Costs and Benefits of Simplifying and Harmonizing Business ...

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20 Νοε 2013 (πριν από 3 χρόνια και 9 μήνες)

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COST AND BENEFITS OF
SIMPLIFYING AND
HARMONIZING BUSINESS
PRACTICES AT THE COUNTRY
LEVEL

UNITAR SEMINAR


February 22, 2012

Christian
Schornich

-

Consultant

Mandate for Study


GA Resolution 62/208:


Calls

for

harmonization

and

simplification

of

business

practices

in

the

areas

of

human

resources

management,

finance,

administration,

procurement,

travel

and

ICT
.


GA Resolution 64/289:


Requests

the

Secretary
-
General

to

brief

the

Economic

and

Social

Council

regularly

on

progress

made

and

challenges

encountered

in

the

simplification

and

harmonization

of

business

practices
.


ECOSOC Resolution E/2011/L.35:


Urges

the

UN

system

organizations

to

identify

and

accelerate

the

implementation

of

initiatives

promising

the

highest

return

from

simplification

and

harmonization
.

Scope of Analysis


Review

the

organizational

and

financial

feasibility

of

identified

best

practices

in

the

area

of

simplification

and

harmonization

of

business

operations

services
.



Take

stock

of

experience

and

lessons

learned

in

the

current

initiatives

of

harmonizing

business

operations

services

at

the

country

level
.



Identify

reported

evidence

of

increased

operational

and

cost

efficiency

of

harmonized

business

practices

at

the

country

level
.



Make

specific

recommendations

for

accelerating

the

reform

process

in

the

area

of

business

operations

regarding

both

high

quality

and

cost

efficient

service

delivery
.

Methodology


Desk

review

and

analysis

of

reform

initiatives

and

the

progress

of

related

inter
-
agency

working

mechanisms

in

the

areas

of

business

operations

affecting

the

country

level
.



Web
-
based

survey

targeting

all

programme

countries

informing

on

the

status

of

harmonization

and

simplification

of

business

practices

at

the

country

level

(common

premises,

common

services,

quantification

of

costs

and

potential

savings)
.




Cost
-
benefit

analysis

framework

comparing

the

provision

of

business

operations

services

through

three

different

business

models

(individual

agency

provision,

inter
-
agency

harmonization

of

business

practices,

and

establishment

of

One

UN

Business

Center
.
)

Stock Taking

Procurement

Finance

Human
Resources

Areas

Administration

ICT

Common
Premises

Common

Services

UNDG

JFBO
-

Network

Fiduciary
Management
Oversight Group

HACT Advisory
Committee

Ref Group on
Common Services

Task Team on
Common Premises

CEB

Delivering as
One

HLCM

Procurement
Network

Human Resources
Network

Finance and
Budget Network

ICT Reference
Group

Albania

Cape Verde

Uruguay

Tanzania

Pakistan

Mozambique

Rwanda

Viet Nam

DOCO

CEB Secretariat

Updates, Country
-
led and Independent Evaluation

Stock Taking


UN Working Mechanisms


Services

in

the

area

of

business

operations

at

the

country

level

characterized

by

a

high

degree

of

functional

similarity
.



Agency
-
specific

regulations

and

rules

would

not

prevent

the

harmonization

of

business

practices

at

the

level

of

policies

and

procedures
.



Simplification

and

harmonization

of

business

practices

could

yield

significant

efficiency

gains

and

cost

reductions
.



Through

the

coordinated

approach

by

the

UNDG

and

HLCM,

progress

has

been

made

in

the

coordination

and

harmonization

efforts

in

several

areas

of

business

operations
.



Functional

areas

are

organized

through

separated

working

mechanisms
.

No

integrated

change

management

strategy
.



Stock Taking


DaO

Countries


Delivering

as

One
-

and

other

selected

programme

countries

have

made

progress

at

the

level

of

implementing

a

package

of

basic

common

services

and

developing

solutions

to

joint

operational

modalities
.



Best

practices

include

the

establishment

of

common

premises,

piloting

common

ICT

infrastructure

and

harmonization

of

procurement

management
.



Selected

Delivering

as

One
-
Countries

have

shown

very

limited

success

in

providing

evidence

for

sustainable

efficiency

gains

and

cost

savings

in

the

area

of

business

operations
.



Significant

coordination

efforts

in

harmonization

have

not

yet

been

met

by

any

quantifiable

impact

in

quality

gains

or

cost

reductions
.


Stock Taking


Preliminary Conclusion


Coordination

mechanisms

lack

an

integrated

and

results
-
oriented

strategy

to

ensure

high
-
quality

and

cost

efficient

business

operations

services

at

the

country

level
.



Efforts

to

harmonize

and

simplify

business

practices

have

been

prioritized

with

relatively

little

information

on

the

coordination

costs,

real

efficiency

gains

and

longer
-
term

financial

impact

at

the

country

level
.



Limited

experience

and

information

available

on

quantifiable

gains

for

individual

agencies

at

the

country

level
.

UNCT

engagement
.



Reform

efforts

have

at

large

been

carefully

avoiding

any

analysis

of

an

organizational

reform

of

the

UN

at

the

country

level
.


Business Models


Individual agency provision:



Minimum coordination costs


Management control


Agency
-
specific business solutions



Limited economies of scale
-
effect


No cost sharing of necessary assets
and services


No cost saving potential through staff
reductions




.

Agency A


Procurement


Finance


Human

Resources


ICT


Admin

Agency B


Procurement


Finance


Human

Resources


ICT


Admin

Agency C


Procurement


Finance


Human

Resources


ICT


Admin

UNCT

OMT

….

Business Models


Inter
-
agency harmonization of business practices:



Cost sharing opportunities


Economies of scale
-
effect


Process cost reduction



Very high coordination costs


Limited direct management control


Very long lead
-
times


Efficiency gains not directly leading

to real cost reductions





.

Agency A


Procurement


Finance


Human

Resources


ICT


Admin

Agency B


Procurement


Finance


Human

Resources


ICT


Admin

Agency C


Procurement


Finance


Human

Resources


ICT


Admin

UNCT

OMT (Common Services Mgmt.)

….

Business Models


One UN Business Center:



Significant savings potential


Economies of scale
-
effect


Process cost reduction


Efficiency gains directly impacting

operating costs


Streamlining of business services



Limited direct management control


Change of organizational structures


Different personnel requirements





.

Business Center


Procurement Human Resources ICT Admin

UNCT

….

OMT

Agency A


Finance

Agency B


Finance

Agency B


Finance

Global Survey


Selected Trends


Selected

trends

based

on

submissions

from

currently

68

programme

countries
.


Apart

from

building

management,

co
-
location

to

common

premises

does

in

most

cases

not

lead

to

any

increased

harmonization

of

business

practices
.


71
.
6
%

of

all

countries

have

established

common

Long
-
term

Agreements

(LTA),

however

only

for

a

limited

number

of

potential

services
.


The

majority

of

established

common

services

are

related

to

medical

services

(
68
.
5
%
),

security

services

(
91
%
),

travel

services

(
74
%
),

cleaning

services

(
60
.
7
%
)

and

internet

provision

(
52
.
8
%
)
.


The

majority

of

established

common

services

are

not

based

on

an

inter
-
agency

MOU

or

a

cost
-
benefit

analysis
.






Global Survey


Selected Trends


What has been preventing the UNCT in your country from further harmonizing
business practices in the different areas of business operations ?


Lack of agency commitment:





52.4%

Lack of UNCT support and guidance:




15.5%

Lack of RC support and guidance:






2.4%

Different rules policies and procedures:




90.5%

Lack of resources:







50 %

Lack of OMT capacity:






21.4%

The UNCT did not see any benefit that could be derived

from sharing business operations functions:




13.1%






Global Survey


Selected Trends


53
.
9
%

of

submitting

programme

countries

stated

that

their

UNCT

has

not

achieved

any

quantifiable

cost

savings

through

the

harmonization

of

business

practices

in

operations
.



The

trend

analysis

confirms

a

limited

coordination

and

management

capacity

at

the

country

level

for

the

effective

harmonization

of

business

practices
.



Quality

and

cost

efficiency

of

business

operation

services

as

a

basis

for

effective

programme

delivery

are

not

prioritized

by

a

majority

of

programme

countries
.



The

trend

analysis

confirms

the

lack

of

an

integrated

reform

strategy

and

a

system
-
wide

coordinated

change

management

approach
.






Thank you!