1. UNDG Business Operations Module 1: Operations Analysis Advanced Business Operations Training Kabul, Afghanistan November 2014.

2. Recap- What is the BoS? 1.Voluntary instrument to be used at the country at level by UNCTs/OMTs; 2.Developed in conjunction with the UNDAF; 3.Covers Joint Business Operations initiatives; 4.Provides strategic, medium term focus, same cycle as the UNDAF; 5.Provides the basis for Monitoring, Evaluation and Reporting of Business Operations; 6.Provides the basis for BO Budgetary Framework and Resource Mobilization.

3. How to design a BOS

4. The Roadmap  Prepared by OMT- 5-6 pages  Basis for discussion UNCT – engaging stakeholders  Outlines Background to the BOS Intended result BOS Capacity outline BO Timeline Support required ($ and people)  When approved- Sent to UNDG to inform of BOS engagement by UNCT- unlock support

5. Outline Module 1:Operations Analysis A.Baseline Analysis (Supply) Current Service Offering B.Needs & Requirements Analysis (Demand) Programme related Needs (deducted from the UNDAF) Other, non-programme related Needs (corporate requirements) Minimum Service requirements (KPI’s) D.Cost Benefit Analysis: Quantitative and Qualitative costs and benefits (Based on Business Process Mapping-BPM) E.Prioritization: Focus on Business Solutions with highest Cost Benefit ratio Operations Analysis is the basis for the development of the Results Matrix and the M&E framework.

6.  Flexible- selection based on country need and capacity Possible BOS outcome areas Logistics and Administration FinanceSecurity Human Resources ICT Procurement Cost reductionQuality Enhancement Impact Outcome

7. Operations Analysis- Step 1: Baseline Analysis Advanced Business Operations Training of Trainers [Turin – 17-21 Sept 2012]

8. Baseline Analysis: Objective  Objective: Identify and describe the existing Common Services and Harmonized Business Practises  Result Baseline Analysis: Completed Baseline Analysis Table

9. Examples Common Services

11. Baseline Analysis Step 1: Gather information Step 2: Evaluate and Compare General Information Includes a description of Key Performance Indicators (KPI’s) Gather performance data for benchmarking against indicators and to determine the targets going forward Tools: Survey, operational reports  What is the status of those services? (Working, in need of improvement, etc.)  Have benchmarks and targets been clearly set and/or met?  How much to do the services cost?

12. Baseline Analysis Template 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)

13. Baseline Analysis Type of existing Common Service/ Harmonization effort Managing Entity (Service Manager) Clients (Agencies using service) ModalityKey Performance Indicators (KPI’s) Performance Ranking against KPI’s Recommended Action (ref below) Name of Service Provider Client Against Benchmark Performance Expansion Downscaling Discontinue Modification Involve Programme and Ops Staff In House/ Outsourced

14. Baseline Analysis: Example 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) Capital (Common Premises) Common PremisesUNDP UNFPA UNICEF WFP FAO UNIDO Common RegistryUNDP ReceptionUNICEF Cleaning Services UN HouseUNDPPositive response rate on cleanliness of office premises as per annual survey >75%"; Pos response rate = 87% In HouseWorking- No action required ICT Support DeskWFPUNDP UNFPA WFP FAO UNIDO Response time from ICT helpdesk on a request for support = <2 hours Response time = 4.9h In HouseNeeds Improvement UN Staff Drop-OffFAOAll agenciesBus on time >75% Bus stolen- no replacement In HouseNeeds Improvement Sub Office Gankwokwo Province Common PremisesUNDP ICT Support DeskWFP Avoid double counts of services Include Sub-office Services Sources: Survey ERP Qualitative

15. Operations Analysis- Step 2: Needs & Requirement Analysis Advanced Business Operations Training of Trainers [Turin – 17-21 Sept 2012]

16. Needs Analysis  Objective: Identify and describe needs for existing and desired (new) joint operational support services  Result Needs Analysis = Needs Statement for each service  Focus: Focus on the WHAT and WHEN – not on the HOW the needs can ultimately be met Identify strategic needs of Business Operations based on the results from the baseline assessment of the existing common services and the need for new common services. Usually focusses on Reduction of Cost or Enhancing Quality of BO service Outcomes BOS results Framework

17. Needs Analysis  Review Baseline Analysis for existing service needs;  Review UNDAF and consider Other Business Needs to identify the needs for new services;  Needs statements: describe clearly what the service must deliver and by when it must be ready to deliver, in a measurable way  Statement needed for BOS narrative

18. Needs Analysis Involve Programme and Ops Staff

19. Needs Analysis: Programme related Needs  Focus on programme outcomes/outputs that likely involved multiple agencies, NOT the full UNDAF.  Operations staff participates at key points in UNDAF process  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”.  Identify the outputs under the UNDAF outcome that are likely to impact the operational support requirements. 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 and determine KPI’s.

20. Needs Analysis: Programme related Needs  For each of the selected outputs, the Common Business Operations needs are analysed for each Common Service Categories: Common Procurement Common Human Resources Common ICT Common Logistics and Transport Common Administration Common Finance Common Security  Start the analysis of operational needs from the output level of the UNDAF

21. Example Programme related Needs UNDAF Output 1: “ By 2025, 80% of the most vulnerable groups in the three most vulnerable provinces will have access to malaria prevention instruments” UNDAF Outcome 1: “By 2025, malaria infection is reduced from 29% to 20 % in the three most malaria prone regions of Utopia” Common Security: Guards, Radio Room, QRF, Procurement Security Equipment Provincial presence/Sub- Offices required: Shared Rent/ Facility Services Common Procurement: Fuel, Bulk Goods, Conference Facilities Remember: Only Common Service (e.g. Joint Business Operations), not individual agencies' services Common Logistics: Shared ISP, Back-up Services, ICT Support Common ICT: Shared ISP, Back- up Services, ICT Support Financial Management: \ HACT compliance: Joint Micro Assess – ment &Training

22. Needs Analysis: Programme related Needs  Identified need is categorised under the possible BOS outcome areas Logistics and Administration FinanceSecurity Human Resources ICT Procurement

23. Needs Analysis: Other Business Operations Needs  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.  For each of the other needs, the Business Operations Harmonization initiatives (including Common Services) needs are analysed for each Common Service Categories: Logistics and Administration FinanceSecurity Human Resources ICT Procurement

24. Template Need Analysis Name Business Operation/Service Needs Analysis NarrativeKPI's

25. Example Needs Statement

26. Key Performance Indicators (KPI’s)  Generic standard for each of the selected needs;  Describe what function the service is required to perform to meet the identified need during or at the end of the Business Operation Strategy (medium term);  BoS KPI’s break down in AWP KPI’s;  Keep things simple: No more than 2-3 KPI's are required unless specifically agreed to include more;  Remember 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. S.M.A.R.T is GOOD

27. Example KPI’s  Time indicators for service quality such as timeliness of a service delivered: "Response time from ICT helpdesk on a request for support = ";  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".

28. Example Needs and Requirements Template

29. Programme related Needs