the ultimate decision power for all matters related to Business Operations; The UNCT is ultimately responsible for the achievement and reporting on results reflected in the Results matrix of the Business Operations Strategy and the BoS Annual Work Plan; UNCT outlines the medium term vision for Business Operations and provides guidance to the Operations Management Team (OMT) with regards to the operationalization of that vision in the Business Operations Strategy (BoS); In case of disagreement within the OMT, the UNCT serves as the final platform for escalation. Operations Management Team (OMT) The Operations Management Team manages and coordinates the development and implementation of the Business Operations Strategy; The OMT provides oversight over the implementation of existing Business Operations Harmonization initiatives (including Common Services) by the Service provider, with the aim to ensure service delivery is in line with the agreed Key Performance Indicators; The OMT develops annual work plans, based on the Business Operations Strategy, which guide the OMT activities and financial needs for that particular year; The OMT operates on the basis of the results matrices for Business Operations as reflected in the Business Operations Strategy and an integrated annual work plan guiding the different OMT activities; The OMT chair reports on a regular basis to the UNCT 24 on progress and issues regarding the implementation of the activities supporting each of the operations outcomes. Progress updates are based on the indicators and targets as reflected in the Business Operations Strategy M&E framework; The OMT has different Task Forces working on Specific Business Operations Harmonization initiatives (including Common Services) topics relevant for the country. These could include for example Task Force on Common Premises, ICT, HR, Procurement, Security, Travel etc.; The OMT has a dedicated M&E focal point that represents the OMT in the joint M&E group. M&E focal points plan and organise the M&E activities for the outcomes that are part of the Business Operations Strategy and the integrated work plan; The OMT has a dedicated M&E focal point that is responsible for the M&E activities for each of the items. OMT Task Forces The OMT has different Task Forces working on Specific Business Operations Harmonization initiatives (including Common Services) topics relevant for the country. These could include for example Task Force on Procurement, ICT, Human Resources, Finance, Logistics & Admin etc.; Task Forces are responsible for a well-defined subset of the OMT s work plan, usually for those work items that require specific technical expertise; 24 It is recommended that the OMT chair sits as an observer on the UN Country Team 35 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

36 Task Force have a lead agency that guides the work of the Task Force on behalf of the chair of the OMT; The Task Force lead reports to the OMT on behalf of the task Force on progress against the Task Forces part of the OMT work plan. Other stakeholders Programme staff work together with Operations staff to determine the impact and needs of the programme planning for Business Operations Harmonization initiatives (including Common Services), such as procurement, and HR requirements, ensuring operations are aligned with programme priorities and needs; The Resident Coordinators Office (RCO) often plays a crucial role in support of the Operation Management Team. Depending on the capacity and profile of the RC Office this role varies from coordination and logistics support, to substantive support such as preparatory analysis for new Business Operations Harmonization initiatives (including Common Services). Service Provider The service provider provides the actual service to the customer, in this case the agencies who are participating in the common service. The service provider can be external (outsourced service) or internal. In many cases the service provider is UNDP given their relative capacity at the country level, but other agencies can act as service providers for different services, depending on comparative advantage and the cost 25 against which the agency can provide the service; The service provider implements the service on behalf of the OMT and reports to the OMT on a regular basis. Evaluation of the service provider happens on an annual basis against Key Performance Indicators which are part of the design of each Common Service (ref chapter 5 of this document). For example ToRs, kindly refer to the UNDG Toolkit. Chapter 6: Budgetary Framework Business Operations The BoS Budgetary Framework includes a short narrative (max 0,5 page) indicating how the UNCT/OMT plans to mobilize the resources to cover the gap. Resource mobilization efforts for Business Operations usually focus on internal resource mobilization efforts, aimed at UN agencies, using cost sharing arrangements, but in some cases are supplemented by Public Private Partnership and external resource mobilization targets. Engaging in external resource mobilization is feasible for business solutions that either reduce transaction costs for external partners (through reduced operational support cost of programmes) or for business solutions that have the option to be shared with external parties. 25 The cost of the service is determined using the Business Process Mapping and Transaction Cost analysis tools that are part of the Operational UNDAF methodology. Both tools can be downloaded from the UNDG website 36 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

37 The BoS Budgetary Framework summarizes: 1. Resource requirements to realize the outcomes as outlined in the results matrix; 2. Available Resources including reflections of core and non-core agency contributions to the Business Operations Harmonization initiatives (including Common Services) Budget; 3. Total Resource Gap; 4. Short outline of a Resource Mobilization approach to cover the gap identifying possible targets for resource mobilization. The resource requirements, available resources and resource gap take the format of a table summarizing the financial requirements for each harmonized Business Operations outcome identified in the Business Operations Strategy for the five years of the programme cycle. It includes the commitment by UN system agencies to raise additional resources for the BoS, subject to donor funding. This table should include a footnote stating these are estimated amounts, and actual amounts will depend on availability of UN system agencies' resources and contributions from other sources: Outcome Procurement Human Resources ICT Logistics and Transport Administration Finance Security Procurement TOTAL Cost per outcome Total UN Resources committed Total UN Resources- (Core) Table 4 Budgetary Framework Resource Table Total UN Resources (Non Core) Resource Gap BoS The Budgetary Framework also includes an overview of each participating UN organization s contribution in both core/regular resources and non-core/other/ extra-budgetary resources 26 and indicates any shortfall (gap): 26 Note the majority of resources for Common Business Operations usually comes from core sources. Noncore resources however may be allocated to cover special projects. 37 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

38 Agency Core contribution Non-Core Contribution Gap Table 5 Budgetary Framework- Agency contributions Chapter 7 includes financial instruments operationalising the Budgetary Framework, including instruments such as the Common Services Budget and the Common Services account. For further guidance on the Budgetary Framework, kindly refer to the UNDAF Budgetary Guidance note in the UNDG toolkit. The principles of the Common Budgetary Framework outlined in the guidance note remain the same for the BoS. Chapter 7: Operationalising the Business Operations Strategy Successful development and implementation of the Business Operations Startegy requires a minimum level of capacity and skills in the OMTs. Apart from technical operations skills, some degree of business analysis skills and RBM related skills are useful. In most cases, the work required is in addition to agency-specific responsibilities. Therefore, it is highly recommended for UNCTs/OMTs to consider the capacity and skills available to the OMT in terms of skills, competencies and time before deciding to engage in the BoS development. The gains in terms of efficiency and (cost) effectiveness associated with the design of Common Operations solutions should ensure a positive rate of return on this investment in staff and financial resources. Engaging the RC Office early on is recommended as it would be useful for providing technical and coordination support. The average development time would be between 4-8 weeks, depending on the scope of the BoS. After the initial development, capacity should be available to the OMT and the Task Forces to deliver on the results outlined in the results matrix. There are a number of instruments in place to facilitate the operationalisation of the Business Operations Strategy. Most of these instruments support the annual planning and management process of the OMT: 38 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

39 OMT Integrated Annual Work Plan The Business Operations Strategy, being a medium term framework, usually covers only the outcomes (the "what"-high level) and outputs (specifies "How" the OMT plans to realize the outcome). The Annual Deliverable would be something you would see in the integrated Annual Work Plan of the OMT. The Annual Deliverable is a result realized for that particular year. It usually has a series of activities that need to be executed in order to realize the deliverable. The outcome, outputs and annual deliverables taken together are referred to as a" results chain. On an annual basis, the OMT develops a costed Work Plan which identified the prioritized work items for that year, including the budget estimates required to deliver on the results outlined in the Annual Work Plan. Common Services Budget and Common Services Account A common form of budgeting and financial management in support of joint Business Operations is the Common Services Budget: based on the Annual Work Plan, agencies cost-share the costs incurred through the implementation of the work plan. The Business Operations Harmonization initiatives (including Common Services) account 27 is used as a joint bank account that is used to pay for the expenditures incurred for the provision of particular Business Operations Harmonization initiatives (including Common Services). Usually agencies pay upfront for the anticipated costs for the Business Operations Harmonization initiatives (including Common Services), with differences in actual costs being reimbursed or credited against next year s charges. To facilitate the management of resources transferred by agencies based on the Common Services budget, the UNDG has developed an instrument referred to as the Common Services account. The Common Services account is an account which is managed by an AA (usually an agency at the Country Level) which manages the day-to-day management of the account and administrative management of the Common Business Operations portfolio, to the extent that portfolio is covered through the Common Services Account. Common Services MoU To facilitate the development of Common Business Solutions, more particularly Common Services, the UNDG has a standard template for Common Services, outlining the legal framework and management arrangements for individual services/business solutions. UNCT/OMTs are strongly encouraged to use this standard template as it will drastically reduce transaction costs as it does not require review and approval from individual agency legal departments. The MoU usually is supplemented with SLA's detailing the specific arrangements for a particular Common Service. 27 Often referred to as the Common Services Account 39 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

40 For the UNDG agreed template MoU for Common Services and/or an I-AWP template and example, kindly refer to the UNDG Toolkit. 40 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

41 Appendix A: Results Based Management: Definition of Key Terms Results based management (RBM) Results-based management is a management strategy by which all actors, contributing directly or indirectly to achieving a set of results, ensure that their processes, products and services contribute to the desired results (outputs, outcomes and higher level goals or impact) and use information and evidence on actual results to inform decision making on the design, resourcing and delivery of programmes and activities as well as for accountability and reporting. Results Results are changes in a state or condition that derive from a cause-and-effect relationship. There are three types of such changes - outputs, outcomes and impact- that can be set in motion by a development intervention. The changes can be intended or unintended, positive and/or negative. 1.1 Results chain The causal sequence for a development intervention that stipulates the necessary sequence to achieve desired results beginning with inputs, moving through activities and outputs, and culminating in outcomes, goal/impacts and feedback. It is based on a theory of change, including underlying assumptions. Impact Impact includes changes in programme delivery through enhanced operational support, and therefore ultimately, in people s lives - can include changes in knowledge, skills, behaviors, health or conditions for children, adults, families or communities. Positive and negative longterm effects on identifiable groups produced by a development intervention, directly or indirectly, intended or unintended. Goal The specific end results desired or expected to occur as a consequence, at least in part, of the intervention or activity. It is the higher order objective that will assure national capacity building to which a development intervention is intended to contribute. Outcome Outcomes represent changes in the institutional and behavioural capacities for development conditions that occur between the completion of outputs and the achievement of goals. Outputs Outputs are changes in skills or abilities, and capacities of individuals or institutions or the availability of new products and services that result from the completion of activities within a development intervention within the control of the organization. They are achieved with the resources provided and within the time-period specified. 41 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

42 Activity Actions taken or work performed through which inputs, such as funds, technical assistance and other types of resources are mobilized to produce specific outputs. Inputs The financial, human, material, technological and information resources used for development interventions. Performance indicator A performance indicator is a unit of measurement that specifies what is to be measured along a scale or dimension but does not indicate the direction or change. Performance indicators are a qualitative or quantitative means of measuring an output or outcome, with the intention of gauging the performance of a programme or investment. Baseline Information gathered at the beginning of a project or programme from which variations found in the project or programme are measured. Target Specifies a particular value for an indicator to be accomplished by a specific date in the future. Total literacy rate to reach 85% among groups X and Y by the year Benchmark Reference point or standard including norms against which progress or achievements can be assessed. A benchmark refers to the performance that has been achieved in the recent past by other comparable organizations, or what can be reasonably inferred to have been achieved in similar circumstances. Results framework or matrix The results matrix explains how results are to be achieved, including causal relationships and underlying assumptions and risks. The results framework reflects a more strategic level across an entire organization, for a country programme, a programme component within a country programme, or even a project. Performance The degree to which a development intervention or a development partner operates according to specific criteria/standard/guidelines or achieves results in accordance with stated plans. Performance monitoring A continuous process of collecting and analyzing data for performance indicators, to compare how well a development intervention, partnership or policy reform is being implemented against expected results (achievement of outputs and progress towards outcomes). 42 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

43 Appendix B: Templates B1: Template Baseline Analysis Type of existing Common Service/ Harmonization effort Managing Entity (Service Manager) Clients (Agencies using service) Key Performance Indicators (KPI s) Performance Ranking against KPI s Recommended Action (ref paragraph 2.1 BoS) 43 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

44 Appendix B2: Template Needs and Requirements Analysis Table Name Business Operation/Service Needs Analysis Narrative Requirements Analysis & KPI's 44 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

45 Appendix B3. Template Labor Cost Analysis Labor cost analysis <Insert Process name> Step Time cost (minutes) Step 1: Identify potential venues Step 2: Contact the management of each venue to get quotes and Terms and Conditions for each venue Step 3: Evaluate all quotes and select a venue Step 4: Prepare documents for procurement committee approval Step 5: Inform the venue and sign the contract Step 6: Raise the Purchase Requisition/Purchase Order Step 7: Validate the invoiced amount against the contract Step 8: Pay the vendor TOTAL TIME TOTAL COST (ref below) 30 min 45 min 60 minutes 45 minutes 50 minutes 15 minutes 10 minutes 15 minutes 270 Minutes (4,5h) 391,50 USD 45 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

46 Appendix B4: Template Cost Benefit Analysis (incl. Priority Assessment) Proposed Business Solution (incl. Common Services) Monetary Costs Benefits Non-Monetary Costs Other Costs/Benefits Prioritization Benefits A B C D E F G H I Anticipated Anticipated Anticipated Anticipated Anticipated Cost Benefit Monetary Monetary Non Significant Significant Ratio Ratio Cost ($ Benefit Monetary Other Other (A+C) (B+D) Investment) Cost- Time Cost Benefits Investment (Monetized-$ value) Anticipated Non Monetary Benefit- Time reduction (Monetized- $ value) Priority Ratio: Benefit/Cost Ratio (H/G) 46 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

47 Appendix B5: Results and M&E Matrix template Note: The number of outcome statements depends on the results of Operations Analysis (e.g. the choice by the UNCT/OMT to develop and implement specific harmonization initiatives (incl. Common Services). The UNCT/OMT is therefore not required to cover all seven outcome areas included in this template. Lead Agency Participating UN Agencies Coordination Mechanisms Outcome Budget Outcome Budget Gap BoS Outcome 1: Common Procurement <Reflect Name of the agency leading the BO Harmonization initiative> <Reflect agency names participating in the BO Harmonization Initiative> <Reflect the coordination/governance mechanism- usually UNCT-OMT-Task Team working on this particular initiative> <Reflect the estimated total budget for this outcome (sum of the output budgets)> <Reflect the Budget Gap= Required Resources minus Available Resources for this outcome> Outcome 1 <Reflect the outcome1 statement> Outcome Indicators Source of Data Baseline Target 2012 Target 2013 Target 2014 Target 2015 Risk and Assumptions Output 1.1 <Reflect Output 1.1 statement> Output Indicators Source of Data Baseline Target 2012 Target 2013 Target 2014 Target 2015 Risk and Assumptions Output 1.2 <Reflect Output 1.2 statement> Output Indicators Source of Data Baseline Target 2012 Target 2013 Target 2014 Target 2015 Risk and Assumptions 47 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

48 Lead Agency Participating UN Agencies Coordination Mechanisms Outcome Budget Outcome Budget Gap BoS Outcome 2: Common Human Resources <Reflect Name of the agency leading the BO Harmonization initiative> <Reflect agency names participating in the BO Harmonization Initiative> <Reflect the coordination/governance mechanism- usually UNCT-OMT-Task Team working on this particular initiative> <Reflect the estimated total budget for this outcome (sum of the output budgets)> <Reflect the Budget Gap= Required Resources minus Available Resources for this outcome> Outcome 2 <Reflect the outcome2 statement> Outcome Indicators Source of Data Baseline Target 2012 Target 2013 Target 2014 Target 2015 Risk and Assumptions Output 2.1 <Reflect the output 2.1 statement> Output Indicators Source of Data Baseline Target 2012 Target 2013 Target 2014 Target 2015 Risk and Assumptions Output 2.2 <Reflect Output 2.2 statement> Output Indicators Source of Data Baseline Target 2012 Target 2013 Target 2014 Target 2015 Risk and Assumptions 48 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

49 Lead Agency Participating UN Agencies Coordination Mechanisms Outcome Budget Outcome Budget Gap BoS Outcome 3: Common ICT <Reflect Name of the agency leading the BO Harmonization initiative> <Reflect agency names participating in the BO Harmonization Initiative> <Reflect the coordination/governance mechanism- usually UNCT-OMT-Task Team working on this particular initiative> <Reflect the estimated total budget for this outcome (sum of the output budgets)> <Reflect the Budget Gap= Required Resources minus Available Resources for this outcome> Outcome 3 <Reflect the outcome 3 statement> Outcome Indicators Source of Data Baseline Target 2012 Target 2013 Target 2014 Target 2015 Risk and Assumptions Output 3.1 <Reflect Output 3.1 statement> Output Indicators Source of Data Baseline Target 2012 Target 2013 Target 2014 Target 2015 Risk and Assumptions Output 3.2 <Reflect Output 3.2 statement> Output Indicators Source of Data Baseline Target 2012 Target 2013 Target 2014 Target 2015 Risk and Assumptions 49 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

50 Lead Agency Participating UN Agencies Coordination Mechanisms Outcome Budget Outcome Budget Gap BoS Outcome 4: Logistics and Transport <Reflect Name of the agency leading the BO Harmonization initiative> <Reflect agency names participating in the BO Harmonization Initiative> <Reflect the coordination/governance mechanism- usually UNCT-OMT-Task Team working on this particular initiative> <Reflect the estimated total budget for this outcome (sum of the output budgets)> <Reflect the Budget Gap= Required Resources minus Available Resources for this outcome> Outcome 4 <Reflect the outcome 4 statement> Outcome Indicators Source of Data Baseline Target 2012 Target 2013 Target 2014 Target 2015 Risk and Assumptions Output 4.1 <Reflect Output 4.1 statement> Output Indicators Source of Data Baseline Target 2012 Target 2013 Target 2014 Target 2015 Risk and Assumptions Output 4.2 <Reflect Output 4.2 statement> Output Indicators Source of Data Baseline Target 2012 Target 2013 Target 2014 Target 2015 Risk and Assumptions 50 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

51 Lead Agency Participating UN Agencies Coordination Mechanisms Outcome Budget Outcome Budget Gap BoS Outcome 5: Administration <Reflect Name of the agency leading the BO Harmonization initiative> <Reflect agency names participating in the BO Harmonization Initiative> <Reflect the coordination/governance mechanism- usually UNCT-OMT-Task Team working on this particular initiative> <Reflect the estimated total budget for this outcome (sum of the output budgets)> <Reflect the Budget Gap= Required Resources minus Available Resources for this outcome> Outcome 5 <Reflect the outcome 5 statement> Outcome Indicators Source of Data Baseline Target 2012 Target 2013 Target 2014 Target 2015 Risk and Assumptions Output 5.1 <Reflect Output 5.1 statement> Output Indicators Source of Data Baseline Target 2012 Target 2013 Target 2014 Target 2015 Risk and Assumptions Output 5.2 <Reflect output 5.2 statement> Output Indicators Source of Data Baseline Target 2012 Target 2013 Target 2014 Target 2015 Risk and Assumptions 51 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

52 Lead Agency Participating UN Agencies Coordination Mechanisms Outcome Budget Outcome Budget Gap BoS Outcome 6: Finance <Reflect Name of the agency leading the BO Harmonization initiative> <Reflect agency names participating in the BO Harmonization Initiative> <Reflect the coordination/governance mechanism- usually UNCT-OMT-Task Team working on this particular initiative> <Reflect the estimated total budget for this outcome (sum of the output budgets)> <Reflect the Budget Gap= Required Resources minus Available Resources for this outcome> Outcome 6 <Reflect the outcome 6 statement> Outcome Indicators Source of Data Baseline Target 2012 Target 2013 Target 2014 Target 2015 Risk and Assumptions Output 6.1 <Reflect Output 6.1 Statement> Output Indicators Source of Data Baseline Target 2012 Target 2013 Target 2014 Target 2015 Risk and Assumptions Output 6.2 <Reflect Output 6.2 Statement> Output Indicators Source of Data Baseline Target 2012 Target 2013 Target 2014 Target 2015 Risk and Assumptions 52 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

53 Lead Agency Participating UN Agencies Coordination Mechanisms Outcome Budget Outcome Budget Gap BoS Outcome 7: Security <Reflect Name of the agency leading the BO Harmonization initiative> <Reflect agency names participating in the BO Harmonization Initiative> <Reflect the coordination/governance mechanism- usually UNCT-OMT-Task Team working on this particular initiative> <Reflect the estimated total budget for this outcome (sum of the output budgets)> <Reflect the Budget Gap= Required Resources minus Available Resources for this outcome> Outcome 7 <Reflect the outcome 7 statement> Outcome Indicators Source of Data Baseline Target 2012 Target 2013 Target 2014 Target 2015 Risk and Assumptions Output 7.1 <Reflect Output 7.1 statement> Output Indicators Source of Data Baseline Target 2012 Target 2013 Target 2014 Target 2015 Risk and Assumptions Output 7.2 <Reflect Output 7.2 statement> Output Indicators Source of Data Baseline Target 2012 Target 2013 Target 2014 Target 2015 Risk and Assumptions 53 UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft