Guidance note on developing the
UN Business Operations Strategy
The Business Operations Strategy (BoS) aims to enhance the cost effectiveness and quality of
operations back office processes such as procurement, ICT, HR, Logistics and Admin and Finance
in support of the UNDAF. It is a voluntary framework focusing on Joint Business Operations (Incl.
Common Services) allowing UN Country Teams to take a strategic, results oriented approach to
planning, management and implementation of Harmonized Business Operations at the country
level. The BoS is largely based on existing guidance, simplified and integrated in a single,
coherent framework. This is supplemented with a limited number of instruments facilitating
quantified cost benefit analysis, reinforced results-based planning and monitoring and evaluation
of Common Business Operations. The BoS model allows for flexibility to scope the BoS to country
needs and capacity, allowing for a localized approach that matches specific country capacity,
needs and requirements. The BoS also includes a component aimed to reinforce the links between
UN programmes and operational support needs.
The primary audiences for this guidance note are UN Country teams, Operations Management
Teams, Resident Coordinator’s Offices as well as Business Operations practitioners.
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UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
Table of Contents
1.
EXECUTIVE SUMMARY ........................................................................... 3
2.
BACKGROUND ...................................................................................... 5
3.
CONTEXT ............................................................................................. 6
4.
THE BUSINESS OPERATIONS STRATEGY ................................................. 7
4.1 Principles of the Business Operations Strategy ..............................................................7
4.2 Why develop the Business Operations Strategy? ...........................................................7
4.3 What is the Business Operations Strategy? ...................................................................8
5.
DESIGNING THE BUSINESS OPERATIONS STRATEGY ............................... 10
Chapter 1: Introduction .......................................................................................................12
1.1 Background..................................................................................................................12
1.2 Principles of implementation ........................................................................................12
Chapter 2: Business Operations – Operations Analysis ..................................................12
2.1
Baseline Analysis ....................................................................................................13
2.2
Needs Analysis........................................................................................................14
2.3
Requirement Analysis..............................................................................................19
2.4
Cost Benefit Analysis (CBA) ....................................................................................22
2.5
Simplified Transaction Cost Analysis - Prioritization of Business Solutions..............30
Chapter 3: Strategic Planning: Results Framework and Results Narrative .....................31
3.1
Results Matrix Business Operations (log frame) ......................................................31
3.2
Results Narrative Business Operations ...................................................................32
Chapter 4: Monitoring, Evaluation and Reporting on Business Operations ...................33
Chapter 5: Management and Accountability Business Operations .................................34
Chapter 6: Budgetary Framework Business Operations ..................................................36
Chapter 7: Operationalising the Business Operations Strategy ......................................38
APPENDIX A: RESULTS BASED MANAGEMENT: DEFINITION OF KEY TERMS ...... 41
APPENDIX B: TEMPLATES ............................................................................ 43
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UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
1. Executive Summary
The General Assembly and various ECOSOC resolutions1 have consistently requested the UN
System to harmonise Business Operations with the aim to reduce operational transaction cost
and duplication of the operational support to programme delivery. In addition, the latest
assessments executed in preparation for the QCPR 2013-20162 and the Secretary General's
Report in preparation for the QCPR, call for enhanced strategic planning and analytical
processes to strengthen strategic focus and prioritization of harmonization efforts with a focus
on the highest value added harmonization efforts, while improving Monitoring and Evaluation
and Reporting mechanisms to demonstrate results achieved in the area of Business Operations
harmonization. The UNDG strategic priorities focus on the development of operational models
to facilitate the harmonisation agenda at country level. The Business Operations Strategy (BoS)
is the UNDG response to the results requested by the GA.
The BoS is a voluntary framework focusing on Joint Business Operations developed in close
cooperation with country teams, allowing UN Country Teams to take a strategic, results oriented
approach to planning, management and implementation of Harmonized Business Operations at
the country level. The BoS is largely based on existing guidance3, simplified and integrated in a
single, coherent framework, supplemented with a limited number of instruments facilitating
quantified cost benefit analysis and reinforced results-based planning and monitoring and
evaluation of Common Business Operations. The BoS model allows for flexibility to scope the
BoS to country needs and capacity, allowing for a localized approach matching specific country
needs and requirements. The BoS also includes a component aimed to reinforce the links
between UN programmes and operational support needs. More specifically the BoS framework
includes the following components:




Country level Operations Analysis including:
- Baselines Assessment existing services;
- Needs and Requirement Analysis deriving from programme needs (UNDAF) and
non-programmatic regular operations;
- Quantitative and Qualitative Cost Benefit Analysis;
- Prioritization instrument based on the Cost Benefit Analysis.
Results frame, including indicators, targets and baselines;
Resourcing and Governance framework of Business Operations
Operationalisation instruments aimed to ensure strong links between the strategy and
the development and day-to-day management of Business Operations, including
Common Services.
Successful development and implementation of the Business Operations Strategy requires a
minimum level of capacity and skills in the OMTs. Apart from technical operations skills, some
degree of business analysis skills and RBM related skills are useful. In most cases, the work
required is in addition to agency-specific responsibilities. Therefore, it is highly recommended
for UNCTs/OMTs to consider the capacity and skills available to the OMT in terms of skills,
1
ECOSOC resolution E/2011/L.35, sections 11 and 12; ECOSOC resolution E/2011/L.35, sections 4
Ref DESA Business Operations Assessment (2012) and the SG Report in anticipation of the QCPR
2012
3
UNDG Common Services frameworks and the Process Approach Model to Business Operations
2
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UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
competencies and time before deciding to engage in the BoS development. The gains in terms
of efficiency and (cost) effectiveness associated with the design of Common Operations
solutions should ensure a positive rate of return on this investment in staff and financial
resources.
The UNDG Joint Funding and Business Operations Network, envisions the following global
capacity development efforts in support of the roll-out of the BoS at the country level
(subsequent to UNDG approval of the BoS framework):
1. Initial pilot support to 5 countries including technical support for BoS development;
2. Direct capacity development through (existing) training in Basic Business Operations
and Advanced Business Operations courses, in cooperation with UNSSC;
3. On site and off site support mechanism through (existing) Business Operations resource
pools managed through the UNDG support roster;
4. Help Desk function for Business Operations, based in DOCO (subject to availability of
capacity in DOCO to manage this function) for direct questions of UNCTs/OMTs;
5. The JFBO anticipates a shared ownership of the BoS framework with the UNDG
regional structures and anticipates further consultations with the HLCM and UNDG
regional teams with regards to the roll-out in each respective region.
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UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
2. Background
The TCPR 2007 and the subsequent ECOSOC
resolution on Operational activities of the United
Nations for international development cooperation
(2011) call for “identification and acceleration of
the implementation of those business processes
that promise the highest return from simplification
and harmonization” and “encourages United
Nations system organizations within their existing
planning, budget and evaluation systems to report
on their cost savings resulting from improvement
of their business operations”4.
“Business Operations is a critical
enabler for effective delivery of UN
development
programmes.
Enhancing the link between UN
programming efforts and the
operational implications deriving
from
that
programme
effort
enhances efficient and effective
programme delivery.”
In addition, the ECOSOC resolution requests the UN to “explore further ways to enhance
cooperation, collaboration and coordination, including through the greater harmonization of
strategic frameworks, instruments, modalities and partnership arrangements, emphasizing the
importance of ensuring, greater consistency between the strategic frameworks developed by the
United Nations agencies, funds and programmes”5. Along similar lines, the Secretary Generals
5 year Plan of Action (2012) called for a “Second Generation of DaO” , providing continued
focus on reduction of transaction costs and increasingly efficient business operations. This Plan
of Action was supplemented by the Secretary General's Report in anticipation of the QCPR
2013-2016, which urged for enhanced analysis and strategic planning and reporting of the
Harmonization of Business Operations at the country level6.
The UNDG strategic priorities seek to
operationalise
these
mandates
by
emphasizing the need for efficient business
operations
through
simplification
and
harmonization where it adds value in order to
provide better support to development
effectiveness and impact of programmes. The
UNDG Joint Funding and Business Operations
Network7 developed guidance and instruments
in 2012 to operationalise the resolution with
the aim to reinforce the linkages between the
UN Programme (UNDAF) and UN Operations,
enhance operational monitoring, evaluation and reporting efforts of said harmonization initiatives
and advance the harmonization of Business Operations at the country level.
“Business Operations harmonization
offers
significant
potential
for
transaction cost reductions. The
results of harmonization, simplification or
integration into common approaches
include monetary gains such as cost
reductions or non-monetary gains such
as staff time cost reductions1, enhanced
reputation and quality of processes. “
4
ECOSOC resolution E/2011/L.35, sections 11 and 12
ECOSOC resolution E/2011/L.35, sections 4
66
Ref DESA Business Operations Assessment (2012) and the SG Report in anticipation of the QCPR
2012
7
The Joint Funding and Business Operations Network (JFBO) was previously known as Country Office
Business Operations Network (COBO)
5
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UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
3. Context
The primary audiences for this guidance note are UN Country teams, Operations Management
Teams, Resident Coordinator’s Offices as well as Business operations practitioners.
This Business Operations Strategy (BoS) is part of the “UNDG framework for enhanced
functioning of the UN System at the country level8”, guiding the harmonization effort in one its
work streams "Common Services and Harmonised Business Practices". The BoS structures the
development and management of business solution aiming to harmonise process and
procedures at the country level (ex. HACT, harmonization of DSA rates) as well as common
business solutions for operational support services (Common Services). Common Services
include joint services in the areas of Procurement, ICT, HR, Logistics, Security etc. For further
details regarding the framework and the supporting toolkit, kindly refer to http://toolkit.undg.org/.
This guidance note supports the UNCT in developing the Business Operations Strategy, which
includes a medium term Operations Results Matrix and the M&E matrix reflecting the
anticipated strategic outcomes of business operations at the country level for the coming
UNDAF cycle. The medium term strategy is the basis for the annual work planning process
undertaken by the OMT which operationalizes the strategy. The Business Operations Strategy
follows the same cycle as the UNDAF.
The Business Operations Strategy is a voluntary framework, meaning that the UN Country team
can decide to undertake all or just some of the activities involved in this strategic planning
exercise. It is however highly recommended to engage in the development of this medium term
operational strategy given the potential added value it provides for reduced cost or enhanced
quality and impact of UN operations, and ultimately, programme delivery at the country level. In
addition, it is highly recommended to initiate the BoS process in conjunction with the
development of the UN programme strategy at the country level (UNDAF).
The BoS approach draws from the existing UNDG Common Services methodology (Process
Approach Model- PAM), in particular PAM step 2: Operations Analysis and PAM Step 3:
Strategic Planning.
8
From here onwards, this shall be referred to as “the UNDG approach”
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UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
4. The Business Operations Strategy
4.1 Principles of the Business Operations Strategy
The Business Operations Strategy is based on the following principles:
1. The Business Operations Strategy is a voluntary instrument to be used at the country
level by UNCTs/OMTs, to be developed in conjunction with the UNDAF;
2. The Business Operations Strategy covers Joint Business Operations initiatives only;
3. The Business Operations Strategy provides strategic, medium term focus and
prioritization based on quantitative and qualitative Cost Benefit Analysis;
4. The Business Operations Strategy provides the basis for Monitoring and Reporting
on progress and results of BO initiatives ;
5. The Business Operations Strategy provides the basis for Evaluation of implemented
practices for further optimization if needed and for purposes of knowledge sharing;
6. The Business Operations Strategy provides the basis for Resource Mobilization
(financial and human resources) in support of harmonization of Business Operations at
the country level.
4.2 Why develop the Business Operations Strategy?
The development of the Business Operations Strategy supports the development of harmonised
Business Operations to achieve the following results:

Enhanced linkages Programmes and Operations: The BoS has two components of
operational support services - those deriving from UNDAF/programme and “ongoing
operations” that do not derive directly from the programme. By analyzing the programme
strategy through an operational lens and identifying the operations required to deliver the
programme, the linkages between programme and operations are established. As both
the UN Programme Strategy (UNDAF) and the Business Operations Strategy are on the
same cycle, the development of the Business Operations Strategy enhances the
linkages between the UNDAF and UN operations support to that programme strategy;

Reduced Costs: The BoS provides a strategic focus on operational support services
and initiatives aimed at harmonizing and/or simplifying business operations. It allows for
multi-year planning of operations and facilitates strategic planning of the operational
effort. The suite of operational instruments it comes with allow for enhanced
identification of cost benefits of different initiatives, allowing facts based decision making
and prioritization. It also facilitates monitoring and evaluation of the operational effort at
the country level. It focuses on reduced lead times to execute processes through
streamlining operational process, and reduced direct monetary cost for example by
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UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
leveraging UN System wide bargaining position when procuring goods and services.
Anticipated cost reductions include:
-
-
-
Reduction of duplication of work processes at the agency level by providing the
service through a single channel, rather than decentralized at the agency level
(example ICT, Travel and building maintenance);
Reduction of transaction costs (time spent on activities) for the UN and partners,
including the host government, due to harmonized operational procedures and
standing agreements with vendors (e.g. VISA processes and Joint Long Term
Agreements);
Enhanced leverage of UN bargaining position when procuring goods in larger
quantities (ex. Office bulk goods, printing services).

Enhanced Quality: By jointly procuring services in larger volumes, the UN increases it
bargaining power with the service provider and enhances its ability to monitor and
evaluate overall quality of service delivery of that service provider.

Enhanced Operational Focus and prioritization: Instruments like Cost Benefit
Analysis, Transaction Cost Analysis and Business Process Analysis provide light, easy
to use tools to identify and prioritize high impact harmonization initiatives and facilitating
monitoring and evaluation of harmonization initiatives against pre-established baselines.
4.3 What is the Business Operations Strategy?
The Business Operations Strategy outlines the medium term strategic focus of UN Business
Operations at the country level in one or more of the above mentioned categories in support of
UNDAF implementation. It reflects high level outcomes of joint Business Operations9 (not the
agency level operations) that identify the intended result, and provides a breakdown of these
high level results into lower level outputs. The Business Operations strategy provides the basis
for annual work planning of the Operations Management Team and facilitates monitoring and
evaluation, division of labor, accountabilities and resource mobilization in support of more
strategic, cost effective business operations.
The Business Operations Strategy has three components:
A. Business Operations Results Framework, reflecting medium term outcomes and
outputs in line with the UNDAF cycle;
B. Monitoring and Evaluation Framework, reflecting outcome and output level indicators
allowing for progress monitoring and evaluation of impact of business operations;
C. Management Arrangements of UN Business Operations outlining the way the UN
organizes itself in order to deliver cost effective operational support that meets UN
Programme requirements;
9
Joint Business operations are Business Operations shared by one or more UN agencies.
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UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
For the purpose of the Business Operations Strategy, Business Operations are defined as
jointly executed back-office support processes that support UN programme implementation at
the country level10.
Examples of Business Operations include11:
Examples of Common Services and Harmonized Business Practices
Common ICT Services
ICT Support Desk,
Common VSAT,
Joint VoIP infrastructure
Radio and Telecommunications
Common Domain & Website
Common Procurement Services
Office Supplies
Fleet & Fuel Management (Light Vehicle)
LTA’s for workshop and conference facilities, standard
business supplies etc
Joint Review Board Procurement
Ref guidelines on 'Common UN Procurement at the Country
Level'
Common Human Resources Services
Common Administration Services
Common Finance Services
Common Logistics and Transport
Services
Common Premises
Common Security Services
Common Protocol Services
HACT
Staff Counseling and Training
DSA harmonization for national staff
Harmonized post descriptions
Interagency recruitment
Common UN Consultant Rosters,
Common Learning Systems
Mail services
Translation services
Common field housing and hotel/hostel arrangements
Protocol services,
Joint reception/registry,
Pouch & express mail services,
Maintenance
Banking
Travel Services
Domestic Freight forwarding and Transit Storage
Warehousing and distribution
Air charter services
Common Light Vehicle Fleet & Fleet Management
Agency co-location (UN Common Premises/UN House)
Common joint/field and provincial offices
Building maintenance
LTA’s for security services
Joint protocol staff for UN agencies
10
The Business Operations strategy does not include individual agencies’ business operations, it only
reflects those business operations processes that are jointly executed.
11
Note that the exact types of Business Operations the UN Country Team prefers to engage in can and
should be adjusted in accordance with country level requirements.
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UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
5. Designing the Business Operations Strategy
The Business Operations Strategy resembles the UNDAF in more than one way: it follows a
similar - if lighter- process of analysis, results framework and M&E framework reflecting the Key
Performance Indicators against which Business Operations are measured. The BOS also
covers the same period and part of the content of the Business Operations Strategy derived
directly from the UNDAF.
The following graph provides an overview of the BOS process:
Operations Analysis:
Baseline Analysis
Needs Analysis
Requirement Analysis
Cost Benefit Analysis (incl. BPM)
Prioritization Harmonized Business
Operations
Medium Term
Results Framework
(incl. costing)
Annual Work
Planning
Monitoring and Evaluation Framework
10
OMT Work Plans
UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
Feedback Loop
BoS
1.
2.
3.
4.
Template Business Operations Strategy
The Business Operations Strategy reflects the following chapters:
Chapter 1: Introduction
1.1 Background
1.2 Principles of implementation
Signatory Page
Chapter 2: Operations Analysis
2.1 Baseline Analysis
2.2 Needs Analysis
2.3 Requirements Analysis
2.4 Cost Benefit Analysis
2.5 Prioritization
Chapter 3: Business Operations Results Framework (narratives)
Chapter 4: Business Operations Monitoring, Evaluation and reporting
Chapter 5: Business Operations Governance Mechanisms
Chapter 6: Business Operations Budgetary Framework
Chapter 7: Operationalising the Business Operations Strategy

Chapter 1 sets the context of the Business Operations Strategy;

Chapter 2 defines the results focus (referred to as "business solutions"), and prioritizes
the results areas according to the outcome of costs and benefits for each suggested
business solution.

Chapter 3 translates the business solutions in specific result statements (outcomes,
outputs) and adds a short narrative for each results area, drawing from chapter 2. It also
adds a required budget per outcome/output;

Chapter 4 defines outcome and output level indicators, targets and baselines, drawing
from chapter 2;

Chapter 5 outlines the Business Operations Governance mechanisms;

Chapter 6 describes the resource requirements, including a resource map of existing
resources, the resource gap and a resource mobilization strategy;

Chapter 7outlines the operationalisation of the Business Operation Strategy focusing on
how to leverage the BoS to focus work planning and develop and implement solutions,
including the concepts of integrated (OMT) work plan and the use of the standardized
MoU for Common Services.
The BoS guidance document outlines the approaches for each of these chapters.
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UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
Chapter 1: Introduction
1.1 Background
The background includes a short, general introduction to the national context and the role the
UN System at the country level has vis-à-vis the national development environment. Note that
this is only a high level summary of the national context. As the UNDAF has a more in depth
analysis of the national development situation, it may be useful to refer to the UNDAF for
details.
The background also reflects a short statement on the purpose of the UN Business Strategy (ref
section 3.2) and its links to the UN Programme Strategy.
1.2 Principles of implementation
This section outlines a limited number of key principles underpinning the UN Business
Operations Strategy. Examples of these principles include:




The Business operations Strategy focuses on Common UN operations, e.g. operational
processes that add value to the UN System as a whole. In addition to these system wide
services, agencies may decide to continue agency-specific operational support services.
The UN Business Operations supplement these agency level operations;
The UNs commitment to harmonisation of Business Operations where this yields added
value to the UN System and its partners, where added value is defined as reduction of
costs (either direct monetary cost or time cost) or enhancement of quality of services
provided;
UN Business Operations Strategy reflects direct links to the UNDAF programme strategy
outlining the way the UN plans to deliver its operational support to the programme;
The UNs commitment to the principles of the Paris Declaration, including the use of
national systems for operational services where possible;
Chapter 2: Business Operations – Operations Analysis
The Operations Analysis is a critical analysis aimed to identify which harmonization initiatives
add value to the country offices and prioritize the different initiatives that are identified as adding
value to country level Business Operations. The Operations Analysis includes the following
analysis:
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UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
Business Operations Analysis
1. Baseline Analysis: Current Service Offering (Supply)
o Existing Business Operations Harmonization initiatives (incl.
Common Services) – Baseline analysis
2. Needs Analysis (Demand)
o Programme related Needs (deducted from the UNDAF)
o Non-programme related Needs (corporate requirements)
3. Requirements Analysis;
4. Cost Benefit Analysis (based on a Simplified Transaction Cost Analysis) for
potential Business Operations Harmonization initiatives (including Common
Services);
5. Last, the OMT prioritizes the added value harmonization initiatives;
Based on the results of the Operations Analysis, the UNCT/OMT prepares the
Results Matrix and the M&E framework, which guide Business Operations
harmonization for the coming programme cycle.
2.1
Baseline Analysis
Baseline Analysis includes a stock-taking and assessment of the current Business
Operations Harmonization initiatives (including Common Services).
The baseline analysis aims to provide an overview of the current status of existing
Business Operations Harmonization initiatives (including Common Services). It identifies a
few categories of basic information:
Type of existing
Common Service/
Harmonization effort
Managing
Entity
(Service
Manager)
Clients
(Agencies
using
service)
Key
Performance
Modality
Performance Ranking against (Outsourced/In
Indicators
KPI’s
House)
(KPI’s)
Recommended
Action (ref below)
Table 1: Template Baseline Assessment
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UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
For the full template for the Baseline Analysis, please refer to Appendix B1 or to the
UNDG Toolkit.
Based on the performance of each Common Service, the Operations Management
Team assesses the added value of the Common Service to the UN System, which will
form the basis for the results framework and any recommended actions. Performance is
measured against the agreed Key Performance Indicators (for more on Key
Performance Indicators- ref the next section 2.3 Needs assessment):

Recommended for expansion? If the CS is meeting or exceeding expectations, should
other agencies be invited to participate? Should additional services be added to the
service package?

Recommended for Downscaling? Are there some areas of the CS that are not going as
planned while others are?

Recommended for Discontinuation? Are there unanticipated events or challenges that
have prevented this CS from being established? Giving these challenges, should the
CS be discontinued altogether?

Recommended for adjustment/modification? Based on the performance it may be that
the original design does not accommodate reality and leaves room for improvement. If
this is the case, can the Common Service Design be modified to address any
bottlenecks?
Thus, while the assessment is fundamentally a review of what is in place; it will also be
clear that as a part of these queries, there will be an initial opinion of the quality and
necessity of the services in addition to a vision of where the services might be expanded
or changed. These, along with any difficulties in achieving previous operational work
plans (at both high and detailed levels) should be noted as a part of the initial
assessment so as to provide a basis for further discussion and potential change.
2.2
Needs Analysis
The Needs and Requirements Analysis identifies the need for operational support at the country
level (demand). There may be a need for a specific process to be harmonised to reduce
associated costs or enhance quality (for example, harmonising DSA rates for partners) or there
may be benefit to delivering a service as a Common Service, rather than an agency based
service.
The Needs Analysis identifies and describes the need for existing and desired (new) joint
operational support services. It takes the form of a short Needs Statement (narrative) for each
suggested common business operation. The Needs Analysis focusses on the the need, not how
the need ultimately is met, e.g. it focusses on the “What” andn “When”, not the “How”. The need
needs for Business Operations derives from the baseline assessment of the existing common
services and the need for new common services. Needs are determined keeping the following
elements in mind:
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UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

•
(1) basic operational support (e.g. new staff requirements, potential new offices,
etc.);
•
(2) strategic operational support (professionalization and improvement of
operational services as well as alignment with programmatic goals) .
Needs statements need to describe clearly what the service must deliver and by when it
must be ready to deliver, in a measurable way
The Needs Analysis uses the following template (note the template is the same as used for the
Requirements analysis- the next step in the Operations Analysis):
Name
Business
Operation/Ser
vice
Common
Premises SubOffice
- Common ICT
Needs Analysis Narrative



Requirements Analysis & KPI's
Background: Utopia UNCT will include in its UNDAF a joint
HIV/AIDS programme in Felurian Province. The inter-agency task
team developing the programme concept has determined that
because of the strong inter-linkage between the agency
components of the programme, it will be desirable that the staff
members are co-located in the UNAIDS office. The team would
like to start working from the same location by month 6 in year
2013. To facilitate such a co-location certain support needs are
identified:
Need 1: In order to reap efficiency gains, the sub-office should
take advantage of the new corporate inter-agency agreement
with one VSAT connectivity provider and consolidate the agency
internet connectivity arrangements into one shared connectivity
arrangement with one VSAT and one ISP. The purpose of the
arrangement will be to ensure sufficient bandwidth for all
agencies at the best price possible and to facilitate increased use
of VOIP telephony and internet based video conferencing.
Need 1 description: Soonest possible and if necessary on a
scaled basis, to have an ICT arrangement which will (1)
rationalize the agency connectivity arrangements to one shared
arrangement making use of fewest possible VSATs in accordance
with the corporate inter-agency agreement and one ISP only; (2)
ensure that all agencies have the necessary bandwidth available;
(3) Facilitate widest possible use of VOIP telephony particularly
for international phone calls (4) Facilitate widest possible usage
of low cost internet video conferencing.
For the template for the Needs Analysis, kindly refer to Appendix B.2 or download it from the
UNDG Toolkit.
The Needs Analysis involves both programme and operations staff, as needs are derived from
taking into account programmatic as well as operational needs.
Some Business Operations derive directly from the Programme/UNDAF (Programme related
Business Operations Harmonization initiatives (including Common Services)), while other
business operations will be required, regardless of the programme size or design (Corporate
Requirements).
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UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
Note that the needs and requirements analysis includes both existing and new Business
Operations
Harmonization
initiatives
(including Common Services).
A. Programme related Needs for Business
Operations Harmonization initiatives
(including Common Services)
The UNDAF will define a significant part
of
the
operational
back-office
requirements for that cycle. As the
Business Operations Strategy and the
UNDAF Programme strategy are on the
same cycle, it provides a good entreepoint to link the two closer together by
deriving
the
back-office
support
requirements from the UNDAF results
matrix.
Note that this focuses on the
identification of the back-office support
service needs that will be provided as a
Common Service (e.g. Joint Business
Operations), not individual agencies'
services12. Examples include the HACT
initiative or common procurement of
commodities directly linked to the
programme.
Business Operations Strategy
Programme Related
Business
Operations
(UNDAF)
Ongoing Business
Operations
Common
Premises needs
for sub-office
Common
Procurement of
bulk office goods,
fuel,…
Common HR
arrangements for
a joint programme
or sub-office
General ICT
support
Joint Procurement
support for a
particular
programme
Common Travel
Desk
HACT
Country level UN
HQ /Common
Premises
…
…
In the UNDAF, each outcome is broken
Figure 1: Relation UNDAF and BoS
down into lower level outputs. The
combinations of the outputs ensure the
UN is able to deliver on the outcome. These outcomes and outputs are the basis for the
analysis13:
Approach:
1. Select the UNDAF outcome for which the needs analysis is executed;
Example: UNDAF Outcome: “By 2025, malaria infection is reduced from 29% to 20 % in
the three most malaria prone regions of Utopia”.
2. Identify the outputs under the UNDAF outcome that are likely to impact the operational
support requirements14.
12
Depending on the preferences of the UN Country team, the Business Operations Strategies can include
agency level back-office support, provided a complete operations strategy in support of the UNDAF,
reflecting both Common Services as well as agency services.
13
For further details on the UNDAF RBM methodology kindly refer to UNDG RBM Handbook on
www.undg.org.
14
It is recommended to start the analysis of operational needs from the output level of the UNDAF, as the
outcome level is likely not to provide enough detail.
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UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
Example: UNDAF Output 1: “By 2025, 80% of the most vulnerable groups in the three
most vulnerable provinces will have access to malaria prevention instruments, including
bed nets and preventative chemical solutions”.
The targets and indicators in the log frame (results framework) and M&E framework of
the UNDAF may further specify the interventions.
3. For each of the selected outputs in step 2, the Business Operations Harmonization
initiatives (including Common Services) requirements are analysed for each Common
Service Categories:







Common Procurement
Common Human Resources
Common ICT
Common Logistics and Transport
Common Administration
Common Finance
Common Security
The exact categories vary per country, based on the services that are in place or to be
developed. The categories are an indication to guide the OMT thinking. The analysis
should take into account direct programme needs (ex. Procurement needs) as well as
general programme needs such as whether the UN requires additional sub offices or
project offices, which would have a significant ICT, logistical and other operational
support implications. The key point here is that the need is directly tied to a specific
programme.
Note that this focuses on the identification of the back-office support service needs that
will be provided as a Common Service (e.g. Joint Business Operations), not individual
agencies' services15.
The figure below illustrates this approach:
15
Depending on the preferences of the UN Country team, the Business Operations Strategies can include
agency level back-office support, provided a complete operations strategy in support of the UNDAF,
reflecting both Common Services as well as agency services.
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UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
Business Operations Strategy (BoS)
Operational Analysis
UNDAF
Common Country Analysis
Results Framework
Results Framework
(Outcomes-Outputs)
(Outcomes-Outputs)
Monitoring and Evaluation
Monitoring and Evaluation
(Indicators)
(Indicators)
Budgetary Framework
Budgetary Framework
Management Arrangements
Management Arrangements
(including funding)
(including funding)
Joint Funding Arrangements
Figure 2: Relation between UNDAF and BoS
This category includes services that currently are executed on an agency basis, but due to
scaling up the programme or involvement of additional agencies, it may be more effective or
cost efficient if it’s provided through Business Operations Harmonization initiatives (including
Common Services) at the UN System level instead.
B. Other Business Operations Harmonization initiatives (including Common Services)
In addition to programme related Business Operations Harmonization initiatives (including
Common Services), there usually is scope for additional Business Operations Harmonization
initiatives (including Common Services), which do not necessarily derive directly from the
UNDAF. Examples include procurement of Generic Office supplies or fuel (Joint
procurement), establishment of a Common Reception or Registry (Logistics), Joint
recruitment processes and learning (Joint Human Resources). These operational processes
support programme implementation but do not necessarily derive directly from individual
programme needs.
This category includes services that currently are executed on an agency basis, but due to
scaling up the programme or involvement of additional agencies, it may be more effective or
cost efficient if it’s provided through Business Operations Harmonization initiatives (including
Common Services) at the UN System level instead.
Approach
1. Identify the other related needs (not directly deriving from the UNDAF) that the Common
Service or harmonization effort is supposed to cover;
Example: Common Reception, Maintenance, Office Bulk Goods, Fuel, Transport.
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UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
2. For each of needs in step 1, the Business Operations Harmonization initiatives (including
Common Services) requirements are analysed for each Common Service Category:






Procurement
Human Resources
Information and Communication Technology
Logistics and Administration
Finance
Security
Below is an example of a non-programmatic results chain, in this case focussing on
Procurement.
Note: the BoS usually would only cover the outcomes (specifies "What" the UNCT/OMT
plans to realize in the coming cycle) and outputs (specifies "How" the UNCT/OMT plans to
realise the outcome). The Annual Deliverable would be something you would see in the
integrated Annual Work Plan of the OMT. However, in order to demonstrate what the full
results chain would look like, the example below includes Annual Deliverables.
Outcome 1: By 2015, the UN in Utopia has realized a reduction of UN Operating Costs
by an average of 5% per year


Output 1: By 2015, the UN System in Utopia has reduced cost of procurement by 4%
through the development and implementation of Common Procurement initiatives
o
Annual Deliverable 2012: In year 1, cost reduced by 2% of baseline year 2012
through the establishment of three additional LTAs (established baseline Jan 2012: 5
LTAs in place, target Dec 2012: 8 LTAs in place)
o
Annual Deliverable 2013: In year 2, cost reduced by 1% of baseline year 2012
through the establishment of seven additional LTA’s (established baseline Jan 2012:
5 LTAs in place, target Dec 2013: 12 LTAs in place)
o
Annual Deliverable 2014: In year 3, cost reduced by 1% of baseline year 2012
through the establishment of ten additional LTAs (established baseline Jan 2012: 5
LTAs in place, target Dec 2014: 15 LTA’s in place)
Output 2: By 2015, the UN System in Utopia has reduced operating cost by 2% through
the development and implementation of Voice over IP
o
Annual Deliverable 1: …
o
Annual Deliverable 2: …
For the full template for the Needs and Requirements Analysis, please refer to Appendix B2 or
to the UNDG Toolkit.
2.3
Requirement Analysis
The requirements Analysis identifies and describes requirements for existing and desired (new)
joint operational support services. The requirements outline the parameters which the service
19
UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
needs to meet in terms of quality, timeliness, or cost effectiveness, often expressed in the form
of Kep performance Indicators (KPI’s). The Requirements analysis yields a Requirement
Statement for each service. Requirement statements need to be written in a measurable way
that enables the direct development of relevant compliance measurements and other
performance indicators. This ensures that expectations are clearly set.
The requirements Analysis uses the same table as the Needs Analysis, and completes this
table by completing the Requirements Analysis and KPI’s column. For the template Needs and
Requirements analysis please refer to Appendix B2.
Name
Business
Operation/Ser
vice
Common
Premises SubOffice
- Common ICT
Needs Analysis Narrative



Background: Utopia UNCT will include in its UNDAF a joint
HIV/AIDS programme in Felurian Province. The inter-agency task
team developing the programme concept has determined that
because of the strong inter-linkage between the agency
components of the programme, it will be desirable that the staff
members are co-located in the UNAIDS office. The team would
like to start working from the same location by month 6 in year
2013. To facilitate such a co-location certain support needs are
identified:
Need 1: In order to reap efficiency gains, the sub-office should
take advantage of the new corporate inter-agency agreement
with one VSAT connectivity provider and consolidate the agency
internet connectivity arrangements into one shared connectivity
arrangement with one VSAT and one ISP. The purpose of the
arrangement will be to ensure sufficient bandwidth for all
agencies at the best price possible and to facilitate increased use
of VOIP telephony and internet based video conferencing.
Need 1 description: Soonest possible and if necessary on a
scaled basis, to have an ICT arrangement which will (1)
rationalize the agency connectivity arrangements to one shared
arrangement making use of fewest possible VSATs in accordance
with the corporate inter-agency agreement and one ISP only; (2)
ensure that all agencies have the necessary bandwidth available;
(3) Facilitate widest possible use of VOIP telephony particularly
for international phone calls (4) Facilitate widest possible usage
of low cost internet video conferencing.
Requirements Analysis & KPI's
Cost Effectiveness Indicator:
1. Total operational cost of VSAT connectivity reduced by
8%
2. Total operations cost of telephone use reduced by 85%
Service Quality Indicator:
1. Response time from ICT helpdesk on a request for
connectivity support <3hours;
2. Uptime link min. 90% of time
3. Link speed meets agency requirements 90% of the time
4. Video conferencing capability available to agencies
Efficiency indicator
Number a VSAT arrangements reduced from 6 (1 per
agency) to 1 (84% reduction in contract management cost)
For each of the needs identified above, both programmatic and non-programmatic the OMT
needs to describe the following in a short narrative:
Requirement statements need to be written in a measurable way that enables the direct
development of relevant compliance measurements and other performance indicators. This
ensures that expectations are clearly set.
Examples of Requirement Statements as follows:

By a certain date (end of BoS cycle), each agency procuring the Common ICT Helpdesk
services has access to timely and quality ICT Help Desk Support Services;

By a certain date (end of BoS cycle), each agency procuring joint cleaning services for
the shared premises has access to quality cleaning services;

By a certain date (end of BoS cycle), each participating agencies' travel cost is reduced
by X%;
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UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

By a certain date, all UN staff members will have access to a comprehensive and well
structure M&E training programme.
Key Performance Indicators: For each of the requirement statements you will have a set of
indicators called Key Performance Indicators that
sets the expectation of the exact level of service What should be a common
required. As such KPI's specify the level of service instead of an agency
expectations for harmonization initiatives and/or the service?
expectations of participating agencies procuring
services through a Common Service system. KPI's  More than one agency
are a powerful tool for monitoring the continued
needs the service;
added value and adherence to intended quality
standards over time, especially if the performance is
 The monetary and noncompared to previous years (trend analysis).
monetary benefits of having
the service jointly outweigh
the cost of developing and
delivering the service;

KPI's establish a generic standard for each of
the selected needs;

KPI's help describe what function the service
is required to perform to meet the identified
need at the end of the Business Operation  There is a Quality Benefit in
having the Service jointly.
Strategy (medium term). Once the OMT
establishes the Annual Work Plan each year,
it can have incremental annual targets/KPI's that, at the end of the BoS cycle achieve,
realise the intended result;

Keep things simple. No more than 2-3 KPI's are required unless specifically agreed to
include more. Note: the cost of monitoring goes up with each KPI;

When developing the Key Performance Indicators, it should be ensured that they can be
measured in the first place, and that the cost of measurement and data collection are
acceptable. If the cost is (too) high or expensive, one may chose to opt for a "proxy
indicator". A proxy indicator is an indicator that doesn't directly measure the exact
performance, but can be used as an approximate indication of performance.
Using the example Requirement Statements above, examples of KPI's include:

Time indicators for service quality such as timeliness of a service delivered:
"Response time from ICT helpdesk on a request for support = <X hours>";

Perceived quality of a service to be delivered:
"Positive response rate on cleanliness of office premises as per annual survey >75%";

Anticipated cost savings resulting from a joint service:
"Travel cost reduction of 10% of total annual travel volume";

Access to a specified service:
"X number of staff received basic M&E training through the Common Learning
Programme".
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UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
2.4 Cost Benefit Analysis (CBA)
This last step before developing the result matrix provides the analytical basis for the
OMT/UNCT to make informed decisions which initiatives are prioritized, based on either cost
savings, or enhanced quality of the business operations process and/or product/service. As
some harmonization initiatives may require
"...The Cost Benefit Analysis aims
investment up front in order to implement the
to provide a sufficient, rather than
initiative, the cost benefit analysis provides details
on the level of the required investment cost (both
exhaustive, overview of the main
time and financial cost) which may influence the
cost elements associated with a
prioritization of each initiative. As such, the cost
process..."
benefit analysis aims to assess the cost
effectiveness of a proposed solution16:
Cost-effectiveness is the extent to which the business solution has achieved or is expected to
achieve its results at a lower cost compared with alternatives. Shortcomings in costeffectiveness occur when the program is not the least-cost alternative or approach to achieving
the same or similar outputs and outcomes17.
Cost savings are results that increase cost effectiveness, and therefore increase the appeal of a
suggested business solution. may be monetary (direct cost savings, for example in joint
procurement initiatives) or non-monetary in nature (for example quality enhancements of
services or reduced lead times for processes - resulting in less staff time involved in executing
the process) .
The Cost Benefit Analysis aims to provide sufficient, rather than exhaustive, overview of the
main cost elements that are involved in any process: direct cost of the process ($ value) and the
labor cost, or time spent on executing the different actions that make up a process. The CBA
therefore analyses three types of costs and benefits associated with each suggested Business
Operations harmonization initiative (incl. Common Services):
1. Monetary Costs & Benefits- Direct Cost ($ value)
2. Labor costs (Non-Monetary Cost- time spent)
3. Other costs/benefits
Cost Benefit analysis is a mandatory step of the BoS. However, not all Business Operations
harmonization initiatives require the same level of detailed analysis. It is highly recommended
that the higher the perceived complexity or investment cost, the more detailed the cost benefit
analysis needs to be.
The BoS uses two specific tools to assess these three (monetary, non-monetary and other) cost
types: Business Process Mapping and Simplified Transaction Cost Analysis.
16
Within the UN System this is often (erroneously) referred to as “efficient” solutions, which is incorrect.
Efficiency is the extent to which the business solution has converted or is expected to convert its
resources/inputs (such as funds, expertise, time, etc.) economically into results in order to achieve the
16
maximum possible outputs, outcomes, and impacts with the minimum possible inputs .
17
http://siteresources.worldbank.org/EXTGLOREGPARPROG/Resources/grpp_sourcebook_chap11.pdf
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UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
The results of the Cost Benefit Analysis are reflected in a simple table. Kindly refer to Appendix
B4 for the template of the Cost Benefit Analysis or download it from the UNDG Toolkit:
Proposed
Business
Solution
(incl.
Common
Services)
Monetary Costs Benefits ($)
A
B
Anticipated
Anticipated
Monetary
Monetary
Cost
Benefit
(One Time &
Recurring $
Investment)
(One Time &
Recurring
Benefits)
Labor Costs Benefits
C
D
Anticipated
Anticipated
Labor CostLabor
Time
Benefit: Time
Investment
Reduction
(One Time &
Recurring
Labor costs)
Other Costs/Benefits
E
F
Anticipated
Anticipated
Significant
Significant
Other
Other
Cost
Benefits
(One Time &
Recurring
Labor
benefits)
Table 2: Template Cost Benefit Analysis
Note that in most cases, the numbers would be backed up by the detailed analysis results from
the Business Process Mapping Analysis and Simple Transaction Cost Analysis. The results of
the cost benefit analysis may require the UNCT/OMT to fine-tune the KPI which was developed
for this initiative during the requirement analysis18.
The Costs and Benefits associated with an existing or new business solution include One Time
Costs/Benefits as well as Recurring Costs and Benefits.
 One Time Costs/Benefits:
One Time Costs/Benefits are defined as One Off investments (costs) or benefits, meaning
the costs occurs only once.
An example includes the purchase of PaBX servers for the implementation of a VoIP
solution for the UN, and/or the purchase of consultancy services of a company managing
the implementation, or the cost of a Request for Proposal Process in case of a joint
procurement initiative. A One Time benefits may be the selling of old servers that are
replaced by the new PaBX servers.
 Recurring Costs/Benefits:
Recurring Costs/Benefits are defined as Costs Benefits who recur every period, for example
every billing cycle. For the Costs Benefit Analysis, recurring costs and benefits are
calculated over the full cycle of the BoS e.g. they need to be added up to get one number.
An example of a recurring cost is the service fees for a joint Backup Facility for the
participating agencies
18
Ref section 2.3
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UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
An example of a recurring benefit is the implementation of a common procurement initiative
for Fuel yields a cost reduction of 120.000 USD every time fuel is procured (4 times a year).
The cycle time for the BoS is 5 years, the total recurrent benefit used for the cost benefit
analysis is 4x 120.000 USD = 480.000 USD per year x 5 years = 2.400.000 USD for the
cycle.
Note: The Cost Benefits Analysis uses one total number for One Time and Recurring Costs
(ref the template below), e.g. One Time Costs and Recurring Costs are added up, and One
Time Benefit and Recurring Benefits are added up.
The outline below provides guidance on how to populate each section of the template:
2.4.1 Identification of Monetary Costs & Benefits

Anticipated Monetary Cost:
This part refers to the financial investment cost (if any) of the harmonization initiative.
These costs are often associated with the procurement of goods or services in relation
to the harmonization initiative. Recurrent costs are also reflected under this category.
For example, if VoIP is to be implemented as a Common Service, one of the
Monetary Costs for the procurement of goods would be the procurement of PaBX
servers. An example of a service cost would be the recruitment of an ICT Consultancy
firm to develop the technical solution and the integration plan. Monthly fees paid to a
Service Provider to host the PaBX servers would be an example of a recurrent cost.
Monetary costs do not include labor costs/time spent in a process. Labor and time
costs are covered under non-monetary costs (ref below).

Anticipated Monetary Benefit :
Also referred to as cost savings, one of the potential benefits of the harmonization
initiative is a reduction in financial resources associated with that process. This may be
savings resulting from a reduction in prices (in the case of procurement) or reduction in
operating costs (in the case of implementing VoIP it would be the reduction in telephone
costs). In order to obtain an estimate of cost savings (current vs. projected costs), the
cost of the proposed business solution will have to be compared with the costs of the
existing business solution.
For example, procurement-related harmonization efforts such as establishment of Long
Term Agreements use the combined procurement volume of the UN System at the
country level to procure certain commodities or services jointly resulting in a lower
average price per unit or quantum discounts over the volume procured. The “existing
business solution” could include an existing joint solution (such as a common service) or
the costs of each agency obtaining the service independently.
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UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
Monetary Benefits do not include labor costs reductions /time gained due to the
harmonization effort. Labor and time costs are covered under non-monetary costs (ref
below).
Last, the monetary benefit is multiplied by the number of agencies participating in
the proposed business solution, as the benefit applies to each individual agency.
2.4.2 Identification of Labor Costs and Benefits
Business Process Mapping and the Simplified Transaction Cost Analysis instruments are two
simple tools that assist the UNCT/OMT in developing a facts-base upon which costs
and
benefits may be estimated prior to the actual development of the service. They are usually
deployed to estimate time savings/labor cost savings by measuring the differences in time spent
in executing different activities in a process and attributing a dollar value to these differences so
that they can be used in a cost benefit analysis.

Anticipated Labor Cost-Time Investment
Developing and implementing the harmonized business operations initiative will cost time of
one or more staff members. In order to ensure appropriate planning and allocation of human
resources (time) to the development and implementation of the solution, including
management of the business solution, an estimate of this time is required.
The time spent on the design, implementation and management of the new business
solution is converted into a dollar value using real time costing models, which converts the
time spent on an activity in the process into a dollar value using wage scales of the staff
member(s) involved in each activity in the process.

Anticipated Labor Benefits - Time Reductions/Gains
One of the anticipated benefits of developing and implementing a harmonized Business
Operations initiative (incl. Common Services) is a reduction in the so-called cycle time, e.g.
the time required to execute a process. This reduction materializes due to the elimination of
duplication of functions and activities of a process that otherwise is executed
by
each
agency individually. The new business solution replaces (parts of) individual
agency
processes thus freeing up staff time can be used for other purposes.
In addition, harmonization efforts may also yield revisions of the different steps in a process,
eliminating unnecessary steps or activities, therefore reducing time required to
execute
a process. In both cases the result is the same - a reduction in time spent on executing a
process.
The time reduction is converted into a dollar value using real time costing models, which
converts the time spent on an activity in the process into a dollar value using wage scales
of the staff member involved. In order to obtain an estimate of time saving/labor
cost
reduction (current vs. projected labor costs) and benefits, the time/labor cost of the proposed
business solution is compared with the costs of the existing business
solution.
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UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
Last, the total time reduction/labor cost reduction benefit is multiplied by the number
of agencies participating in the proposed business solution, as the benefit applies to each
individual agency.
The outline below provides a short description of business process mapping a simple way to
assess time savings/labor cost reduction estimates.
Labor cost analysis- Business Process Mapping
Business Process Mapping (BPM) is a simple way to graphically reflect the different steps in
a (sub) process, such as "ICT Helpdesk
Support" or "Procurement of Hotel and
"...Many agencies have standard
Conference Facilities", attributing a time
corporate business process maps
requirement to each step/activity in the
for the main business processes
process.
BPM maps out what are the steps are to get a
particular job done, how many people and at
what point are they involved, and how long do
they take to complete the step.
of the agency that can be used,
significantly reducing the time
investment..."
The process map provides a detailed overview of each step in the process, including the
time required to finish each step. This is subsequently used to calculate the cost of a
process by identifying the time required to execute each step and applying the real labor
cost rate (based on standard UN wage scales) to each of the steps/activities. This
subsequently yields a $ cost of the current process. This way, the cost of a a proposed
solution can be easily compared to the costs of an existing process, so the gains can be
identified.
Often maps are developed using MS Visio, although it can be done in MS Word table as
well. Below an example of a Visio Business Process Map, in this case covering the resource
mobilization process at the country level:
Table 3: Example Business Process Map (Visio)
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UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
The Business Process map is the core of the Simplified Transaction Cost Analysis. Once the
maps are developed, most of the work is done: By comparing the map of the proposed
solution to the map of the current situation, the differences in time requirements (cycle
times) and $ value can be established.
Labor cost Analysis builds on the Business Process Maps, by attributing a $ value to each
activity in the process based on the time spent on each step. The time spent on each activity
is converted into a $ cost, using the UN standard salary scale for the staff member(s)
involved in the process.
The annual full salary cost of a staff member is broken down into a daily cost by dividing the
annual salary by 12 (monthly cost), then dividing by 22,5 to get to the daily cost 19. The daily
cost is then divided by 9 (9 hour working day) to get the cost per hour of a staff member.
Example: Procuring a retreat venue
This example involves a simple process, involved a single staff member. In this case we use
a simple table to map the process, rather than a Visio map as per above). Note that some
processes involve multiple staff members and/or more steps and therefore the time
requirements of each of the staff members involved should be added up.
Labor cost analysis: Venue procurement
Step
Step 1: Identify potential venues
30 minutes
Step 2: Contact the management of each
venue to get quotes and Terms and
Conditions for
each venue
45 minutes
Step 3: Evaluate all quotes and select a
venue
60 minutes
Step 4: Prepare documents for procurement
committee approval
45 minutes
Step 5: Inform the venue and sign the contract
50 minutes
Step 6: Raise the Purchase
Requisition/Purchase Order
15 minutes
Step 7: Validate the invoiced amount against
the contract
10 minutes
Step 8: Pay the vendor
15 minutes
TOTAL TIME REQUIRED
TOTAL COST (ref below)
19
Time cost (minutes)
270 Minutes (4,5h)
391,50 USD
22,5 is the average working days per month
27
UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
The total time requirement to procure the venue is 270 minutes (4,5 hours).
The activity is carried out by a P3 staff member. The salary scale of a P3 staff member in this
duty station is 210,000 USD. The monthly cost for this staff member is 210,000USD/12 = 17,500
USD. The daily cost is 17,500/22.520=778 USD per day. The hourly cost is 778/9=87 USD.
The labor cost associated with the process is simply the time spent on the process x the hourly
cost: Therefore the total labor cost for procuring the venue is 4,5h x 87 USD= 391,50 USD.
Generating a second table for the proposed solution, allows comparison of the time and labor
cost involved you can compare the labor cost reductions (and their cost) to get a sense of the
benefits/gains from the proposed solution.
For the template of the Labor Cost Analysis, please refer to Appendix B3. For the Excel format
of the template, please refer to the UNDG Toolkit. For a detailed technical guidance note of
Business Process Analysis, please refer to the UNDG toolkit.
The BoS includes a light approach and a regular approach, the choice of which depends on
the intended result of the harmonization effort. Both approaches require at the very least a
business process map of the proposed solution with the main difference being the level of detail
of the analysis (number of steps), and the associated investment in terms of staff time. The time
required per map varies significantly depending on the level of detail and the complexities of the
process.

Regular approach
Ideally, the same process is mapped for each
participating agency, describing the current situation
and cost involved for each agency. Note that if the
intent of the harmonization effort is to harmonize
processes between agencies, one should not opt for
the light solution, but map out the processes in
detail for each agency as a basis for the re-engineering
effort.

"... An exhaustively detailed
map is usually not requiredreflecting the main
steps/activities in a process
suffices in most cases...."
Light approach
In the light approach, the map of the proposed business solution is compared to a "generic"
map that more or less reflects the current process for each agency. This method is less
accurate as processes tend to be different between agencies, but it lowers the time
requirement associated with the mapping effort.
Nr
20
of
Business
Regular Approach
Light Approach
Multiple maps required (one for
proposed solution, one for each
Two maps required (one proposed
In the UN a working month consists of 22,5 working days
28
UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
Process Maps
participating agency)
solution, one generic map)
Advantages
More detailed cost benefit analysis
and process maps;
Lower staff time investment cost;
Agency level overview of costs and
benefits.
Disadvantages
Higher capacity requirement
terms of staff cost;
in
Higher knowledge requirements of
the assessed process(es).
When to use
Less detailed knowledge required
of the assessed process(es).
Less detail in of the analysis;
No agency level split-out of costs
and benefits.
1. The UNCT prefers to have the
1. The aim of the assessment is to
costs/benefits per agency to
get a general indication of the
enhance the quality of the
costs and benefits with just
business case, providing an
enough detail to make a factsoverview of the exact
based decision on whether to
costs/benefits for each
develop and implement the
participating agency;
proposed business solution, but
no detailed analysis and agency
2. The
harmonization
effort
level information is required;
requires significant capital or
Human Resource investment
2. The country level lacks capacity
and/or has high impact on
to be able to execute the
strategic processes;
regular analysis.
3. The aim of the harmonization
effort is to streamline the
process
(process
reengineering).
The
reengineering
effort
requires
specific process maps for each
of participating agencies, as
each
agency
will
have
difference in the process, and
hence differences in costs and
benefits;
4. There
is
sufficient
time,
knowledge
and
expertise
available and committed to the
BPM and cost benefit analysis
process.
2.4.3 Identification of Other Costs/Benefits
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UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
Some costs and/or benefits are not expressed in monetary values, nor are they associated with
reductions of cycle times, leading to lower labor cost. Yet these advantages may be significant,
even if they cannot be monetized. If the UNCT/OMT feels the harmonization initiative or
Common Services has this type of costs/benefits associated with it, they can be reflected in a
narrative format under "Significant Other Costs/Benefits". Note this category does not aim to
provide an exhaustive list of all costs and benefits, but rather offers the opportunity to highlight
significant cost benefits that are relevant for the prioritization and decision making process.
Examples of Significant Other Benefits include enhanced supplier relations, enhanced
reputation for the UN System, enhanced visibility for UN System etc. Deterioration of
reputation, lower visibility, cost of discontinuing a contract are examples of Significant Other
Costs.
For the template and an example of a Cost Benefit Analysis kindly refer Appendix B4 or to the
UNDG Toolkit.
2.5
Simplified Transaction Cost Analysis - Prioritization of Business Solutions
The Cost Benefit Analysis has identified the relative cost and added value of each of the
harmonization efforts (including Common Services) and established a basis for prioritization.
The last step is to prioritize, e.g. identify which harmonization initiatives should receive priority in
the coming cycle.
The priority is attributed based upon a simple ratio, commonly referred to as the "priority ratio"
for each suggested business solution. The priority ratio is based on the results of the Cost
Benefits Analysis and uses the following simple formula:
Simplified Transaction Cost Analysis:
Establishing the Priority Ratio
30

Total Cost Ratio per business solution = Anticipated Monetary
Cost ($ Investment cost) + Anticipated Non-Monetary Cost- Time
Investment --- Add column A and C from the CBA template (ref
Appendix B3);

Total Benefit Ratio per business solution = Anticipated
Monetary Benefit (total $ saving)+ Anticipated Non Monetary
Benefit- Time/Labor cost saving--- Add column B and D from the
CBA template (ref Appendix B3);

Priority Ratio per business solution = Total Benefit Ratio/Total
Cost Ratio;

Priority Ratio is adjusted for Other costs and benefits
(subjective adjustment).
UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
The higher the priority ratio, the higher the priority the business solution receives. This
ensures that the business solution with the highest benefits get attributed a higher priority score,
taken into account the associated costs.
For the template of the Cost Benefit Analysis, please refer to Appendix B4 or the UNDG Toolkit.
Monetary Costs Benefits ($)
Proposed
Business
Solution
(incl.
Common
Services)
A
Anticipated
Monetary
Cost
B
Anticipated
Monetary
Benefit
(One Time &
Recurring $
Investment)
(One Time &
Recurring
Benefits)
Labor Costs Benefits
(Labor)
C
D
Anticipated
Anticipated
Labor
Labor
Cost:
Benefit:
Labor Time
Labor Time
Investment
reduction
(One Time &
Recurring
Labor costs)
Other Costs/Benefits
E
Anticipated
Significant
Other
Cost
F
Anticipated
Significant
Other
Benefits
Prioritization
G
Cost
Ratio
(A+C)
H
Benefit
Ratio
(B+D)
I
Priority
Ratio:
Benefit/Cost
Ratio (H/G)
(One Time &
Recurring
Labor
benefits)
The priority ratio itself provides a basis for prioritization. However, as the priority ratio only takes
into account the monetary and non-monetary gains, the final prioritization should be made in the
light of a number of (qualitative) considerations:




Other costs and benefits (columns E and F in the template) (ref Appendix B3);
Urgency of harmonization efforts in a particular field;
Available financial resources required for up-front investment;
Capacity available (time, skills and competencies of staff) at the country level to develop
and implement business solution.
Based on the priority scoring, the UNCT/OMT can select the higher value projects to be front
loaded for execution (higher priority) and reflect this accordingly in the results matrix and
narratives.
Chapter 3: Strategic Planning: Results Framework and Results Narrative
The Business Operations results framework is the basis for the Annual Work Plans which the
OMT develops every year. It provides the focus of Business Operations by tying the Annual
Work Plans to a strategic framework over a longer period of time, and allows for monitoring and
evaluating the results achieved and focus interventions aimed enhancing under-performing
services.
The Results Framework translates the business solutions identified in the Cost Benefit Analysis
in specific result statements (outcomes, outputs) and adds a short narrative for each results
area, drawing from chapter 2. It also adds a required budget per outcome/output.
3.1 Results Matrix Business Operations (log frame)
The content for the Results matrix is directly drawn from the Operations Analysis (chapter 2):
31
UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

the Baseline Assessment existing Common Services (2.1) identifies the existing
Business Solutions (incl. Common Services) in place and that are to be continued;

The Needs and Requirements Analysis provide the result statements (outcome and
outputs) for the proposed Business Solutions;

The Cost Benefit Analysis provides the basis for prioritisation of proposed business
solutions.
Depending on the choices of the OMT/UNCT, the Business Operations Strategy would have
max 6-7 “Pillars”, for each thematic area in Business Operations. The number of pillars depends
on the results of Operations Analysis (e.g. the choice by the UNCT/OMT to develop and
implement specific harmonization initiatives (incl. Common Services)21:
Pillar 1: Common Procurement
Pillar 2: Common Human Resources
Pillar 3: Common ICT
Pillar 4: Common Logistics and Transport
Pillar 5: Common Administration
Pillar 6: Common Finance
Pillar 7: Common Security
Each pillar has one high level outcome statement22 that reflects the intended result of that
operational support services over the five year period. Each outcome statement is sub-divided
(“broken down”) into max 3-5 sub-components called “Outputs” that together are needed to
make that outcome come true23. The business solutions (Incl. Common Services) are the
means by which the outcomes and outputs are realised. As such, they "operationalise" the high
level results statements as reflected in the outcomes and outputs.
Please refer to section 2.2 for an example results chain for Business Operations.
For an example and template of a BoS Results Matrix, please refer to Appendix B5 or the
UNDG toolkit. For additional explanation on RBM terminology (indicators, benchmarks, targets
etc.), please refer to Appendix A or refer to the UNDG RBM Handbook on www.undg.org
3.2 Results Narrative Business Operations
21
Please refer to section 4.3: What is a Business Operations Strategy for examples of harmonization
initiatives in each category.
22
For further details on the UNDAF RBM methodology kindly refer to UNDG RBM Handbook on
www.undg.org.
23
For further details on the RBM methodology kindly refer to Appendix A of this document “Results
Based Management: Definition of Key Terms used in UN Country Programming and Business
Operations” and UNDG RBM Handbook on www.undg.org.
32
UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
The narrative describes shortly in words the context of the issue the harmonization is to address
and the intent of the outcome, and how the outcome results in solutions addressing the issue.
Recommended length of the narrative is 0,5-1 page per outcome.
The Baseline Assessment, Needs Analysis and Requirements Analysis and Cost Benefit
Analysis in chapter 2 provide the focus for the narrative, describing the intended result of the
proposed business solution.
Chapter 4: Monitoring, Evaluation and Reporting on Business Operations
The Requirements Analysis in chapter 2 (2.3) provides the Key Performance Indicators (KPI's)
that are the basis for the baselines and targets of the proposed Business Solutions. The KPI's,
baseline and medium term target are added to the results matrix, for each outcome and output
in the matrix.
The results of the Operations Analysis will provide a focus for the indicators that allow the
UNCT/OMT to monitor and report on progress of the harmonization initiatives outlined in the
results framework and the Annual Work Plans.
Each Common Service will have a set of max 3-5 indicators which reflect the progress against
the work items and the on-going effectiveness of the harmonization effort. Note that for the
current Business Operations Harmonization initiatives (including Common Services) elements of
the Results Framework, the Key Performance Indicators should be reflected in the M&E matrix,
as they provide a solid basis for the quality of the Services provided.
The M&E section describes the M&E structures supporting the BoS, including the responsible
entity, the planning and the frequency of M&E efforts and the relation to national M&E efforts
and systems and follows the following principles:





The OMT reports to the UNCT and is responsible for the monitoring, evaluation and
reporting on the progress of implementation for each of the work streams;
The joint M&E group consists of M&E representatives from different programme clusters
and M&E focal point from Operations Management Team responsible for the Business
Operations results;
The M&E group is responsible for regular (usually annual) reviews of progress of the
BoS using the results matrices and M&E matrices. Note that, in case the UNCT uses
results based allocations of fund, the frequency of review of progress may be increased
(for example bi-annual);
The M&E focal point for the programme clusters and the OMT support their relevant
programme clusters with the design of quality M&E matrices, reviewing and advising on
targets, baselines and indicators;
The joint M&E group works on the basis of the integrated M&E plan and calendar,
derived from the integrated programme M&E matrices of the different work streams.
33
UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
The OMT reports to the UNCT with the same frequency as the programme units reports against
their UNDAF. At the end of the cycle, the OMT executes an evaluation of the results reflected in
the log frame, at the same time as the UNDAF evaluation takes place.
For an example and template of a BoS Results Matrix, including M&E components, please refer
to Appendix B4 or the UNDG toolkit.
Chapter 5: Management and Accountability Business Operations
There are various governance options for Business Operations at the country level. The final
choice of the form and format of the Operation Management Team lies with the UN Country
Team and OMT and will vary from country to country, based on local needs.
The below reflects the most frequently encountered governance structure, with an Operations
Management Team in charge of the day-to-day management of Business Operations, on behalf
of the UNCT, supported by functional Task Teams that deal with specific specialist areas.
It is highly recommended that the performance appraisal of the staff member involved in any of
the below platforms reflects their role and results to be achieved, as this plays a critical role in
terms of incentive and accountability.
The graph below reflects a regular governance structure for Business Operations at the country
level:
UNCT
Resident
Coordinator’s Office
Operations
Management Team
(OMT)
TWG Procurement
(ad hoc)
TWG Human
Resources
(ad hoc)
TWG CP and Field
Presences (Ad Hoc)
TWG Logistics (Ad
Hoc)
TWG
Harmonization (ad
hoc)
Figure 3 Governance structure Business Operations
34
UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
UN Country Team (UNCT)




The UN Country Team holds the ultimate decision power for all matters related to
Business Operations;
The UNCT is ultimately responsible for the achievement and reporting on results
reflected in the Results matrix of the Business Operations Strategy and the BoS Annual
Work Plan;
UNCT outlines the medium term vision for Business Operations and provides guidance
to the Operations Management Team (OMT) with regards to the operationalization of
that vision in the Business Operations Strategy (BoS);
In case of disagreement within the OMT, the UNCT serves as the final platform for
escalation.
Operations Management Team (OMT)








The Operations Management Team manages and coordinates the development and
implementation of the Business Operations Strategy;
The OMT provides oversight over the implementation of existing Business Operations
Harmonization initiatives (including Common Services) by the Service provider, with the
aim to ensure service delivery is in line with the agreed Key Performance Indicators;
The OMT develops annual work plans, based on the Business Operations Strategy,
which guide the OMT activities and financial needs for that particular year;
The OMT operates on the basis of the results matrices for Business Operations as
reflected in the Business Operations Strategy and an integrated annual work plan
guiding the different OMT activities;
The OMT chair reports on a regular basis to the UNCT24 on progress and issues
regarding the implementation of the activities supporting each of the operations
outcomes. Progress updates are based on the indicators and targets as reflected in the
Business Operations Strategy M&E framework;
The OMT has different Task Forces working on Specific Business Operations
Harmonization initiatives (including Common Services) topics relevant for the country.
These could include for example Task Force on Common Premises, ICT, HR,
Procurement, Security, Travel etc.;
The OMT has a dedicated M&E focal point that represents the OMT in the joint M&E
group. M&E focal points plan and organise the M&E activities for the outcomes that are
part of the Business Operations Strategy and the integrated work plan;
The OMT has a dedicated M&E focal point that is responsible for the M&E activities for
each of the items.
OMT Task Forces


24
The OMT has different Task Forces working on Specific Business Operations
Harmonization initiatives (including Common Services) topics relevant for the country.
These could include for example Task Force on Procurement, ICT, Human Resources,
Finance, Logistics & Admin etc.;
Task Forces are responsible for a well-defined subset of the OMT’s work plan, usually
for those work items that require specific technical expertise;
It is recommended that the OMT chair sits as an observer on the UN Country Team
35
UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft


Task Force have a lead agency that guides the work of the Task Force on behalf of the
chair of the OMT;
The Task Force lead reports to the OMT on behalf of the task Force on progress against
the Task Forces’ part of the OMT work plan.
Other stakeholders


Programme staff work together with Operations staff to determine the impact and needs
of the programme planning for Business Operations Harmonization initiatives (including
Common Services), such as procurement, and HR requirements, ensuring operations
are aligned with programme priorities and needs;
The Resident Coordinators Office (RCO) often plays a crucial role in support of the
Operation Management Team. Depending on the capacity and profile of the RC Office
this role varies from coordination and logistics support, to substantive support such as
preparatory analysis for new Business Operations Harmonization initiatives (including
Common Services).
Service Provider


The service provider provides the actual service to the customer, in this case the
agencies who are participating in the common service. The service provider can be
external (outsourced service) or internal. In many cases the service provider is UNDP
given their relative capacity at the country level, but other agencies can act as service
providers for different services, depending on comparative advantage and the cost 25
against which the agency can provide the service;
The service provider implements the service on behalf of the OMT and reports to the
OMT on a regular basis. Evaluation of the service provider happens on an annual basis
against Key Performance Indicators which are part of the design of each Common
Service (ref chapter 5 of this document).
For example ToRs, kindly refer to the UNDG Toolkit.
Chapter 6: Budgetary Framework Business Operations
The BoS Budgetary Framework includes a short narrative (max 0,5 page) indicating how the
UNCT/OMT plans to mobilize the resources to cover the gap. Resource mobilization efforts for
Business Operations usually focus on internal resource mobilization efforts, aimed at UN
agencies, using cost sharing arrangements, but in some cases are supplemented by Public
Private Partnership and external resource mobilization targets. Engaging in external resource
mobilization is feasible for business solutions that either reduce transaction costs for external
partners (through reduced operational support cost of programmes) or for business solutions
that have the option to be shared with external parties.
25
The cost of the service is determined using the Business Process Mapping and Transaction Cost
analysis tools that are part of the Operational UNDAF methodology. Both tools can be downloaded from
the UNDG website www.UNDG.org.
36
UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
The BoS Budgetary Framework summarizes:
1. Resource requirements to realize the outcomes as outlined in the results matrix;
2. Available Resources including reflections of core and non-core agency contributions to
the Business Operations Harmonization initiatives (including Common Services) Budget;
3. Total Resource Gap;
4. Short outline of a Resource Mobilization approach to cover the gap identifying possible
targets for resource mobilization.
The resource requirements, available resources and resource gap take the format of a table
summarizing the financial requirements for each harmonized Business Operations outcome
identified in the Business Operations Strategy for the five years of the programme cycle. It
includes the commitment by UN system agencies to raise additional resources for the BoS,
subject to donor funding.
This table should include a footnote stating these are estimated amounts, and actual amounts
will depend on availability of UN system agencies' resources and contributions from other
sources:
Outcome
Cost per
outcome
Total UN
Resources
committed
Total UN
Resources(Core)
Total UN
Resources
(Non Core)
Resource
Gap BoS
Procurement
Human
Resources
ICT
Logistics and
Transport
Administration
Finance
Security
Procurement
TOTAL
Table 4 Budgetary Framework Resource Table
The Budgetary Framework also includes an overview of each participating UN organization’s
contribution in both core/regular resources and non-core/other/ extra-budgetary resources 26
and indicates any shortfall (gap):
26
Note the majority of resources for Common Business Operations usually comes from core sources.
Noncore resources however may be allocated to cover special projects.
37
UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
Agency
Core contribution
Non-Core
Contribution
Gap
Table 5 Budgetary Framework- Agency contributions
Chapter 7 includes financial instruments operationalising the Budgetary Framework, including
instruments such as the Common Services Budget and the Common Services account.
For further guidance on the Budgetary Framework, kindly refer to the UNDAF Budgetary
Guidance note in the UNDG toolkit. The principles of the Common Budgetary Framework
outlined in the guidance note remain the same for the BoS.
Chapter 7: Operationalising the Business Operations Strategy
Successful development and implementation of the Business Operations Startegy requires a
minimum level of capacity and skills in the OMTs . Apart from technical operations skills, some
degree of business analysis skills and RBM related skills are useful. In most cases, the work
required is in addition to agency-specific responsibilities. Therefore, it is highly recommended
for UNCTs/OMTs to consider the capacity and skills available to the OMT in terms of skills,
competencies and time before deciding to engage in the BoS development. The gains in terms
of efficiency and (cost) effectiveness associated with the design of Common Operations
solutions should ensure a positive rate of return on this investment in staff and financial
resources. Engaging the RC Office early on is recommended as it would be useful for providing
technical and coordination support. The average development time would be between 4-8
weeks, depending on the scope of the BoS. After the initial development, capacity should be
available to the OMT and the Task Forces to deliver on the results outlined in the results matrix.
There are a number of instruments in place to facilitate the operationalisation of the Business
Operations Strategy. Most of these instruments support the annual planning and management
process of the OMT:
38
UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft

OMT Integrated Annual Work Plan
The Business Operations Strategy, being a medium term framework, usually covers only the
outcomes (the "what"-high level) and outputs (specifies "How" the OMT plans to realize the
outcome). The Annual Deliverable would be something you would see in the integrated Annual
Work Plan of the OMT. The Annual Deliverable is a result realized for that particular year. It
usually has a series of activities that need to be executed in order to realize the deliverable. The
outcome, outputs and annual deliverables taken together are referred to as a" results chain.
On an annual basis, the OMT develops a costed Work Plan which identified the prioritized work
items for that year, including the budget estimates required to deliver on the results outlined in
the Annual Work Plan.

Common Services Budget and Common Services Account
A common form of budgeting and financial management in support of joint Business Operations
is the Common Services Budget: based on the Annual Work Plan, agencies cost-share the
costs incurred through the implementation of the work plan. The Business Operations
Harmonization initiatives (including Common Services) account27 is used as a joint bank
account that is used to pay for the expenditures incurred for the provision of particular Business
Operations Harmonization initiatives (including Common Services). Usually agencies pay upfront for the anticipated costs for the Business Operations Harmonization initiatives (including
Common Services), with differences in actual costs being reimbursed or credited against next
year’s charges.
To facilitate the management of resources transferred by agencies based on the Common
Services budget, the UNDG has developed an instrument referred to as the Common Services
account. The Common Services account is an account which is managed by an AA (usually an
agency at the Country Level) which manages the day-to-day management of the account and
administrative management of the Common Business Operations portfolio, to the extent that
portfolio is covered through the Common Services Account.

Common Services MoU
To facilitate the development of Common Business Solutions, more particularly Common
Services, the UNDG has a standard template for Common Services, outlining the legal
framework and management arrangements for individual services/business solutions.
UNCT/OMTs are strongly encouraged to use this standard template as it will drastically reduce
transaction costs as it does not require review and approval from individual agency legal
departments.
The MoU usually is supplemented with SLA's detailing the specific arrangements for a particular
Common Service.
27
Often referred to as the Common Services Account
39
UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
For the UNDG agreed template MoU for Common Services and/or an I-AWP template and
example, kindly refer to the UNDG Toolkit.
40
UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
Appendix A: Results Based Management: Definition of Key
Terms
Results based management (RBM)
Results-based management is a management strategy by which all actors, contributing directly
or indirectly to achieving a set of results, ensure that their processes, products and services
contribute to the desired results (outputs, outcomes and higher level goals or impact) and use
information and evidence on actual results to inform decision making on the design, resourcing
and delivery of programmes and activities as well as for accountability and reporting.
Results
Results are changes in a state or condition that derive from a cause-and-effect relationship.
There are three types of such changes - outputs, outcomes and impact- that can be set in
motion by a development intervention. The changes can be intended or unintended, positive
and/or negative.
1.1 Results chain
The causal sequence for a development intervention that stipulates the necessary sequence to
achieve desired results – beginning with inputs, moving through activities and outputs, and
culminating in outcomes, goal/impacts and feedback. It is based on a theory of change,
including underlying assumptions.
Impact
Impact includes changes in programme delivery through enhanced operational support, and
therefore ultimately, in people’s lives - can include changes in knowledge, skills, behaviors,
health or conditions for children, adults, families or communities. Positive and negative longterm effects on identifiable groups produced by a development intervention, directly or
indirectly, intended or unintended.
Goal
The specific end results desired or expected to occur as a consequence, at least in part, of the
intervention or activity. It is the higher order objective that will assure national capacity building
to which a development intervention is intended to contribute.
Outcome
Outcomes represent changes in the institutional and behavioural capacities for development
conditions that occur between the completion of outputs and the achievement of goals.
Outputs
Outputs are changes in skills or abilities, and capacities of individuals or institutions or the
availability of new products and services that result from the completion of activities within a
development intervention within the control of the organization. They are achieved with the
resources provided and within the time-period specified.
41
UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
Activity
Actions taken or work performed through which inputs, such as funds, technical assistance and
other types of resources are mobilized to produce specific outputs.
Inputs
The financial, human, material, technological and information resources used for development
interventions.
Performance indicator
A performance indicator is a unit of measurement that specifies what is to be measured along a
scale or dimension but does not indicate the direction or change. Performance indicators are a
qualitative or quantitative means of measuring an output or outcome, with the intention of
gauging the performance of a programme or investment.
Baseline
Information gathered at the beginning of a project or programme from which variations found in
the project or programme are measured.
Target
Specifies a particular value for an indicator to be accomplished by a specific date in the future.
Total literacy rate to reach 85% among groups X and Y by the year 2010.
Benchmark
Reference point or standard including norms against which progress or achievements can be
assessed. A benchmark refers to the performance that has been achieved in the recent past by
other comparable organizations, or what can be reasonably inferred to have been achieved in
similar circumstances.
Results framework or matrix
The results matrix explains how results are to be achieved, including causal relationships and
underlying assumptions and risks. The results framework reflects a more strategic level across
an entire organization, for a country programme, a programme component within a country
programme, or even a project.
Performance
The degree to which a development intervention or a development partner operates according
to specific criteria/standard/guidelines or achieves results in accordance with stated plans.
Performance monitoring
A continuous process of collecting and analyzing data for performance indicators, to compare
how well a development intervention, partnership or policy reform is being implemented against
expected results (achievement of outputs and progress towards outcomes).
42
UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
Appendix B: Templates
B1: Template Baseline Analysis
Type of existing
Common Service/
Harmonization
effort
43
Managing Clients
Entity
(Agencies
using service)
(Service
Manager)
Key Performance
Indicators (KPI’s)
Performance
Ranking
against KPI’s
UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
Recommended Action (ref
paragraph 2.1 BoS)
Appendix B2: Template Needs and Requirements Analysis Table
Name Business
Operation/Service
44
Needs Analysis Narrative
Requirements Analysis & KPI's
UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
Appendix B3. Template Labor Cost Analysis
Labor cost analysis <Insert Process name>
Step
Step 1: Identify potential venues
30 min
Step 2: Contact the management of each
venue to get quotes and Terms and
Conditions for
each venue
45 min
Step 3: Evaluate all quotes and select a
venue
60 minutes
Step 4: Prepare documents for procurement
committee approval
45 minutes
Step 5: Inform the venue and sign the contract
50 minutes
Step 6: Raise the Purchase
Requisition/Purchase Order
15 minutes
Step 7: Validate the invoiced amount against
the contract
10 minutes
Step 8: Pay the vendor
15 minutes
TOTAL TIME
TOTAL COST (ref below)
45
Time cost (minutes)
270 Minutes (4,5h)
391,50 USD
UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
Appendix B4: Template Cost Benefit Analysis (incl. Priority Assessment)
Monetary Costs Benefits
Proposed
Business
Solution
(incl.
Common
Services)
46
A
Anticipated
Monetary
Cost
($
Investment)
B
Anticipated
Monetary
Benefit
Non-Monetary Costs
Benefits
C
D
Anticipated
Anticipated
Non
Non
Monetary
Monetary
CostTime BenefitInvestment
Time
(Monetized-$ reduction
value)
(Monetized$ value)
Other Costs/Benefits
E
Anticipated
Significant
Other
Cost
F
Anticipated
Significant
Other
Benefits
UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
Prioritization
G
Cost
Ratio
(A+C)
H
Benefit
Ratio
(B+D)
I
Priority
Ratio:
Benefit/Cost
Ratio (H/G)
Appendix B5: Results and M&E Matrix template
Note: The number of outcome statements depends on the results of Operations Analysis (e.g. the choice by the UNCT/OMT to develop and
implement specific harmonization initiatives (incl. Common Services). The UNCT/OMT is therefore not required to cover all seven outcome
areas included in this template.
BoS Outcome 1: Common Procurement
Lead Agency
Participating UN Agencies
Coordination Mechanisms
Outcome Budget
Outcome Budget Gap
<Reflect Name of the agency leading the BO Harmonization initiative>
<Reflect agency names participating in the BO Harmonization Initiative>
<Reflect the coordination/governance mechanism- usually UNCT-OMT-Task Team working on this particular initiative>
<Reflect the estimated total budget for this outcome (sum of the output budgets)>
<Reflect the Budget Gap= Required Resources minus Available Resources for this outcome>
Outcome 1
<Reflect the outcome1 statement>
Outcome Indicators
Source of Data
Output 1.1
<Reflect Output 1.1 statement>
Output Indicators
Source of Data
Output 1.2
<Reflect Output 1.2 statement>
Output Indicators
Source of Data
47
Baseline
Baseline
Baseline
Target 2012
Target 2013
Target 2014
Target 2015
Risk and Assumptions
Target 2012
Target 2013
Target 2014
Target 2015
Risk and Assumptions
Target 2012
Target 2013
Target 2014
Target 2015
Risk and Assumptions
UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
BoS Outcome 2: Common Human Resources
Lead Agency
Participating UN Agencies
Coordination Mechanisms
Outcome Budget
Outcome Budget Gap
<Reflect Name of the agency leading the BO Harmonization initiative>
<Reflect agency names participating in the BO Harmonization Initiative>
<Reflect the coordination/governance mechanism- usually UNCT-OMT-Task Team working on this particular initiative>
<Reflect the estimated total budget for this outcome (sum of the output budgets)>
<Reflect the Budget Gap= Required Resources minus Available Resources for this outcome>
Outcome 2
<Reflect the outcome2 statement>
Outcome Indicators
Source of Data
Output 2.1
<Reflect the output 2.1 statement>
Output Indicators
Source of Data
Output 2.2
<Reflect Output 2.2 statement>
Output Indicators
Source of Data
48
Baseline
Baseline
Baseline
Target 2012
Target 2013
Target 2014
Target 2015
Risk and Assumptions
Target 2012
Target 2013
Target 2014
Target 2015
Risk and Assumptions
Target 2012
Target 2013
Target 2014
Target 2015
Risk and Assumptions
UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
BoS Outcome 3: Common ICT
Lead Agency
Participating UN Agencies
Coordination Mechanisms
Outcome Budget
Outcome Budget Gap
<Reflect Name of the agency leading the BO Harmonization initiative>
<Reflect agency names participating in the BO Harmonization Initiative>
<Reflect the coordination/governance mechanism- usually UNCT-OMT-Task Team working on this particular initiative>
<Reflect the estimated total budget for this outcome (sum of the output budgets)>
<Reflect the Budget Gap= Required Resources minus Available Resources for this outcome>
Outcome 3
<Reflect the outcome 3 statement>
Outcome Indicators
Source of Data
Output 3.1
<Reflect Output 3.1 statement>
Output Indicators
Source of Data
Output 3.2
<Reflect Output 3.2 statement>
Output Indicators
Source of Data
49
Baseline
Baseline
Baseline
Target 2012
Target 2013
Target 2014
Target 2015
Risk and Assumptions
Target 2012
Target 2013
Target 2014
Target 2015
Risk and Assumptions
Target 2012
Target 2013
Target 2014
Target 2015
Risk and Assumptions
UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
BoS Outcome 4: Logistics and Transport
Lead Agency
Participating UN Agencies
Coordination Mechanisms
Outcome Budget
Outcome Budget Gap
<Reflect Name of the agency leading the BO Harmonization initiative>
<Reflect agency names participating in the BO Harmonization Initiative>
<Reflect the coordination/governance mechanism- usually UNCT-OMT-Task Team working on this particular initiative>
<Reflect the estimated total budget for this outcome (sum of the output budgets)>
<Reflect the Budget Gap= Required Resources minus Available Resources for this outcome>
Outcome 4
<Reflect the outcome 4 statement>
Outcome Indicators
Source of Data
Output 4.1
<Reflect Output 4.1 statement>
Output Indicators
Source of Data
Output 4.2
<Reflect Output 4.2 statement>
Output Indicators
Source of Data
50
Baseline
Baseline
Baseline
Target 2012
Target 2013
Target 2014
Target 2015
Risk and Assumptions
Target 2012
Target 2013
Target 2014
Target 2015
Risk and Assumptions
Target 2012
Target 2013
Target 2014
Target 2015
Risk and Assumptions
UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
BoS Outcome 5: Administration
Lead Agency
Participating UN Agencies
Coordination Mechanisms
Outcome Budget
Outcome Budget Gap
<Reflect Name of the agency leading the BO Harmonization initiative>
<Reflect agency names participating in the BO Harmonization Initiative>
<Reflect the coordination/governance mechanism- usually UNCT-OMT-Task Team working on this particular initiative>
<Reflect the estimated total budget for this outcome (sum of the output budgets)>
<Reflect the Budget Gap= Required Resources minus Available Resources for this outcome>
Outcome 5
<Reflect the outcome 5 statement>
Outcome Indicators
Source of Data
Output 5.1
<Reflect Output 5.1 statement>
Output Indicators
Source of Data
Output 5.2
<Reflect output 5.2 statement>
Output Indicators
Source of Data
51
Baseline
Baseline
Baseline
Target 2012
Target 2013
Target 2014
Target 2015
Risk and Assumptions
Target 2012
Target 2013
Target 2014
Target 2015
Risk and Assumptions
Target 2012
Target 2013
Target 2014
Target 2015
Risk and Assumptions
UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
BoS Outcome 6: Finance
Lead Agency
Participating UN Agencies
Coordination Mechanisms
Outcome Budget
Outcome Budget Gap
<Reflect Name of the agency leading the BO Harmonization initiative>
<Reflect agency names participating in the BO Harmonization Initiative>
<Reflect the coordination/governance mechanism- usually UNCT-OMT-Task Team working on this particular initiative>
<Reflect the estimated total budget for this outcome (sum of the output budgets)>
<Reflect the Budget Gap= Required Resources minus Available Resources for this outcome>
Outcome 6
<Reflect the outcome 6 statement>
Outcome Indicators
Source of Data
Output 6.1
<Reflect Output 6.1 Statement>
Output Indicators
Source of Data
Output 6.2
<Reflect Output 6.2 Statement>
Output Indicators
Source of Data
52
Baseline
Baseline
Baseline
Target 2012
Target 2013
Target 2014
Target 2015
Risk and Assumptions
Target 2012
Target 2013
Target 2014
Target 2015
Risk and Assumptions
Target 2012
Target 2013
Target 2014
Target 2015
Risk and Assumptions
UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft
BoS Outcome 7: Security
Lead Agency
Participating UN Agencies
Coordination Mechanisms
Outcome Budget
Outcome Budget Gap
<Reflect Name of the agency leading the BO Harmonization initiative>
<Reflect agency names participating in the BO Harmonization Initiative>
<Reflect the coordination/governance mechanism- usually UNCT-OMT-Task Team working on this particular initiative>
<Reflect the estimated total budget for this outcome (sum of the output budgets)>
<Reflect the Budget Gap= Required Resources minus Available Resources for this outcome>
Outcome 7
<Reflect the outcome 7 statement>
Outcome Indicators
Source of Data
Output 7.1
<Reflect Output 7.1 statement>
Output Indicators
Source of Data
Output 7.2
<Reflect Output 7.2 statement>
Output Indicators
Source of Data
53
Baseline
Baseline
Baseline
Target 2012
Target 2013
Target 2014
Target 2015
Risk and Assumptions
Target 2012
Target 2013
Target 2014
Target 2015
Risk and Assumptions
Target 2012
Target 2013
Target 2014
Target 2015
Risk and Assumptions
UN Business Operations Strategy (BOS) - Guidelines August 2012 _Final Draft