Developing IFAD’s Medium Term Plan (MTP) Including the Strategic Workforce Plan (SWP) And the Zero-Based Budget (ZBB) Informal Seminar of the Executive Board Yukiko Omura Vice President What is the MTP? MTP The 2010-2012 Medium Term Plan: Aligns all resources (both human and financial) of IFAD to deliver on our Programme of Work as agreed in the Eighth Replenishment consultation report A rolling plan that gives medium term perspectives Programme of Work SWP ZBB PMD HR Inputs Zero-Based Budget Departments Strategic Workforce Plan and HR Reform CDS Programme of Work and Portfolio CSSG FAD Outputs OPV Impact Development Objectives MTP: Conceptual overview Budget Inputs 3 MTP: A planning tool The logframe: a snap shot of what is intended to be delivered during the Eighth Replenishment period and what tools are going to be used to monitor and evaluate our impact and effectiveness Hierarchy Objectives Indicators Source of Verification Risks/ Assumptions 1 Vision High-level indicators 8 Source of verification 2 Goal Goal indicators 9 Source of verification Goal assumptions 7 3 Objectives Objectives indicators 10 Source of verification Objectives assumptions 6 4 Results Results indicators 11 Source of verification Results assumptions 5 MTP: Development Objectives Development Objectives Impact Development Objective Accelerated expansion of production and incomes of smallholder farmers treated as business entities whose development is dependent upon stronger and more positive linkages to markets and the private sector Results Measurement Framework Targets Country Programmes: • With impact on macro-economic indicators of poverty reduction and agricultural development • That are rated positively for contribution to incomes and food security and adherence to aid effectiveness agenda • That are delivered through projects that are effective, sustainable and innovative 5 Programme of Work Programme of Work 2010-2012 250 projects under implementation 117 new projects US$ 3.0 billion new loans and grants Programme of Work and Portfolio Development Objectives Outputs Number of New Projects by Region 22 19% 23 20% WCA 21 18% 24 21% 27 22% ESA APR LAC NEN 6 Regional Expected Outputs Outputs Examples of country-level outputs Programme of Work and Portfolio Development Objectives WCA ESA Increased smallholder farmers’ incomes and improvement in wellbeing Increased number of households with improvement in household assets ownership Expanded agricultural sector and rural development growth through replication and scaling up Reduced percentage in the prevalence of child malnutrition. LAC Larger projects with improved lending opportunities Systematic cofinancing Innovative approaches promoted Intensified effective remedial actions 7 Regional Expected Outputs Programme of Work and Portfolio Development Objectives Outputs Examples of project-level outputs NEN Enhanced quality of Country Programmes and project design Better Project Implementation Support and Supervision to Enhance Project Outcomes Strengthened partnerships Improved alignment of HR with results and enhanced KM/I APR Increased number of small farmers assisted/ with enhanced productivity Increased number of rural households supported with livelihood diversification/ with higher non-agricultural income Increased number of households reporting reduced volatility of household incomes Increased administrative efficiency 8 Global Expected Outputs PTA ECD Results-Based Country Programme designs have sharper thematic focus COSOPs and programmes systematically reflect climate and environment risks and opportunities Outputs Programme of Work and Portfolio Development Objectives Operational policies in the areas highlighted by the Strategic Framework are effectively guiding the institution in the design of its country programmes Knowledge assets maintained and enhanced Improved loan & grant-financed project design as a result of the QE system Grant programme streamlined Support to implementation/supervision Active participation in and organization of international fora with substantive contribution (policy and/or financial nature) Enhanced internal and external climate and environment-related knowledge management, in parallel with continued global and national advocacy Additional supplementary funding secured to assist in systematic integration of climate and environment risks and opportunities into overall portfolio Appropriate resource levels and internal procedures set up to strengthen environment and climaterelated work 9 A reconfigured Programme Management Department (PMD) Programme Management Dept. Associate VP PMD CDS CSSG FAD OPV Programme of Work and Portfolio Departments Absorption of the Policy Division into the Operations and Technical Advisory Division Creation of the Environment and Climate Division from the GECC Unit New reporting lines for the hosted entities Operations Policy & Technical Advisory Division Director Latin America & Caribbean Division Director Asia & the Pacific Division Director Western & Central Africa Division Director Eastern & Southern Africa Division Director Near East & North Africa Division Director Environment & Climate Division Director High Level Task Force on Global Food Security Crisis Coordinator International Land Coalition Director Belgian Fund for Food Security Joint Programme Programme Manager Global Mechanism Managing Director 10 Programme Management Department (PMD) Service lines: PMD Country programmes; project designs; project supervision; grant design and supervision CDS • Strengthened country presence CSSG FAD Main thrusts of planned improvement: • Focus on small-scale agriculture as business linked to markets and private sector OPV Programme of Work and Portfolio Departments • Scaling-up • New and more relevant financial instruments (including middle income countries and fragile states) • Strengthened technical capacity 11 A new Office of the Chief Development Strategist (CDS) PMD Office of the President and Vice President CSSG FAD CDS President Vice President Director, OPV Finance & Administration Dept. Chief Finance and Administration Officer Office of the Chief Development Strategist Chief Development Strategist Programme Management Dept. Associate VP Programmes OPV Programme of Work and Portfolio Departments 12 Office of the Chief Development Strategist (CDS) Departments Service lines: PMD CDS CSSG FAD OPV Programme of Work and Portfolio • Analysis of poverty dynamics and development architecture • Strategic placement and guidance to operations • Knowledge management and innovation Main thrusts of planned improvement: • New Strategic Framework • Report on rural poverty coming out regularly • Strengthened capacity to follow and engage in global policy dialogues in agriculture and rural development • Strengthened capacity to develop mid-to-long term strategies 13 A reconfigured Finance and Administration Department (FAD) PMD CDS CSSG FAD Move of two corporate services divisions Human resources Finance & Administration Dept. Chief Finance and Administration Officer Financial Services Division Director and Controller Treasury Division Treasurer Strategic planning and budget Administrative Services Division Director IT Services Division Director OPV Programme of Work and Portfolio Departments 14 Finance and Administration Department (FAD) Service lines: CSSG FAD CDS PMD Financial services and investments management; information technology infrastructure; physical infrastructure OPV Programme of Work and Portfolio Departments Main thrusts of planned change: • Financial management: Integrated corporate financial management; new IT- based loan and grant administration system; new financial products to respond to member needs; upgraded technical capacity to service new products and resource mobilization; Assertions & attestations (2011 & 2012) • Administrative cost management: Rationalization and streamlining reviews of key processes; IT support process to streamlining and automation; out-sourcing transaction-intensive activities • Support to country presence: Integration of decentralized operations into corporate financial and administrative support systems 15 A new Corporate Services Support Group (CSSG) PMD CDS CSSG FAD OPV Programme of Work and Portfolio Departments Office of the General Counsel Office of the President & Vice President Office of Audit and Oversight Communications Division Office of the Secretary North America Liaison Office Human Resources Division Strategic & Budget Planning Division Arab & Gulf States Liaison Office A conglomerate of divisions and offices with reporting lines to the Office of the President and Vice President 16 Corporate Services Support Group (CSSG) PMD Service lines: Corporate planning and performance management; support to Governing Bodies; communications; corporate human resource management; legal services; internal audit and investigation CSSG FAD CDS Main thrusts of planned change: OPV Programme of Work and Portfolio Departments • Cluster of independent divisions essential to corporate strategy • Integration of all corporate plans and management platform for monitoring efficiency • Integration of communications and advocacy • Strategic management of human resources to support results agenda • Strengthening oversight and accountability 17 A unified Office of the President and Vice President (OPV) Office of the President and Vice President President Vice President Director, OPV PMD CDS CSSG FAD OPV Programme of Work and Portfolio Departments Office of the General Counsel General Counsel Office of Audit & Oversight Director Office of the Secretary Secretary of IFAD Resource Mobilization & Partnership Unit Strategic Planning Division Director Human Resources Division Director Communication Division Director North America Liaison Office Director Arab Gulf States Liaison Office Director A unified Office of the President and Vice President (OPV) working as one Heads of the CSSG reporting to OPV 18 A unified Office of the President and Vice President (OPV) PMD CDS CSSG FAD OPV Programme of Work and Portfolio Departments Service lines: External relationship management; high level advocacy; overall internal management and coordination; corporate governance, resource mobilization Main thrusts of planned change: • Coherent and sustained high level advocacy and relationship management • Vice President with direct responsibilities for HR, Strategic planning and budget and resource mobilization • Strengthened risk management • Change and Reform 19 Strategic Workforce Plan (SWP) OPV Strategic Workforce Plan and HR Reform CSSG FAD CDS PMD HR Inputs Function: To ensure that IFAD has the right workforce in the right place with the right skills to achieve its targeted development impact through the programme of work and portfolio of projects. A workforce that is more decentralized, more focused on operations, more qualified for task. Strategic Workforce Plan (planned completion Q3 2010): • Analysis of as-is workforce profile • Projection of to-be workforce to support programme of work and project portfolio impact • Inclusive (HQ and decentralized) strategy of rotation, recruitment, retention, release and development to achieve projected deployment 20 Indicative workforce requirements (in FTEs) OPV Strategic Workforce Plan and HR Reform CSSG FAD CDS PMD HR Inputs 2010 2011-2012 PMD Field Prof. GS Cons. 422 41 126 95 160 Expansion of programme management capacity in country offices -- mostly locally hired with some outposting of HQ staff. Increased technical capacity at HQ (value chains, private sector linkage, climate change) FAD Field Prof. GS Cons. 135 0 46 83 6 Stable overall, but shift to support strengthened capacity to manage new financial instruments, and increased technical capacities in context of automation and process streamlining CDS Field Prof. GS Cons. 12 0 7 3 2 Expectations of stability, but to be reviewed in light of experience in new function Sub-Total (PMD/FAD/CDS) 569 21 Indicative workforce requirements (in FTEs) OPV Strategic Workforce Plan and HR Reform CSSG FAD CDS PMD HR Inputs 2010 2011-2012 CSSG Field Prof. GS Cons. 157 0 65 83 9 Some changes in skill mix to reflect emergence of new financial products and co-financing arrangements OPV Field Prof. GS Cons. (RMP) Field Prof. GS Cons. 24 0 14 7 3 Sub-Total (CSSG/OPV) 181 Total 750 Stable overall with RMP being revised (0) (6) (2) (0) Projected overall increases 22 Human Resources Reform OPV Strategic Workforce Plan and HR Reform CSSG FAD CDS PMD HR Inputs What has been accomplished - Interim HR Director in place - Number of President’s Bulletins on HR issues - Number of Information circulars on HR issues - Changes to benefits and entitlements - Strengthening HR platform for staff in ICOs March 2010 2 out of 4 in 2010 12 out of 18 in 2010 April 2010 April 2010 What is in progress Expected timeline - Appointment of HR Director - Revision of HR Rules and HRPM - Voluntary Separation Programme (Phase 2) - External review of compensation system - Review harassment panel - Financial disclosure - Review of the performance management system - Electronic benefits calculation July 2010 May-July 2010 May 2010 October 2010 May 2010 May 2010 June 2010 September 2010 23 Zero-Based Budget (ZBB) OPV Zero-Based Budget Strategic Workforce Plan and HR Reform CSSG FAD CDS PMD Budget Inputs Functions: Ensure that IFAD budgets are focused on providing the workforce and other requirements for delivering impact through the programme of work and portfolio – on the basis of chain of results and scrutiny of necessary costs and prioritization Shift resources towards operations; contain administrative costs across all groups; raise efficiency Methodology: • Covers all expenditures financed from all sources • Historic allocations discarded • Identification of service lines supporting POW and project portfolio • Specification and enumeration of key outputs • Challenge to costing base 24 Indicative budget requirements OPV Zero-Based Budget Strategic Workforce Plan and HR Reform CSSG FAD CDS PMD Budget Inputs 2010 2011-2012 PMD Post-reconfiguration budget increased to 54% of administrative budget (expanded after reconfiguration) Growth linked to expansion of POW and project portfolio (to be determined by ZBB) FAD Post-reconfiguration budget decreased to 21% of administrative budget. Budget change will reflect tangible improvements in administrative efficiency CDS New budget established at 2% of administrative budget. Resources made available from redeployment of staff and budget within corporate envelope Future financial requirements are linked to ability to mobilize necessary workforce competencies internally 25 Indicative budget requirements Zero-Based Budget Strategic Workforce Plan and HR Reform 2010 2011-2012 CSSG Resources made available Budget change will reflect from redeployment of staff tangible improvements in and budget within corporate administrative efficiency envelope. Total budget of 21% of administrative budget OPV Post-reconfiguration budget made available from redeployment of staff and budget within corporate envelope. Total budget of 2% of administrative budget Budget change will reflect tangible improvements in administrative efficiency OPV CSSG FAD CDS PMD Budget Inputs 26 Timeline and approval mechanisms Zero-Based Budget Strategic Workforce Plan and HR Reform Timeline Results of high level iteration discussed with Executive Board in context of budget preview September 2010 Detailed iteration taking into account September Executive Board discussion in Programme of Work and Budgets December 2010 OPV CSSG FAD CDS PMD Budget Inputs 27 Thank you for your kind attention Empowering the smallholder farmers (businesses) , especially women, to create wealth and move out of poverty 28