Guidelines for Development of One Stop Shop (OSS) for

							 Guidelines for Development of
One Stop Shop (OSS) for Licensing




             Prepared by:
     James Brown & Salama Fahmy




            August 2005



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                                 Executive Summary

This document represents a guideline designed to assist in the development of a
Business Development Services (Services), One -Stop-Shop (OSS) in specific,
mechanism that would assist in the structure plan for implementation in other regions
in Egypt. All material that is present in this document are adopted from either
researches, implementation plans or studies that were conducted by the Small and
Medium Business Support Project (SMBSP), funded by the Canadian International
Development Agency (CIDA) with Deloitte and Touche as the Executing Agency,
which is operating in Mansoura, Dakahlia. One important note that has to be
considered by the reader is that the concept of the OSS does not solve the innate
problems of the legal and regulatory framework of Egypt, as it is only a way to
circumvent time and steps in obtaining licenses, and any efforts taken to implement
other OSS has to be accompanied by a vision that will allow the streamlining of
regulations. Other important consideration is that the factors that made the OSS
succeed in Mansoura, does not necessitate that the experience will work in other
areas, due to regional differences. But the general concept is practically the same, and
the context of the region has to be studied before the implementation phase to assure
the smooth operation of the OSS.

This document will address the importance of the OSS, and why it is needed. Next
section will discuss the history of the OSS in Mansoura, and the guiding principles
that need to be in place before planning. The steps needed for implementation
represent the bulk part of the document, and is going to be discussed in depth to allow
the best planning according to each region's context.




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                                     Introduction

Theoretically speaking the establishment of any BDS has to be demand driven to
ensure sustainability, efficiency, and to avoid distortions in the market. In establishing
BDS certain distinctions need to be outlined in order to pinpoint the reason behind
having a BDS in the first place. Is the reason for establishment pertain to political
reasons (supply driven), is it because SME “think” they need assistance (perceived
demand), or is it because of real needs that resulted from a logical and real needs
assessment (demand driven). Putting that into the context of Egypt would mostly
make the establishment of BDS fall into the first two reas ons, but that would not lead
to the real desired outcome, which is to remove the constraints that exist in the
business environment in Egypt and hindering the Small and Medium Enterprises from
growing.


                        Box 1: What is meant by SME needs?
   The situation is complicated because discussions of SME needs are increasingly
   characterized by the use of different terms, which may serve to confuse rather
   than clarify the issues. These terms include felt or perceived needs, objective,
   logical or real needs; and demand. In the context of BDS:
   §   felt/perceived needs are those which SMEs perceive and state to their
       problems and which therefore reflect their own immediate analysis of their
       situation;
   §   objective/real/logical needs are those that BDS organizations believe to be
       the needs of SMEs, and therefore reflect the analysis of the situation by
       BDS organizations; and
   §   demand refers to the willingness to pay for a service that addresses these
       needs.
   This leads to the conclusion that BDS organizations should be
   principally developing services for which there is a demand from SMEs


When to say that a BDS or OSS is a success or achieving its goals, is another question
that has to be considered carefully. Until now, the only benchmark that exists in Egypt
is the OSS in Mansoura, they had a plan and they achieved it (e.g. they had a target to
reduce the time for obtaining licenses from an average of 365 days to 45, and they
achieved an average of 20 days). But should another OSS in another city, that has a
different context, be benchmarked against the achievements in Mansoura or against
other criteria that is developed in accordance with the region of its establishment.
Usually to asses success in the case of OSS certain criteria has to be used, mainly:

   Ø   Outreach
   Ø   Efficiency
   Ø   Effectiveness
   Ø   Sustainability

These criteria will be discussed more in the document in the context of the lessons
learned from the OSS in Mansoura. But the note here is to assure that in the plan of
implementation certain targets pertaining to each measure should be identified
depending on the characteristic of the region of establishment.


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                                  OSS in Mansoura

The Business Facilitation Center for the issuance of business licenses (or One -Stop-
Shop) established under the Small and Medium Business Support Project in Dakhalia
Governorate has been operating since 1999. Since then it grew in scope and
geographic coverage and had an effect on the time/cost of obtaining a number of
different types of business licenses. A case study and summary of lessons learned are
available from the Project office.

This paper intends to serve as a checklist for main steps in the establishment of a one -
stop-shop. Although specific task examples are offered to illustrate how each step
might be accomplished, those with sufficient familiarity to undertake an OSS will
recognize that other means might be more appropriate to the specific circumstances of
any new location.

Vision
   • Bring business and regulatory agencies together in a familiar and efficient
       process for the issuance of licenses and delivery of corresponding services.
   • Set a model for the delivery of public services.
   • Contribute to the dialogue for improved legislation and regulatory measures.

Mission Statement
   • Provide timely and affordable service to clients' that will foster trust and
      transparency between the government and business community.

Goals of the OSS

To serve the business community in the Governorate through the following:
    • facilitate the procurement of various business licenses by assembling the
       representatives of participating agencies in one location convenient to business
       and simplifying the attendant procedures
    • provide technical advice /information to clients planning a new enterprise to
       avoid unnecessary regulatory obstacles during the start -up and operations
    • introduce a transparent fee structure that is reasonable from the perspective of
       clients and adequate with the cost of service, including the related costs of
       participating agencies
    • contribute to the general well-being of the business community by improving
       the quality and timeliness of related government services
    • assume a large share of the review and compliance work of participating
       agencies
    • provide these services on a self-sustaining basis

OSS Objectives

   •   Facilitate the issuance of licenses in time matching the due process
   •   Implement a program of geographical expansion to better serve business in the
       Governorate
   •   Incorporate additional agencies and license procedures into the OSS
   •   Maintain a consultative process to ensure the participation of key stakeholders
       in the development of the OSS


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                                OSS Start-Up Process

Critical Success Factors

The process of establishing an OSS should be driven by the following factors:
   • Engagement and commitment of Governor, Local Council and Line Agencies.
   • OSS should be part of the Governorate organization structure for sustainability
   • Office location outside government buildi gn
   • Proper selection and training of management and staff
   • Introduction of appropriate service fees
   • Transparent revenue sharing formula for staff motivation
   • Continuous promotion of service and clients satisfaction survey

                 Steps for the Establishment of a One-Stop-Shop

   The following list of steps assumes that the benefits of establishing an OSS in a
   selected jurisdiction have already been determined, that the number of enterprises
   and the scope for improved service justifies the priority given to this location. It
   also assumes that the key agencies in terms of licensing activity have been
   identified.

Step 1: Achieve High-Level- Buy-In For the OSS:

The three parties that are critical to the success of an OSS are the Governor/Secretary
General, Local Councils and the Licensing Agencies. Through face-to-face
discussions and follow -up correspondence these parties need to have the opportunity
to understand the concept, the structure and the benefits of the OSS. Tasks include:

   •   Preparation of a clear overview docu ment with concept, structure and benefits
       of OSS, linked to actual conditions in selected jurisdiction (Number of
       businesses and licenses in jurisdiction, scope for savings in time and cost,
       current problems that could be circumvented).
   •   Meetings with Governor and Secretary General for concept discussions
   •   Respond promptly and objectively to follow -up questions and observations.
   •   Use Governor/Secretary General offices to facilitate consultations with Local
       Councils. Include at least the Chairman, Deputy and Head of the Business
       Committee of the Local Council.
   •   Establish a consultative process to satisfy each group of its strategic
       involvement as the plan proceeds.
   •   Arrange meetings with Head Quarters and Districts located within the OSS
       jurisdiction
   •   Prepare draft decrees for Governor's approval to establish an Advisory
       Committee comprising of Heads of Departments represented in the OSS in
       addition to representatives from the business sectors and one of the most
       recent clients of the Center (to be replaced every three months). The role of
       the advisory Committee should include:
           o Assisting in developing internal and external policies of the OSS
           o Discuss ing recommended solutions for problems facing OSS



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           o Providing assistance and support to OSS through their respective
             pos itions
           o Reviewing OSS current and proposed activities

Step 2: Establish Site and Facilities

The location should not be in a government building. It should be conveniently
accessible to businesses and facility must have utilities, space and features for
efficient conduct of physical and electronic aspects of the service. Facilities should
also be bright and attractive. Clients need to feel at ease while they are in the unit.
Tasks include the following:
    • Preparation of a checklist with desirable characterist ics
    • Identify and compare options, including the required refurbishing.
    • Select site and complete contractual arrangements
    • Launch refurbishment plan
            o Use open floor plans and adequate reception/waiting area
            o Base layout of workstations on the workflow identified in the operating
               procedures.
    • Procure equipment/services, including mobilization and support arrangements
    • Include a car for necessary site inspections.
    • Complete set-up and testing.
    • Establish hours of operation and staff back-up plans.

Step 3: Select Personnel (in parallel with Step 2)

Personnel of the Center need to be competent in their agency's licensing procedure
and requirements, and they must have the personality and the willingness to be service
oriented and to work in a multi-agency setting. Their tasks include:

   •   Drafting job descriptions and profiles for all positions
   •   The Governor is to ask the Secretary General to nominate three candidates for
       OSS Management
   •   Donor agency together with the Secretary General to interview candidates and
       select Manager
   •   Invite participating agencies to provide three candidates for each post
   •   Establish a selection committee under the chairmanship of the Secretary
       General and comprising the following:
           o OSS Manager
           o Representative from the donor agency
           o A SME specialist
           o Liaison between the donor agency and the Governorate
   •   Select candidates and carry out initial orientation
   •   Confirm selection




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Step 4: Determine Fee and Revenue Sharing Plan

An appropriate fee structure is one that is acceptable to clients, covers the direct cost
of the service, and provides revenue to licensing agencies to attract their continued
participation. While adjustment over time is possible, the service should be launched
with a sustainable fee structure rather than introductory levels that will need revision
in the short term. Tasks include:

   •   Surveys to determine current payment levels and recommendations
   •   Prepare or review OSS operating budget, including revenue generation and
       sharing scenarios
   •   Consult participating agencies on needs and expectations
   •   Use the consultative process established in Step to reach agreement

Step 5: Arrange for Establishment Decree and Secondment Orders

The OSS should be part of the Governorate structure, typically with the status of a
department, so as to provide it with continuity and simplify its relationships with
participating agencies. Tasks include:

   •   Draft Governor's decree establishing the OSS
   •   Draft secondment orders for selected personnel
   •   Prepare checklist /supporting documentation to put the decree and orders into
       effect
   •   Send letters to departments that require central approval (Supply and Trade,
       Environment, Industrial Registry etc.) for outlining a cooperation mechanism
       with the OSS.

Step 6: Train Staff and Establish Internal Procedures

There are several important dimensions to staff development: initial training,
involvement in developing internal procedures, and ongoing training. Tasks include:

   •   Initial orientation for staff and manager to achieve ownership of the concept of
       client orientation and service (one day)
   •   Workshops to develop operating procedures based on agency requirements,
       sequence of steps, and sound management of the OSS itself (five days) (use
       outside facilitator)
   •   Manager training (three days)
   •   Establish ongoing training plan to develop teamwork, com munication skills,
       client service orientation and administrative procedures for the unit.
   •   Offer ongoing training plan for Manager to develop reporting, business
       planning, marketing and personnel skills
   •   Conduct dummy runs to test internal procedures
   •   List all the problems and obstacles facing OSS during the preparation period
       and set appropriate solutions to facilitate workflow inside the Center before
       official opening




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Step 7: Launch Awareness and Marketing Program

As a new service, the OSS will need to make a major effort to inform the business
community of its services. The form of this promotion program and the media it uses
will vary with local custom, but will include some or all of the following:

   •   Guest speaker engagements at local business gatherings
   •   Press re lease for local radio, TV and print media
   •   Luncheon/workshop with representatives of the business community, attended
       by OSS staff of line departments
   •   Signs showing OSS role and date of opening
   •   Posters announcing OSS goal, target group and services
   •   Booklets and flyers for distribution among clients
   •   Advertising campaigns using a car and a loud speaker touring the towns in
       which the OSS will work
   •   Promotional TV programs for the OSS roles.
   •   Official opening in the presence of the Governor and other top officials

Step 8: Implement Ongoing Consultation and Evaluation Program

Ongoing consultation and evaluation serve several purposes. They ensure that
stakeholders have the opportunity to participate in the strategic aspects of OSS
operations; provide a sharp focus on operational issues that need higher-level
assistance to resolve; and, they help the OSS focus on changing conditions and client
needs that should be reflected in the unit's operations. Activities should include:

   •   Weekly staff meetings conducted by the OSS Manager to review operations
       and address individual problem cases and tactical issues
   •   A three-day workshop after six months from official opening to assess
       performance and address strategic issues
   •   Annual evaluation of OSS performance and measurement of client satisfaction
   •   An expansion plan within the Governorate to increase coverage should be
       launched one year from operation start up.




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                              The Requisite Conditions

Three requisite conditions should be incorporated in framing a support program to
small and medium enterprises:

   1) Potentially viable enterprises in the target area, where the required number and
      concentration would dictate the particular activity and means of delivery being
      considered;
   2) The willingness to effect change among entrepreneurs. They need to be aware
      of the necessity of change, and willing to act on the opportunities available to
      improve their operations
   3) A supportive public sector environment. There must exist at the local level a
      receptive attitude toward the potential of S   MEs and support for the national
      policy, combined with a willingness to consider how available resources and
      discretion, however limited, might be used more effectively to assist this
      sector

Ideally, all these requisite conditions should be met. Realistic ally, if any of these
conditions is not met, economic development initiatives must be focused at a more
basic level than direct support to enterprises. Efforts to be concentrated on policies,
attitudes, institutions and infrastructure that mitigate against SMEs. In practice,
however, it is often not a matter of the absolute presence or absence of these
conditions but rather a question of degree.

Based on our experience in Dakhalia, we have suggested a set of preconditions to help
select geographical locations for future OSS, these are:

   •   Availability of other support services in intended Provinces
   •   Supportive local politicians and Government officials
   •   Density of SMEs and their geographic concentration
   •   Sector of concentration with growth potential
   •   Rate of SMEs formation and closure

In our experience the most important condition for success is the availability of a
range of support such as financing, information, training, advisory etc. Establishing a n
OSS to facilitate permit issuance as a stand alone is some -what counter productive in
the medium and long term. Unfortunately, so far, donor agencies as well as
government agencies have expressed interest only in the OSS concept because of its
relative ease of implementation and political expediency.




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