ITC CHANGE MANAGEMENT REPORT

Transcription

1 ITC CHANGE MANAGEMENT REPORT

2 ITC mission: ITC enables small business export success in developing and transition countries by providing, with partners, sustainable and inclusive trade development solutions to the private sector, trade support institutions and policymakers. The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the International Trade Centre concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. This document has not been formally edited by the International Trade Centre. November 2009 Original: English Joint Advisory Group on the International Trade Centre Forty-third session Geneva, December 2009 International Trade Centre 2009

3 ITC Change Management Report TABLE OF CONTENTS 1. Introduction Background to the change process Changes in the external environment External ITC evaluation ITC response to the case for change taking stock: March June Limitations of the evaluation ITC management changes JAG April Establishing a baseline for change: June December Transition team Focus groups In-house consultations Governance arrangements and funding - stakeholder consultations Outputs of the transition team and focus groups Informal JAG December Outputs of the baseline phase Setting the strategic direction: January May ITC brand blueprint Pilot country approach Refined OED functions Development of communications and marketing report Consolidated Programme Document JAG April Outputs of the strategic direction phase Change management: June December Change Management Team Change process Human resources Communications Business lines Strategic partnerships ITC Change Management Report 1

4 6.7 ITC programme delivery JAG December Outputs of the change management phase Mainstreaming and implementation: January 2008 to date Human resources Strategic planning Division of Programme Support change project Performance management JAG December Continuous improvement Outputs of the mainstreaming and implementation phase Annex 1 - Summary of the change process by theme ITC Change Management Report 2

5 1. INTRODUCTION Over the last three years ITC has undergone significant changes, both in terms of the nature of its delivery and its internal organization and management processes. The trigger for this change was an evaluation of the ITC funded by Denmark and other donors in The purpose of this document is to explain how ITC changed in response to this initial stimulus, and how this response has engendered a culture of continuous improvement within the organization which has resulted in ongoing efforts to align ITC s functions and services to the demands of its clients and to maximize its relevance, efficiency and effectiveness. The change process has taken place in several stages, which are summarized in the diagram below. Each stage is examined in turn, with a summary of the most relevant outputs at the end of each section. A summary of the change process, by theme/area of work, is included in the Annex. JAG Apr INFORMAL JAG Dec JAG Apr JAG Dec JAG Dec STOCKTAKING Evaluation report ITC Mgmt response ESTABLISH BASELINE Transition team 6 focus groups In-house consultations Retreat 15 June SETTING STRATEGIC DIRECTION Focus groups External consultants CHANGE MANAGEMENT Change teams External consultants MAINSTREAMING & IMPLEMENTATION Change teams External consultants APRIL 2006 JUN - SEPT DEC JAN - MAY 2007 JUN - DEC 2007 JAN to date 2. BACKGROUND TO THE CHANGE PROCESS The current change process in ITC began in 2006, in response to changes in the external environment and an external evaluation of ITC. 2.1 Changes in the external environment Over the past four decades, ITC has built a reputation as a centre of excellence for trade-related technical assistance and capacity building. Since ITC was created in 1964 (as the first provider of trade-related technical assistance), trade has dramatically grown and the participation of developing and transition economies now accounts for about 45% of international trade. However, during that same period, progress has been unequal. This is especially the case in Africa by 2008 the African share of world trade in 2008 had fallen to around 3%. A large portion of the world is therefore excluded from the benefits of globalization. It is now accepted that trade, essentially conducted by the private sector, can be a powerful tool for development. It is vital to expand the participation of developing country business communities in the global economy. The creation of a sustainable export support infrastructure in developing and transition countries has become a major objective of most development agencies and donors. As a consequence, the number of trade-related technical assistance (TRTA) providers has expanded dramatically since ITC s inception. The 2005 Paris Declaration placed emphasis on enhanced Aid Effectiveness. This creates a new environment where developing countries and LDCs will increasingly have the decision-making role to integrate viable trade-related projects into their development programmes and poverty reduction strategies. Therefore, ITC is evolving in a much more complicated and competitive environment, with ITC Change Management Report 3

6 higher quality requirements, where it will be necessary to work more effectively with multiple partners. In addition, donors and beneficiary countries are increasingly looking for impact rather than just output and higher levels of value for money and accountability. 2.2 External ITC evaluation The 2006 ITC evaluation sponsored by Denmark and several donors, thereafter the Danish Report 1, is a complex set of 24 separate thematic or methodological documents plus a synthesis report. The evaluation identified the challenges faced by ITC in the context of the changing environment, and proposed recommendations for meeting these challenges. The evaluation therefore triggered the subsequent change management process. The evaluation stated that since ITC received half of its operational budget from extrabudgetary sources, harmonization of donor support for ITC was a priority for improving overall programme coherence and effectiveness. It also recommended the re-examination of ITC s governance framework, which over time has become attenuated and fragmented. From an operational perspective, the evaluation recommended that ITC should apply an MDG lens in the design and implementation of its projects, and it identified two main interconnected shortcomings requiring a change at ITC: More country-specific projects The document called for an increased scale of activities with greater priority for country programming would help to achieve better utilization of ITC products and could improve the return on the investment in the fixed costs of developing these products. More systematic needs assessment The document described a fragmented supply driven situation marked by the proliferation of products or brand extension, some of which may be supply driven from the various sections of ITC, and some of which may be responsive to donor preferences. The Denmark Report clearly stated that the future of ITC relied upon the implementation of key management and institutional reforms and also that an effective programme development, management and accountability for an increased scale of operation will be dependent on such reforms. 3. ITC RESPONSE TO THE CASE FOR CHANGE TAKING STOCK: MARCH JUNE 2006 While the Danish evaluation, in the context of the evolving external environment, set out a compelling case for change, ITC faced several challenges before it could move ahead with the recommended changes. 3.1 Limitations of the evaluation While the evaluation included 34 recommendations for improving ITC s relevance and performance, the recommendations were not prioritised and the evaluation did not propose an action plan for implementing the changes. ITC s first task was therefore to review the evaluation and prepare a management response to the recommendations. The management response was presented at the JAG in April Evaluation of the International Trade Centre, Synthesis Report, DMI Associates, April ITC Change Management Report 4

7 ITC subsequently prioritized and categorized the recommendations, as summarised in the diagrams below Recommendation priorities Recommendation categories Category Actions required of stakeholders Actions required of ITC Strategic Operational Strategic Operational Harmonization & accountability 1 to Strengthening operations 7 to 8 15 to , 26, 34 Support trade & development 27 to 33 ITC Change Management Report 5

8 3.2 ITC management changes A new Executive Director and senior management team were appointed in the second half of The new management team therefore required a period of transition to establish a baseline from which changes could be planned and implemented. 3.3 JAG April 2006 The Danish evaluation report, and ITC s management response, was presented at the 2006 JAG meeting. The JAG noted that the evaluation report was an important and useful tool for ITC s new senior management to reflect on how ITC would evolve, and that the ITC management response provided a clear direction on the way forward. Executive Director Designate Patricia Francis proposed to put in place a Transition Team to examine the recommendations, and to consult with stakeholders to identify a way forward. 4. ESTABLISHING A BASELINE FOR CHANGE: JUNE DECEMBER 2006 The new Executive Director took up her position in June 2006, and over the following six months ITC established a baseline for the subsequent change programme. Key steps included: Establishing a transition team Establishing six focus groups In-house consultations Stakeholder consultations. 4.1 Transition team A transition team was set up to ensure a smooth and effective transition of the new senior management team. It led an intensive and fully inclusive process of consultations with ITC s staff and stakeholders in order to take stock of the organization, review key issues and bottlenecks and seek possible solutions in close consultation with staff. In order to support its work, the transition team established focus groups to review key issues. 4.2 Focus groups Six focus groups were established to review specific themes of immediate importance to ITC that were outlined in the evaluation report. The groups, made up entirely of staff, focused on the following subjects: ITC tools - costs and benefits Results based management ITC/UNCTAD/WTO relationship ITC performance standards ITC responses to MDGs Country, regional and global programmes. An online discussion facility enabled all staff members to contribute to the discussions and view the conclusions presented by each group. ITC Change Management Report 6

9 4.3 In-house consultations Consultation with staff within ITC was made a top priority in order to keep them informed of developments, to tap their experience and insights and to involve them in setting the new direction for the organization. Specific consultation initiatives included: Regular breakfast meetings open to all staff Regular communication to all staff to keep them abreast of developments Regular meetings with all Section Chiefs (G-19) ITC retreat to discuss the way forward for the organization. 4.4 Governance arrangements and funding - stakeholder consultations One on one consultations were held with individual donors, followed by a stakeholders retreat in October Stakeholders did not have a common view on whether and how ITC s governance structure should be modified to increase efficiency and improve oversight of the organization. ITC therefore decided to continue to discuss this subject with different stakeholder groups and revisit the topic at the following JAG meeting in Outputs of the transition team and focus groups The insights and recommendations resulting from the work of the transition team and focus groups led to a series of new initiatives that were launched during the latter part of 2006 and early These included: Updating ITC s mission statement and strategic objectives Setting up pilot country teams to review options for a more strategic, coherent and holistic approach to country projects Strengthening the Office of the Executive Director Taking measures to strengthen the communications team, including consolidation of communications related functions Introducing an Operations Committee to review and decide on operations-related matters Reviewing ITC s suite of products and services to better align them with client needs Producing an annual Consolidated Programme Document ITC mission statement and strategic objectives ITC s proposed mission statement was refined as: Contribute to sustainable development through technical assistance in export promotion and international business development. Three new strategic objectives were determined through a consultative process involving ITC s stakeholders and staff. They outline key areas in which ITC delivers technical assistance with a view to fulfilling its mandate. The objectives are as follows: Strategic objective 1: Strengthen the international competitiveness of enterprises. Strategic objective 2: Develop the capacity of trade service providers to support businesses. Strategic objective 3: Support policymakers in integrating the business sector into the global economy. ITC Change Management Report 7

10 This three stranded approach, focusing on TSIs, enterprises and policy makers, was reflected in a coherent framework for delivering projects, as shown in the following diagram 2 : Consolidated Programme Document The framework of the CPD was developed as a response to the main recommendations of the external evaluation, while taking into account the issues and potential solutions highlighted in the transition process. It was designed to provide a decisive breaking point from the fragmented approaches within ITC, offering: A definition of the categories of ITC s clients (enterprises, TSIs and policy makers) The principles underlying ITC s role: o o In planning, ITC tackles trade development issues according to a holistic and comprehensive technical assistance approach, addressing needs articulated by its clients In implementation, ITC focuses its competitive advantages in an open and transparent manner, while completing its offering through partnerships. A framework to organize ITC s offering, based on results, providing for: o o A strategic approach to monitoring ITC s activities, with appropriate levels of transparency and accountability A road map to coordinate ITC s work programme within the organization Strengthening the Office of the Executive Director A review of the functioning of the Office of the Executive Director was undertaken and pointed to the need to strengthen the thought leadership and strategic oversight functions for the entire organization and to move towards the development of a responsive corporate culture for ITC. To achieve these 2 This is the latest version of the diagram, which incorporates changes made to the original. ITC Change Management Report 8

11 objectives and to provide the Executive Director and Deputy Executive Director with sufficient support it was proposed to: Establish a section within OED with overall responsibility for strategic planning, monitoring and evaluation, and, more specifically, for preparing the ITC Strategic and Operational Plans Create a professional position within the Strategic Planning Section to deal with Monitoring and Evaluation in order to help the organization move forward with results based management Reinforce the role of the Director of Operations (Deputy Executive Director) Reinforce the donor relations function to include a resource mobilisation function Create a section to coordinate ITC s marketing and communications functions, oversee the ITC publications programme, liaise with media and act as speech writer for the Executive Director Assign a senior professional staff member as head of office of OED to assist the Executive Director. 4.6 Informal JAG December 2006 The purpose of the informal JAG was to continue the process of consultation with stakeholders and to report on progress in developing ITC s response to the evaluation recommendations. The JAG members validated ITC s progress towards responding to the evaluation recommendations, and endorsed the Consolidated Programme Document approach as a first step toward comprehensive planning of ITC activities. 4.7 Outputs of the baseline phase The outputs achieved during this phase are summarised in the table below. Change management and strengthened management processes CPD framework Refined mission Strategic objectives and the Gorilla foot delivery framework Staff awareness of and involvement in the change process ITC Change Management Report 9

12 5. SETTING THE STRATEGIC DIRECTION: JANUARY MAY 2007 Having established a baseline for change and had its initial priorities endorsed at the informal JAG, ITC moved ahead to set the strategic direction for change. While a large number of areas for improving the organization s performance had been identified, the pace with which these reforms could be assessed, planned and rolled out was limited by the ITC s capacity to absorb change, as well as the human and financial resources available given the organization s commitment to maintaining delivery of its TRTA services. The main initiatives during this phase included: Defining ITC s brand Piloting a country focussed approach to programming Preparing ITC s Consolidated Programme Document Developing a project cycle management system. 5.1 ITC brand blueprint In response to the recommendation to renew and develop a common culture and strategy for the organization, ITC reviewed and refined its corporate identity. This would permit ITC to communicate effectively with its stakeholders, clarify its offer to clients, and drive internal unity and outward action. The key components of this work were to define ITC s: Vision: The development partner for export success Mission: ITC enables small business export success in developing and transition countries by providing, with partners, sustainable and inclusive trade development solutions to the private sector, trade support institutions and policymakers Brand essence: Export impact for good Values: Vision, integrity, excellence, pragmatism, responsiveness Strategic approach: One to one to many. 5.2 Pilot country approach In response to the recommendation to focus on country specific interventions, ITC tested a pilot country approach in five countries, with ITC shaping a framework for a single, coordinated corporate solution: Priority areas for action, based on ITC research, national development strategies, and partner consultations A logical framework format for activities, based on the CPD, spelling out objectives, outputs, outcomes and performance indicators Other TRTA activities, with possible synergies and in-country partners to apply the strategy, and monitor project implementation. The regional dimension was also considered, with country interventions framed within a regional context. 5.3 Refined OED functions Communications, Monitoring and Evaluation and Resource Mobilization and Partnership Group were all moved in to OED in order to highlight the importance of revitalizing these critical functions within ITC. ITC Change Management Report 10

13 These groups also cut across ITC s divisions, and as such need to have a strong overview of the business as a whole which being a part of OED ensures. 5.4 Development of communications and marketing report A specific Marketing and Communications report was developed by the consultant working with the transition team. In accordance with the key recommendations of this report, the Communications department was moved into OED. The team is being restructured in line with the recommendations, and the editorial board will be reformed in The department continues to be funded by regular budget and some supporting extrabudgetary funds a proposed project tax to provide additional funding was rejected for the time being. 5.5 Consolidated Programme Document Based on the framework endorsed by the informal JAG in December 2006, ITC prepared a completed document which was submitted to the JAG in April JAG April 2007 ITC presented its progress in responding to the Danish evaluation recommendations, and the JAG confirmed its support for the internal reform agenda and requested ITC management to deepen the reform process as a priority. Specific areas of reform supported by the JAG included: A more consolidated and strategic approach to ITC s programme of work ITC s revised mission and vision statements ITC s strategy of working with export enterprises, TSIs and policy makers The Consolidated Programme Document approach to programming The focusing of ITC efforts on selected pilot countries ITC s efforts to build strategic partnerships with other TRTA providers The adoption of a single trust fund and the re-alignment of the Global Trust Fund financial year to a calendar year. The JAG also stressed that the previous business model focusing on a large number of low-value transactions would need to be reviewed to enable ITC to deliver larger, coherent programmes in collaboration with important regional and country players. In addition, ITC should move towards more consolidated and coherent activities at the country and regional level, should strengthen performance management, and further mainstream MDG related cross cutting issues. ITC was requested to provide governance options at the next JAG in accordance with the Danish evaluation s recommendations. ITC Change Management Report 11

14 5.7 Outputs of the strategic direction phase The outputs achieved during this phase are summarised in the table below. Change management and strengthened management processes Country focus ITC brand blueprint developed and endorsed by the JAG CPD endorsed by the JAG Pilot country approach tested in five countries and endorsed by the JAG 6. CHANGE MANAGEMENT: JUNE DECEMBER Change Management Team ITC sought to build on the endorsement of the JAG for its initial steps in the change process and on the direction provided by the JAG by initiating a comprehensive change management process. To this end ITC established a high level Change Management Team, led by the Executive Director and Deputy Executive Director. The Team identified the following six key change initiatives, which were rolled out during the second half of These initiatives were led by ITC staff with consultancy support where required: Change process Human resources Communication Business lines Strategic partnerships ITC programme delivery. While these initiatives are examined separately below, there was significant consultation in the decision to make these the priority areas for change and to ensure consistency and congruence between their outputs. 6.2 Change process The responsibilities of the Change Process group were as follows: Organize and manage delivery of the overall change management process, including the definition of key change management initiatives, the appointment of team leaders and teams to manage each initiative, overseeing the timely delivery of all initiatives as well as the whole change management process Interact with external consultants hired to help on the change management process Bring all initiatives to a state of readiness where they can be implemented Whilst providing visibility and communication to the ITC staff and the stakeholders Organizational reform process and results-based management One of the core activities under the change process was the management of organizational reform and results based management. Organizational experts assessed ITC s structure and work processes in the light of both the newly introduced CPD and of the recommendations made by the Danish evaluation. They made specific recommendations for the improvement of ITC s organizational structure with a view to enhancing operational and administrative efficiencies, and proposed a programming and management framework based on results to align ITC s services, systems and ITC Change Management Report 12

15 processes to ensure the achievement of results and measurement and monitoring thereof. The consultants review covered the following issues: ITC s position and mission, including: o o o o ITC s positioning with respect to WTO and UNCTAD ITC s mission and vision The demands of ITC s donors The views of ITC s customers and clients ITC s organization structure and work processes Sources of funding and financial management. The review identified key issues relating to ITC s future strategy and provided ITC management with options for responding to these issues, as well as specific recommendations for: Performance management Strategic and operational planning Organization structure Project cycle management Programming Human resource development Information systems and technology. These recommendations were supported by a modernization plan roadmap providing a timetable for their implementation. ITC Change Management Report 13

16 One of the key outputs of this work was a revised organization structure, which was aligned with the new business lines (discussed below). The revised organization structure is set out in the following diagram Project cycle management In tandem with the work on results based management, ITC developed a project cycle management approach for its work. This aimed to address all aspects of the project cycle from needs assessment to project design to funding, implementation, monitoring and evaluation. 6.3 Human resources The purpose of the human resources initiative was to develop strategic, integrated and competencybased HR management to enable the organization to meet its new mission, values and goals in a results-based manner. A core component of the HR work was to support the development of the new organization structure to reflect ITC s strategic objectives and lines of business. HR also led the internal communications strategy (which included a regular internal newsletter) to help manage staff concerns about the change process and bring them on board with the reforms. 6.4 Communications ITC sought consultancy support in order to: Develop a new brand identity and provide guidelines on how to apply the brand to ITC's communications Recommend communications delivery for three sections of the Communications and Events section: Corporate Communications and Events, Editorial, and Media Management Support the development of ITC's Communications work programme and annual planning cycle, including advice with integrated strategies, tools and internal buy-in ITC Change Management Report 14

17 Brand management and development to include: graphic design and creation of documents, presentations, and development and production of annual ITC corporate positioning material Reposition the ITC publications in particular the Forum magazine Review websites and the intranet and provide recommendations on how these should be redesigned in line with internet and intranet strategies Editorial assistance and content creation across media, including press, presentations and video Support event management for ITC s flagship events and the theming and communications around these events. 6.5 Business lines Up to mid-2007 ITC had 17 business lines, which had limited the organization s ability to operate cohesively and led to the duplication of activities, producing overly high transaction costs. Not only was a reformulation of the business lines required in its own right, but it also had to go hand-in-hand with the restructuring of the ITC s organization structure. Business Line Teams (BLTs) identified and designed ITC s core business activities, and identified objectives and key performance indicators. The following five key business lines were identified: Business and Trade Policy Export Strategy TSI Strengthening Trade Intelligence Exporter Competitiveness. Business Line Implementation Teams (BLIT) were then established, involving the participation of a wide spectrum of professional staff from all the Divisions in order to gain expertise and buy-in from staff. The BLIT also fleshed out the indicators and business processes, developing Business Line logical frameworks. The relationship between the business lines and ITC s clients and strategic objectives are set out in the diagrams below. ITC Change Management Report 15

18 Business Lines Objectives Export Strategy Trade Intelligence Business in Trade Policy Trade Support Institutions Strengthening Exporter Competitiveness Supporting policymakers in integrating the business sector into the global economy Developing the capacity of Trade Service Providers to support businesses Strengthening the international competitiveness of enterprises 6.6 Strategic partnerships The initiative on strategic partnerships was set up to better position and differentiate ITC in the increasingly competitive TRTA environment and to mobilise technical and financial resources to increase ITC s impact. The key issues assessed by the group included: ITC and the One UN initiative ITC s relationship with other UN organizations. In concrete terms, the group s aims were to: Review ITC s past and ongoing collaboration with UN agencies, funds and programmes, and explored new partnership opportunities Review the role of ITC in One UN processes Propose ways of increasing ITC s visibility within the UN system through participation in the One UN programme. Due to the work pressure from other prioritized initiatives (primarily the change management process and business lines initiatives) it was decided to scale back the work of this initiative. However, ITC did participate in the first inter-agency joint programming initiative in Vietnam as part of the One UN programme. A decision was also taken in 2007 to establish a Resources and Partnerships Group, headed by a Director, with the main purpose of developing strategic partnerships and enhancing the capability of the organization to mobilise additional resources. ITC Change Management Report 16

19 6.7 ITC programme delivery The programme delivery initiative included the following sub-initiatives: Client survey Client management system development Selection of priority countries for Development of a project strategy for key countries Partnership agreements with TSIs Review of regional programmes Review of global programmes ITC Client Survey The Client Survey was introduced in 2007 to test ITC s clients about their perception of ITC to enable fine-tuning diagnostics developed in the Danish Report. The objective is to provide a deeper insight into the business environment in which ITC operates and to assist ITC Divisions and Sections develop targeted marketing strategies to achieve ITC s strategic objectives. It also helps us to understand the drivers of ITC s brand reputation and image. Finally, in terms of products, services and delivery modes, the Client Survey monitors their relevance, utilization and performance and serves to obtain feedback to help future ITC offerings. The annual Client Survey was launched in The first year was used to establish the system and gain credibility. Over 1,500 respondents from all regions, representing the three categories of ITC clients, policy makers, Trade Support Institutions and the business sector, completed the survey. In 2008, emphasis was put on engaging ITC management in the analysis and interpretation of the results at macro and micro level. High levels of participation across respondent groups and the overall coherence between the results of 2007 and 2008, confirmed the validity and robustness of the approach. The main conclusions from the Client Survey include: Relevance ITC s areas of support are well valued by all categories of clients, in particular those related to the provision of market information and the adaptation to regulations and standards in destination markets. There is also general consensus about ITC's continued focus on its current main functions of information and training provider. Efficiency ITC is regarded as an efficient organization, being highly transparent and with good performance in terms of working efficiently and supporting the use of its products. Effectiveness Clients indicate that there is ample room for improvement in achieving ITC s own stated corporate objectives and set of sub-objectives for its work with them. This is particularly true in the case of supporting enterprises achieving actual exports. However, rates are quite positive from TSIs in ITC s training to improve their services to their clients and enterprises though still progress needs to be made in assisting TSI improve their own internal processes. Impact ITC is considered efficient in having provided its clients with tools/skills to train others or to advance without assistance, which suggests good level of impact, but not good enough at engaging clients to identify their specific needs and design integrated solutions which are the most important factors in overall performance. Sustainability Clients having used one ITC product or service are usually unaware of other ITC products and services, which confirms fragmentation between external networks of clients. Similarly, the lack of country presence seems to play a significant role in clients preferring other organizations as their most important provider of trade-related technical assistance. ITC Change Management Report 17

20 The feedback from the Clients survey confirms not only ITC s clients expectations in terms of ITC s performance, but also the relevance of the recommendations of the External Evaluation of ITC Client management system development The development of a client relationship management system was initiated, but was subsequently paused due to time commitments on other priorities. However, this work has subsequently been brought back on track, and an initial design for a CRM system is anticipated by the first quarter of Selection of priority countries for A working group was tasked to identify countries where ITC activities could have greater impact from taking a holistic approach when identifying and focusing on the trade needs of the country, in line with the Denmark report recommendation that ITC programs be sustainable and have impact at a country level. The group began the design of a methodology to help guide ITC in selecting these countries, versus those countries for which a customized, ad-hoc programme or generic global product would be more appropriate Development of a project strategy for key countries As ITC moved towards the launch of an Integrated Country Programme it was considered crucial to have standardized guidelines for creating project and programme documents. This initiative involved drafting project and programme documents for all country programmes, finalizing any outstanding project documents that were waiting to be sent to donors, and creating a set of ITC guidelines for all future project and programme documents that ITC staff can use going forward. The work of the group fed into the completion of a project cycle management system for ITC Partnership agreements with TSIs A review was undertaken of ITC s relationships with its TSI partners with particular emphasis on customer orientation, nature, scope and quality of services provided; and the role ITC plays in building and strengthening TSI networks and recommending strategies and concrete ITC actions in the area of network building. A road map for ITC s future approach to TSIs was presented to Senior Management, including a concept note for TSI benchmarking Review of regional programmes A working group was tasked to: Define those common criteria that would make a program or project easier for ITC to deliver at a regional level than at a national or sector level Identify those ITC programs that would lend themselves easily to a regional approach Determine what types of activities ITC could provide to enhance the competitive advantage of businesses in terms of the regional value chain Identify areas where ITC could better support a single, regional customs union or enhance the capacity of a regional trade institution Design a methodology for how ITC can implement future regional programmes using industry best practices Review of global programmes A Global Programmes team was tasked with defining an ITC Global Programme, identifying its key characteristics, determining the current ITC offerings best suited to a global programme, and finally listing those factors critical to ensuring the success of the programme. ITC Change Management Report 18

21 6.8 JAG December 2007 This was the first year that the formal JAG was held in December, in order to align the fiscal year and ITC s strategic planning to the calendar year, as well as to the UN biennial cycle. ITC provided the JAG with an update on the change management process, including: Focus on integrated country level programming The business lines exercise The new organization structure, based around the business lines The proposal for a four year strategic plan to provide overall direction to the organization, and a key component of results based management Project cycle management. The JAG endorsed the CPD approach and ITC s change management accomplishments. However, the JAG also identified areas where ITC should continue to focus its efforts, including: Further refinement of the CPD and the business lines Greater focus on MDGs Further strengthening of ITC s monitoring and evaluation function Governance and financing With respect to ITC s governance and financing arrangements, JAG agreed that: The annual JAG meeting should take place in December Financial reporting would be aligned to the regular budget cycle (1 January 31 December). A new ITC Trust Fund (with separate windows for varying degrees of earmarking) should be established as of 1 January 2008, and the Global Trust Fund continue in parallel until 31 December 2009 Discussions on a possible new Consultative Board were to be initiated by the JAG Chair in 2008; pending agreement on the new arrangements, the current governance structure would continue Multi-year financial commitments should be provided wherever possible. ITC Change Management Report 19

22 6.9 Outputs of the change management phase The outputs achieved during this phase are summarised in the table below. Change management strengthening management processes HR strengthening Governance and financing Partnerships Performance management, monitoring and evaluation Country focus and in country partnerships Organizational development and RBM options, recommendations and implementation roadmap New business lines New organization structure New brand blueprint Interim HR policies Internal communications JAG agreement to assess revised governance options Consolidation of the ITC Trust Fund Re-aligned budget cycle Participation in One UN joint programming in Vietnam Client survey Priority countries for selected 7. MAINSTREAMING AND IMPLEMENTATION: JANUARY 2008 TO DATE The previous change management phase clearly defined the main changes required within ITC, and started the implementation process. With the fundamentals in place, ITC moved ahead with a programme of continuous improvement, leading with the implementation of proposals for change and continuing with business re-engineering to further refine and improve ITC s working processes. In particular, ITC focused on: Deploying the new organization structure Strategic planning Increasing the efficiency and effectiveness of the Division of Programme Support Improved performance management. 7.1 Human resources Deployment of the new organization structure The new organization structure was rolled out. Job descriptions at the P5 level were re-profiled to reflect the business lines, and positions for which there was over fifty per cent change were advertised Competency framework To improve performance and further develop the organization s human resources, ITC developed a competency framework which identifies seven competencies essential to the ongoing success and development of the organization and its staff. Acting as a management tool the framework will establish the personal and management skill requirements of staff at each level and provides a framework for core HR activities such as recruitment, staff appraisal and career development ITC people strategy ITC began the development of a People Strategy. This underpins ITC s commitment to attract, develop, support and retaining the best staff. In addition, it provides strategic direction to guide and align people management efforts throughout the organization. The strategy has five primary goals: ITC Change Management Report 20

23 Source, attract and recruit world-class talent Promote excellence in the fields of leadership and people management Encourage and support staff in their continuing professional development Provide staff with a diverse and supportive working environment Develop efficient, transparent and responsive HR processes to support ITC business delivery. The strategy includes clearly defined, proactive HR policies and fair, open and transparent processes, each with measurable success criteria. 7.2 Strategic planning In 2008, ITC adopted its first Strategic Plan ( ). This document crystallizes ITC s Senior Management s vision and priorities in terms of programme delivery responses and internal organizational responses to be developed by ITC over the next four years, as summarised in the table below: Programme delivery responses: Internal organizational responses: Contributing to sustainable development - MDGs; Focusing on needs of LDCs, LLCs, SIDS and sub- Saharan Africa; Export Capacity Building through integrated country solutions; Regionally structured solutions; Global public goods for globally accessed solutions; Focusing on outputs and impact. Leveraging more un-earmarked resources; Upgraded financial management; Investing in people; Improved communications and information systems; A more effective organization. ITC Change Management Report 21

24 The Strategic Plan is a key facet of the four component planning and reporting sequence put in place by ITC, as set out in the diagram below: Rolling Cycle of planning and reporting SP SP 4 year Strategic Plan setting overall direction for ITC CPD 09 CPD Consolidated Programme Document identifies options for further funding OP 1 year Operational Plan sets out detailed work programme for all ITC Sections, with outputs, expected progress and targets OP 09 AR 09 CPD 10 OP 10 AR 10 SP AR 1 year Annual Report reports on the performance of ITC set against planned outputs, progress and targets CPD 11 SP OP 11 AR 11 This first strategic plan has set the direction for ITC for the medium term. It will be reviewed annually and rolled forward. The second Strategic Plan, 2010/2013, will provide more information on the milestones to be achieved during each year of the Plan. Based on our experience so far in 2009, further clarification of priorities and emerging needs of developing countries, together with the ongoing evolution of ITC, the Strategic Plan 2010/2013 will be finalized in Quarter Division of Programme Support change project Building on the organizational change arising from the new business lines and new organization structure, ITC carried out a project to increase the efficiency of its administrative processes in order to increase the organization s competitiveness, and ensure its reliability in the eyes of ITC s clients and stakeholders. ITC s Division of Programme Support (DPS) aimed to take a more systematic and systemic quality approach to its business processes whilst meeting the requirements of the UN regulatory framework. Under the DPS Change initiative four key business processes (budget development, hiring of consultants, organization of events and preparation of MOUs/grants) were identified, mapped and reengineered. The project produced a set of recommendations for improving administrative efficiency that were accepted by SMC, and which are being implemented on an ongoing basis according to the resources available. ITC Change Management Report 22

25 7.4 Performance management Client Survey In 2008, five ITC sections were trained to integrate knowledge generated through the Client Survey into actionable recommendations whose implementation is monitored. This exercise will be completed in 2009 with the remaining ITC sections. Corporate-level recommendations will be presented by the Evaluation and Monitoring Unit to ITC Senior Management which will prepare a formal management response subject to follow up process Output indicators As part of the strategic planning process ITC developed 15 output indicators to provide a simple way to measure at the strategic level the achievements of our work. In addition the indicators have been divided into three groups reflecting the progression of ITC s TRTA support to its counterparts from knowledge acquisition, competencies building and to multiplier and impact. The indicators correspond to the main outputs of ITC s projects and programmes and are designed to improve the quality and standardisation of ITC s work by providing a clear and simple set of steps that staff need to follow before their project s outputs can count towards the indicators Strengthening monitoring and evaluation In response to the request from JAG at the December 2007 meeting for a further strengthening of the monitoring and evaluation function, ITC developed and implemented an evaluation policy which provides a clear explanation of the concept, role and use of evaluation within ITC. To support the policy, ITC developed guidelines and templates to assist in the development of evaluation terms of reference Greater transparency of ITC performance In order to increase the transparency of ITC s performance, ITC s evaluation policy and guidelines, as well as the 2006 Danish Evaluation summary and the results of the Clients Survey, were made freely available on the ITC website. 7.5 JAG December 2008 ITC reported to the JAG on developments during 2008 and plans for 2009, in particular: Organizational restructuring around the five business lines, as agreed at the JAG in 2007 The key elements of the Strategic Plan , and the implications for ITC s work in 2009, such as greater emphasis on linking trade to the MDGs, closer working partnerships with its sister organizations and other UN agencies ITC s new evaluation policy Plans for strengthening performance management In addition, for the first time ITC provided JAG with comprehensive financial information as part of its Highlights of ITC Activities Report. The JAG expressed strong support for both ITC s TRTA work and internal reforms. Specifically, JAG members: Commended ITC on its internal developments, but urged ITC to complete the reform process Endorsed the 2009 CPD ITC Change Management Report 23

26 Endorsed the Strategic Plan as a basis for developing annual operational plans, prioritizing work demands and strengthening ITC s partnering with counterparts in developing countries Endorsed the revised Strategic Framework as a basis for ITC s budget submission for Requested that ITC should continue to increase its focus on the MDGs Requested that ITC should continue to strengthen its performance management processes Governance As agreed at the previous JAG, the JAG Chair had convened two informal meetings of interested delegations in June and September 2008, and presented two options for the composition of an advisory board to ITC. However, delegates were unable to achieve a consensus as to the preferred options, and the status quo remained, with the Consultative Committee retaining the oversight function for voluntary contributions to the ITC Trust Fund, and JAG remaining the policymaking organ of ITC. 7.6 Continuous improvement Since the JAG in December 2008, ITC has maintained a process of continuous improvement, working to improve its relevance, efficiency, effectiveness and impact. Areas where ITC has focused its efforts include: Strengthening the organization In order to meet the challenges of increasing levels of delivery, and to better respond to the recommendations of the JAG and ITC s programme countries needs (as expressed in the clients survey), ITC has requested an increase in regular budget funding to cover the establishment of 12 additional posts Strengthening project design Project design process and templates ITC has reviewed its project design process, and developed a clear new process based on three stages of project design project idea, project concept and project document. Adherence to the new process is now mandatory for all new projects. Project quality assurance group ITC established the PQAG to support technical divisions in the design of projects and programmes to ensure that all proposals sent to senior management for approval are of the required quality Strengthening management processes large programmes management team In response to the increased level of funding received by ITC for large, multi-year programmes, a Large Programmes Management Team has been established. Its objective is to help ITC improve its systems by directly managing a small portfolio of larger projects and to use the experience to compile, refine and share across ITC improved systems and processes for implementing large projects Performance management deploying the output indicators The Strategic Plan set out fifteen output indicators to measure ITC s achievements at the strategic level. The implementation modalities are being finalised, and the indicators are being deployed their inclusion in all new projects is now mandatory. ITC Change Management Report 24

27 7.6.5 Strengthening MDG focus As part of ITC s drive to increase its contribution to the Millennium Development Goals, ITC developed a Women and Trade Programme. This three year programme aims to contribute to the economic empowerement of women through trade, as well as mainstreaming gender in ITC s core project cycle management processes. ITC has also developed and piloted MDG markers, which will be applied to all ITC projects Partnerships During 2009 ITC began the process of aligning services with those of the WTO, UNCTAD and the World Bank. ITC and the World Bank have activated a partnership to improve provision of global public goods and implement projects and programmes in ITC beneficiary countries. 7.7 Outputs of the mainstreaming and implementation phase The outputs achieved during this phase are summarised in the table below. Strengthening management processes HR strengthening MDG focus Governance and financing Performance management, monitoring and evaluation Partnerships Integrated planning process rolled out DPS change project completed Large programmes management unit established Stronger management of project design: project quality assurance group established and roll out of project design templates Competency framework developed Draft HR strategy developed Women and Trade programme developed MDG markers developed and piloted Current governance arrangements remain in force Increase in the proportion of funding received as large, multi year programmes Increased transparency through financial reporting to the JAG 2008 Client survey 2009 Client survey Evaluation policy, guidelines and templates rolled out 2008 annual evaluation report Deployment of the output indicators Process to align services with strategic partners ITC Change Management Report 25

28 ITC Change Management Report 26 ANNEX 1 - SUMMARY OF THE CHANGE PROCESS BY THEME The previous chapters set out the changes that have taken place in ITC in chronological order. The table on the following pages summarizes these changes by theme (change management, HR strengthening, etc.), corresponding to the main themes identified by the Danish evaluation Evaluation Recommendations Change management and strengthen management processes Establish baseline Setting strategic direction Change management Mainstreaming and implementation Transition team and focus groups established. In-house consultations. Revised mission statement, strategic objectives and CPD framework developed. Operations Committee established. Informal JAG December 2006 ITC response to the evaluation validated. CPD endorsed. ITC brand blueprint developed. OED functions refined. Communications and marketing reviewed. CPD developed. JAG April 2007 Support for internal reform, ITC requested to deepen the reform agenda. CPD endorsed. Change management team established and change initiatives identified. Organizational reform and RBM projects. Project cycle management. Business lines established. JAG December 2007 Change management accomplishmen ts endorsed. CPD approach endorsed. ITC requested to further refine the CPD and business lines. Planning and reporting cycle developed. First strategic plan developed. DPS change project. JAG December 2008 ITC commended for the internal reforms, but urged to complete the process. CPD and strategic plan endorsed. Ongoing planning cycle implemented. Proposed expansion of RB posts. New project design and quality assurance process implemented. Web strategy developed. Communications strategy under development.

29 ITC Change Management Report Evaluation Recommendations HR strengthening Performance management, RBM, evaluation, indicators MDG lens Establish baseline Setting strategic direction Change management Mainstreaming and implementation Internal communication as part of in-house consultations (ongoing to 2009). Transition team and focus groups established. In-house consultations. Transition team and focus groups established. In-house consultations. ITC requested to strengthen performance management. ITC requested to further mainstream MDGs. Interim HR policies implemented. Annual client survey launched. ITC requested to further strengthen the M and E function. ITC requested to increase its focus on MDGs. New ITC structure rolled out. Competency framework developed. Development of a People Strategy initiated. Output indicators identified. Evaluation policy, guidelines and templates developed and published on the ITC website. Gender adviser recruited. ITC requested to increase its focus on MDGs. Draft People Strategy developed. Output indicators developed and deployed. Women and Trade programme developed. MDG markers developed and piloted.

30 ITC Change Management Report Evaluation Recommendations Field presence, country focus Partnerships Products and services needs assessment and cost effectiveness Establish baseline Setting strategic direction Change management Mainstreaming and implementation Transition team and focus groups established. In-house consultations. Pilot country teams established. Transition team and focus groups established. In-house consultations. Transition team and focus groups established. In-house consultations. Pilot country approach tested. Pilot country approach endorsed. ITC requested to scale up delivery model to larger products at the country and regional level. Efforts to build strategic partnerships supported. Priority countries for selected. Project strategy for key countries developed. Participation in One UN programme. Resources and Partnerships Group established. Work on client relationship management (CRM) system initiated. Review of ITC's relationship with TSI partners. Review of regional programmes. Review of global programmes. CRM design developed. Process to align selected services with those of WTO, UNCTAD and WB initiated.

31 The International Trade Centre (ITC) is the joint agency of the World Trade Organization and the United Nations. Street address: Postal address: ITC, 54-56, rue de Montbrillant, 1202 Geneva, Switzerland ITC, Palais des Nations, 1211 Geneva 10, Switzerland Telephone: Fax: Internet:

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33 ITC Change Management Report Evaluation Recommendations Governance and financing Establish baseline Setting strategic direction Change management Mainstreaming and implementation Transition team and focus groups established.stakeholder consultation. ITC requested to present governance options.financial year realignment and adoption of a single trust fund endorsed. Governance arrangements reviewed by the organizational reform project. Confirmation of decision to move the annual JAG to December, align financial reporting to the RB cycle, and establish a new ITC trust fund.new governance arrangements to be explored by the JAG Chair. Consultations between JAG Chair and other stakeholders. Governance options identified. Comprehensive financial information presented to JAG.JAG unable to agree on new governance options - status quo retained. JAG remains the policymaking organ of ITC.