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					  Knowledge Management Roadmap




A sStrategy for Ddeploying Knowledge
      Management within UNDP




          MarchApril, 2004


                                       1
                                          SUMMARY

UNDP generates a wealth of development knowledge. Unfortunately, the organization does
not know what it knows. It neither fully understands what its knowledge assets are, nor is it
set up to leverage them to achieve maximum return.                                                     Formatted


UNDP needs systematic processes for gathering, distilling, organizing, finding, and
presenting information in ways that improve staff understanding in key substantive and
administrative areas; and that allow the organization to operate more efficiently, gain insight
and understanding from its far-ranging experience on the ground in 166 countries, and turn
this understanding into a competitive advantage in the development marketplace – all with
the aim of using knowledge to further human development in programme countries.

This document outlines a knowledge management (KM) strategy to meet those needs. It
offers a menu of options for improving business practices in six key areas within 18 months
by filling specific knowledge gaps. The KM Task Force recommends that, in each of these
six areas, UNDP opt not for an incremental approach – i.e., improving business-as-usual by
adding basic KM tools – but rather an aggressive approach with the explicit goal of
transforming UNDP into a professional, knowledge-based service organization.

The attached annexes provide detailed information on the rationale behind the menu; an
assessment of risks; a preliminary set of indicators; the price tag for the various options; and
an overview of the knowledge tools and ancillarysupporting capacity development initiatives.




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1. 1. EXECUTIVE SUMMARYINTRODUCTION
At its December meeting: “the SMT endorsed the overall strategic approach of the proposed Plan
of Action for Knowledge Management. Walter Franco will come back to the SMT [in February]
with doable options, costs estimates and sequencing steps to be taken”.

The purpose of this strategydocument is to:
a)Update the SMT on progress to date in refining and operationalizing the KM approach
    proposed in December1; put forward
a)                                                                                                                    Formatted: Bullets and Numbering
b) Provide the SMT with a list of keyIdentify elements considered vital to achieving UNDP’s
    knowledge management goalsaspirations;
c) Offer a menu of possible options; and                                                                              Formatted: Bullets and Numbering
c)d) Suggest Propose a roadmap for going forward.                                                                     Formatted: Bullets and Numbering


As agreed at the December(?) SMT meeting,From the consultations carried out, it can be
concluded thatUNDP’s knowledge management approach should be primarily based primarily
on a professional service model, similar to that of consulting companies such as McKinsey and
Accenture. In this model, , where the core purpose of the knowledge management function is to
equip staff members with an arsenal of reusable knowledge, lessons learnedbest practices and
tested methods that they can apply when serving clients.

Within the framework of a phased approach and a delivery period of 18 mo18 months, UNDP
can addresshas the option to improve a number of recognized knowledge gaps that hampers
organisational performance and diminish development impact. In addressing each gap, UNDP
has two options: For each gap UNDP can either try to use some basic KM tools to enhance
current business processes; or chose to adopt qualitatively different ways of working that
characterize professionalmake a qualitative leap into becoming a professional knowledge-based
services organisations.

Six priority knowledge gaps have been identified. They target deficiencies in the organization’s
ability to:
 Leverageing global development and operational experiences more effectivelye its                                    Formatted: Bullets and Numbering
    experience to win business and provide quality advice in areas critical to development;
 Maintain consistently high professional standards for project design and management
    organization-wide;
 Attract, retain and ensure the continued professional growth of top-notch problem-solvers
    and, thinkers and practitioners;
 Identify, convene and deploy the best possible teams for specific assignments, tasks and
    projects;
 Tap the full potential of the virtual networks and other existing collaborative tools; and
 Provide timely and thorough reporting on development impact and results.


1
  At its December 2003 meeting, “the SMT endorsed the overall strategic approach of the proposed Plan of Action
for Knowledge Management.” It was agreed that “Walter Franco will come back to the SMT with doable options,
costs estimates and sequencing steps to be taken.”



                                                                                                                  3
To address these gaps, a menu of interventions has been developed (see section 4). The idea
behind the menu is to provides the SMT with concrete options in terms of what is of what is
feasible to achieve within in a 18 months.
 time frame. The aggressive timeline means that all options are inherently ambitious.

  The KM task force recommends that UNDP and the SMT endorse wherever possible the most
boldest (and therefore by necessity the most ambitious) solutions offered. Given th e 18- month
timeframe this also implies an acceptance of an inherently aggressive timeline.

The recommended investments in KM will require significant start-up funds. Therefore, UNDP
needs a solid funding framework to finance both initial and the on-going costs after the 18 month
window. To accommodate this potential large investment (approximately $6in the range of
million initial costs and xx to yy$10 million a year. on-going costs,) UNDP should creatively
seek external funding as well as recover a substantial part of ongoing expenses from programme
resources, citing as justification the development value of “knowledge services.”




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2. 2. REFINING UNDP’S KNOWLEDGE MANAGEMENT VISION

Alignment
UNDP’s branded message reads:

“UNDP is the UN's global development network, advocating for change and connecting
countries to knowledge, experience and resources to help people build a better life. We are on
the ground in 166 countries, working with them on their own solutions to global and national
development challenges. As they develop local capacity, they draw on the people of UNDP and
our wide range of partners.”

The objective of this KM effort is to further align UNDP’s organisational reality with the vision
set forward in the Administrator’s Business Plans, operationalized in the MYFF, and captured in
the branded message above. For such alignment to occur, The specific aspiration of this project
is to enable UNDP must to work in a more networked and collaborative fashion, so thatwhere all
staff members’ the knowledge and practical experiences of all staff are leveraged to the fullest
extent, --– with the lowest transaction costs, and the greatest efficiency possible.highest ease as
possible.

This initiative builds upon two organizational success stories: tThe hope is to build on the
successes of the SURFs and e-communities, which have, which already have already
transformed UNDP’s mode of collaboration; and the impressive progress over the last year in the
ICT area. These successes have generated significant m across the network. Efforts have also
been made for theto best possible alignment of the KM recommendations with the momentum
and opportunities upon which the KM effort can build; there are no plans to create a new suite of
IT tools and gadgets. created by the impressive progress in UNDP’s ICT area. Hence, there are
no desires in building a complete new suite of IT knowledge management tools and gadgets. The
starting point is concrete business needs and the endpoint is effective and practical solutions that
take advantage of what is already there and further organizational alignment --– conceptually and
administratively.

The vision
The three models below represent alternative visions for the future of UNDP as a knowledge
organisation.


.

The vision. Following are three scenariosexamples describe on alternative visions for the future
ofhow UNDP could operate as a knowledge organisation in the future:. These states should not
be seen as mutual exclusive, but as path for maturing UNDP’s knowledge management
capabilities.




                                                                                                  5
Knowledge-enabled processes      Providing knowledge services       Development thought leader
     (gradual approach)           (transformational approach)         (long-term aspiration)

 Goal:                           Goal:                              Goal:
 • Enhance current business      • Position UNDP to offer           • Enable UNDP to claim
    processes by mastering          attractive and competitive         global thought leadership in
    basic knowledge                 knowledge based advisory           its practice areas, and
    management tools and            services using high-end            become a hub for
    levers                          knowledge management               development discussions
                                    systems                            and innovation

 Target group                    Target group                       Target group
 • Solely UNDP Staff             • Government clients               • The international
                                                                       development community

 Examples of KM aspirations      Examples of KM aspirations         Examples of KM aspirations
 • Provide staff with tools to   • Staff with T-shaped              • Thought leaders spearhead
    capture and share               competency profiles, so they       UNDP’s development
    documents globally              can function both as               positions and efforts
 • Encourage use of                 managers and policy             • Portal allows external clients
    collaborative tools             specialists                        access to UNDP’s KM
 • Systematize and               • Clear incentive structures for      assets
    professionalize e-              contributing to KM tasks        • UNDP becomes a leader in
    communities                  • Integrated workspaces for           cutting edge research and
                                    staff that leverage KM             convenor of high-profile
                                    applications                       decision-makers on current
                                 • Generate valuable                   development issues
                                    knowledge products from
                                    project experiences




                                                                                                       6
The following exhibit outlines the three states that UNDP can aim at.


The “knowledge-enabled processes” scenario, level 1, is the result of a gradual approach that
aims to enhance current business processes by making better use of KM tools and approaches.
The “providing knowledge services” scenario, level 2, is the result of a more transformational
approach; it seeks to change UNDP’s way of doing business thhrough the implementation of


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knowledge-based systems and approaches with a view to providing governments outstanding
advisory services. The “development thought leader” scenario, level 3, would require much
greater time and effort, with major changes in staff, systems and incentive structures.

How would these different models play out in reality? Below are Following are some cconcrete
examples that illustrate of how each would impact UNDP.




                                                                                               8
                        Level 1 – Knowledge-enabled business processes

A country office in the Middle East has been asked to urgently execute a procurement project for
the upcoming elections. Specifically, they have been asked to purchase servers, routers, and
workstations, areas in which they have no prior experience. The staff access a corporate knowledge
base that includes all UNDP procurement projects carried out within the last two years. They
search for recent procurement projects related to the country as well as projects related to elections.
Through links in the project database they are able to find specifications from a previous election
in a comparable country, sample bidding templates from other relevant projects, and a short-list of
seven vendors that have provided UNDP good service in the past. This information enables the
office to draft both the specifications and a Request for Proposal in less than 1 ½ days. While
waiting for the vendors to submit their bids, the office sets-up a virtual appraisal committee with
the participation of two people from the office, a UNDP procurement specialist in another country
office, and an external consultant. The office also notifies OLAP that a virtual ACP meeting is
required to ensure a 2-day turnaround time when the bids arrive. This task normally takes three
months; using these new tools, the office is able to complete the entire procurement process in less
than 14 days.




                             Level 2 – Providing Knowledge Services


The government of a country in the Balkans wants to decentralize education and health
components of the central budget to municipalities. The Ministry of Finance has asked the RR/RC
for UNDP’s support to ensure both uniform quality in service delivery across the country, and
strong accountability at the local level. The RR/RC promises an overall approach to financial
decentralization as well as specific answers to the quality and accountability questions. The
RR/RC quickly forms a core team of UNDP staff to put together a package that includes an
overview of UNDP’s experience in similar decentralization efforts, examples of specific solutions
to the quality and accountability questions, and practical lessons learned to date.

The team finds that UNDP’s databases on projects supplemented with follow-up interviews will
enable them to swiftly deliver two of the three outputs. After posting requests on the Democratic
Governance Practice Network and facilitating several virtual brainstorms with colleagues in
Europe and Latin America, however, the team discovers that very few governments in developing
countries have been successful in implementing participatory budgeting at the local level, the best
way to ensure maximum accountability. They decide to arrange virtual study trips to Sweden,
where these budgeting methods have been applied for decades, and to El Salvador, where
participatory methods were introduced with UNDP support at the end of the civil war ten years
ago.

The government is delighted, as they also see this opportunity as a way to develop accountability
structures that are aligned with EU standards. After several video conferences with Swedish and
Salvadoran counterparts in the Ministries of Finance, Health, and Education, as well as in local
municipalities, the government decides to move forward aggressively. The government thanks
UNDP for its fact-based, neutral analyses and its ability to problem-solve on complex matters with
no immediately obvious solutions; its also asks UNDP to prepare a project proposal.
                                                                                                          9
H UNDPDemocratic PNetwork Level 3 – Development Thought Leader

     Based on long-term monitoring of loans and grant contributions to countries in post-conflict
     situations, UNDP has discovered that such contributions are being made in an ad-hoc manner,
     with few discernable trends in terms of type and size of contributions. In response, UNDP
     launches a virtual discussion with 50 top-notch experts on the topic. Based on these discussions
     as well as analysis brought to the table by UNDP and its affiliated experts, UNDP is able to
     demonstrate that there are significant humanitarian benefits and cost savings for donors in
     moving quickly and in concert. A number of policy positions and papers are crafted on how to
     improve coordination around post-conflict fund-raising and establish effective and transparent
     mechanisms for fund distribution. As a result of this high-profile effort, UNDP is asked by the
     G-8 and G-77 to develop guiding principles for governments on how to most effectively
     provide support in the early post-conflict phases.



how these states will transform UNDP’s way of doing its business.State 1 – Knowledge-enabled internal
business processes: A Resident Representative is helping the government meet its MDG targets through a
proven, tested and “UNDP-branded” set of interventions, built from the successful experiences and
lessons learned from comparable programmes in other countries. This country office’s programme was
designed primarily by UNDP staff from country offices and regional service centers collaborating closely
together, with only selective use of outside consultants for specialized topics. Several of the country
office staff are themselves substantive specialists, with experience gained from programme preparation
and evaluation assignments in other countries, and with knowledge drawn from time spent examining the
lessons of the projects they were involved with. The office receives Global, Regional and Country
Programme funds for the substantive work done by its professionals, and has used these resources to hire
additional staff. The Knowledge Manager located in the regional service center has drawn up and is
monitoring a plan for enhancing country office staff knowledge and learning, which is funded from
resources available to the Practice communities.

State 2 – Providing Knowledge Services: In addition to the features described above, this Resident
Representative/Resident Coordinator is able to play an active role in helping national decision-makers
explore policy options on any development issue falling within the competency of the UN system, and
particularly with relation to global MDG-related mandates on complex challenges such as human rights
and access to justice, HIV/AIDs responses, poverty eradication and environmental sustainability. The
RR/RC can respond quickly to any questions raised by policy makers, offering well-developed analysis
and examples of proven solutions based on practical field experience, real-time comprehensive
information about any other country in the world facing comparable issues, or the best authorities – UN
experts or otherwise – to contact for more advice. The speed, flexibility and impartiality of these services
allow the RR/RC to influence policy makers during strategic windows of opportunity such as when new
administrations are designing their action platforms. As a regular part of their job, Country Office staff
everywhere contribute with project experiences, country specific information or insights from in-country
knowledge networks sponsored by the office, when approached and working in a virtual and collaborative
fashion with colleagues from other offices in need. The outlook of staff is shaped by a very varied work
environment where: a) Staff rotation takes frequent place between management, operations and policy
positions in country offices, regional service centers and Headquarters; b) time between rotations are used
for reflection and study; c) a project based work approach results in a constant collaboration and
interaction with team members from all over the network. UNDP’s overall resource base expands as
government partners recognize the increased usefulness of UNDP’s services. Some government partners
are even expressing a wish to buy UNDP’s advise, while running the project completely themselves.



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State 3 – Global Development Leader: In addition to the features in the two states described above,
UNDP has added a global dimension to its visibility, working to influence the global development agenda
through international fora and interventions with world leaders. We have acquired recognized global
authorities in governance, poverty and environment, and have built up a process for them to add
intellectual rigor to country experiences, making the strongest possible case for supporting the
achievement of the MDGs. UNDP’s website is more international-oriented, with UNDP-sponsored
global Communities of Interest exploring development issues and disseminating UNDP and UN system
positions and analysis. As UNDP gains more recognition as a development leader, its overall core and
non-core resource base increases, and its staff and programmes expand both for country-based work and
for global advocacy.




    Example of state 1 – Knowledge-enabled internal business processes:A country office in
    the Middle East has been asked to urgently design and execute a healthcare procurement
    project for the upcoming Iraq election. Specifically, the have been requested to purchase:
    servers, routers, and workstations. All are areas where they have no prior With no prior
    experience. in formulating large procurement projects, T the staff access a corporate project
    database that includes all UNDP procurement projects carried out within the last two years..
    They search for recent procurement projects related to Iraq as well as projects related to
    electionshealthcare supplies. Through links in the project database they are able to: a) find
    specifications from a previous election in Sierra Leone, sample bidding templates from other
    relevant projects, and compile a short-list of 7 vendors that have supplied UNDP with a solid
    performance. This information enables the office to draft both the specifications as well as a
    Request for Proposal in less than 1 ½ day. While awaiting the vendors to return with their bids,
    the office sets-up a virtual appraisal committee with participation of two people from the
    office, a UNDP procurement specialist in India and an external consultant. The office also
    notifies OLAP that a virtual ACP meeting is required to ensure a 2 day turnaround time when
    the bids arrive. track down 3 UNDP staff and 2 consultants with relevant experience as well as
    eight vendors. By setting up a virtual chat-room, reuse 2/3 of a procurement project document
    from Sudan, and draw on two UNDP staff’s reserve of 10% staff time dedicated other COs’
    service requests, the office is able to formulate a project work plan and a create a budget in
    Atlas in under 2 days.Instead of using the normal 3 months for this task, the office is able to
    complete the entire procurement process in less than 14 days.




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    Example of state 2 – Providing Knowledge Services: The Government of Bosnia-
    Herzegovina wants to decentralize components of the central budget regarding education and
    health services to municipalities. razil has observed several small countries success in
    anchoring their government programs around the MDGs. The Ministry of Finance has asked
    the RR/RC for President’s Office wants to do the same and requests UNDP’s support. The
    main concern of the Ministry of Finance is how to ensure an even quality in service across
    the country as well as strong, local accountabilities. The RR/RC is flattered and responds
    that she will return with an overall approach to financial decentralization and specific
    answers to the two major concern of the Ministry of Financebefore the end of the week. She
    quickly forms a core team with the objective to develop: an overview of UNDP’s corporate
    MDG design experience in similar decentralization efforts; a proven approach to carry out
    such a high-profile exercise; examples of specific project solutions to the two major
    concernsideas that have shown a high MDG impact; as well as practical lessons learned to
    date. The team, which consists of staff whom all have general management background with
    an expertise in at least one relevant programme area, realizes that UNDP’s databases on
    projects and comparative experiences supplemented with follow-up interviews will enable
    them to swiftly deliver on all outputs, except one. After posting requests on the Governance
    practice bulletin and facilitating several virtual brainstorms with colleagues in Europe and
    Latin America, As it turns out that, very few governments in developing countries have been
    successful in implementing participatory budgeting, which seems to be the best solution to
    ensure maximum accountability.no of the approaches applied in the small countries seem to
    fit Brazil’s large, competitive Government apparatus. After posting requests on the MDG
    bulletin and facilitating several virtual brainstorms with colleagues in Asia-Pacific and
    Africa, Iit is therefore decided that the most useful solution is to arrange a virtual study trip
    to Sweden, where these budgeting methods have been applied for decades. The Government
    is thrilled as they also see this opportunity as a way to develop accountability and structures
    that are aligned with EU standards.’ conduct an accelerated fit-gap workshop with the
    Brazilian Government counterparts based on a MDG design approach from a small Pacific
    Island. After several video conferences with Swedish counter parts in the Ministry of
    Finance, Health a successful workshop, where the RR/RC from the Island is participating via
    video conferencing, the Education as well as in local municipalities, the Bosnien
    Government 3 – Global Development Leader: Based on aggregated data from Atlas and
Example of statewants to move aggressively forward and thanks UNDP for its fact-based, a
    neutral analyses and its ability to problem-solve information from several partner
renewed Development Cooperation Report financialon complex matters with no straight-
    forward solutions.
organizations, UNDP has discovered that contributions to post-post-conflict countries in
generally are incrementally falling despite an overall surge in humanitarian needs. UNDP learns
from its network that researches the phenomenon and concludes that the main root cause is
donor countries’ perception that public corruption in post-conflict countries is on the rise. As a
response UNDP launches from its recognized website a virtual discussion with 50 selected top
notch experts on the topic. Based on these discussions and UNDP analysis broad to the table by
either UNDP or some of the affiliated experts, UNDP is able to develop a number of policy
positions and papers on the topic as well as specific guides the issue and develops a number of
knowledge documents ffor practitioners on how to build trust and transparency in public
governance structures and processes based on UNDP’s global experience. Moreover, UNDP
launches from its recognized website a virtual discussion on the topic for the entire development
community to engage development leaders and disseminate UNDP’s analysis and policy
positions on the topic. As a result of this high-profile effortdiscussion, UNDP is asked by the G-
8 and G-77 to develop some guiding principles for how to quickly build transparency in post-
conflict situations.                                                                                    12
Where UNDP finds itself in 18 months will depend upon how far the organization Depending on
how far the organization intends to progresses along the proposed KM “roadmap.”, UNDP can
end up at state 1, state 2 or state 3. These three levels are not mutually exclusive; rather, they
represent points on the continuum of UNDP’s knowledge management capabilities. As was the
case with the ICT plan, what is proposed is in essence aSimilar to the ICT Strategy, they are
parts of a pyramid; structure advancing the application of knowledge management to UNDP’s
business, where the the basics need to be in place before the organization can progressing to the
next layer. UNDP should therefore advance up the pyramid only when the fundamentals are in
place and a sound business case for further investment prevails.

The KM task force does not think Each business state constitutes a variable business scenario as
well as a pyramid layer and advancement in the use of knowledge management.
Having to crawl before being able to walk, it is not considered that leap-frogging to feasible for
UNDP to fast-track into a full-fledged level 3 – when the organization has yet to before having
successfully put in placeaccomplished some of the basic requirements of levels 1 and 2 – is a
feasible option. at this time 2. If for example the intention to beBecominge a global
development thought leader implies repeatly attracting, and retaining and partnering with world-
renown thinkersglobal thought leaders of the calibre of Stiglitz or Sen. Attracting such people is
not possible without, it is not considered possible if the organisation does not have a professional
and competitive knowledge management culture;. Current shortages of first-rate research
facilities;, constraints in retaining top-notch specialists;, staff, and adequate discretionary funds;
the freedom to select/hire one’s own team; and freedom from, as well as excessive bureaucratic
red tape. ,UNDP’s current reality is far from that scenario, and creating such a situation make
attaining this state a long shot in within a 18 months would be difficult at best.periodis, to put it
mildly, . Noeither is it deemed possible possible to provide the wider development community
with cutting- edge policy papers and synthesized lessons learned without having significant
experience in effectively managing approaches to global knowledge- sharing.

Since becoming would not be feasible for UNDP to become a deva development thought leader
can only be seen as a long-term aspiration, the KM task force has designed a roadmap that is
potentially attainable within the 18 month time frame, leading to level 1 and 2 solutions. month
time frame, the Roadmap should consider core question is in what areas UNDP should aim for –
State 1 or 2 solutions – to bridge the current knowledge gaps. Of course, in the future, it is
conceivable that UNDP could acquire level 3 One could envision wherethat the solutions were
developed wthat would enable UNDP to acquire state 3 capabilities in limited areas, for example
by transforming the HDR Network into a world-class such as the management of a discussion
forumknowledge portal..


3. KM ARCHITECTURE AND GUIDING PRINCIPLES

How did the group arrive at its recommendations?
Over the course of this KM strategy preparation exercise, Pprogress has been made on twohree
dimensions in terms of further developing UNDP’s knowledge management approach. Firstly,


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the consultations carried out over the “KM Roadmap” design process have produced a consensus
to pursue the “professional services” KM model. Secondly, eight principles have been developed
to guide the “Roadmap” project going forward.
Over the last 3 months, a dedicated group has worked on developing a proposal for the initial
steps in building on UNDP’s knowledge management approach. This group has carried out a
range of activities, including: establishing KM e-discussions with 226 subscribers; conducting
two design/validation workshops (in February and March, each involving over 40 participants)
with participation from a wide range of HQ units and country offices; gathering lessons from
leading KM organizations and peers (Giga Group; Corporate Executive Board; McKinsey; Cap-
Gemini Ernst & Young; and the World Bank); conducting in-depth analyses on KM impact and
consequences in the areas of content management, tools and technologies, staff and policy
alignment, networks and communities, and technology infrastructure (this involved 62 people,
seven of whom are RRs); and seeking input during two regional cluster meetings (one for West
and Central Africa, another for South and East Africa, involving all Africa Bureau Res Reps) and
visits to country offices and regional services centers, including India and Bratislava.


The KM task force developed eight guiding principles that provide an implementation
framework within which KM options can be evaluated and decisions made. These principles will
also serve as a compass for the project, as well as an accountability mechanism for SMT
oversight of the project throughout its duration.

 The eight principles are:
  UNDP should aim for a “professional services” business model, using KM primarily to              Formatted: Bullets and Numbering
    improve speed, agility and performance quality;
                                                                                                    Formatted: Bullets and Numbering
  Initially, the primary clients for KM efforts should be UNDP staff; the secondary clients
    should be external clients and partners
  KM improvements should build on and leverage on ourour successful e-communities and
    other on-going KM initiatives
  UNDP should not try to invent new ways of working, but take advantage of KM
    experiences and lessons learned from other knowledge organizations;
                                                                                                    Formatted: Bullets and Numbering
  The KM Roadmapproject should focus on knowledge tools and services that improve
    business processes and are in demand by front-line staff;
  New processes should promote team work and cross-functional collaboration
  Roll-out should be based on regional pilots to ensure that solutions are field-oriented
  The effort should incorporate a well-defined, explicit set of performance indicators
    Initially, the primary clients for KM efforts should be UNDP staff; the secondary clients
    should be external clients and partners;

The eight principles are:
       Initially, the primary clients for KM efforts should be UNDP staff; the secondary clients    Formatted: Bullets and Numbering
       should be external clients and partners;
       UNDP should aim for a professional services model;
       KM improvements should build on the existing structures and on-going KM work;


                                                                                               14
      UNDP should build on lessons learned from other organizations rather than inventing                            Formatted: Bullets and Numbering
      new ways of working from scratch;
      The project should focus on knowledge services that are relevant and in demand;                                Formatted: Bullets and Numbering
      Only knowledge tools that improves a particular business process should be adopted;
      New processes should promote team work and cross-functional collaboration;                                     Formatted: Bullets and Numbering
    UNDP should incorporate a well-defined, explicit set of performance indicators.

UNDP’s future knowledge architecture
Several approaches and philosophies exist for managing an organization’s knowledge. Choosing
the right one is a critical first step in developing a cohesive framework for future investments in
knowledge management. The KM task force reviewed the The three most common “business
models” that in use by knowledge organizations use, were reviewed withwith a the view to
finding the approach that best suitserves UNDP. as the cohesive framework for all future
investments in knowledge management. They three models are: the sa Syndicated content
model;, athe Pprofessional service model;, and athe Kknowledge- Ssharing model.2


                           Three business models of knowledge organizations

   The syndicated content model offers subscribers direct access to impartial state-of-the-art                      Formatted: Bullets and Numbering
    research on specific topics. These firms concentrate on “selling” knowledge as their primary
    commodity. Gartner, Forrester, Giga, and the Corporate Executive Board are examples of
    companies that have successfully deployed this model.

   The professional services model provides internal users with best practice outputs from client                   Formatted: Bullets and Numbering
    engagements (from proposals to final deliverables) to leverage lessons learned and replicate
    successes. These firms concentrate on using knowledge to improve products and processes.
    Consulting firms such as Accenture, Cap Gemini Ernst & Young and McKinsey have deployed
    this model.

   The knowledge-sharing model provides internal and/or external users with convenient (virtual)                    Formatted: Bullets and Numbering
    access to libraries, links to documented knowledge, and access to peers on knowledge networks.
    The organization’s focus is not on generating new knowledge, but on sharing existing knowledge.
    The World Bank’s knowledge sharing programme provides a specific example of this model.
    Currently much of the international development community applies or intends to apply variations
    on this model.
Basic principles for implementing the KM Roadmap
Based on two design/validation workshops and other consultations, eight guiding principles have
been developed to provide an implementation framework for the Knowledge Management
Roadmap, within which options on KM can be evaluated and decisions taken. These same
principles will also serve as a compass for the project as well as an accountability framework
between the SMT and the project throughout its duration.

1)The primary clients for KM efforts should be UNDP staff, and secondly beshould be external                         Formatted: Bullets and Numbering
   clients and partners

2
 A full description of the relative strengths and limitation of these models, and their relevance to UNDP, is
available in the KM website at this link: KM Business Models


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2)UNDP should continue to promote a professional services model, where KM is used primarily
   to improve the organisation’s speed, agility and quality on the ground
3)KM improvements should build on the existing structures and leverage the experiences from
   on-going KM work
4)UNDP should not try to invent new ways of working, but should build on lessons learned from
   other organizations. Where this is not feasible, proof of concept should take place through
   piloting
5)The project should focus on providing knowledge services that are in demand and relevant to
   the day to day operational work of front-line staff
6)Adoption of a knowledge tool should be based on how well it improves a particular business
   process, so as to enhance the process’s effectiveness and ensure the relevance of the tool to
   UNDP work.
7)Knowledge-enabled processes should promote team and project-based work approaches and
   cross functional collaboration
8)From the start UNDP should incorporate a well defined and explicit set of performance
   indicators to make sure it is possible to continuously evaluate the return on investment


At the first validation workshop it was agreed that the professional service model should be the
framework that the KM effort would be centered around. This model comes closest to reflecting
the main way of doing business in UNDP today. None of the three models offers a perfect match
for UNDP’s ideal knowledge architecture. However, t(see also appendix)
(see also appendix)

 Three models:
 o       Syndicated content model offers subscribers direct access to impartial state-of the art
         research on specific topics. Firms concentrateing on “selling” knowledge as their primary
         commodity. Gartner, Forrester, Giga, and the Corporate Executive Board are examples of
         companies that have successfully deployed this model.

 o       The Professional Services model provides internal users with best practice engagement
         outputs (from proposal to final deliverables) to leverage internal engagement knowledge and
         multiply “repeatable successes”. Firms concentrate on using knowledge to improve
         products and processes. Consulting firms such as Accenture, Cap Gemini Ernst & Young
         and McKinsey have deployed this model.

 o       The Knowledge Sharing model provides internal and/or external users with convenient
       (virtual) access UNDP’s business model (providing coordination, advocacy,
The complex nature ofto libraries or links to documented knowledge, or access to peers on
         knowledge networks. The organization’s focus is not on generating new knowledge but on
         sharing existing knowledge. The World Bank’s Knowledge Sharing programme provides a
         specific example of this model. Currently much of the international development
         community applies or intends to apply variations on this model.



The complex nature of UNDP’s business model (providing UN coordination, advisory services,
and programme support) implies that none of the three models presents a complete answer to
UNDP’s ideal knowledge architecture. However, the professional service model, where UNDP
focuses on building its knowledge to improve its products and processes, comes the closest to



                                                                                                       16
reflecting the main way of doing business in UNDP today. It also capturescaptures particularly
wellespecially well UNDP’s goal of becomingstated intention to become a leading provider of
policy advisory services to programme country partners – a flexible, nimble organization that ,
able to provide speedy delivery of relevant knowledge, to be flexible and nimble in finding new
niches, and to bring to the table cutting edge knowledge and expertise.

The professional service model, where UNDP sharpens its own inte, however, comes closest to
reflecting the main way of doing business in UNDP today. It also captures especially well
UNDP’s stated intention to become a leading provider of policy advisory services to programme
country partners, able to: a) provide speedy deliversy of relevant knowledgeinformation fast, b)
be flexible and nimble in finding new niches, and c) brings to the table cutting- edge knowledge
and expertise to the table, and is at the forefront of identifying and addressing new trends and
niches.

Over time, and with success in implementing athe professional service model, UNDP could
adopt eventually adopt more selected features of the syndicated content model in order to
differentiate UNDP’s knowledge services from those of other service providers through thought
leadership and distinctiveness (State 3).


4. PRIORITIZED KNOWLEDGE GAPS, OPTIONS, AND RECOMMENDATIONS

In order tTo help determine the SMT determine the most appropriate speed for moving ahead on
knowledge management, this section provides: a) Hhighlightss of current performance gaps
fostered at least in part among other things by inadequate KM capabilities; b)offers a menu of
specific KM interventions that address those gaps; and outlines the Task Force’sTF UNDP can
invest in; c) recommendations of the task force.

Highlights of cCurrent performance gaps
Through a consultative process,s the following 10 ten prominent performance gaps with
significant negative impacts on UNDP’s operations were identified. These critical business gaps
are caused at least in part by poor KM.gaps constitute both vital business gaps and knowledge
gaps for the organisation.




                                                                                              17
                                                                                                              Urgent
  Assessment of gaps
                                                                                                              Less urgent



  Impact

  High
                                                 Low hanging fruits                                  Difficulty in attracting
                                                                                                 C   best talent

                                                                                                        Limited collection of
                         Difficulty in                                                            A     development and
                         assembly high                                                                  business experiences
                    D    performing teams
                                                 Few and poorly                                  Inability to differentiate
                                            B    defined standards                               UNDP from other policy
                                                 for project design                              advisors
                   Limited capacity to deliver   and management
               F   fact-based reporting on                                          Underutilization of
                   impact and results                                               effective collaboration
                                                                                E
                                                     Insufficient access to         tools
                                                     best practice and
                                                     internal/external
                        Inadequate policy            benchmarks
                        intelligence
                        tools/sources                                         No existing
                                                                              standards or
                                                                              branding of UNDP
  Low                                                                         outputs


         Low                                                                                     High      Complexity




As a result of an analysis of issues raised in the KM strategy“Phase 0” consultations, the Task
Force has identified six vital performance gaps best have beenwereaddressed through knowledge
management improvements. The recommended interventions are a combination of new tools
developed to address the gaps and specific capacity investments in each of the five dimensions
introduced in the December SMT: content management, systems and tools, staff/policy
alignment, networks and communities, and tthe echnology infrastructure.


Menu of interventions
Through a consultative process the following 10 prominent knowledge gaps were identified:




                                                                                                                                18
                                                                                                              Urgent
  Assessment of gaps
                                                                                                              Less urgent



  Impact

  High
                                                 Low hanging fruits                                  Difficulty in attracting
                                                                                                 C   best talent

                                                                                                        Limited collection of
                         Difficulty in                                                            A     development and
                         assembly high                                                                  business experiences
                    D    performing teams
                                                 Few and poorly                                  Inability to differentiate
                                            B    defined standards                               UNDP from other policy
                                                 for project design                              advisors
                   Limited capacity to deliver   and management
               F   fact-based reporting on                                          Underutilized use of
                   impact and results                                               effective collaboration
                                                                                E
                                                     Insufficient access to         tools
                                                     best practice and
                                                     internal/external
                        Inadequate policy            benchmarks
                        intelligence
                        tools/sources                                         No existing
                                                                              standards or
                                                                              branding of UNDP
  Low                                                                         outputs


         Low                                                                                     High      Complexity




Menu of interventions
Six of these ten knowledge gaps have been assessed urgent for UNDP (how and by whom?). The
recommended interventions are rooted take their departure in KM. However, as these gaps
ideally these gaps should be targeted from more than just a KM perspective; therefore, we have
integrated some of the most important prerequisites from other areas, such as IT and HR, in the
recommendations to provide a complete picture of what we think is estimate as being required.

TheBeneath is a description of each knowledge gap below contains an explanation of why urgent
action is required. Two setsbeneath contains as well as a short motivation for the urgency as
well as two sets of recommendations are presented, corresponding to that related respectively to
a gradual approach (level 1) and a transformational approach (level 2) timeframe, follow. Any
option mentioned under level 2 should behence be seen as an addition to the activities included
in level 1. In other words, level 1 represents the minimum investment the Task Force thinks is
required.


         A. Leveraging global development experiences more effectively
         There is ample evidence showing that UNDP has lost projects to private consulting
         companies and other development agencies because it has not been able to leverage its



                                                                                                                                19
       development experience. This, coupled with the fact that it is sometimes difficult for
       UNDP to offer guidance in “bread-and-butter” development areas – where the
       organization should have a demonstrated advantage – indicates that investments are
       required in tools and methods that facilitate easy identification and re-use of work carried
       out by colleagues. Proposed investment options are:

           Level 1 solution: Put in place the basic system infrastructure and tools to leverage
           recent work and engage in effective collaborative project efforts. This entails:
                introducing systems, tools and processes needed for the systematic generation          Formatted: Bullets and Numbering
                  and codification of knowledge content;
                introducing a search and indexing tool to allow staff to easily find content in
                  UNDP’s knowledge repository;
                establishing a global project database with cross-references to reports, experts,
                  practitioners, and the like.

           Preliminary cost estimates: $50-100,000 initial investment from the project; $50-
           100,000 a year to maintain.

           Level 2 solution: Put in place interactive work methods and systems to encourage
           collaboration, rapidly synthesize experiences, and expand the pool of possible
           resources. This entails:
                improving the knowledge networks’ ability to consistently deliver timely and           Formatted: Bullets and Numbering
                  comprehensive global comparative experiences on request;
                expanding the networks both to UN agency partners and to in-country
                  communities;
                introducing policies and incentives to ensure that all staff, including project
                  staff, actively share knowledge as a part of their job.

           Preliminary cost estimates (additional): $50-100,000 initial investment from the
           project; minimal additional budget to maintain.

A. Leveraging global development and business experiences more effectively) Ability to
effectively leverage recent development and business experiences as well as global knowledge
There is ample evidence, whichincluding nSeveral recent examples, whichthat shows that UNDP
exist where UNDP has lost high-profileing projects to either private consulting companies orand
other development agencies because it has not been able to leverage itsdue to an inability to
development experience. These incidences, coupled with the fact that it is sometimes difficult
for UNDP to offer guidance in “bread-and-butter” development areas – where the organization
leverage development experiences. This evidence coupled with the fact that it is hard for UNDP
to offer guidance on issues where we should have a demonstrated advantage – indicate that
investments are required in tools and methods that facilitate the easy an easy identification and
use of work carried out by colleagues acrossin theour knowledge networks. Investment options:

State 1 solution: Put in place the basic system infrastructure and tools to leverage recent work
and engage in effective collaborative project efforts. The investments proposed are:                    Comment [MSOffice1]:
                   systems for content identification, generation and capture;
                                                                                                        Formatted: Bullets and Numbering



                                                                                                   20
                        a search and indexing tool to allow staff to easily post relevant content in the
    databases and find it again; and
                       a global project database with cross-references to reports, experts and
    practitioners, and the like.Ensure minimum capability to leverage recent work to engage in
    meaningful collaborative efforts. Potential investment components include: project document
    database, search-indexing tool to find content, and induction materials to facilitate use ofo
    UNDP and theits knowledge networks and toolsKM system
    State 2 solution: Put in place systems and dynamic methods to encourage collaboration, rapidly
    synthesize experiences, and expand the pool of possible resources. Proposed investments are:
                        improving knowledge networks’ ability to provide lessons learned and               Formatted: Bullets and Numbering
                        comparative experiences;
                        expanding the networks both to UN agency partners and to in-country
                        communities;
                        introducing policies and incentives to ensure that all staff, including project
                        staff, actively share knowledge as a part of their job.
    Dynamic methods to encourage collaboration and synthesizing of experiences. Possible
    investments include: Global comparative experiences, bringing the UN system and in-country
    expertise into e-communities, ensuring thatinclusion of knowledge sharing ias a part of
    everyone’s job, data base on promising office practices and on-going project analysis.


           B. Maintaining consistently h) Ability to have hiigh and consistent, professional
           standards for project design and management organization-wideacross the
           organization
           Many UNDP donors are reluctant to maintain, much less increase, their level of
           contribution to the organization because of what they perceive as unevenA significant
           part of UNDP’s donors are currently negatively influenced by an inability to address
           uneven capacity for project design and management and service levels among country
           offices. To address this deficiency UNDP needs to more actively set and enforce high
           professional standards across the organization. Proposed investment options
           are:Investment options:

               Level 1 solution: Put in place systems and tools that helpVoluntary methods that
               encourage and support all staff in improve the quality of their increasing their quality
               level in project design and execution. Possible i This entails:
                    instituting workspace templates for key project related documents and                 Formatted: Bullets and Numbering
                       reports;,
                    using practice networks to practice networks promoteing collaboration on
                       standard- setting and quality monitoring;
                    introducing , and a “‘how-to”’ aide tofor project design. tThat factors lessons
                       learned into the project design process.

               Preliminary cost estimates: $150-200,000 initial investment from the project; $800-
               850,000 a year to maintain.




                                                                                                      21
   Level 2 solution: Introduce quality standard- setting functions for the most critical
   services and knowledge tools., This entails.
            providing editorial staff resources and other mechanisms dedicated to              Formatted: Bullets and Numbering
             quality assurance and consistency. The investment will mainly consist of
             staff time dedicated to quality assurance.

   Preliminary cost estimates (additional): $50-100,000 initial investment from the
   project; $250-300,000 a year to maintain.


 C. Attracting, retainning and ensureing the continued professional growth of top-
notch performers
) Ability to attract, retain and develop staff so UNDP has a strong staff body of problem
solvers and practitioners
The LEADlead program serves as a case in point on UNDP’s talent management. [what
point is this?] Presently, UNDP finds it difficultis unable to attract the best candidates
orand to hold on to internal top performers. Most nNew recruits hired for their
substantive expertise are quickly “ ‘de-skilled’ due to limited little on-the-job substantive
training and limited access to jobs thatwith provide good development opportunities for
staff to grow their skill sets. To address this issue from a KM perspective, several
options are open:
Proposed investment options are:

   Level 1 solution: Enrich current job opportunities by promoting team work and
   competency training that will enable UNDP staff to work on more diverse tasks as
   well as take over some assignments currently performed by consultants. This entails:
       enhancing and consistently using the Practice Experience Map to identify                Formatted: Bullets and Numbering
           expert competencies;
       dedicating staff time to ad-hoc project assignments and allowing RRs to
           charge project budgets for staff fielded on consulting assignments;
       incorporating staff consulting assignments into learning plans.

   Preliminary cost estimates: $300-350,000 initial investment from the project; minimal
   additional budget to maintain.

   Level 2 solution: Matching the Practice architecture with corresponding Human
   Resource policies. This entails:
       improving contract flexibility for policy advisory positions;                           Formatted: Bullets and Numbering

       developing staff competencies in Practice specializations, including
          competency-level training;
       promoting a T-shaped career path, with staff rotations between managerial
          and policy advisory postions;




                                                                                           22
                    strengthening the Practice-based recruitment function.3

            Preliminary cost estimates (additional): $1.2-1.4 million initial investment from the
            project; $3.5-3.7 million a year to maintain.
        State 1: Enrich current job opportunities by promoting team work and competency
        training that will enable UNDP staff to work on more diverse tasks as well as take over
        more interesting assignments currently performed by consultants. Potential investments
        include: Develop staff competencies in specialized areas and strengthen the practice
        based recruitment function4
        State 2: Underpin practice structure with matching HR reformsPut a true practice architecture
        in place: Enhance career incentives, improve contract flexibility, conduct competency
        level training, and promote a T-shaped career path.

        The ICT strategy is also addressing staff development and emphasizes the demand for
        application supported workforce planning and management.


        D.) Providing requesting offices with the best possible specialists Ability to identify and
        convene the best possible team for a client engagement
        ’s problem/project
        Currently it is difficult to consistently identify the best people for an given assignment.
        For instance, In some cases UNDP underutilizes staff in areas of high demand, but cannot
        deploy them appropriately because of either lack of information andor contractual
        limitations, it is not possible to leverage internal resources. In order to bring the best
        possible team to the table, UNDP needs to introduce processes and systems that enable
        the organisation to maintain updated and relevant information, including the views of
        trusted colleagues, on possible consultants and consulting institutions to draw upon,
        particularly from the South, as well as UNDP staff and staff of UN agencies. Proposed
        investment options are: In order t
        o bring the best possible team to the table, UNDP needs to invest in technologies and
        processes that enable the organisation to have updated and relevant information on
        possible human resources to draw upon.

             Level 1 solution: Establish simple tools and procedures to effectively deploy teams,
             whether they consist of staff, consultants or other contacts. This entails:
              introducing a corporate roster for experts and institutions; and                                     Formatted: Bullets and Numbering

              incorporating into the corporate roster the UNDP staff Practice Experience Map,
                including resumes, project experiences and practice-based competencies.

             Preliminary cost estimates: $350-300,000 initial investment from the project; $700-
             750,000 a year to maintain.
3
  The ICT strategy is also addressing staff development, emphasizing application-supported workforce planning and
management.
4
  The ICT strategy is also addressing staff development and emphasizes the demand for application- supported
workforce planning and management.



                                                                                                              23
   Level 2 solution: Align staff incentives with a team-based work approach and expand
   the scope of UNDP’s available resources for project and teamwork. This entails:
    redesigning the RCA to better capture team and project-based work approaches;            Formatted: Bullets and Numbering

    enabling more UNDP staff to take advantage of mobile computing;
    augmenting the corporate roster with UN system expertise and national expertise
       (in-country practitioners).

    Preliminary cost estimates (additional): minimal initial investment from the project;
    minimal additional budget to maintain.
State 1: Establish simple tools and procedures to effectively use deploycurrent contacts
and teams (whether these consist of staff, consultants or other contacts) through
investments such as: corporate roster for experts and institutions;, UNDP staff time
dedicated to ad-hocunspecified project assignments;, staff database with: resumes,;
project experiences; and practice based competencies
State 2: Align staff incentives with a team-based work approach and expanded the scope
of UNDP’s available resources for project and team work. Possible investments include:
redesign the RCA so it better capture a team and project- based work approaches, mobile
computing for UNDP staff, augmenting theation roster with UN system expertise and
national expertise (practitioners)

E. Leveraging the full potential of the knowledge networks and other collaborative
tools and approaches
UNDP’s current e-mail-based networks are in danger of becoming victims of their own
success, thanks to their unexpectedly swift expansion. Furthermore, the organisation
could function more cost-effectively by substituting expensive travel costs with cost-
effective collaborative tools and other virtual work methods. Proposed investment
options are:

   Level 1 solution: Make UNDP’s knowledge networks more effective work forums
   for collaborative efforts. This entails:
    restructuring and rationalizing the knowledge networks to allow them to become           Formatted: Bullets and Numbering
       more effective communities of practice;
    introducing applications and tools to facilitate network collaboration, such as e-
       discussions, instant messaging, calendaring, contact management and file-sharing;
    improving the mailgroup management application;

   Preliminary cost estimates: minimal initial investment from the project; $1.35-1.5
   million a year to maintain.

   Level 2 solution: Make UNDP’s virtual workspace the primary instrument for
   accessing knowledge and information from within UNDP and from the wider
   development community. This entails:
    introducing application tools for personalizing workspaces;                              Formatted: Bullets and Numbering

    introducing social networking and Customer Relationship Management tools to
      better target client needs;


                                                                                         24
      promoting the creation of UN system and in-country networks and linking them to
       UNDP’s internal communities.

   Preliminary cost estimates (additional): $2.75-2.9 million initial investment from the
   project; $2.4-2.5 million a year to maintain.

F. Provide timely and thorough reporting on development impact and results Providing
timely and thorough reporting on development impact and results
With the investment in ERP, UNDP has significantly improved its ability to provide
quantitative performance data to donors. However, to fully demonstrate the
organization’s development impact, UNDP must invest in knowledge tools and systems
that can provide a comprehensive qualitative picture, as well. Proposed investment
options are:

   Level 1 solutions: Establish a knowledge-capture system that matches UNDP’s
   current/future results framework. This entails:
    developingintroducing systematic processes for knowledge content management,           Formatted: Bullets and Numbering
       including feedback and performance tracking.

   Preliminary cost estimates: $450-550,000 initial investment from the project; $500-
   600,000 a year to maintain.

   Level 2 solutions: Develop dynamic on-line and integrated systems for donors to
   assess UNDP’s funding situation and performance. This entailsinclude:
    introducing value analysis tools to support further fact-based analysis on finance,    Formatted: Bullets and Numbering
       programme and operations
    tailoring funding information to requirements of donors and other constituencies
       through the CRM system

   Preliminary cost estimates (additional): $50-100,000 initial investment from the
   project; $50-100,000 a year to maintain.
      . Henrik – did you want to cite specific modules here???                              Formatted: Bullets and Numbering


E) Ability to effectively tap the potential of the virtual networks and other collaborate
tools
UNDP’s current e-mail based networks are threatened by undisciplined expansion.
Furthermore is the organisation is not effective in substituting expensive travel costs
with cost-effective collaborative tools and other virtual work methods.
State 1: Convert UNDP’s e-communities into an effective, work forum for collaborative
effortsImprove effectiveness of current technical set-up. Potential investments are:
Rationalize and enhance systems and tools for e-communities, improve mail group
management application, promote available collaboration tools, encourage peer reviews,




                                                                                       25
         and provide recognition based incentives for contributing to the networks in a
         constructive manner.5
         State 2: Make UNDP’s virtual work space the most important tool for information
         gathering and external co-operation. Possible investments include: Personalize working
         tools, introduction of social networking and Customer Relationship Management tools to
         better target client needsRM tools[What does this include, Steve?], creation of UN
         system and in-country networks, make knowledge sharing a part of each staff members’
         and project staff’s job.

         F) Ability to report on development impact and results
         With the investment in ERP UNDP has significantly improved its ability to provide
         quantitative performance data to donors. However, to fully demonstrate the
         organisation’s development impact in a fact- based manner, UNDP must invest in
         knowledge tools and systems that can provide a comprehensive qualitative picture of our
         impact.
         State 1: Enhance Establish an information capturing system that matchessupporting
         UNDP’s current/current future results framework,. Envisioned where possible
         investments are: Development of systematic processes for content identification, creation,
         capture and feedback as well as performance tracking.
         State 2: Develop more dynamic and integrated tools for donors to assess UNDP’s
         performance. Potential investments are: Value analysis tools to support further fact-based
         analysis.6

Recommendations
Recommendations
UNDP urgently needs to bolster its KM capacity.Given the urgent needs for KM as outlined
above and the fact that s Given that several other peer organisations – among themsuch as
UNFPA, UNOPS, the World Bank, and SIDA – are currently are focusing on KM to improve
their value- added, UNDP will find itself on the periphery if does not make rapid improvements
in the six areas identified above.

Therefore, the KM task force recommends that, wherever a business case can justify it,
UNDP should commit itself to addressing key knowledge gaps by investing in the “state 2”
solutions identified.

5. THE KM PROJECT GOING FORWARD

In assessing how quickly UNDP should move toward a full-fledged professional service model, a
number of factors must be considered, such as the risks associated with various options (as well
as the risks associated with inaction); external pressure; internal capacity; and available funds;
and external pressure..4 Exploration of these risks can be found in Appendix A.


5
  Part of tThe ICT strategy also stresses the need for an expansion of collaborative tools and enhancement of the e-
mail list services.
6
  The ICT strategy highlights the need for more advanced reporting against the MDGs and development of
supporting software.


                                                                                                                   26
This section outlines:
    a funding framework that addresses both short-term investment needs as well as                                Formatted: Bullets and Numbering
       financing mechanisms for sustaining an on-going knowledge management architecture;
    a possible governance structure for the project; and
    decisions requested from the SMT.

Financing and funding
Being a knowledge-based advisory organization requires significant initial and on-going
investments in knowledge management. McKinsey spends approximately 20% of its annual
budget on knowledge management, and the World Bank recently calculated its five-year
investment in knowledge management as having a price tag of $280 million. Being in catch-up
mode has some advantages; UNDP can learn from other organizations’ successes and failures in
implementing and using knowledge management.
The para below comes from the introduction, where Walter was concerned it might frighten
readers too early on!

Implementing the KM Roadmap recommendations will require significant start-up funds, and
UNDP needs a solid funding framework to finance both the initial investments in the first 18
months and the subsequent on-going costs. Based on the preliminary estimates detailed above,
the start-up investment for the Level 1 effort could be between $1.2 and $1.5 million, and the
additional annual cost implications could be between $3.4 and $3.8 million. To reach the Level
2 effort, the total start-up investment could be between $5.3 and $6.1 million, and the additional
annual cost implications could be between $9.6 and $10.4 million. UNDP should both apply any
available existing budget balances and seek external funding for initial project expenses, and
should recover a substantial part of on-going expenses from programme resources, citing as
justification the development value of “knowledge services.”

The costs related to KM and ICT are both overlapping and complementary. Investments that
benefit both strategies are therefore divided by the following funding principles:
        ICT costs dedicated the basic infrastructure are covered by the ICT budget                                 Formatted: Bullets and Numbering
        Incremental costs related to investment in ICT to specific further KM is carried by the
        KM project

The above cost estimates do not include: a) basic enterprise infrastructure and hosting costs that
are covered by the ICT budget; b) funds already approved from the ongoing KM project,
“Knowledge sharing for achieving the MDGs”; c) staff time of people not assigned to the project
as resource persons, but whose input is required for design, testing and roll-out;and d) staff time
required for change management and training in the new KM tools and processes..


 _______________________________________________
 4
  Given that several peer organisations – among them UNFPA, UNOPS, the World Bank, and SIDA – are
 currently focusing on KM to improve their value-added, UNDP could find itself on the periphery if does not
 make rapid improvements in some of the six areas identified above
Appendices D, E, and F provide a more detailed breakdown of the various interventions and their
estimated costs. Appendix D contains a summary of the preliminary cost estimates, Appendix E


                                                                                                              27
details the five “knowledge tools” to be introduced under the KM Roadmap, and Appendix F
details the 27 initiatives suggested for addressing the capacity investments required (revised from
the original proposed 33 initiatives.)

The initial funding is envisioned to be covered through a mix of the following sources:
            a. Existing resources dedicated to knowledge management and ICT;                          Formatted: Bullets and Numbering
            b. External donor fund-raising.

The ongoing costs would be funded through:
          c. Dedicated core funding in the administrative budget;                                     Formatted: Bullets and Numbering
          d. Core funds from centrally or regionally managed programmes;
          e. Built-in project costs by adding an allocation for knowledge generation to what is
             already there for project evaluation (budget line 15).

Indeed, given that knowledge-based advisory services are an integral part of UNDP’s business
model, it is important that any investment in knowledge management is thought of as a strategic
investment in UNDP’s key competence. Nevertheless, UNDP’s investment in knowledge
management should have a justifiable return on investment based on:
     Savings generated by working smarter and benefiting from lessons learned;
     Increased programme volume based on better service;                                             Formatted: Bullets and Numbering

     Enhanced ability to recover costs for knowledge services which are provided to
       government clients as “knowledge resources” (comparable to financial resources);
     Increased donor contributions due to greater development impact.

Governance and implementation
To prepare the “Phase 0” plan of the KM Roadmap, a task force has worked under the Deputy-
Director of BDP as a cross-functional working group. As noted above, a wide range of actors
from the field and HQ have been actively involved in the preparatory work.

Going forward, the following three-tier governance structure is recommended for the project.
For a graphic representation of this proposal, see Appendix B.
                                                                                                      Formatted: Bullets and Numbering
    The Executive Management Group: Ideally, the SMT should be the sponsor and ultimate
       supervisor of the initiative and function as a high-level decision-making group.
       Alternatively, the SMT may wish to delegate resource allocation decisions to a “decision
       group” as a way to ensure that the SMT continues to focus on the big picture.
    User Committee: The project should report back to a cross-functional user committee
       with representation from both the field and HQ Bureaux. The main role of the group is to
       ensure that the KM design efforts and pilots reflect the true business needs of the
       organization
    Project Coordination Team: A designated cross-functional project team under the
       supervision of a project manager should be in place to coordinate and drive forward (in
       the same direction) the various KM initiatives targeting different gaps.

Under this structure, cross-functional work groups incorporating staff from HQ and the field will
implement the various initiatives. These work groups will build on existing corporate or country



                                                                                                28
office tools and processes where relevant, and engage Bureaux, Practice communities,
SURFs/Regional Centers and country offices to pilot various initiatives. A diagram illustrating
how the process will move forward can be found in Appendix C.

Several bureaux will be critical in ensuring success. Knowledge management has the potential to
improve every aspect of UNDP’s business. All staff members and organisational units are
knowledge producers and knowledge users. Hence, only with organisational-wide participation
will it be possible to transform UNDP into a real knowledge-based organisation. Tasks and
contributions envisioned for major bureaux include:


   Regional Bureaux: Regional Bureauxse units will help to define functional requirements
   for knowledge products and systems, take as well as leadership in developing and piloting
   various KM solutions, and provide content in the form of good practices and new
   experiences . At this point, RBEC intends to pilot the “How-to” Aide to Project Design
   knowledge tool, and a number of country offices have volunteered to participate in pilot
   initiatives.

   BOM: One of the key challenges in developing KM solutions is the crucial interaction
   with Atlas. It is As there are several interdependencies between investments in ICT and
   KM, it will be vvital that BOM takes a leadership role in both maximizing the necessary
   synergies between Atlas and KM as well as ensuring that the sequence of ICT investments
   is coordinated with desired KM capabilities within the next 18 months. Similarly, OHR
   should take responsibility for the capacity investments related to staff policy and
   alignment with the Practice architecture.

   BDP: To successfully leverage SURF and e-community experiences, it is expected that
   BDP will bring expertise to the table regarding concrete ways to implement KM tools and
   provide advisory services to clients that have an immediate, practical and positive impact
   on how UNDP works with and services its clients. BCPR, as the other Bureau responsible
   for practice leadership, should play a similar role.

   BRSP: In order to get most value for KM investments, BRSP should take a leadership role
   in thinking about how these tools can be used for outreach, external collaboration with
   partners, resource mobilization, etc.


Decision from the SMT
Based on the identified business gaps, the task force on knowledge management seeks the
SMT’s guidance on the two following points:
    What gaps and investments should the KM Roadmap address over the next 18 months –               Formatted: Bullets and Numbering
       level one, level two or a combination of both?
    Can an authorization be obtained to identify existing budget balances as well as proceed
       with external resource mobilization to fund the initial project investment requirements?




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