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					Management Consulting Team (MCT)




UNDP ANGOLA IMPROVEMENT PLAN

ENGAGEMENT TITLE/DESCRIPTION: RE-ALIGNMENT UNDP ANGOLA
UNIT: ANGOLA COUNTRY OFFICE             LOCATION: LUANDA                              DATE: 10 NOVEMBER 2006


MCT ENGAGEMENT TEAM
Role                       Name                      Email                                Office Phone Number
Team members               Mads Svendsen             mads.svendsen@undp.org               +1.212.906.6538
                           Danila Boneva             danila.boneva@undp.org               +1.212.906.5641
                           Khalid Bennaghmouch       khalid.bennaghmouch@undp.org         +201. 223 90 970

KEY CONTACTS
Role                       Name                     Email                                  Office Phone Number
RR/RC                      Pierre-Francois Pirlot   pierre.francois.pirlot@undp.org        +244-222-331181
CD                         Gita Welsh               gita.welsh@undp.org                    +244-222-331181
DCD (P)                    Alfredo Teixeira         alfredo.teixeira@undp.org              +244-222-331181
DCD (O)                    Carlyse Hessic           carlyse.hessic@undp.org                +244-222-331181




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TABLE OF CONTENTS

                                                                           Page
  1.   Rationale for change                                                 3
  2.   Change process                                                       3
  3.   Visioning                                                            3
  4.   SWOT                                                                 5
  5.   Positioning                                                          6
  6.   Improving processes                                                  9
  7.   Aligning Structures                                                 14
  8.   Action Plan                                                         27
  9.   Draft Workplan and Budget                                           31

  Annex 1 – List of electronic annex documents and deliverables            32
  Annex 2 – Sample from DRC work process manual                            33
  Annex 3 – Self-assessment of Capacities                                  35
  Annex 4 – Microsoft Visio and MS Project evaluation version              61




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1. RATIONALE FOR CHANGE

Responding to the doubling of the portfolio of the UNDP Angola programme portfolio over the past two years due to the GFATM, UNDP Angola has
taken a number of steps to improve its efficiency and organizational effectiveness. First and foremost this has included efforts to strengthen capacities to
deliver on the GFATM portfolio but also, more recently, efforts to improve the services provided by the Operations Team. Still, the Global Staff Survey as
well as the Partner Survey point to considerable scope for further improvement within the office and with respect to the services provided to clients, and
both the management and office staff recognize this. It is against this backdrop that the new management team of UNDP Angola requested the
Management Consulting Team to support it in its overall improvement efforts. More specifically UNDP Angola requested support to:

   1) Articulate a vision for the office
   2) Develop a positioning strategy for the services to be delivered
   3) Define the office’s business model based on the vision and the positioning whilst ensuring alignment with the corporate business model
   4) Define the impact of the chosen business model on the different business processes, and identify needed adjustments based on the Internal
      Control Framework (ICF) and as part of this, explore other improvement options such as the external access module of Atlas, the new
      programme and project management guidelines reflected in the Results Management Guide, cost recovery, etc.
   5) Propose a re-aligned office structure reflecting UNDP Angola’s strategic vision, improved business processes, and overall resource picture
   6) Design jobs based on the proposed office structure and accountability framework
   7) Determine support options in order to empower staff members thus reinforcing more effective management practices and team culture


2. CHANGE PROCESS
The methodology used for supporting UNDP Angola’s efforts to change is a process approach consisting of several distinct phases as indicated in the
image below and well defined in the UNDP’s intranet through the change management toolkit website
(http://stone.undp.org/system2/managingchange/):




This approach is meant to ensure actionable solutions to be designed between the country office and the MCT Team. The country office, more precisely
the sponsor, is able to validate the findings and recommendations as the initial engagement evolves. The sponsor, after the initial engagement mission


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deepens the analysis and acts on the improvement plan with continued support from the MCT as needed, ensuring it achieves the deliverables of the
improvement plan.


3. VISIONING

The vision should answer “why” UNDP Angola exists, “what it does” as well as what its aspirations are, set the strategic direction of the country office
and guide it in its day-to-day development activities. During the first week of the engagement with the MCT the office developed four draft vision
statements for UNDP Angola building on work which had already been done during the July retreat, its outcome areas and the RBA strategy for capacity
development for pro-poor growth and accountability. Based on these four drafts, the MCT has drafted some further draft vision statements for
inspiration.

    Vision                    Based on UNDP’s vision as a Global Development Network, we aim at supporting Angola to
    (prepared for July        achieve the MDGs in the framework of the Millennium Declaration, focusing on the promotion of
    retreat)                  democratic governance, reduction of extreme poverty, gender equality, environmental sustainability
                              and response to the HIV/AIDS pandemic. We pledge to work consistently and effectively with the
                              Government, Civil Society Organizations, the private sector and key development partners to
                              enhance national capacity for growth with equity, in order to promote poverty eradication and
                              sustainable human development in Angola.
    Visions                   1 – Building a better life for Angolan citizens with partnerships of the government and civil society,
    (four drafts)             private/public sector to achieve development and modernization.

                              2 – To have development we need more participation and capacity building of all partners, internal
                              and external (Government, NGOs, Civil Society and donors). Looking to the future, we need to
                              think urgently on the MDGs.

                              3 – O papel do PNUD em Angola hoje deveria incidir sobre o acompenhamento dos processos de
                              reconstruccao institutional atreves de uma visio integrada

                              4 – We engage Government and ensure civil society’s involvement and participation through: 1)
                              Inputs in development policies and strategies; 2) Ensuring environmental security and
                              sustainability; 3) Response to HIV/AIDS, TB and Malaria; and 4) Private sector development
                              focusing on the informal sector and micro entrepreneurship
    Visions                   1 – We support Angola in its achievement of the MDGs by developing capacity of key stakeholders

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     (three   MCT    drafts     related to democratic governance, poverty reduction, environmental sustainability and the fight
     based on above)            against HIV/AIDS. We pledge to work consistently and effectively with key development partners to
                                enhance national capacity for pro-poor growth and accountable governance.

                                2 – We support Angola in its achievement of the MDGs by enhancing national capacity for pro-poor
                                growth and accountable governance.

                                3 – We want to become the Angolan Government’s partner of choice in its effort to achieve the
                                MDGs by enhancing national capacity for pro-poor growth and accountable governance.

In order to ground the mission statement in practical actions, several exercises – both plenary as well as in working groups – were conducted. Firstly, a
discussion around the added value that UNDP Angola can bring to its clients and partners led to a definition and prioritization of the program portfolio
including their expectations of the country office. The positioning, SWOT and self-assessment of capacity (see annex) exercises further deepened this
analysis and provided additional inputs regarding the extent to which the country office has the capacity to deliver on the abovementioned vision
statement(s).

It is suggested that the above draft vision statements are transformed into one final vision statement taking this further analysis into account, and also
taking into account the Portuguese language wording of key national strategy documents in order to ensure that the final vision statement resonates
with the Government and other key partners.



4. STENGTHS, WEAKNESSES, OPPORTUNITIES & THREATS (SWOT)

    A SWOT exercise was undertaken with the staff to do a broader analysis of the current situation and its results have been consolidated as part of
    the annexed documentation. The SWOT provided a “reality check” on the rationale for change and helped determine the readiness of the team to
    move forward with the process. Overall, there is a strong sense of the need to change – from improving the CO efficiency, avoiding duplication of
    work, streamlining the business processes to building relations of trust and communicating regularly and effectively among the staff and between
    staff and management. The latter two points are serious challenges for the new management team as they require a series of trust- and team-
    building measures, and reflect years of high turnover in the senior management team and other unresolved issues (for more details see the 2005
    GSS results). Other factors to be considered are the perceived opportunities and threats, which point to a mixed picture of measured optimism and
    skepticism with regards to the demand for development services, particularly from the Government and its capacity to utilize public resources to the


 It should be noted that the CO during its retreat in July 2006 had done a SWOT, but the analysis reflected perceptions of different teams on their strengths,
weaknesses and perceived threats and opportunities. Therefore, it was agreed to do a general one, involving all staff simultaneously.
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  benefit of the Angolan population. This perceived capacity short-coming needs to be taken into account in the positioning strategy of the CO.
  Furthermore, staff is particularly weary of various “improvement” initiatives in the past, which have not yielded the expected results and benefits.
  Whilst it is joint ambition and effort of the office to improve for real this time, it is still ultimately the challenge of the management team to nurture and
  lead this change process to its successful conclusion. The need for early and visible returns/dividends from the change process in order to maintain
  enthusiasm and momentum has been taken into consideration and reflected in the Improvement Plan with key actions flagged for immediate
  consideration, and other actions scheduled for the mid- to long-term.



5. POSITIONING

  The positioning discussion focused on identification of the priority clients, followed by a group exercise examining the services provided by the CO,
  new opportunities for such and the related demand and capacity of UNDP Angola to deliver them. Five working groups were established around the
  outcomes of the current Country Programme Document (CPD) (2005-2008), namely Democratic Governance, MDGs and Poverty Reduction,
  HIV/AIDS, Energy & Environment, and Crisis Prevention and Recovery and they came up with the following maps of demand and CO capacity.
                                                                                                      Democratic Governance: National capacity for the organization of free and fair elections strengthened (SL
   MDGs and Poverty Reduction: Strengthening public institutions at national and provincial levels    2.3). Efficiency, accountability and transparency enhanced in public administration and civil service, rule of
   for sustained economic governance and poverty reduction (SL 1.1)                                   law strengthened and protection of citizen’s rights and access to justice improved (SL 2.7)

                                  High                                                                                                   High             2
                                              1                                                                                                                         4
                                                      2                       11                                                                     9
                                                                                                                                                          3              7
                                              3                         8
                                                                                                                                                                                              5
                                              4                         9                                                                                                     8
                                   Demand




                                                                                                                                           Demand
                                                                 5
                                                                       10                                                                                                         6


                                                  6       7
                                                                                                                                                              1



                                 Low
                                                                                                                                         Low
                                            Low                 CO Capacity                    High
                                                                                                                                                    Low                      CO Capacity                        High




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Responding to HIV/AIDS: Institutional capacity built into Gvt. civil society and private sector to plan and     Energy & Environment: National environment action plan and national biodiversity strategy and action     Crisis Prevention and Recovery: Security and access consolidated (SL 4.1)
implement multi-sectoral strategies that limit the spread of HIV/AIDS and mitigate its social and economic      plan implemented progressively (SL 3.1)
impact (SL 5.1)
                                                                                                                                                 High                                                                                                  High
                                     High                                                                                                                                                     3
                                                         7           8            4                                                                                                                                                                                                                      5
                                                                                                                                                                  1
                                                                                      6                                                                                                        4

                                                                                                                                                                                                                                                                                              2      3
                                                                                5
                                                                                                  1
                                                                                                                                                                             2




                                                                                                                                                                                                                                                         Demand
                                       Demand




                                                                                                                                                   Demand
                                                                                                                                                                                                                                                                                4
                                                                                                                                                                                                                                                                        1
                                                                                          3           2                                                                                               6

                                                                                                                                                                                                      7
                                                                                                                                                                                 5
                                                                                                                                                                                                      8

                                                                                                                                                                                                      9
                                    Low                                                                                                          Low                                                 10                                               Low
                                                Low                      CO Capacity                          High                                          Low                                                                                                   Low               CO Capacity              High
                                                                                                                                                                                     CO Capacity                       High




MDGs      and       Poverty       Reduction:                                  Democratic Governance: National                                       Responding         to     HIV/AIDS:                       Energy & Environment: National                                Crisis Prevention and Recovery:
Strengthening public institutions at national                                 capacity for the organization of free and                             Institutional capacity built into Gvt.                    environment action plan and national                          Security and access consolidated
and provincial levels for sustained economic                                  fair elections strengthened (SL 2.3).                                 civil society and private sector to                       biodiversity strategy and action plan                         (SL 4.1)
governance and poverty reduction (SL 1.1)                                     Efficiency,      accountability       and                             plan and implement multi-sectoral                         implemented progressively (SL 3.1)
                                                                              transparency enhanced in public                                       strategies that limit the spread of
                                                                              administration and civil service, rule of                             HIV/AIDS and mitigate its social
                                                                              law strengthened and protection of                                    and economic impact (SL 5.1)
                                                                              citizen’s rights and access to justice
                                                                              improved (SL 2.7)
1 PR – Capacity Development for local                                         1 DG – Project formulation                                            1 H/A – Assistance to Coordination                        1 EE – Capacity building for Ministry of                      1 CPR – Small Arms
NGOs                                                                          2 DG – Project implementation                                         (CCM)                                                     Environment                                                   2 CPR – Rapid Response Fund
2 PR – Technical Assistance (high quality)                                    3 DG – Procurement services                                           2 H/A – Recruitment of experts                            2 EE – Management of inter                                    3 CPR – Stockpile destruction
for institutional capacity building for GoA                                   4 DG – Capacity building                                              /technicians for Government                               Government processes                                          4 CPR – Civil protection
3 PR – Info and communications – internal                                     5 DG – Payment services                                               services                                                  3 EE – GEF Technical Assistance                               5 CPR – National authority
and external                                                                  6 DG – Recruitment services                                           3 H/A – Procurement services for                          4 EE – National biodiversity action plan                      coordination / capacity building
4 PR – Procurement, supply management                                         7 DG – Project management                                             Government entities                                       5 EE – Resource mobilization
(distribution system)                                                         8 DG – Resource mobilization                                          4 H/A – Training/capacity building                        6 EE – Report dissemination
5 PR – Resource mobilization                                                  9 DG – Donor Reporting                                                of Government counterparts/NGO                            7 EE – Investment policies related to
6 PR – Strategic planning for MDGs and                                                                                                              5 H/A – Knowledge sharing / mass                          environment
poverty reduction                                                                                                                                   media                                                     8 EE – NEX capacity
7 PR - M&E systems - MDGs                                                                                                                           6 H/A – Education in HIV/AIDS                             9 EE – Project management
8 PR – AEP (SME)                                                                                                                                    7 H/A – UNDP internal volunteer                           10 EE – Civil society and women’s
9 PR – Global Fund                                                                                                                                  counseling                                                capacity
10 PR – Partnership building (not sectors)                                                                                                          8 H/A – Preparation for managing
11 PR–Dissemination of knowledge to                                                                                                                 Global Fund and Hamset project
CSOs and people of Angola


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The groups initially produced lists of services that are, or could be, provided by the country office within the 5 outcome areas across the various sections
of the business model (Development Support Services, Knowledge Advisory and Advocacy Services, and UN Coordination Services) ranging from the
COs capacity to mobilize resources, undertake implementation support services (HR, procurement) to more substantive inputs, like capacity to provide
policy advice or technical assistance to the partners. Each of these services was mapped according to the assessed demand for these services, and the
assessed capacity of the CO to deliver this service. It was agreed that the initial analysis and mapping should be further further by the Angola CO and its
Programme and project teams (for a large part of the projects UNDP is the implementing partner) in order to further ground and refine the service maps,
and to discuss positioning implications.

The visioning and positioning phases of the change process will provide a sound basis for the strategic work of the office going forward – especially for
the partnerships and advocacy strategies, capacity building, and for shaping up the programmatic focus of the office. Moreover, the CO has a
challenging task at hand in terms of strengthening its relationship with the Government of Angola (GoA). A source of contention with the overall donor
community has been the Government’s national poverty reduction strategy, which so far has not been accepted both by the IFIs and the bilateral
partners as a viable plan for implementing the Millennium Development Goals in the country. Overall this has had a negative impact on the available soft
loans and grants (ODA for the period 2002-2004 was USD 2 billion according to OECD DAC) and it has in the interim limited the available capacity of
the partners to provide policy advice based on strong national plans. However, this aside, over the past 4 years Angola has moved significantly ahead in
terms of economic stabilization and national reconciliation, and the CO has been able to attract donor resources, not only from the Global Fund to Fight
AIDS, Tuberculosis and Malaria (GFATM), but also from the European Commission, Norway, the private sector – Chevron (see results from the Donor
Database below), etc. Given the relatively large reliance on the GFATM grants (which will come to end in 2006 – extensions being negotiated), it is clear
to the CO that it needs to define who its future partners will be, and during the positioning session it was suggested that the GoA and the private sector
would be priority partners for future resource mobilization efforts.

With regards to the GoA as a priority client, the CO needs to further analyze and establish its value propositions and positioning strategy vis-à-vis the
different government institutions, in particular the Ministry of Finance, which plays an important role in the executive power and in practice, negotiates
with the IFIs and other partners on the ODA coming to Angola. Another influential national counterpart is the Deputy Prime Minister’s Office. In addition,
the CO is – among others – well positioned with the Ministry of Planning, Health, and Territorial Administration.

It should be noted that – as soon as possible – the CO needs to establish a clear Partnership and Resource Mobilization Strategy and Plan if it is to
maintain a high level of programme delivery in the future. The existing pipeline data would benefit from further details on the volumes expected to be
mobilized from the partners, responsible staff, stages of the negotiations process, etc. To this end, a simple pipeline management system was
presented to the CO staff (attached in the electronic annex), which could be used as a tool for advancing the RM efforts and form the basis for regularly
reviews by the Senior Management and Programme Teams.




     However, the 2004 ODA of 1,144 billion is due to debt relief from Portugal and does not reflect the usual trend.
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The CO has the capacity to undertake the positioning analysis and key national staff is familiar with the methodology developed to this end in the
Resource Mobilization Toolkit. If necessary, UNDP Angola could establish a formal working relationship with BRSP.


6. IMPROVING PROCESSES
Based on the recommendations presented in a draft version of the audit report (OAPR/RASC-South Africa mission in February 2006), it was decided to
focus the business re-engineering sessions on two high volume, high impact business processes, i.e. 1) Procurement of goods with a Purchase Order
and 2) Direct Payment. Staff worked in four groups to identify the as-is processes, that were subsequently mapped and discussed in a plenary session.
The re-engineering (i.e. the definition of the to-be processes) focused on the identification of improvements and clarification of roles, responsibilities and
accountabilities by paying due attention to issues such as segregation of duties, duplication of efforts, workload and paper flows in/out the office. The
detailed to-be process maps are attached in the electronic annex.

During the re-engineering exercises several key areas of improvement have been identified that have a direct impact on the processes that were
discussed and as such should be implemented immediately:

Immediate issues to be addressed
       Decide on priority business processes that need to be re-engineered
        The CO Team should decide quickly on the priority business processes that require re-engineering. The latter could include, but are not limited
        to: SSA/SC establishment, Billing, Travel, Processing of NEX advances, Budget Revision. It is strongly recommended to continue mapping of
        the processes in a participatory manner and that the results of the mapping are published on the office intranet (using Microsoft Visio is
        recommended – trial version is included in the electronic annex). The results of this exercise should also be incorporated in the Standard
        Operations Procedures document (see further below).
       Segregation of duties. Delegation of authority
        It became evident from the mapping of the two processes that the Office needs to ensure segregation of duties to comply with UNDP’s Internal
        Control Framework (ICF) and establish clearly the first, second and third authorities on its different projects (both development and
        management), as well as document the cases in which staff are (not) allowed to combine any two of the above roles. Consequently, the office
        will need to adjust the Atlas profiles – through Argus – and provide training were needed, especially to Programme staff who will, or have
        already, been given Level Manager 1 or 2 profiles in the system.
       Multi-layered clearances and paper trails
        As part of the business process re-engeneering, it is strongly suggested to review the approval stages. During the mapping exercise, it became
        apparent that often documents circulate between units and staff for clearance before action is taken. In particular, post facto controls in regard to
        the procurement process (after the PO has been approved) through signature of the latter by senior staff should be eliminated. It seems that
        there is, in many cases 1) limited added value of these layers of multiple clearances, 2) unclarity on the accountability due to the number of
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       signatures 3) a loss of efficiency due to lenghty processing and a simultaneous paper trail and 4) no clear segregation in the sense that most
       approvals are done in the Operations Team who are themselves directly involved in the process – both for development (the exception being the
       Global Fund projects where transactions of less than USD 30,000 are approved by the project) and management projects. As agreed during the
       exercise, some of these steps have been eliminated, resulting in more streamlined business processes, whilst maintaining the required level of
       control as per the ICF. Furthermore, this concentration of approvals within the Operations Team, and despite the fact that Programme staff at
       the Assistant Resident Representative level have been given approval rights, limits Programme staff’s “ownership” and oversight role in
       managing the developing projects and represents a bottleneck in both processing direct payments and purchase orders.

      Information flow bottlenecks & multiple entry points in the CO
       There is a tendency for incoming office information first to flow from Registry to Senior Management and only subsequently to the colleagues
       that need to take action. Even though it is recognized that Senior Management needs to be kept up-to-date on the correspondance, it is strongly
       recommended that this approach be abandoned to allow information to flow directly to the concerned colleagues who will take immediate action.
       This can be implemented by providing Registry with a list of projects numbers and names of the Programme staff responsible for their
       oversight/management. In those cases where it is not clear to whom the correspondance should be transferred, the default could remain Senior
       Management. Furthermore, the establishment of an e-registry capacity will be a strong enabler for streamlining the information flow and this has
       been reflected in the proposed functional structure (see electronic annex) for the CO, where the Registry and IT teams will work closely together
       in order to speed up the implementation. The same is valid for the procurement process, where often vendors send their invoices directly to staff
       from the Procurement team and there is no trace of the correspondence with Registry. This has led in some cases to loss of documentation and
       delayed payment to suppliers. The CO needs to make the new information flow effective as soon as possible and communicate it clearly to its
       clients and suppliers.

      Project Management in Atlas
       As indicated earlier, Programme staff plays a critical role as “budget owners” and exercises oversight of the delivery of substantive results within
       a certain resource plan. Atlas provides new functionalities for the tracking of progress against outputs and activities, for the monitoring of risks
       and project issues, while at the same time linking the utilization of resources to the achievement of results. While the Finance Team (especially
       when some of the PMSU functions have been integrated within it) plays a critical role in supporting the Programme Team in project costing and
       financial monitoring, it is nevertheless the responsibility of the Programme Team to drive the best utilization of resources to achieve results. It is
       therefore critical that the Programme staff actively use Atlas to monitor progress against outputs and exercise control over the budgets. In
       practical terms, this implies that programme and where applicable project personnel (e.g. when UNDP is implementing partner) raise
       requisitions, do budget revisions and take corrective actions with regards to project expenditure. The new Project Management Module is an
       important component of the roll-out of the Results Management Guide that the CO has already started. A presentation followed by a discussion
       was organized on this issue as part of the mission.




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      Prepare requisitions in Atlas. Decentralize the receipt of goods.
       As noted in the audit report, the CO does not establish requisitions in Atlas, which leads to additional paper flows and affects negatively the
       procurement process. It aslo inhibits planning from Programme/Project and Procurement Teams, since it is difficult to monitor all procurement
       actions initiated within the different projects. Moreover, the practice goes against the ICF, which requires that requisitions are issued for all SSA
       contracts, travel and all purchases for amounts bigger than $2,500. The CO should require requisitions for all these operations as a regular
       practice.
       A good practice by the CO is that the actual receipt of goods is done at the project level. What remains to be addressed is the recording of the
       receipt in Atlas. Currently this is done by Procurement, but should be further decentralized to the projects, while CO staff can monitor the quality
       of the entries.

      Develop Standard Operating Procedures for the CO
       The Finance Officer has initiated the preparation of Standard Operating Procedures (SOPs) for the CO, which ideally will be developped in a
       participatory manner with other staff from Operations, Programme and projects, where necessary, in order to ensure the necessary level of
       ownership and a shared understanding. The SOPs should not be an added layer to UNDP rules and regulations as defined in the User Guide,
       ICF, audit guidance, etc. Rather, they should translate the generic rules to UNDPs Angola structure, division of labor among the units,
       distrubtion of roles and authorities. Ideally they should cover all aspects of the work undertaken in the management area (procurement, HR,
       travel, etc.). An example from the DR Congo Office which could be used as a reference has been provided in the annex.

   Principles for business process reengineering
   Furthermore, as the office continues the re-engineering exercise, it will be important to refer to the following process excellence principles, that will
   help establish efficient business processes:

      Continuous involvement of Operations throughout project cycle
       A high level of collaboration between the Programme and Operations Teams on project development and implementation is a pre-requisite for
       smooth project implementation. A practice of common work sessions to prepare the project annual work and procurement plans needs to be
       established and institutionalized. The Operations Team needs to be involved from the outset of project development to gauge the feasibility of
       implementation, ensure that proper cost recovery principles are applied and prepare the office for support to project implementation. However,
       Operations’ involvement does not end there as it is crucial to have specialized staff available to support the project in the implementation and
       closing phases as well as to assist both the Project and Programme Teams in revising project planning. One way of accomplishing this
       involvement is to include operations staff in the meetings with project managers (could be every other meeting or once per quarter as that
       corresponds with the “normal” planning cycle).



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      Strategic, systemic analysis, projections and reporting capacity
       In order to allow the office to better plan the workload and make realistic projections of its pipeline and extra-budgetary ressources, it is
       recommended to establish clear processes around strategic analysis and reporting, including the definition of actionable follow-up items. As a
       first action towards building this reporting capacity, it is suggested to better utilize the available reports in Atlas (for more details please refer to
       the Management Information and Financial Monitoring Tools and the short list of reports as part of the presentation on Project Management in
       Atlas), and corporate tools such as the Executive Snapshot, the CO at glance and Landscaping Tool. Furthermore, this is directly linked to the
       recommendations with regards to the functional structure of the CO where the PMSU role has partly been streamlined within the Management
       and Business Development Team and the Finance Unit for the more operational issues (e.g. follow up on NEX advances and financial reports,
       monitoring of cost recovery, corrections of expenditures, etc.). The use of analysis and projections should be formalized as part of the
       discussions in the Senior Management, Business Development and Programme Teams.

      Performance measurement
       In order to increase client orientation and ensure that the expected process efficiency gains are achieved, it is important that performance
       indicators linked to discrete points in the processes are established and measured, and that appropriate action is subsequently taken when
       needed. As a start, several of these discrete process points have been identified with regard to direct payment and procuring with a PO (see
       time study in annex). The office will have to review the processes and set reasonable performance standards relative to these points. In this
       respect, other UNDP Country Offices can be used as benchmarks for the performance standards (comparative analysis has been provided as
       part of the annex).
       Closely linked to these performance measurements is the recommendation to introduce Service Level Agreements (SLA) for specific processes
       such as procurement, contracting, and payments. A SLA typically contains a specified level of service, support options and the fee for the
       services. Having a clear idea on what is possible with regards to process performance will help in determining a realistic service level and further
       promote client orientated service provision. It is suggested to first establish internal SLAs, and subsequently use these as a communication tool
       with projects and other clients to signal the level of service that can be expected from UNDP (e.g. payment executed within 3 days) provided
       that the required documentation, etc. is submitted to UNDP. An example of an SLA from the UNDP office in Moldova is included in the electronic
       annex.

      Assign process owner
       In order to put in place a system to actively improve and measure performance, it is suggested to assign a process owner to the key processes.
       A process owner has end-to-end authority and responsibility for achieving the outcomes of the process, and his or her influence cuts across
       functions and traditional divisions of power. The process owner is held accountable for the process performance and will continuously scan for
       opportunities to further improve the process.




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      E-banking
       The introduction of Atlas has paved the way for establishing e-banking solutions in a large number of Country Offices. Through these e-banking
       processes, UNDP has been able to streamline the disbursement and reconciliation processes. Without e-banking, both the disbursement and
       reconciliation process require a considerable amount of time in paper processing, follow-up and increased risks of loss of documents or fraud.
       UNDP Angola is in the process of discussing with commercial banks in the country in order to appraise the feasibility of pursuing e-banking. On
       the technical side, support is available from Treasury at HQ (Julie-Anne Mejia), as well as from the Center of Business Solutions (CBS – George
       Peradze).

   Longer-term improvements in the CO Business Processes
      Counterparts using Atlas (External Access)
       The implementation of Atlas has long been limited to UNDP offices without extending this tool to our partners. Currently an External Access
       module has been rolled out that will allow our partners to initiate project-related transactions directly in Atlas without using traditional paper-
       based requests. The module includes the following project transactions: 1) procurement requests (requisitions); 2) acknowledge receipt of goods
       and services; 3) payment requests (vouchers); and 4) budget revisions as well as substantive project monitoring. Security is set up so that
       project staff will be allowed to “see” and use their respective projects or specific Chart of Accounts (COA) only.

       UNDP Angola is in a good position to roll out the Atlas External Access, given that it has national counterparts as implementing partners.
       External access will improve communications and allow more data entry and process ownership to be placed at the project level. However, this
       will need to be combined with provision of the necessary support and training. Roll-out material from the Center for Business Solutions is
       available on the intranet and included in the electronic annex.

      Long-Term Agreements
       Procurement forms a significant part of the services UNDP Angola is providing to its partners (e.g. it represents over 40% of the GFATM
       portfolio) and therefore it is crucial that the procurement processes of the office are efficient and effective. Long-term Agreements (LTA) are
       powerful enablers of an efficient procurement process, as one no longer needs to do competitive selection once the agreement with a specific
       vendor has been signed. The office should consider using existing UNDP LTAs (e.g. for vehicles and computers), and moreover consider
       establishing local LTAs for other commonly procured services or goods.




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         E-filing: make use of e-doc toolkit
          The policy on E-Document Management recognizes that the electronic versions of documents can become the operational version for UNDP,
          and that electronic signatures are equivalent to hand-written signatures, provided that certain technical criteria are met. This gives country
          offices the opportunity to initiate and implement e-documentation activities to support business process improvement. It is recommended that
          the office makes use of the E-Doc toolkit. This toolkit provides a comprehensive set of guidance, materials and resources to assist the office in
          developing an e-documentation strategy and action plan.
          In particular, when it comes to the procurement process, it is strongly suggested to establish master procurement files on an organised shared
          drive, which will eliminate the need for re-printing and circulation of documents. For example, at the time of the payment request, all documents
          that are made available in previous steps of the process (e.g. Terms of Reference, budget related to project, solicitation documents, Atlas PO,
          non-Atlas contract, etc. ) can easily be retrieved from the master procurement file without having to circulate paper versions.


7. ALIGNING STRUCTURES
Critical elements of improving UNDP Angola will be to ensure that the office is aligned to deliver timely quality services to its key clients, by ensuring that
the capacities and competencies of UNDP Angola’s most valuable asset – its staff – are aligned with the office’s requirements. In achieving this, it is
important that the proposed structure be flexible enough to adapt to the future needs of the office and that it provides the opportunity to leverage the
potential of each individual through “refocused and interesting jobs”. Key principles underlying the proposed structure (see next section), include:

   Reflecting Programme priorities: Programme Team aligned to match major priorities defined through visioning and positioning exercise
   Achieving results: All activities organized to support the achievement of results
   An effective office: Strategic management support for better decision-making, planning, accountability and oversight
   Team players: Clarification of roles and responsibilities of all staff members as part of the office team
   Building and aligning capacities: The programme calls for strong delivery capacity across the board
   Mobilizing, recovering and managing resources: Sustaining the resource base and making the most of it


Reflecting Programme priorities: Realigned to match major priorities of Country Programme
The programme portfolio of the office outlined in the 2005-2008 CPD combined with the Global Fund which materialized after the CPD formulation
reflect a country programme with a focus on capacity development in the areas of pro-poor growth and democratic governance, but at the same time it
also reflects the post-conflict and HIV/AIDS issues of the country. Going forward there is a real possibility to have a high impact in strategic programme
areas if the office can further sharpen its focus, prioritize, make efficiency gains and deliver. As a first step in this direction the office should strengthen
the alignment of its projects with the main programmatic themes outlined in the Country Programme, and in this way ensure that it has critical mass of

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qualified staff in the priority areas. For now it is proposed to maintain the 2 development practice teams of the office, namely the: 1) Democratic
Governance Team; 2) MDG & Poverty Reduction Team acknowledging that this does mean that projects and activities related to environment and
energy and CPR will be integrated into these practice teams.

As input into the further definition of the sub-teams within each of these larger practice teams, it is proposed to finalize the vision and the positioning
exercises by prioritizing the key service lines of the country office, and in turn review the current clients, demand, and office capacities for these key
service lines. This will help define the capacity building and advocacy strategy for these service lines, and help with the organization of teams within the
overall Programme Team. The two broad Programme Teams will ensure that there are cross-sectoral linkages and coordination and cooperation
between service lines. Working in teams should also strengthen learning and knowledge management. At the same time it is important to consider the
resource requirements for each of the programme areas by looking both at the overall size of the portfolio ($ and number of projects) and the complexity
of each project in terms of counterpart capacity etc.

Achieving results: The office needs to think of all its activities in terms of results in order to ensure maximum added value
UNDP’s contribution to development effectiveness is realized through cooperation with the national government and other partners and is largely
implemented through programmes and projects. Therefore, delivering results through these instruments is at the core of UNDP’s mission. Recent
corporate investigations and reports on UNDP have shown that stronger management competencies, better understanding of responsibilities, and
independent monitoring and oversight are required in order to ensure that the organization is well equipped to deliver on its commitments to national,
regional and global counterparts. In sum, the need for more effective, results-oriented and accountable management of development projects to deliver
results has never been more necessary than now.

That this overall assessment of UNDP is also considered relevant to UNDP Angola (and acknowledged by the office) is evident from the recent
management audit report and from the work the office has undertaken on defining the results trees, and the fact that staff (as well as project managers)
has recently gone through Prince2 project management training with support from the CEDAR initiative. It is proposed that the office continue this effort
and make a multi-step plan to further strengthen its results-orientation through 1) reflecting results trees in Atlas; 2) further training of programme as well
as project staff; and 3) conversion of programmes and projects to be in line with the Results Management Guide

Reflecting the results trees in Atlas: The review of the data in the Executive Snapshot on UNDP Angola’s distribution of projects across results showed
that – in the system – a number of the projects have not been properly associated with a service line and core result although this work has been done
by the office. It is suggested that the office identifies the detailed issues and contacts the Helpdesk to ensure that it is rectified. Once this has taken
place it should be relatively easy to get an overall picture of whether the CO programme expenditures are aligned with the strategic goals and priorities
of the office.




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Training: It is critical that further training takes place in preparation of the implementation of the Results Management Guide. In addition to the PRINCE2
Foundation on-line Course a number of other training courses are now available on the Learning Management System (LMS). For a quick overview of
these, see the Results Management Guide Implementation Toolkit. The courses include the following:

      UNDP Results Management On-Line Courses
      Other Optional Courses and Certifications

The training is role-based and it is important to note that training also needs to be extended to project staff. Also note that the training will be helpful in
providing a better understanding on roles and responsibilities and issues of assurance, management and support and that the training therefore is a
useful element of the change process.

An Effective Office: Strategic management support for better decision-making, planning, accountability and oversight
Human Resources Team: As described in the improving processes section, for the NEX portfolio it is important to put the ownership of project
implementation at the project level. This will free up time for staff in the office who are currently heavily involved in processing project transactions. This
in turn will allow staff to play a more advisory and strategic role. In the case of the HR team, this will imply that its staff will be able to dedicate more time
on strategic HR issues such as the office’s long-term staffing needs by providing career advice, talent management, learning, survey management,
analysis and follow-up as well as strategic recruitment whilst maintaining a professional and efficient Human Resources administration. This work needs
to be done in close consultation with the senior management team who ultimately is responsible for HR management.

Streamlining of PMSU and Finance, and other functions: With the introduction of Atlas we have seen an example of a technology driven erosion of our
traditional barriers between Programme and Operations. Unlike our old systems FIM and WINFOAS, Atlas does not make a distinction between
programme and office finance. Every transaction in Atlas is based on a project, be it management or development projects. The introduction of Atlas has
stimulated a lot of offices to rethink the traditional split in e.g. financial functions between the PMSU (or PSU) in the Programme Unit and the Finance
staff in the Operations Unit.

A common conclusion is that the PMSU functions fall in two parts: 1) upstream functions (strategic resources planning, financial analysis for
management decisions, Atlas alignment and putting in place the internal control framework, etc) and 2) downstream functions (internal controls,
financial/procurement/HR process management, inductions/training etc). With this in mind a number of offices have chosen to consolidate the
downstream financial functions into one single unit. More information on these offices can be found on the Toolkit for Managing Change under
examples. Other offices have chosen to delegate basic financial transactions to the respective units with the traditional finance section providing
oversight, monitoring and more strategic reporting services. Either way, such changes will have clear implications for the way the office is structured.

Feedback from country offices which have merged PMSU (or PSU) and Finance suggest that it has facilitated a positive integration of programme and
project elements, which through a “one office – one team – one shop” approach has assured more coherence, e.g. in the areas of resource
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management, cost-recovery and reporting. However, the merger also has created challenges as staff has had to become more versatile and acquire
new knowledge and skills. Over time, many offices have seen a professionalization of financial management through the consolidation of functions in
one unit.

It is against this backdrop that the MCT is recommending to consolidate the upstream functions of strategic resources planning, forecasting and analysis
within the office, in the Management Support and Business Development Unit. This would also include an assurance role vis-à-vis donor agreements
and project budgets (assurance that cost-recovery efforts, etc. are duly and correctly reflected) and follow-up on contribution agreements with
headquarters and donors. The previous PMSU function of programme management support would be taken care of by programme, whilst admin
support to projects and operational advisory services would be taken care of by finance, procurement and HR respectively depending on the nature of
the support needs.

M&E function: Another aspect of strengthening UNDPs substantive reporting and oversight is the establishment of an M&E function within the CO. This
will ensure that programme evaluations respond to the quality standards of the organization and that project evaluations are managed in a coordinated
manner, and that best practices and lessons learnt are taken into consideration and shared within the CO, instead of being “owned” by specific projects.
The M&E function will have to work closely with the Programme and Management Support and Business Development Team, while keeping its
independence by not being involved in the daily monitoring of the programme portfolio and resource mobilization efforts.

Team players: Clarification of roles and responsibilities of staff as part of one team
As indicated earlier, through mapping and reengineering of business processes together with office staff, a range of specific improvement areas were
identified. A general benefit of this exercise has been to create more clarity within the office on the roles and responsibilities of the staff vis-à-vis the two
mapped processes. Further work needs to be done in this respect, both through mapping of other processes and subsequent definition of clear job
descriptions, which reflect the re-engineered business processes. The generic job descriptions posted in the Toolkit for Managing Change are a good
starting point for the work needed for aligning the job descriptions. However, note that this list of generic job descriptions currently is being expanded
and that an uploading to the Toolkit for Managing Change of these new generics will take place within the next couple of months. Meanwhile, we have
included the full collection of the new draft generic job descriptions as part of the electronic annex.

The importance of teamwork: Whilst having a clear definition of responsibilities and decision-making is important, the ability of staff to work together in a
dynamic way is equally important, and this should be nurtured. Using an analogy from team sports what is needed is for UNDP Angola to perform as a
football team. The team needs to be spread across the pitch with each player having a role flexible enough to take on additional responsibilities. The
team has a clear common goal and the ball is circulated within the team in an attempt to achieve this goal. A coach sets the direction for the team and
supports the game from the sideline and the captain is the delegated facilitator of the agreed game plan providing guidance from within the team. In
UNDP Angola the function of the captain of the football team should be taken up by heads of the teams in the functional structure and the functions of
the coach should be performed by the senior management team. This calls for the heads of the teams not to be a hierarchical layer in the office but


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rather acknowledged as part of the game and as contributors to well functioning work processes. In addition, the existence of teams will ensure that
cross functional tasks are effectively managed.

Joint planning: In order to ensure that the office pulls as one in its efforts, it is essential that the right hand knows what the left one does so that it can be
ready to move forward any work that comes its way. To this end it is critical that Operations are involved in project design, specifically when it comes to
work plan and procurement plan formulations. Not only will this allow Operations to flag capacity constraints to Programme and/or projects in the
formulation or planning stage, it will also facilitate the necessary level of readiness when the required support efforts are needed, e.g. by way of
procurement or contracting. Furthermore, it will, in the case of procurement, also facilitate more cost- and time-effective procurement as it might be
possible to lump procurement of certain items (e.g. cars) together for various projects and in this way both save time, effort and money (as better prices
can be negotiated for bulk orders). Obviously this requires open and active communications channels between Programme, projects and Operations in
order to ensure that changes in plans are duly reflected as timelines or requirements change from what was initially planned.

Communications: In response to the continuous need for mobilization of non-core resources and to the dire 2005 Partnership Survey results, it is
recommended that increased emphasis be put on building strategic partnerships and development of new business opportunities. An important part of
this effort will be to strengthen the strategic communications efforts in order to: 1) facilitate resource mobilization which is content-based and links in with
the programmatic priorities; and 2) communicate systematically on development results both within UNDP and externally to strengthen the branding of
UNDP Angola. The underlying principle is that communications serves both a support and a targeted advocacy function with respect to UNDP’s
programme. In sum, this is a call for an intensified communications effort from the whole office (communications within the office was highlighted in the
GSS and the SWOT during the mission to be a major weakness of the office). It is suggested to look at the Toolkit for Managing Change for tips on
communications. Also, it should be noted that the Communications Office of UNDP is working on a Communications Toolkit (with guidance on both
internal and external communications) which should be ready before the end of the year. Meanwhile, as another reference the following communications
toolkit may be of use. With regard to the branding of UNDP Angola’s products and services, the Communications Office has developed various
templates and formats, which need to be adapted by the CO. Finally, the office may consider making use of surveys, both internally and externally, to
gauge how its improvement efforts are being perceived and/or to identify where more efforts are needed.

Building and aligning capacity: The programme of UNDP calls for strong delivery capacity across the board
With a resource framework of $38.7 millions for the CP period 2005-2008 (according to the Resource Target Table in the CPD) plus a Global Fund
portfolio for a 3-4 year period of $63 million, it is clear that the office needs to have a substantial ability to deliver. This is particularly important as the
office – aside from building up a Global Fund project office of more than 20 people – has not aligned itself significantly since it was a much smaller
programme operating a range of legacy systems to manage its operations. The office has managed this large growth in portfolio mainly by building up a
parallel structure in a number of areas through the Global Fund. However, there is an opportunity, both for the office as well the projects, to leverage the
knowledge and expertise accumulated through the Global Fund and to further strengthen the processes, systems, structures and staff capacity.



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Key improvements necessary in terms of processes, system and structures have been outlined above. When it comes to developing capacity we will
outline four key elements:

1 – Performance management: A key element in the management of human resources is – as strongly emphasized in the recent management audit
report – appropriate performance management using the RCA process in a transparent and comprehensive manner. When applied as a coherent
process, the RCA makes a significant contribution to overall harmony, staff satisfaction and productivity. The strategic role and responsibilities of all
supervisors in this can not be overestimated. This includes proper use of the mid-term RCA discussions.

As an example of how the results within the office can be linked to the performance assessment, a number of COs in the RBLAC region have tied the
resource mobilization efforts of programme officers to the their performance assessment. This has been done by, at the outset of the RCA period,
agreeing on the number (e.g. 10) and format of project ideas the Programme Officer should develop over the course of the period. Furthermore,
agreement was made that the performance assessment also would be linked to the Programme Officers’ efforts and success in making an agreed
number of these project ideas materialize to become projects agreed with Government and funded. This type of results formulation directly linked to the
strategic priorities of the office may be worth considering for UNDP Angola.

2 – Alignment of competencies and capacities: In order to realize the CO vision and deliver on the CP in a timely, relevant, effective and efficient
manner, it is critical to ensure that necessary capacity boosts happen in strategic areas and in support of vital functions. This is related to the process of
reviewing the core functions of the office and identify which functions need strengthening. At the same time there is a need to factor in the future
estimated workload and current bottleneck issues and adjust staffing capacities accordingly.

3 – Training: A third pillar of further strengthening staff capacity is training. The exact training needs of the office should be defined as part of the
improvement process and these should in turn be incorporated in the individual learning plans. However, the current corporate drive for
professionalization does offer a number of opportunities which definitely should be taken advantage of. One of these opportunities is the training and
certification of the programme and project management functions mentioned above and already undertaken by the office. Two other recently available
corporate training tools for boosting capacity relate to the areas of procurement and HR:

   Procurement certification has been made mandatory for all procurement practitioners, regardless of contract modality, for completion by 30
   September 2006 for buyers. The Procurement Certification Course is available through the corporate Learning Management System for all members
   of our workforce (including Service Contract holders and UNVs). It is worth noting that this certification initiative is a first step in a larger effort to
   professionalize the procurement function. UNDP is participating in an UN-wide programme that aims to partner with procurement institutions in the
   regions, which will certify individuals according to common competency standards established by the UN procurement working group.

   HR certification: It is recommended that the office makes use of the recently launched HR certification programme which covers four main areas: 1)
   strategic HR services; 2) the tools and processes required to effectively manage performance; 3) the management of benefits and services to
   clients/staff; and 4) learning. The new certification is mandatory for the senior most HR Focal Point in all COs and recommended for Operations

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   Managers. In addition, OHR recommends that all UNDP managers take the three courses offered in Organizational Culture and Work/Life Balance;
   Communicating and Coaching and Counselling for Improved Performance; and Achieving Year-Round Performance Management and Appraisal.
   For more information and registration instructions, log on to the Learning Management System, at http://learning.undp.org, or contact
   learning@undp.org.

4 – Building capacity of project staff: As discussed during the business processes mapping and reengineering it is critical to build the capacity of the
project staff to ensure that the projects can take on their parts of the business processes in the spirit of the NEX modality. In order to professionalize this
effort, it is recommended that Standard Operating Procedures (SOPs) and packages of training material for capacity building of existing and new
counterparts are developed in the key areas, such as project management, knowledge management, procurement, HR, finance and administration. This
will ease the efforts of getting projects up to speed with their responsibilities and over time reduce the burden on UNDP staff in a way that will free up
staff to be more involved in advisory work and quality assurance. Also by institutionalizing these approaches new UNDP staff will find it easier to learn
how they can best support projects in a way that will secure national ownership and ultimately, better delivery of results.

Specifically on the issue of knowledge management, it is recommended to consider bringing in project staff to substantive office meetings in order to
cross-fertilize by sharing knowledge and ideas. Project staff has technical expertise and could provide valuable input to results formulation, analysis of
country context, and brainstorming sessions to make sure UNDP gets the policy messages right and identify new project ideas. Think-tanks and
academic institutions could also be part of the CO informal and formal meetings on policy issues. These efforts will ensure that UNDP uses all
knowledge and expertise available in country and the mix of national and international expertise on which UNDP as a global knowledge network relies.

Another way of integrating the CO with the projects will be by granting projects external access to Atlas and thereby allowing them the ability not only to
monitor and manage their projects better but also make it easier for project staff to assure quality. It is recommended that external access is initially
provided to a few projects with good capacity in order to test this modality, and then with time provide access to as many projects as possible in order to
facilitate a larger degree of transactional processing by the projects and in turn ensure that the role of the office becomes one of providing advice and
capacity building.

Finally, it is suggested to make use of the induction materials and training resources when new people join in order to get them up to speed quickly. For
a general introduction one can use of the corporate ondemand resources or for printable material please refer to the Starter Kit.

Mobilizing, recovering and managing resources: Sustaining the resource base and making the most of it

With the strong reliance on non-core revenue and a share of staff costs being funded from XB, it is important that resources are mobilized, costs
recovered and that the financial resources are managed and reported upon in a professional, transparent and accountable way. This includes the
strategic use of XB for staffing and capacity building whilst keeping a rainy day reserve to deal with unforeseen changes in expenses or income. But it
also relates to managing revenue, following up on donor contributions and reporting to donors. It was the impression of the MCT that the office has room


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for improvement in this area. As such we would like to make a couple of observations and draw attention to the new corporate donor reporting interface.
At the same time we would like to encourage the office to follow through on its cost recovery efforts.

To this end it is suggested that a financial sustainability analysis is undertaken covering the following:
- Income
- Expenditure
- Breakeven point
- Risk analysis

a) Income: The income evaluation should focus on the application of the Cost Recovery policy.

   The mentioned policy considers four different scenarios for recovering or sharing costs:
   - General Management Support (GMS)
   - Implementation Support Services (ISS)
   - Agency cost recovery
   - Common and Shared Services (CSA)

   The office accumulated an extra budgetary (XB) reserve of US$ 1,014,000 as of January 2006. Given that the XB expenditure in 2005 was US$
   528,715, i.e. a monthly expenditure of US$ 44,060, this means that the XB reserve was equal to 23 months of sustainability, which is a fair ratio in
   comparison with other offices in the region (see Landscaping Tool for a comparison). However, we must consider the evolution of the XB reserve for
   the last year and the capability of the office to maintain or increase the reserve.

   During 2005 the country office recovered GMS of an average of 3.8% (dividing XB income with overall programme expenditure plus 2% which is
   assumed to have been kept by headquarters in line with the cost recovery policy). As the rate according to the policy should be 5-7% (of which 3-5%
   is kept by the office) there is a need to review the GMS rates of all projects including the major and most important ones, and decide whether certain
   agreements can be renegotiated, and to decide internally what the standards should be going forward.

   On the ISS issue, virtually no ISS was recovered in 2005 but we were informed that this is now being recovered retroactively (note for reference that
   about US$ 19,000 was recovered in 2004). The ISS should be charged on a transaction cost basis in accordance with the Universal Price List – UPL
   or other specific agreements with counterparts.

   Regarding the Agency cost recovery, recovery has been processed but the trend is decreasing with recovery of US$ 3.5 million in 2004 and US$ 2.1
   million in 2005 (on which US$ 17,134 was recovered). This downward trend is fine if it is due to less services provided as long as charging is being
   done properly. However, it may be worth designating a focal point for recovering non-payment transactions (if not already done) and map the
   process for billing to create clarity around this.

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   Overall, efforts are already being made in the area of cost recovery, but it is important to instill a culture and discipline in the office to ensure that
   everyone recovers costs for the services that are provided whether it relates to procurement, HR, logistics, or other. In addition to the billing efforts, it
   will be important to cost recovery that new agreements with donors are negotiated in a way that ensures a solid GMS income. In order to get a
   sense of how much time the office spends on supporting projects, agencies and other clients which could or should be billed for the services, we
   would propose that the office makes a timesheet study over a given period (e.g. a month) of the activities of all programme staff involved in providing
   such services. For the operations staff the number of transactions should give a fair indication of the cost recovery potential so it is proposed that the
   number of transactions are logged over a given time period as well.

b) Expenditure

   The XB reserve increased around 10% between 2004 and 2005. Looking                     Description                                2004   %     2005   %     2006   %
                                                                                          Salary Costs - Regular Staff - 61000
   behind these figures, it is notable that there was a significant increase both in      Other Personnel Expenses - 71000
   GMS income and in expenditures, made possible in large part by the XB                  Miscellaneous Operating Expenses - 74000
                                                                                          General Operating Expenses - 72000
   generated by the Global Fund. Work is ongoing within the office to make an             Recur Payroll Costs - Reg Staff - 62000
   updated projection of what the impact on the XB reserve will be for 2006 but           Non-Payroll Staff Cost- Reg - 63000
                                                                                          Overhead Expenses - 73000
   given the lower than projected delivery of the Malaria component of the Global         Overtime Costs - 66000
   Fund it is likely to fall short of the increase projected at the beginning of the      Costs Related to Retired Staff - 65000
   year (more than US$ 200,000).                                                          Staff Mgnt Costs- Reg Staff - 64000
                                                                                          Total                                             100          100          100

   As part of the expenditure analysis it is proposed to look at the composition of       Major Description
                                                                                          FT Staff Costs
   expenditures by filling in a table like the one shown on the right (the MCT can        Other Personnel Costs
   provide this in Excel and other tools for forecasting upon request). This will be      GOE
                                                                                          Other
   useful both for the immediate analysis of costs but also it will give management       Total                                             100          100          100
   a rough indication of what e.g. an increase in staff cost will imply for the overall
   costs.




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c) Breakeven point

   In order to make an analysis of the financial breakeven point some variables should be determined as a baseline. It is suggested that – based on the
   expenditure analysis proposed above – that it should be decided what the XB income need to sustain necessary costs will be. As a next step a
   number of delivery scenarios would be developed, and based on this it can be calculated what the breakeven Cost Recovery (CR) percentage would
   be. Also, it could be calculated what the impact on the XB reserve would be if the CR rate continues to be at its current level of 3.8%. Based on an
   assumed necessary XB income of $US 500,000 the following illustrative example has been calculated.

                                                                   Scenarios
                  Variables                  1            2            3             4               5
   Delivery                              15,000,000   20,000,000   25,000,000    30,000,000      35,000,000
   Necessary XB                            500,000      500,000      500,000       500,000         500,000
   %                                           3.3%         2.5%         2.0%          1.7%            1.4%

   % CR to collect for breakeven point        5.3%         4.5%         4.0%              3.7%        3.4%

   Variables                                1            2            3              4              5
   XB if CR collected = 3.8%               270,000      360,000      450,000        540,000        630,000
   Result                                 (230,000)    (140,000)     (50,000)        40,000        130,000


   For easy reference the Scenario variables are explained below:
   -   Delivery: Program delivery for the country office in a given year
   -   Necessary XB: Amount of management expenditure from XB funds
   -   %: Necessary XB / Delivery
   -   % cost recovery to collect for breakeven point: It is for the sake of simplicity assumed that everything above 2% of the charged GMS can be kept
       by the country office (as most of the portfolio is funded by trust funds and third party cost sharing). Please have a look at the financial resources
       website for more details on the cost recovery policy, and the level of GMS charges that can be kept by the country office for different funding
       sources.
   -   XB if cost recovery = 3.8%: Total income received by the cost recovery for a given scenario if the average GMS rate was 3.8%
   -   Result: Deficit or surplus to XB reserve if the GMS charge is established at 3.8%




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    d) Risk analysis                                                                                     18,000


                                                                                                         16,000
    Finally, it is proposed that it is analyzed which eventualities might
    result in different delivery scenarios in order to get a sense of their                              14,000


    likelihood, in order to analyze the risks, and in order to make                                      12,000

    contingency planning. One obvious risk element in this respect                                       10,000
    highlighted on the graphic to the right is that 70% of the total
                                                                                                          8,000
    delivery volume for Angola is directly related to the 3 Global Fund
    projects.                                                                                             6,000


                                                                                                          4,000

    Due to the relative large size of the Global Fund within the overall
                                                                                                          2,000
    portfolio, it is proposed that special efforts are made, involving the
    Global Fund team, to project delivery and XB income for this part of                                     0




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    Finally, it was also noted that 12 out of the 38 development projects




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    (with a positive budget for 2006) have a budget of less than
    $100,000. As these small projects still require the standard project management processes to take place and as such contribute to the transactional
    workload of the office, it is suggested that they are reviewed with an eye to decide on their strategic value added.

Resource Mobilization: As mentioned above there is a need to ensure business development and sustainable office financials. It is clear that RM is a
function of all staff in the office, with different levels of responsibility. Necessary for RM but not sufficient in and of itself is a combination of client service
orientation and office efficiency. Basically, the office needs to function at all levels and for all tasks in a manner that establishes the credibility of the CO
among external partners and/or clients. Still at the operational level, effective application of cost-recovery policies has clear potential to generate
resources for the CO XB budget. Second, the programme unit must pro-actively investigate and/or define appropriate opportunities for UNDP
interventions. Opportunites exist when a combination of elements come together: there is a national issue to be addressed that aligns in an identifiable
way with UNDP’s mandate and the CO has a capacity to respond. Third, a new function of Management Support and Business Development will be to

                                                                             24 / 58
Management Consulting Team (MCT)



support the idea formulation and targeting of priority partners and providing advice with regards to donor reporting requirements, quality standards, etc.
The fourth level of responsibility is with both programme and management by way of moving ideas from their initial identification through feasibility
assessment (often informal), matching with potential funding, preparation of draft project proposals and closure, i.e. signature against the specific project
or programme objectives and committing financial resources for that end. The proposed structure intends to strengthen the RM function of the office at
all levels (quality and technical capacity, collaboration among colleagues).

In summary, the Management Support and Business Development Team will perform the following functions and support the positioning of UNDP
Angola through:
       Regular analysis of the political, economic and social environment in the country.
       Support to the Government, UN agencies and other development partners in the analysis and solution identification of key development
        challenges of the country (including policy advice and highly qualified technical assistance).
       Knowledge and mapping of other partners’ programmes and projects in order to ensure that UNDP adds value and positions itself in the context
        of joint GoA/development partner(s) efforts.
       Continuously evaluate, make proposals for improvement of UNDP Angola business model, positioning and services.
       Ensure integrated management of UNDP’s pipeline in strong collaboration with the Programme Team and the senior management of the office
        (a specific tool developed by RBA has been shared with the CO to this end; see the electronic annex).
       Ensure targeting of strategic communications with UNDP’s partners to their specific needs, whilst delivering a consistent image and portrayal of
        the organization’s values and contribution to the development goals of Angola.
       Development and implementation of the CO Advocacy Strategy and efforts to promote the MDGs, the national HDR and other flagship products
        of UNDP.
       Promote and ensure that the CO uses UNDP’s branding as the UN’s global development network from the development of templates for project
        concept notes, project initiation documents, meeting minutes, letters, etc. to the quality control of reports to GoA/donors on UNDP projects and
        programmes.
       Facilitate the internal flow of information and the establishment of a client-orientated culture among CO staff through analysis of corporate tools
        in the resource mobilization (RM Toolkit, Partners Survey, Donor Database) and communications.


Donor reporting: As third party cost sharing and trust fund resources corporate have increased dramatically, the management of these resources has
become a complex undertaking requiring considerable care and attention. In order to facilitate the management of these non-core funds, the Bureau of
Management and the Bureau for Strategic Partnership recently announced the following three tools: (1) Donors’ tracking web-site; (2) Non-core revenue
management – Better Practice guide; and (3) Euro donor reporting.

                                                                         25 / 58
Management Consulting Team (MCT)




1) The Donors’ Tracking Web-Site will enable donors to access financial and narrative progress reports extracted from Atlas. This information will be
available directly on-line, improving transparency and our ability to serve as stewards of funds contributed to UNDP by the donor community. All donors
(OECD/DAC, programme countries, multi-lateral, private, etc.) will be able to see financial and narrative reports at country, fund and project level for
programmes and initiatives towards which they have contributed as well as aggregate data regarding other donors.

For now, the donors’ tracking web-site has been released only internally in order to allow the Country Offices time to familiarize themselves with the tool
and, very importantly, to upload all agreements and progress reports and make the necessary adjustments to the financial data processed in Atlas. It is
important that the office reviews this website and, when applicable, takes necessary action to update Atlas so that it correctly reflects the actual
situation.

2) The Non-Core Revenue Management – Better Practice Guide supports the management of non-core contribution agreements. The guide provides
links to relevant policies, documents and tools and aims at (1) streamlining and standardizing the management and administration of non-core funding;
and (2) facilitating compliance with corporate standards, contribution agreements and related reporting obligations.

3) Euro Donor Reporting An automated Euro donor report has been designed to reduce the extensive manual effort currently involved in preparing Euro
reports, to ensure timely reporting to EC and to effectively manage our financial exposure and risks related to Euro currency fluctuations.




                                                                        26 / 58
Management Consulting Team (MCT)




8. ACTION PLAN


      Area of action                                      Action Description (or Comment)
      Getting Ready       Ensure regular progress meetings
                          Coach the CFT members at the beginning and throughout the change management process
                          Review the TORs of the Change Facilitation Team
                          Finalize the project workplan
                          Finalize the project budget
                          Establish the project’s governance structure (reporting relations with SMT)
                          Share and consult workplan with the CO
      Visioning           Finalize vision statement for the CO
                          Implement analysis and positioning steps defined in the Resource Mobilization Toolkit (in particular
                           Assessing and Positioning stages)
                          Identify the priority clients
                          Finalize the value propositions for each priority client
                          Define UNDP’s services and their position based on the demand and CO capacity
                          Determine services for which UNDP needs to acquire capacities or develop strategy to increase the
                           demand
                          Prepare and implement Resource Mobilization and Partnership Strategy




                                                                27 / 58
Management Consulting Team (MCT)




      Improving       Internal
      processes        Conduct and document Business Process (BP) re-engineering
                       Clarify roles, responsibilities and accountability within the various BPs in accordance with ICF.
                          Determine the first and second authorities for each of the development and management projects in
                          the CO portfolio.
                       Decide and implement process simplifications. Begin with the two processes – purchase with a PO
                          and Direct Payment, which were simplified during the MCT mission.
                       Avoid unnecessary post-facto controls (e.g. signature of PO by DCD(O) after approval of PO)
                       Pursue the preparation of Standard Operating Procedures which translate the ICF and encompass
                          the BPs - see DRC example
                       Continue efforts on e-documentation
                       Communicate and operationalize the improved processes
                      Leverage Atlas
                       Review Atlas roles (LM 1, LM 2, buyers, etc.)
                       Programme and Project staff to exercise “budget ownership” (prepare requisitions, do approvals,
                          budget/expenditure oversight)
                       Continue efforts to delegate authorities – Programme staff who already have been given LM1 and
                          LM2 approval authorities should exercise them
                       Widen access to Atlas for CO staff and project staff (DEX - Atlas roles & NEX through External
                          Access)
                       Establish requisitions in the system according to the ICF and to improve procurement planning
                       Projects to enter receipt of goods in the system instead of the current system where it is done by the
                          CO Procurement Team
                      Programme Team
                       Continue efforts to strengthen results chain and RBM in programme and project management
                       Correct Expenditure per Practice Area in Atlas (contact ps.support@undp.org)
                       Implement programme portfolio conversion as per the new Results Management Guide: the
                          conversion should be informed and take into consideration the CO vision and positioning analysis
                       Further strengthen strategic, systemic reporting capacity
                       Strengthen knowledge sharing and codification, incl. involvement of project staff
                       Do substantive project monitoring and management in Atlas – use the new Project Management
                          Module and related reports (Quarterly Progress Report, etc.)
                       Greater interaction between Programme & Operations Teams in the planning (procurement,

                                                              28 / 58
Management Consulting Team (MCT)



                            contracting, HR) and management of resources (financial analysis, setting of cost-sharing rates, ISS
                            recovery in development projects)
                         External
                          Work on E-banking arrangements
                          Establish local Long-Term Agreements
                          Establish criteria for process performance (Service Level Agreements - see example from Moldova)
                          Measure performance on processes (once the criteria have been agreed)
                          Implement E-procurement
                          Implement Harmonized Approach to Cash Transfers with the UN ExCom Agencies, the Government
                            and the other development partners)
                          Explore opportunities for strengthened quality common services with the UN agencies as part of the
                            UN reform agenda
      Global Fund         Harness potential human resource and capacity synergies
      Project             Map business processes
      Opportunities       Transfer knowledge and systems from Global Fund projects to UNDP practice
      Aligning            Management decision on new office structure
      Structures          Communicate and share new office structure
      Optimizing         Financial Resources
      Resources           Analyze how best to utilize XB resources
                          Undertake in-depth analysis of available resources and progress on delivery
                          Make and implement action plan for strengthened Cost Recovery (ISS and GMS)
                          Use resource management analysis for resource mobilization efforts
                         Human Resources
                          Review functional requirements
                          Align job descriptions
                          Analyze projected workloads and back-up needs
                          Decide on staffing implications
                          Review post classifications
                          Conversation with staff on JDs and new practices
                          Develop Learning Plan
      Making it Happen    Establish and implement new Organigram of the CO
                          Establish criteria and measure impact of change process (take stock of progress through SWOT
                            analysis, review of the self-assessment tool by the Management Team, analysis of the next GSS and

                                                                 29 / 58
Management Consulting Team (MCT)



                           Partners Survey results, etc.)
                          Strengthen the use of RCA – perform mid-term review and provide necessary training to middle
                           managers on managing of staff and providing feedback on performance
                          Capitalize on willingness to change and build effective teams (e.g. use opportunities to organize
                           social events around key stages of the change process to mark progress)
                          Based on the Learning Plan, implement the various options for capacity building (focus on UNDP
                           certifications in PR2/RMG, HR, Fin, Proc)
      Communications      Review Sample Communications Plan
                          Develop Communications Plan
                          Communicate on project's progress with all staff – develop appropriate tools (bulletin, change
                           progress board, etc.)
                          Develop External Communication Strategy and Plan linked to Resource Mobilization and
                           Partnerships Strategy
                          Adapt UNDP corporate branding and develop templates, formats, etc. for UNDP Angola. Use models
                           available on the Communications Office website.
                          Develop tools and build capacity for Increased Client Service Orientation
                          Integrate teambuilding events in the change process




                                                              30 / 58
Management Consulting Team (MCT)




9. DRAFT WORK PLAN & BUDGET

A draft workplan as well as a budget for the change process have been included in the electronic annex to this report for adjustment by the office.




                                                                        31 / 58
Management Consulting Team (MCT)




Annex I        List of electronic annex documents and deliverables

                          Document or Deliverable                                          File name
Presentations:
      Agenda                                                            Angola_agenda_01F.ppt
      Introduction                                                      Angola_1.1_Introduction_01F.ppt
      Horizon scan                                                      Angola_1.2_Horizon_Scan_01F.ppt
      Capacity self-assessment                                          Angola_1.3_Capacity_Assessment_01F.ppt
      Positioning                                                       Angola_2.1_Service_Portfolio_01F.ppt
         -Vision drafts
         -List of clients
         -Maps of service demand and CO capacity on services
      Business Process Re-engineering                               Angola_3.1_BPRE_Exercise_01F.ppt
      Reports for project management, pipeline management           Angola_3.2_CO_Session_Project_Management_01F.ppt
      Improvement Plan (incl. proposed structure)                   Angola_4.1_Improvement Plan_01F.ppt
SWOT analysis                                                   SWOT_UNDP_Angola_31-10-06
Business process mapping                                        Angola_process_maps_01D.vsd
Comparative process performance                                 Comparative_timestudy_data_01F.ppt
Example of country office process manual (DRC)                  DRC_PNUD_Guide_sur_le_Processus_de_Travail.doc
Improvement work plan                                           Angola_Improvement_Workplan_01F.mpp
Proposed budget                                                 ANG_Improvement_Project_Budget_01D.xls
Example SLA                                                     Service_Level_Agreement_Moldova_example.doc
Draft Communication Plan                                        Sample_TMC_Communications_Plan_01D.doc
Reporting guidelines                                            Management and Monitoring tools_v7.doc
Pipeline Management Format                                      Angola_Pipeline_Mgmt_System_01D.xls
Tips on how to facilitate meetings, SWOT exercises              Facilitation Tips_01S.doc
Tips on how to facilitate prioritization exercise on services   Prioritization_Facilitation_Tips_01S.doc
Draft budget for revision                                       ANG_Improvement_Project_Budget_01D.xls
Instructions on external access                                 External Access Instructions.doc
Document on ICF                                                 Internal Control framework for UNDP offices1.doc
Draft Generic Job Descriptions 2006                             Draft Generic Job Descriptions 2006 (zip folder)
Trial version: Microsoft Project                                Microsoft_project_standard_2003_trial.exe
Trial version: Microsoft Visio                                  VisioEval.exe
Terms of reference for CFT                                      TOR_Change_Facilitation_Team_01D.doc



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ANNEX 2       Sample of DRC work process manual
The following is an extract from the office manual produced by the UNDP DRC office. For each of the key business processes the office has mapped the
reengineered process, and also made a table that shows who is responsible for each task, what the supporting documents are and also what the
expected turnaround time would be.




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Achat d’un bien / service (2,500 - 30,000 USD) pour un projet DEX (> 10 millions) avec délégation
   Etape            Temps                                 Tache                         Responsable                    Détails / Documents requises
                 1 jours      1. Définition une activité ou un besoin                       CTP           Prodoc, Plan d’achats, Plan de travail/Requête interne
Préparation      5 jours      2. Préparation les spécifications techniques             OM / Spécialiste   Formulaire de Spécifications techniques
                              3. Préparation de la demande d’achat de biens ou de
                 1 jours                                                                  AF projet       Demande (Mémo) d’achat de biens ou de services
                                  services
                 1 jours      4. Saisi de la réquisition en ATLAS                        AF projet        Numéro de la réquisition
                              5. Vérification de la disponibilité des fonds                 AP            Project Budget Balance
                 1 jours
Approbation                   6. Vérification de la cohérence programmatique                CP            Prodoc
                              7. Approbation                                              RRA/P           Dossier complet (demande, spécifications)
                 1 jours
                              8. Information du RRA/O, ARR/O                                CP            Dossier complet
                 1 jours      9. Enregistrement de la demande                          Réception CdS      Dossier complet
Identification   1 jours      10. Réception et Vérification de la documentation        Manager CdS        Dossier complet
du               2 jours      11. Préparation du cahier de charge / appel d’offre           CA            XXX
fournisseur      2 semaines   12. Lancement de l‘appel d’offre                              SA            XXX
                              13. Comité d’Evaluation des candidatures                      CA            Formulaires d’achat, requête visé
                              14. Elaboration du rapport d’évaluation et
                 4 jours                                                                     CA           Rapport d’évaluation
                                  recommandation
                              15. Approbation de la recommandation                          CTP           Rapport d’évaluation
                              16. Achat d’un service ?
Engagement                    17. Etablissement du contrat de service                      CA             Contrat de service
                 2 jours      18. Vérification juridique du contrat                         CJ            Dossier complet, contrat de service
                              19. Approbation du Contrat                                   CTP            Dossier complet, contrat
                 1 jours      20. Saisi du PO en ATLAS                                     CA
                 1 jours      21. Approuve le PO en ATLAS                                  CTP
                 1 jours      22. Signature du PO / du contrat                             CTP            Dossier complet
                 ???          23. Réception des biens                                    SM, CdS          Bordereau de réception
Réception        1 jours      24. Contrôle de qualité / quantité                       SA/Spécialiste     PO, spécifications, rapport de contrôle
                 1 jours      25. Introduction dans l’inventaire en ATLAS                  CA
                 1 jours      26. Réception finale et vérification                         CTP            Bordereau de réception
Paiement                      27. Initiation du paiement                                 AF projet        Facture, mémo, requisition
                 (40 jours
                                                       END
                 + ?)




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                                                                                                                            Non-existent /   Early stages of      Good      Advanced
ANNEX 3 SELF-ASSESSMENT OF CAPACITIES                                                                                       undeveloped       development      management    practice
                                                                                                                                                                 practice

                                                                                                                                  1                2               3           4
In an effort to determine the areas of focus and refine the
                                                                   Strategic           Leadership commitment
positioning of the country office, a capacity self-                leadership
assessment against 22 basic criteria was developed and                                 Planning
discussed with the management team. The purpose of this
exercise was to assess the capabilities of the country office                          Functional structure

with respect to its practices, and to identify priority areas                          Resource management
for improvement. This self-evaluation looked at the
following elements: strategic leadership, values and ethics,                           Management of partnerships

staff, risk management, accountability and transparency,                               Client relationship management
integrated      performance     information,  and      project
management. The capability descriptions (see following                                                                      Non-existent /   Early stages of      Good      Advanced
                                                                                                                            undeveloped       development      management    practice
pages) are based on generally recognized corporate best                                                                                                          practice
practices which have been adjusted to the UNDP context.                                                                           1                2               3           4
The table on the right summarizes the results and indicates        Values and ethics   Values and ethics framework
the “as is” (blue) and “to be” (green) capability level for
each of the 22 criteria of the capacity assessment. The “as        Staff               Management practices
                                                                                       competencies
is” level represents the assessment of UNDP Angola’s                                   Staff satisfaction
current capabilities for each criterion. The “to be” level
represents the capability level that management believes                               Enabling work environment

realistically could be achieved within one year.                   Risk                Integrated risk management
                                                                   management

The overall finding is that the management team believes                               Integrated management control
                                                                                       framework
that there is considerable room for improvement, and that it
                                                                   Accountability      Clarity of responsibilities and
is committed to make this happen. Commitments to                   and transparency    organization

achieving substantial positive changes in the upcoming                                 External reporting and information

year include the following areas:
                                                                   Integrated          Integrated performance reporting
1) functional structure;                                           performance
                                                                   information
2) client relationship management;                                                     Measuring client satisfaction
3) integrated management control framework;
                                                                                       Financial information
4) external reporting and information;
5) measuring client satisfaction;                                  Project             Business process improvement
6) business process improvement; and                               management

7) external audit.                                                                     Management tools and techniques


                                                                                       Knowledge management


                                                                                       NEX capacity development and
                                                                                       ownership
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                                                                  As is:
                                                                                       External audit
                                                                  To be:
Management Consulting Team (MCT)

                                                                                                                                                                                               Angola




The detailed definitions of performance levels related to each of the 22 criteria, as well as observations and recommendations
related to each are presented in detail in the following pages.



Leadership commitment (rating  as is: 0.9 - to be: 2.4)
Findings                                                                                                                Recommendations
 Management has launched a participative process of rethinking the overall                                              The time is opportune to redefine the
country office strategy.                                                                                                country office direction and strategy, and
 There is a sense of commitment and interest on the part of the senior                                                 communicate it to staff given that a full
management to implement modern management practices.                                                                    management team is now in place.
 The need for better performance reporting (e.g. Atlas) is emphasized by                                                Build on the sense of commitment and
managers.                                                                                                               interest, by continuing to implement modern
 Middle managers are committed and proactive in remaining up to date on                                                management practice improvements in areas
modern management practices and have recently improved their ability to work                                            such as performance measurement, and
together as a team.                                                                                                     strategic planning.
                                                                                                                         Provide more training in areas pertaining to
                                                                                                                        managerial competency, especially with
                                                                                                                        respect to staff management.
                                                                                                                         Information and management infrastructure
                                                                                                                        should be strengthened to support resource
                                                                                                                        allocation and decision-making.
                                                                           “as is”
Topic                                         1                                       2                                           3         “to be”                            4
Leadership commitment         Senior management has only limited   Senior management has a broad               Senior    management         has    highly   A modern management practices
                              knowledge of the modern management   understanding of the concept of modern      committed and supportive of modern           culture permeates the country office
Awareness and commitment of   practices focus.                     management practices, and recognizes        management practices mindset, and            and its decision-making process. Senior
RR,    and   DRR    –Senior                                        the need for change. Initial steps were     commit resources to implementing             management has created a climate
management– to establishing                                        taken to report performance on an           modern management best practices.            wherein creativity and responsible risk
and implementing a modern                                          integrated basis, including financial and   Senior management has established            taking are encouraged, barriers are
management        practices                                        non-financial, and \short and longer-       mechanisms to report performance on          broken down between functions, and
environment                                                        term    plan    to    improve    modern     an integrated and consolidated basis.        business decisions are challenged.
                                                                   management practices. Performance           Country office is able to report on extent   Risks are discussed openly and service
                                                                   information,      accountability      and   to   which standard for           modern     delivery mechanisms are reviewed
                                                                   management are high on senior               management practices has been met.           continuously. Country office reports with
                                                                   management’s agenda.                                                                     confidence on performance results
                                                                                                                                                            achieved.

ye



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Planning (rating  as is: 1 - to be: 2)

Findings                                                           Recommendations
 Need to further stress the link                                   Unit work plans with clear and measurable deliverables should be drafted and
between the country strategic direction                            aligned to the country office strategy.
and priorities and work planning at the                             All units should prepare and/or revise their respective work plans, and incorporate
program and operational level.                                     measurable results indicators which will be reviewed regularly by senior management
 Program is currently analyzing the                               to track progress.
project portfolio to convert projects to the
new Results Management Guide
principles.


Topic                           1                                        2        “as is”                           3      “to be”                              4
Planning                        Business     plans    are   developed    Strategic and business plans are           Desired results, strategic priorities and   Strategic and business plans highlight
                                independently of the country office      prepared independently. Business           resources are clearly stated in             country office issues, major risks, and the
Strategic,    business    and   strategic plan. Little or no effort is   plans are primarily focused on meeting     business plans. Strong linkages exist       resource implications. Assumptions are
operational planning, and the   made to reconcile the two. Business      senior     management          reporting   between strategic objectives and            periodically challenged to ensure continued
linkages between them and to    planning is done on an inconsistent      requirements.       HR,     information    priorities, business      plans,      and   relevance. Plans reflect needs of clients/
resource allocation             basis across the country office. No      management, and other horizontal           operational plans and budgets.              stakeholders who are consulted as part of
                                effort is made to link/reconcile unit    issues are addressed on a project-by-      Business plans are comprehensive            the process. Business plan resources/
                                plans. Business plans, once prepared,    project basis, and are only partially      and reflect resources from all              performance targets reflect strategic
                                are seldom used in support of program    reflected in business plans. Some          functional areas. Resources are             priorities. Results achieved are monitored
                                delivery.                                effort is made to ensure consistency       adjusted annually to reflect priorities.    on a trend basis against strategic priorities.
                                                                         between business plans and strategic       Results achieved in business plans          Plans/ resources are adjusted to reflect
                                                                         plan or to reconcile units’ business       are monitored against strategic             performance results.
                                                                         plans.                                     priorities.




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Functional structure (rating  as is: 1.3 - to be: 3.4)

Findings                                                                                         Recommendations
 As part of the improvement efforts started the country                                          There is a need to continue the work to finalize the CO vision,
office is now reviewing the functional structure to develop                                      clarify strategic priorities, and to align the functional structure to
further synergies where possible.                                                                support this.
                                                                                                  The further realignment of the functional structure should be
                                                                                                 motivated by a deliberate effort to focus everyone on having impact
                                                                                                 by strategically responding to the needs of clients and partners.


Topic                                                 1                                          2                                           3                       “to be”             4
Functional structure               No clear functions within the   country“as is”
                                                                            Managers     of functional units and staff    Managers of functional units and staff      The entire country team is playing a
                                   office. Role of functional units is seen   assist senior management in assessing       are members of the executive team           leadership role in integrating processes
Extent to which functional units   primarily as transaction or process        the management implications of major        advising the senior management, and         and systems to ensure the country
authorities   and    supporting    oriented (e.g., payment processing).       decisions     (e.g.,   financial,    HR).   are often called upon to provide            office is making sound business
organizations are used for         Advice is focused mainly on the            Managers of functional units are often      strategic advice and support in new         decisions,      maintaining      controls,
objective commentary and           process.                                   called upon to provide strategic advice,    program initiatives. Scope includes not     managing long term risks, and
independent advice                                                            while supporting country office is          only functional matters, but also           achieving      high     standards       of
                                                                              primarily   transaction    or     process   effectiveness/ efficiency of operational    performance. Role of functional units is
                                                                              oriented.                                   and development services delivery and       well understood and highly valued.
                                                                                                                          management controls and practices
                                                                                                                          required.




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Resource management (rating  as is: 1.2 - to be: 2.4)
Findings                                                                                        Recommendations
 Efforts are ongoing to create a stronger basis for                                             Continue to improve the basic systems supporting planning and
income and expenditure projections (scenario based).                                            resource allocation, in particular, the consolidation of intelligence and
 The above includes efforts to strengthen XB                                                   risk information at the country office level, costing systems,
projections (pipeline management, cost forecasting, etc).                                       performance measurement systems and internal financial reporting.
 It is acknowledged that CR efforts have to be                                                  The cost recovery policy and its application should be reviewed
strengthened (e.g. ISS is now being charged                                                     and implemented accordingly (e.g. increase GMS rate charged).
retroactively for 2005).                                                                         Financial projections of income and expenditure should be
                                                                                                developed and analyzed based on scenarios in order to consider
                                                                                                possibilities for – and risks associated with – strategic investments in
                                                                                                increased capacity.

                                                                              “as is”                                                     “to be”
Topic                                       1                                           2                                             3                                           4
Resource management         No systematic/formal approach or      Resource levels are reviewed periodically,        Resource planning models are used to    Mechanisms are in place at the organization
                            process to resource allocation,       adjusted for new activities/priorities, and are   estimate resource requirements.         level to help make choices between competing
Mechanisms for ranking      budgeting or forecasting.             managed independently by each unit. There         Mechanisms are in place to facilitate   priorities and to reflect changes in business
program options,            Resource levels are adjusted on       is a clear formal process for budgeting.          resource re-allocations between         plan objectives/ assumptions. Managers at all
identifying funding         an incremental basis from year to     Budgets and forecasts are prepared by             branches/ regions. Budgets are          levels are involved in resource allocation/ re-
requirements and            year. Limited consultation or         finance based on a broad understanding of         prepared by operational/finance staff   allocation decisions. Budget re-allocations
allocating resources, and   involvement of operational staff in   longer term plans and base assumptions            with advice and input from              decisions are fully transparent. The resource
budgeting and forecasting   budgeting and forecasting.            provided by operational staff. Forecasts are      management, and are clearly linked to   allocation culture supports openness and
                            Financial information and             not reviewed for realism of assumptions.          strategic/ business plans. Forecasts    flexibility. Budgets link resources to activity
                            analysis is not integrated into the   Actual results rarely correspond to forecasts.    are reviewed for realism of             and programs. The processes for budgeting
                            evaluation of program options         There is limited commentary prepared for the      assumptions, and re-forecasts made      and forecasting are streamlined. Managers are
                            and priorities.                       financial assumptions.                            regularly.                              held accountable for budget variances, and
                                                                                                                                                            are rewarded/ penalized accordingly.




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Management of partnerships (rating  as is: 0.6 - to be: 2.0)
Findings                                                                                          Recommendations
 Management of partnerships is done in an ad hoc                                                  Improve information collection and dissemination across the
manner.                                                                                           country office and with partners.
 The Partnership Survey is reflecting past failures to                                            Develop a culture of partnerships and resource mobilization
deliver on a number of initiatives, and it is acknowledged                                         Promote training on negotiation, marketing/“sales” of development
that serious efforts have to be made to gain the trust of                                         and advisory services.
partners.                                                                                          Strengthen the use of regular meetings with partner and
                                                                                                  counterparts to foster greater cooperation and communication.


                                        “as is”                                                   “to be”
Topic                                              1                                        2                                       3                                            4
Management of partnerships       Roles and responsibilities as they       The country office proactively reviews   Managers regularly consider options    The country office has a long-term plan and
                                 pertain to identifying and               its project activities and services to   in terms of development and advisory   has committed resources at the corporate level
Partnerships are used            implementing partnerships and            assess where partnerships are            service delivery methods including     to support new development and advisory
extensively by the country       donors are generally not well            appropriate. Managers see                partnership opportunities. Training    service delivery methods including
office in support of             understood. No formal mechanisms         partnerships as one way of mobilizing    programs are in place for managers     partnerships. Major partnership risks are
development and advisory         exist for the country office to manage   resources but have only a broad          and program staff. Toolkits exist to   identified in strategic and business plans, and
service delivery by leveraging   its relationship with partners.          understanding of their benefits and      guide managers at each stage of the    the assessment of partnerships is an integral
the capabilities of external     Information on the success of            risks. A clear decision-making           process. Systems are in place to       part of business planning and on-going
stakeholders, partners, and      partnership arrangements is              process is in place for authorizing      monitor the performance of external    decision-making. Partnership opportunities are
other government institutions    unreliable.                              major partnerships. A formal             partners. Risk management policies     identified on a cross-functional basis.
                                                                          consultation process exists for          are in place for major partnerships.   Processes are in place at the project level to
                                                                          stakeholders to provide input at                                                allocate risks to the parties. Partnership risks
                                                                          critical stages of a project.                                                   are monitored on an on-going basis. Tools and
                                                                                                                                                          techniques are well-developed and used
                                                                                                                                                          consistently across the country office.




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Client relationship management (rating  as is: 1.0 - to be: 3.2)
Findings                                                                                      Recommendations
 The Partnership Survey is reflecting past failures                                           As clients and partners are an important source of ideas for new
to deliver on a number of initiatives, and it is                                              development products and services, the country office should further
acknowledged that serious efforts have to be made to                                          strengthen mechanisms to learn from them, to anticipate and respond to
gain the trust of partners.                                                                   their changing demands.
                                                                                               Develop more systematic mechanisms to share feedback obtained from
                                                                                              clients during consultations and to improve development and advisory
                                                                                              services provided by the country office.
                                                                                               Leverage the donor reporting site to share dynamic information on
                                                                                              programs with clients and partners using the web as a channel.
                                                                                               Place great emphasis on continually improving the quality of the
                                                                                              advisory and development services provided.
                                                                                               Develop a clear strategy and plan for client relationship management as
                                                                                              part of the efforts to implement the RM toolkit.
                                                                                                                                                               “to be”
Topic                                                  1 “as is”                                    2                                             3                                             4
Client relationship                There is no formal client management         A client management function (e.g.,           The country office liaises with key client     The country office develops close client
management                         role in the country office. Relations with   client managers, client relationship          organizations to address existing and          relationships directed toward fully
                                   clients/ stakeholders are primarily at the   teams) has been established where             new service requirements, promote new          understanding clients’ needs. The client
Commitment to consciously          individual level. The country office has     warranted by the scale and complexity         services, and to share information on          management function sets objectives
strengthening relationships with   limited systems and infrastructure to        of a client’s interactions with the country   clients’ future plans and priorities. Client   for the country office with key clients,
clients, and to integrating and    support the operations of the client         office. Personnel from key operational,       service plans have been developed for          and monitors existing service delivery
coordinating how client            management function.                         program and supporting policy and             key clients. A client management               performance and client satisfaction.
services are developed and                                                      functional groups work together to serve      function marshals and coordinates              Client organizations participate directly
delivered.                                                                      key clients. Basic information exists on      resources from across the country office       in planning sessions. Products and
                                                                                key clients and stakeholders. Clients         to ensure service delivery commitments         pricing are well understood by clients.
                                                                                are aware of who to contact in the case       are satisfied and service delivery             The supporting infrastructure is in
                                                                                of issues or new service requirements.        problems are resolved.                         place—systems that track client
                                                                                                                                                                             intelligence, record client activity,
                                                                                                                                                                             service levels. The performance of the
                                                                                                                                                                             country office is tracked for each key
                                                                                                                                                                             client account.




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Values and ethics framework (rating  as is: 0.5 - to be: 1.9)
Findings                                                                           Recommendations
 The country office has set up a Well-Being                                        As part of the visioning and positioning exercise, consider developing a
Group which has allowed all staff to contribute with                               set of published core values based on broad staff consultation process
ideas and recommendations to further improve the                                   which could make up the “charter” that binds the country office together (the
office atmosphere and work values.                                                 MCT can provide examples for inspiration).
                                                                                    Take action on quick win suggestions made by Staff Well-Being Group.


Topic                                              1 “as is”                                  2                        “to be”            3                                           4
Values and ethics framework      No clearly enunciated ethics and values   Values and ethics are recognized as an      The country office has put a structure in   Ethics and values principles/ guidelines
                                 policy. Policy statements are issued on   issue. The country office has engaged       place and resourced it to promote           are well understood by all staff, and are
Values and ethics policies and   an ad hoc basis. Limited attention has    staff in a dialogue on ethics and values.   values and ethics (e.g., shared             reflected in country office documents
activities (e.g., codes of       been given to values and ethics. There    Leadership has been demonstrated in         statement). Written policies have been      and communications. Senior managers
conduct) that visibly support    is an absence of dialogue on the          championing values and ethics. The          communicated across the country             demonstrate a consistent ethical
and prioritize “modern           subject. The country office follows       country office may have a values and        office, and are generally understood.       leadership. There is consistent
management practices”            minimum guidelines such as a code of      ethics statement.                           Values and ethics are incorporated in       application of processes on values and
                                 conduct.                                                                              country office training programs. The       ethics. Demonstrated ethical behaviors
                                                                                                                       country office is developing a better       are assessed in performance
                                                                                                                       understanding of how to deal with           evaluation. An atmosphere of mutual
                                                                                                                       ethical dilemmas.                           trust exists at all levels. There is
                                                                                                                                                                   ongoing monitoring, assessment and
                                                                                                                                                                   evaluation of trends in values and
                                                                                                                                                                   ethics.




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Modern management practices competencies (rating  as is: 1 - to be: 1.9)
Findings                                                                                                            Recommendations
 Training is available via LRC to improve competencies in a number of                                               Strengthen the learning efforts in the office,
areas. However time constraints and workload sometimes impinge on                                                   starting with making use of corporate certificate
staff participation.                                                                                                trainings available.
                                                                                                                     Consider establishing a formal training tracking
                                                                                                                    mechanism to enable staff to demonstrate individual
                                                                                                                    achievement of competency goals (link this to RCA).
                                                                                                                     Perform country office-wide competency gap
                                                                                                                    analysis to facilitate development of a training
                                                                                                                    strategy and succession plan.
                                                                                                                     Link the use of competencies to performance
                                                                                                                    appraisal, succession planning and staffing.


                                                                             “as is”                                    “to be”
Topic                                              1                                         2                                        3                                         4
Modern management               Little or no information exists on         Modern management practices              Managers’ skills gaps in modern         Managers are applying modern
practices competencies          competency requirements for modern         competencies have been defined.          management practices are being          management practices in their day-to-
                                management practices for either staff or   Additional knowledge requirements for    addressed. Learning plans have been     day operations. Training and funding in
Extent to which modern          managers.                                  modern management practices have         developed. Training requirements on     modern management practices have
management practices                                                       been identified. Skills gaps have been   modern management practices are         high priority. Functional specialists and
competencies are defined and                                               established. There has been limited      being sourced. There is “cross-         managers have been trained. Modern
staff have access to training                                              focus on improving modern                fertilization” between functional       management practices are an integral
                                                                           management practices competencies        specialists and line managers.          element of the country office training
                                                                           (e.g., training, sharing of best         Mechanisms are in place to share best   program.
                                                                           practices).                              practices.




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Staff satisfaction (rating  as is: 1 - to be: 2)
Findings                                                                                                                    Recommendations
 The GSS 2005 pointed to serious short-comings in staff satisfaction across                                                 Monitor and evaluate staff satisfaction by
nearly all surveyed dimensions. However, management is determined to address                                                piloting surveys in specific areas of the
this.                                                                                                                       country office (see main report for survey
 Aside from the GSS there are no mechanisms in place to monitor staff                                                      tools).
morale and staff relations at the country office level aside from retreats and                                               Explore the use of other consultative
meetings.                                                                                                                   processes to determine staff satisfaction
                                                                                                                            (focus groups, staff meetings).
                                                                                                                             The country office senior management
                                                                                                                            should put emphasis on developing staff,
                                                                                                                            making them feel valued and encouraging
                                                                                                                            them to contribute to the business, providing
                                                                                                                            them with a degree of autonomy and
                                                                                                                            accountability for achieving development
                                                                                                                            results.

                                                        “as is”                                     “to be”
Topic                                               1                                      2                                       3                                           4
Staff satisfaction               Information on staff satisfaction is   Different arrangements for surveying    Formal mechanisms are in place to           Staff satisfaction is a key consideration
                                 collected on an informal and ad hoc    staff satisfaction exist across the     survey staff satisfaction on a regular      in strategic and business planning, and
Mechanisms in place to           basis.                                 organization. Limited monitoring and    basis, and results are tracked over time.   in the performance evaluation of
monitor staff morale and staff                                          analysis of results on a trend basis.   Results are communicated across the         managers. Staff satisfaction issues are
relations                                                                                                       organization. Improvement teams are         addressed on an ongoing basis. Results
                                                                                                                created to develop plans to address         of staff satisfaction surveys have been
                                                                                                                high priority issues.                       improving.




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Enabling work environment (rating  as is: 1.7 - to be: 2.8)
Findings                                                                                                  Recommendations
 The office building is not supportive of team work due to the                                            Develop an internal communications plan in order to better
many floors (9). Efforts are ongoing to upgrade the building with                                         manage the change process the country office will have to
a lift and other improvements. Also, it is envisaged that there                                           deal with in coming months and years. This plan should be
might be possibilities to move to another building within the near                                        developed in the context of an ‘overarching’ change
future.                                                                                                   management strategy.
 A Staff Well-Being Committee has been established and it                                                 Move ahead with key proposals from Staff Well-Being
has come up with a number of suggestions for improving the                                                Committee
work environment.
 Management has an open door policy which has recently
improved communication between staff and management.
 There is no current internal communications plan.

                                                                                                                            “as is”                                     “to be”
Topic                                               1                                           2                                          3                                           4
Enabling work environment       The prevailing culture reinforces             Though there is management control,       Staff are acknowledged as a key asset       The importance of employees is
                                compliance behavior where staff are           staff are encouraged to increase          and programs are implemented to allow       emphasized through the supportive role
Practices for communication,    expected to follow orders and defined         productivity and look for efficiencies.   growth on the job. Staff are given          of management. Open and rapid
wellness, safety and support    procedures. Communication tends to be         Staff provide input and are allowed to    opportunities to provide input, to modify   communication and information flow are
that enable staff to provide    downward, with management                     make suggestions when changes occur.      procedures and to make decisions            apparent. Staff have access to process
client-focused delivery while   controlling and limiting information to       Information is available for monitoring   regarding their immediate work. Staff       and client service data so they can
reaching their full potential   staff. Changes are decided by                 purposes and shared amongst functions     are consulted before major decisions        make decisions independently for
                                management and communicated as                where interrelationships exist.           are made, and are often enrolled in         continuous improvement.
                                necessary to staff. Staff have little input   Newsletters and bulletins are used to     cross-functional taskforces to              Communication with clients and
                                into decisions. Cross-functional              keep staff informed of changes and        recommend solutions. Information flows      stakeholders is open and constant, with
                                communication is limited. Staff have          initiatives. Work/life balance is         freely within functional areas, and is      information and decisions being shared
                                little influence over their work or work      emphasized.                               shared between functional areas.            in partnership arrangements. Staff are
                                environment.                                                                                                                        involved in all decisions regarding their
                                                                                                                                                                    work environment.




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Integrated risk management (rating  as is: 1.0 - to be: 2.0)
Findings                                                                                                                          Recommendations
 The country office does not have an integrated and systematic approach to risk                                                   Prioritize more formally the risks and
assessments.                                                                                                                      country office-wide priorities at the senior
                                                                                                                                  management meetings and communicate
                                                                                                                                  these to staff. Prioritize the risk
                                                                                                                                  assessments that need to be done.
                                                                                                                                   Continue to improve risk analysis
                                                                                                                                  processes.
                                                                                                                                   Use risk logs for project management
                                                                                                                                  as proposed in the Results Management
                                                                                                                                  Guide.
                                                                                                                                   Implement mechanisms to improve
                                                                                                                                  staff training and information sharing on
                                                                                                                                  risk analysis.


Topic                                            1                                       2                              “to be”     3                                         4
Integrated risk management      No formal risk management measures   Risk management policies and                  An integrated risk management           Integrated risk management is
                                are in place. Concept of risk        guidelines are in place for specific          framework is in place. Management       embedded in the country office’s
Measures are in place to        management is not well understood.   operational areas. Risk assessment is         direction on risk management and        corporate strategy and shapes the
identify, assess, understand,                                        done extensively at the operational           organizational risk tolerance is        country office’s risk culture. Continuous
act on, and communicate risk                                         level. Risk management is applied             communicated and senior managers        risk management learning is
issues in a corporate and                                            primarily to major initiatives involving      champion risk management. Major risks   encouraged. The results of risk
systematic fashion                                                   significant resources. No policy or           are identified and plans developed to   management are integrated in
                                                                     guidelines exist at the country office-       manage risks. Risk management is        organizational policies, plans and
                                                                     wide level. Country office-wide issues        integrated into decision-making.        projects. Learning from experience is
                                                                     are dealt with on a “one-off” basis as        Managers apply risk management          valued, and lessons are shared.
                                                                     they arise. Potential liabilities have been   concepts, techniques and tools.         Various tools and methods are used for
                                                                     identified and strategies have been           Consultation with stakeholders is       managing risk (e.g., risk maps,
                                                                     developed and implemented to manage           ongoing. Evaluation and reporting       modeling tools). The country office
                                                                     them. The organization is beginning to        mechanisms are being developed to       reviews its risk tolerance over time.
                                                                     use a common risk management                  report on risk performance.             Sharing best practices and experiences
                                                                     language.                                                                             is used to increase managers’
                                                                                                                                                           knowledge base.




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Integrated management control framework (rating  as is: 0.5 - to be: 2.5)
Findings                                                                                                                                 Recommendations
 Mapping of business processes revealed that staff did not share a common                                                                Map and reengineer processes – to be
understanding of what the current work processes and control points were                                                                 subsequently communicated to and
 Control was found to be centralized to a large degree with the DCD (O) causing                                                         implemented by all staff.
bottlenecks with regards to workflow.                                                                                                     As part of this process ensure that
 Bi-monthly reviews take place of key reports and bank reconciliation is reported                                                       approval is taking place by the budget
to take place on a weekly basis.                                                                                                         owners to the extent possible.
                                                                                                                                          Establish reporting systems and
                                                                                                                                         monthly review routines to ensure internal
                                                                                                                                         controls.
                                                                                                                                          Agree on a few reports that the
                                                                                                                                         management should review on a regular
                                                                                                                                         basis (e.g. Resource Planning Framework
                                                                                                                                         report, financial summary from Snapshot,
                                                                                                                                         financial details by Programme Officer
                                                                                                                                         from Snapshot, Office at a glance, XB
                                                                                                                                         Status Report).


Topic                                              1 “as is”                                   2                                            3     “to be”                                 4
Integrated management           Transaction controls are largely paper      Systems are in place to control             Effective systems in place and                Control framework is in place and fully
control framework               based. Multiple approval levels in place.   overspending, manage accounts               integrated or interfaced where                integrated. Controls are built into, not
Appropriateness of              Account verification is done on a 100%      receivable and assets. Limited systems      necessary. Taking materiality,                onto processes. Controls are working
management controls in place,   basis without regard to materiality or      integration, and controls redundancies      sensitivity and risk into account, there is   as intended, and are integrated
and linkages between controls   risk. Revenue controls are weak. Fixed      exist in operating systems. Limited use     an adequate system of internal control        functionally to avoid unnecessary
through an integrated control   asset records are incomplete,               of statistical sampling based on risk.      over assets, liabilities, revenues,           duplication. Controls are regularly
framework                       verification is not done regularly.         Approval levels and authorities are         expenditures, contracts and contribution      reviewed as to risk (potential benefit or
                                Delegation records are not regularly        documented and reviewed periodically.       agreements. All legislation, regulations      amount of exposure to loss). Processes
                                maintained. Controls are perceived to       The authority structure is seen as a        and executive orders are complied with,       are in place to ensure that corrective
                                be impeding decision making and             control instrument rather than a            and spending limits are observed.             action is taken. Alternative controls are
                                managers’ ability to fulfill their          strategic tool. Authorities are applied     Comprehensive authority structure             developed, where appropriate. Strong
                                accountabilities. Policies and              inconsistently across the country office.   exists for most functions of the              fit exists between the authority structure
                                procedures are not up-to-date.                                                          organization, and is updated                  and the corporate values and culture of
                                                                                                                        periodically. Delegations of authorities      the organization. Authorities support
                                                                                                                        are consistent with operating                 responsive service delivery to clients.
                                                                                                                        responsibilities.




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Clarity of responsibilities and organization (rating  as is: 2 - to be: 3)
Findings                                                                                                                                          Recommendations
 Both the GSS and business process mapping reflected that there were issues with                                                                  Improve       interfaces     between
respect to the clarity of roles and responsibilities.                                                                                             Program and Operation.
 Reviewing the transactions of the office it appears that transactions below US$5,000                                                             Continue the participative
represent more than 85% of all vouchers created in 2006. This transactional work should to                                                        business process mapping exercise,
the extent possible – both for the DEX and NEX projects – be entered into Atlas by the                                                            including processes related to Global
projects rather than by the country office.                                                                                                       Fund.
                                                                                                                                                   Further enable projects to enter
                                                                                                                                                  transaction data into Atlas by
                                                                                                                                                  providing access and training.

Topic                                                 1                                        2                                 “as is”
                                                                                                                                       3                                    “to be”4
Clarity of responsibilities and   Management and technical roles and         Some confusion exists as to              Authority, responsibility, and              Responsibility within the country office
organization                      responsibilities are generally not well    responsibilities of management and       accountability are clearly defined and      for dealing with new and emerging
                                  understood in the country office.          specialists. Some overlap in roles and   aligned with the country office’s           financial and non-financial issues is
Clarity of assignment of          Confusion exists in accountabilities for   responsibilities among managers and/or   objectives. Accountabilities are clearly    clear. There is a clear understanding of
responsibilities and              achieving and reporting results.           technical staff.                         defined at each management and              responsibilities that provides the
accountabilities throughout the                                                                                       technical level, and are well understood    framework for modern management
country office                                                                                                        throughout the country office. Little or    practices such as resource
                                                                                                                      no overlap in responsibilities.             management and performance
                                                                                                                      Accountability issues are resolved          reporting.
                                                                                                                      quickly. Accountabilities for controlling
                                                                                                                      resources and reporting and achieving
                                                                                                                      results are clearly delineated.




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External reporting and information (rating  as is: 0.5 - to be: 2.4)
Findings                                                                                                              Recommendations
 The country office produces the minimum amount of external reports                                                   Continue to improve country office-wide
required but does not use reporting and information sharing as an                                                     performance measurement and reporting so as to
opportunity to demonstrate professional management and client                                                         further enhance the quality of performance
orientation                                                                                                           information included in external reports.
                                                                                                                       Review data integrity in preparation for sharing
                                                                                                                      more information with donors and partners as part of
                                                                                                                      the launch of the donor reporting site. For this
                                                                                                                      purpose it may also be worth reviewing the donor
                                                                                                                      related data on the Snapshot.


Topic                                                1         “as is”                         2                                         3     “to be”                             4
External reporting                 Information reported satisfies minimum   Process for consolidating financial and   Organization is recognized by projects,   Strong linkages exist between
                                   external reporting requirements.         non-financial information required for    partners and key stakeholders for         information reported externally and
Extent to which project, partner                                            external reporting is reviewed on a       producing useful, consistent, and         strategic and business plans. Integrated
and other key stakeholder                                                   regular basis. Close contacts are         credible financial and non-financial      information input by staff and managers
information reporting                                                       maintained with projects, partners and    information in a user-friendly format.    in strategic and business plans is used
requirements are met                                                        key stakeholders to ensure information    External reports are easily understood    to prepare external reports. Senior
                                                                            meets their requirements. External        and are meaningful to users.              management plays an active role in
                                                                            reports are aligned with planning and     Information in external reports is        preparing and communicating external
                                                                            accountability structures within the      reported on a trend basis so that         reports.
                                                                            country office.                           changes can be monitored over time.




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Integrated performance reporting (rating  as is: 1.3 - to be: 2.0)
Findings                                                                                                            Recommendations
 As part of the CPD and the included Results and Resources Framework,                                               Consider setting up a compact between
key performance indicators and key outcomes have been developed for the                                             program staff and senior management with
practice lines.                                                                                                     concrete deliverables such as development
 Corporate IT systems are providing tools (e.g. dashboards, scorecard)                                             projects and actions taken, partnerships, and
supportive of performance reporting which could be used more systematically                                         financial resources mobilized. Ultimately,
by the country office to measure performance.                                                                       performance measurement should be linked to
                                                                                                                    performance management (i.e., RCA).


Topic                                             1                                “as
                                                                                   2 is”                          “to be” 3                                                4
Integrated country office       No country office performance   Country office priority areas to be        High level strategic measures for the        Performance results are reported for the
performance reporting           measures.                       measured have been identified. Country     country office are in place, and are         country office as a whole over time.
                                                                office performance measures have           linked to strategic vision and priorities.   Results are monitored against targets
Key measures exist to monitor                                   been organized in a wide reporting         Linkages between measures are                and the country office’s strategic
overall organization-wide                                       framework (e.g., balanced scorecard).      evident. Performance measures have           objectives. Information is valued by
performance and best-value                                      The methods of collecting the              been communicated, and agreed upon.          senior management, and is often used
results                                                         information, and sources of information,   Staff have received training. Measures       for decision-making and external
                                                                have been identified.                      cover both financial and non-financial.      reporting. Results are used to make
                                                                                                           Information on the results of the            trade offs in country office priorities.
                                                                                                           performance measures is available in
                                                                                                           part. A mix of quantitative and
                                                                                                           subjective l information is used.




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Measuring client satisfaction (rating  as is: 0.5 - to be: 2.0)
Findings                                                                                                                           Recommendations
 Counterparts and clients expressed apprehension with regards to the country                                                       Consider other ways to measure and
office work in the 2005 Partnership Survey                                                                                         gauge client satisfaction than the yearly
 The senior management team is well aware of the need to work on improving                                                        Partnership Survey, and devise plan for
client satisfaction                                                                                                                taking quick corrective action when needed
                                                                                                                                   (see report for suggested survey tools).

                                                        “as is”                                                        “to be”
Topic                                             1                                       2                                            3                                           4
Measuring client satisfaction   Client satisfaction information is    Approaches to collecting client              Formal systems exist across country          Client satisfaction information is
                                collected on an informal and ad hoc   satisfaction vary across the country         office to survey clients on level of         collected through a wide range of
Utilization of client survey    basis.                                office, and tend to vary from year to        satisfaction. Results are tracked over       techniques. Information is collected on a
information on satisfaction                                           year depending on management                 time, and are considered in strategic        consistent basis across program areas.
levels, and importance of                                             priorities. Limited monitoring and           and business planning. Limited analysis      Results are consolidated on a country
services                                                              analysis of results. Information collected   of results on a country office-wide basis.   office-wide basis, and overall trends
                                                                      is not always seen to be useful.             Complaint information is consolidated        analyzed. Results are a key element of
                                                                                                                   and reported, and a complaint                strategic and business planning, and
                                                                                                                   resolution process exists.                   are used to assess service standards
                                                                                                                                                                and service improvements.




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Financial information (rating  as is: 1.5 - to be: 2.5)
Findings                                                                                                                     Recommendations
 The transition to an enterprise resource management system                                                                  Provide managers with training on Atlas reporting and
(Atlas) has lead to a revision and standardization of financial                                                              the use of financial information.
management processes.                                                                                                         Improve active monitoring of internal controls and
 With the implementation of Atlas the timeliness and the quality of                                                         transactional process to establish a higher level of
the information has (over time) been improving and managers have                                                             confidence in financial information generated through
become more familiar with Atlas.                                                                                             Atlas.
 Due to some inconsistencies between ledger report and                                                                       Consult headquarters on the Atlas data integrity issue
expenditure detail in Atlas, the data shown on financial reports is not                                                      to evaluate improvements in the quality of financial
always accurate and need to be thoroughly revised before being                                                               information produced for purposes of external reporting.
shared with external partners. This revision implies an additional
workload.


                                                                                                            “as is”                                    “to be”
Topic                                                  1                                           2                                          3                                           4
Financial information               Voluminous hard copy reporting              Mostly hard copy reporting to financial    Appropriate reporting frequency.            Fully integrated on line, real time
                                    dictated by financial reporting timetable   timetables with some on-line access to     Monthly information available within one    systems with flexible reporting. All
Reliable financial information is   with monthly/ quarterly/ annual reporting   supporting data. Reporting based on        to five days. All reports and data          transactions in financial, asset, human
available in a timely and useful    taking up to six weeks. Commentary on       information from various sources but       available in appropriate media. Data        resource and other operating systems
fashion                             results prepared solely by finance.         coordination is haphazard and data         availability and accuracy are seldom an     (e.g., outputs, cycle time, and workload)
                                    There are persistent problems with data     integrity not assured. Detail to support   issue. Financial information is available   are linked and interfaced/integrated to
                                    accuracy. Standard reporting from           high level information is not readily      from a single source, but requires          meet business requirements. Financial
                                    financial accounting system but its         accessible. Finance prepares               manual intervention for interfacing with    information is considered to be a
                                    inadequacies lead managers to               commentary on results with limited input   other operating information. Finance        corporate asset, and is fully transparent
                                    maintain their own records and reports      from operational staff. Financial          works closely with operational              across the organization.
                                    which are not checked for consistency       reporting cycles are not always in sync    managers to understand results and
                                    with other sources of information.          with operating information reporting       jointly prepare commentary. Managers
                                                                                cycles. Finance is responsible for         have strong sense of ownership of
                                                                                meeting overall organization financial     financial information. External reporting
                                                                                information requirements.                  requirements (e.g., Parliament) are
                                                                                                                           consistently met.




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Business process improvement (rating  as is: 0.7 - to be: 2.5)
Findings                                                                                                                   Recommendations
 Work on reviewing processes (procurement with PO, etc) has been                                                           Decide on key business processes to map and
started.                                                                                                                   reengineer
 Process improvements and redesign has been designated a strategic                                                         Identify key business process improvement
priority.                                                                                                                  opportunities country office-wide and prioritize
 Agreement has been reached to map and reengineer key processes in                                                        opportunities to maximize cost benefit and
order to ensure process improvements                                                                                       efficiency.
                                                                                                                            Produce the following deliverables:
                                                                                                                           o        Documented new workflow
                                                                                                                           o        Formal designation of internal control
                                                                                                                           responsibilities
                                                                                                                           o        Aligned Atlas user profiles
                                                                                                                           o        Document management system to handle
                                                                                                                           (at a minimum) supporting documentation for
                                                                                                                           transactions.
                                                                                                                            Leverage best practice/process improvement
                                                                                                                           initiatives from other country offices.
                                                                                                                            Promote and reward a culture of innovation.


Topic                                               1            “as is”                       2                                          3       “to be”                          4
Business process                  Processes are not well defined. There    Processes are defined to varying             Main service delivery processes are     There are systems and processes to
improvement                       are no systems or processes which        degrees depending on the unit. Process       well documented and understood          identify and assess service delivery
                                  support the analysis and assessment of   improvement projects are initiated on an     across the organization within each     options. Processes are improved on an
Extent to which processes are     service delivery options.                ad hoc basis. No or limited work done        service area. Some best practice        ongoing basis. A variety of analytical
clearly understood, are                                                    regarding “most efficient country office”.   assessment has been carried out and     techniques are used to support process
conducted in a uniform fashion,                                            Little change in processes in the last       processes updated. Major process        improvement including best practice
and are continuously improved                                              years.                                       improvements and/or most-efficient      reviews and benchmarking. Processes
in line with best practices                                                                                             organization analyses are underway to   are assessed on a cross functional or
                                                                                                                        improve program delivery. Key           cross organizational basis, with client/
                                                                                                                        processes are monitored to ensure       stakeholder involvement.
                                                                                                                        consistency in program delivery.




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Management tools and techniques (rating  as is: 0.8 - to be: 1.8)
Findings                                                                                                  Recommendations
 Locally developed solutions and customized spreadsheets                                                  Develop better processes business case analysis (e.g.,
are utilized as work planning and management tools.                                                       cost-benefit and risk analysis for new projects in line with
 An Intranet exists but this and other channels of                                                       Prince2, and overall resource modeling).
communications could be better utilized for sharing knowledge                                              Raise awareness of management tools available.
and improving communications.                                                                              Train managers on management tools such as the
                                                                                                          Financial Snapshot.



                                                                             “as is”                                      “to be”
Topic                                                 1                                         2                                          3                                           4
Management tools and                Limited tools and techniques available   Techniques such as life cycle costing,      Managers at all levels are exposed to     Well developed and a wide range of
techniques                          at a country office level to assist      cost benefit analysis and benchmarking      tools and techniques. Managers have       decision support tools and techniques
                                    managers in conducting business case     are primarily financially focused.          access to various analytical models and   are available and fully understood and
Range of analytical techniques      analysis. Managers tend to use their     Country office capacity in analytical       techniques (e.g., project management)     used by all staff. Tools are an integral
(e.g., cost-benefit, sensitivity,   own individual approach.                 techniques is maintained within the         and decision making support tools that    part of decision-making by managers.
life cycle, benchmarking)                                                    organization of the functional authority.   integrate financial and non-financial     Analysis is done using integrated
available to managers                                                                                                    information. Managers use tools in        information. A consistent suite of tools
                                                                                                                         close partnership with functional         is used across the country office.
                                                                                                                         specialists.




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Knowledge management (as is: 0.5  to be: 1.5)
Findings                                                                                                                Recommendations
 The country office has meetings regularly but more focus could be on                                                   Develop a knowledge management strategy
sharing of information, discussion of best practices and improvement of                                                 that includes a focus on continuous learning, and
performance.                                                                                                            the development of knowledge management tools
 IT infrastructure could be more supportive of knowledge management.                                                   and vehicles to support this.
 The country office does not have a records and document management                                                     Continue to strengthen the IT infrastructure
system to retain, retrieve and share documents and other information.                                                   through development of information systems that
                                                                                                                        support initiatives and further sharing of knowledge
                                                                                                                        and information.
                                                                                                                         Continue work on ensuring greater participation
                                                                                                                        in practice networks.


Topic                                                1 “as is”                                2        “to be”                          3                                         4
Knowledge management                The country office culture is not       Deployment of the organizational          Organizational learning initiatives are   Country office-wide knowledge sharing
                                    conducive to a knowledge sharing        learning concept has been initiated and   widespread at the unit level. Senior      technologies (e.g. groupware) have
Performance/management              environment and limited information     processes exist to support information    management recognizes the                 been implemented to capture, create
information is readily accessible   management processes are in place.      acquisition and storage. Access to        importance of knowledge sharing and is    and disseminate knowledge and best
to internal and external users      Mechanisms or structures to encourage   intellectual capital and knowledge        supportive of collaborative mechanisms    practices. The sharing of knowledge
via technology, and lessons         organizational learning or the          sharing across organizational             and structures to encourage knowledge     and best practices to support modern
learnt are shared across the        acquisition and dissemination of        boundaries is limited.                    transfer and lessons learned.             management practices is encouraged
country office.                     modern management practices related                                                                                         and rewarded.
                                    knowledge are not evident.




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NEX capacity development and ownership (as is: 1.5  to be: 2.5)
Findings                                                                                                                 Recommendations
 The management audit highlights a lack of capacity of the government                                                    Roles and responsibilities of all parties
executing agencies.                                                                                                      involved at different stages of implementation
                                                                                                                         and a capacity development strategy with
                                                                                                                         monitoring and evaluation mechanisms should
                                                                                                                         be clearly defined and communicated. Training
                                                                                                                         program for projects should be established for
                                                                                                                         NEX
                                                                                                                          All the information relevant to the execution of
                                                                                                                         NEX projects should be posted in the country
                                                                                                                         office web page (NEX Manual, honorarium scale,
                                                                                                                         bid processes, etc). Ideally, this information
                                                                                                                         should be mirrored in the national counterpart
                                                                                                                         web page.


Topic                                            1                                         2       “as is”                            3       “to be”                             4
NEX capacity development       No formal service NEX standards exist.   NEX service level arrangements and         Formal service level NEX arrangements       NEX service standards are periodically
and ownership                  Quality of service is monitored on an    standards exist on an inconsistent basis   and standards have been established         reviewed with clients/stakeholders and
                               informal basis.                          across the country office. Clients have    for all projects, and results are tracked   improved to reflect changing priorities.
Executing standards of UNDP                                             been involved to varying degrees in        and analyzed over time. Country office      NEX service standards are re-assessed
assisted projects in which a                                            development of NEX standards.              standards are well known. Clients           based on cost, overall delivery and
national institution is the                                                                                        participate in the development of the       impact. NEX service standards reflect
executing agent.                                                                                                   standards. Results are used to identify     different priorities of client groups.
                                                                                                                   service improvements and transfer of        Results are a continuing source of
                                                                                                                   capacities.                                 pressure for new service and quality
                                                                                                                                                               improvement initiatives.




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External audit (as is: 0.5  to be: 2.5)
Findings                                                                                            Recommendations
 OAPR/RASC-SA recently completed a management audit                                                 Make clear who will take responsibility for follow up on
indicating that the office is partially satisfactory with regards to                                each of the recommendation items.
overall risk management, governance and control processes. Of                                        Publish items, “ownership” and timeline in a public place
64 recommendations made 53% were considered high priority.                                          within the office building.
                                                                                                     Use the Atlas Project Management Module
                                                                                                    functionalities to monitor audit recommendations.
                                                                                                     Monitor the audit recommendations into the project work
                                                                                                    plans.

                                                                                                                                         “to be”
Topic                                              1                                   2                                         3                                            4
External audit                  Results of external audits are       Coordination is carried out to ensure   Results of external audits are used as       Detailed follow-up is made to ensure
                                responded to on a “one-off” basis.   results of external audits are          input into strategic and business plans.     decisions and plans resulting from
Process for ensuring adequate                                        disseminated to managers, and follow-   Action plans are developed to address        external audits are implemented in the
attention to results and                                             up is done.                             audit findings, and project                  long term, and results are reported back
recommendations of external                                                                                  implementation teams are created             to external auditors. The country office
audits of country office                                                                                     where appropriate. Good linkages exist       is pro-active in identifying priority areas
operations                                                                                                   between internal audit and external          to be addressed by external auditors.
                                                                                                             audit and review. A good working
                                                                                                             relationship exists between the external
                                                                                                             and internal auditor. A formal
                                                                                                             coordination role exists in the country
                                                                                                             office to monitor external audit activity.


-




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ANNEX 4       Microsoft Visio and MS Project evaluation versions

Microsoft Visio evaluation version

The business process flows are created with the Microsoft Visio software, which you will need to install in order to be able to
manipulate the files. You can download a trial version of the software (30 days) by going to
http://www.microsoft.com/office/visio/prodinfo/trial.mspx (please note that you need a good internet connection to download this).

The Visio software will allow you to tailor the "template business processes" so that they reflect the business processes of your
country office. If you feel like learning more about the software, a fairly good training package can be found at
http://office.microsoft.com/en-us/training/CR061832751033.aspx (you will have free access to these training tools).


Microsoft Project evaluation version
The work plan is created using Microsoft Project and for managing your plan in a professional way you can also make use of this
software. To download a 30-day trial version of Microsoft Project please click the following link
http://www.microsoft.com/office/project/prodinfo/trial.mspx (You will need a good internet connection in order to be able to
download).

If you feel like learning more about the software, a fairly good training package can be found at http://office.microsoft.com/en-
us/training/CR061832711033.aspx (you will have free access to these training tools).




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