Organisational Development in UNRWA

Organisational Development in UNRWA

Report on Activities from 2007 - 2009

June 2010

Acronyms

AdCom Advisory Commission

ASD Administrative Services Department

AHRD Administration and Human Resources Department

CCPM Classification, Compensation and Performance Management

COS Coordinator of Operational Support

DOTS Department of Operational and Technical Support

DSD direct-service-delivery (staff)

ERP Enterprise Resource Planning (System)

HQ Headquarters

HRD Human Resources Department

HRM Human Resources Management

ICC International Computing Centre

ICID Infrastructure and Camp Improvement Department

ICT Information and Communications Technology

LDC Limited Duration Contract

LMDP Leadership and Management Development Programme

MC Management Committee

MTS Medium-Term Strategy

OD Organizational Development

ORIS On-Line Recruitment System

PCM Programme Cycle Management

PCSU Programme Coordination and Support Unit

QMC Quarterly Management Committee

SPARE “strategy, policy, accountability, results and envelopes”

Introduction

Purpose of OD

In August 2006, the OD Plan was published under the title Serving Palestine Refugees More Effectively—Strengthening the Management Capacity of UNRWA. The title captures the essential dynamic of organisational development (OD). UNRWA exists to provide services to Palestine refugees. In order to be able to do this, we must have an effective and efficient organisation that is capable of providing relevant and quality services.

Background

Throughout the period of OD (2006 – 2009) the Advisory Commission was provided with progress reports on Organisational Development (OD). These progress reports have detailed the key achievements and planned outputs for OD. This paper provides the Advisory Commission with up to date information on the achievements realised by OD as of 31 December 2009. Taking into account that final implementation of activities that fall under OD will be realised in 2010, the Advisory Commission will be provided with a final report on OD at the end of the year.

Aims of this paper

In June 2009, UNRWA shared with the Advisory Commission a Progress Report on OD. That report detailed the achievements of OD as of June 2009 and the planned outputs until the end of 2009.

This paper provides the Advisory Commission with an update to that report. It highlights our achievements from 1 January 2007 until 31 December 2009 and the planned outputs for OD in 2010.

Overall, the report shows the considerable progress and achievements realized by the Agency in implementing OD.

As of present, the Agency has achieved considerable success in implementing the series of reforms detailed in the OD Plan and has also been able, to a large extent, to introduce a culture within the Agency that is accepting of change and willing to continue improving.

As of 2010, the Agency adopted a Medium Term Strategy that acts as an overall guide for how the Agency wishes to improve the human development of Palestine refugees. This Strategy is grounded in Field and Headquarter Implementation Plans that set out the detailed activities that respective departments and fields are to take to address the identified needs of refugees. The MTS and the FIPs and HIPs are all a product of OD. Their presence highlights the important shift that has occurred in the Agency since 2006. The UNRWA of today is focused on improving the

Impact outcomes for Palestine refugees

Delivery of effective programmes and

services

An effective and well-managed

Agency

quality of its services and doing so in a manner that is more strategic, well-planned, resource-conscious, and, most importantly, reflective of the needs of refugees.

However, our success in meeting the needs of the refugees is predicated upon our ability to function effectively. The final delivery of a quality service to a refugee is the culmination of a series of internal organisational decisions and actions. Improving these internal mechanisms has been the focus of OD.

As highlighted in this report, considerable progress has been achieved in improving our internal management capacity. Key organisational functions such as human resources, procurement, programme planning and management, and IT have undergone extensive reform. The organisational design of the Agency has also been adapted and is more reflective of an Agency that provides its Field Offices with increased capacity to respond to refugee needs, guided by Headquarter departments that provide important policy and oversight support. In line with this, the Agency has strengthened its oversight functions and invested in building the capacity of both its executive support functions and those of individual managers.

While the Agency is largely on track with regards to achieving its intended OD goals, challenges and delays have presented themselves. In particular, the Agency has met with delays in implementing a much needed classification and compensation system (now scheduled for 2010) and has found process re-engineering efforts and improvements to internal communications to be particular challenging. The Agency will continue addressing these areas in 2010 and beyond.

To better showcase the detailed achievements of OD, this paper is divided into seven parts:

Part One—Organisational design.

Part Two—Programme management.

Part Three—Human resources management.

Part Four—Leadership and management.

Part Five—Organisational processes and systems.

Part Six—Effective programmes and services.

Part Seven—Conclusion

Part One examines the overall organisational design changes to the Agency. Parts Two-Five look at the four levers of change that form the basis of the OD Plan. Part Six focuses on the quality of our programmes and services.

The paper concludes with Part Seven, which provides a reflection on the progress made to date under OD and the capacity and opportunities the Agency has to sustain change beyond the period of OD. This paper also include, as Annex 1, a financial report on OD.

Part One—Organisational Design

Introduction

OD is centred on the empowerment of managers for the implementation of services and activities delegated to them. The organisational transformation that is implied in OD is captured in the SPARE paradigm which emphasises results-based management and budgeting, robust accountability, streamlined and flexible processes and a measured tolerance for risk1.

SPARE implies a significant shift in the respective roles of HQ and the Fields. Senior management (the Commissioner-General advised by the Management Committee (MC)) set broad policy and strategy and allocate the envelopes of resources. Programme directors provide the strategic and technical responses to identified needs; they set service standards, develop systems and tools. They monitor and evaluate performance against those standards. The Fields assume primary responsibility for the design, specification, implementation and management of operations.

Decision-making frameworks

The SPARE paradigm helps determine the responsibilities and accountabilities of different organizational units in taking decisions at various levels. The Agency’s architecture and processes reflect those decision-making frameworks. The frameworks are based on the principle that managers must be equipped to take decisions, and then be held accountable for taking decisions:

based on accurate and full information;

rapidly, with the minimum of delays and effort;

with only those controls necessary to protect the Agency’s interests; and

with access to support and advice when needed.

Architecture

Thus, the SPARE paradigm is the basis for the organisational design and influences the structure of the Agency, the accountabilities of each element of the Agency’s structure and how the Agency allocates staff and other resources to priorities and structures2.

In the OD Plan, it was decided that it was not necessary to have any major structural changes but, instead, that the organisational design would be re-oriented towards the SPARE paradigm, resulting in a lean and flexible organisation, focused on direct-service delivery to Palestine

1 Risk management is discussed in Part Eight. 2 The SPARE paradigm also informs the design of the Agency’s processes—see Part Six.

Strategic/policy frameworksResults with

envelopes

Empowermentduring

ImplementationAccountability

Support OversightMonitoring

refugees. Nevertheless, the OD Plan did contemplate some changes in the Agency’s architecture, summarised below.

However, it is also inevitable that with improvements in systems and processes and with further thinking on matters of responsibility and accountability, that architecture will need to change. Thus, organisational design is not something that is done once and only once. It is something that needs to be periodically reflected upon and adjusted.

Achievements: January 2007 – December 2009

SPARE, as outlined in the OD Plan, became Agency policy in August 2006 and has provided the framework for the broad definition of roles of the HQ departments, Agency committees and Field Offices—further institutionalisation is being carried out through the levers of change.

At the Headquarters level, the following developments have taken place:

The Departments of Administration and Human Resources (AHRD) and Operations and Technical Support (DOTS) have been restructured. The functions previously performed by AHRD and DOTS are now performed by three Departments: the Human Resources Department (HRD), the Administrative Services Department (ASD), and the Infrastructure and Camp Improvement Department (ICID);

External relations functions have been reorganized; functions related to donors and the AdCom were maintained under the overall supervision of the Director of External Relations;

The post of Spokesperson was created and HQ public information office staff were placed under the Spokesperson’s supervision;

The office of the Director of Operational Support was expanded and, in mid 2007, that office was transformed into the Programme Coordination and Support Unit (PCSU), headed by the Coordinator of Programme Support (CPS), and under the direct supervision of the Deputy Commissioner-General. This unit has been instrumental in leading the programme management developments highlighted in Part Three;

Decision-making frameworks have been designed for key HR-related processes and for the procurement process. These have been supported by the development of accompanying rules, regulations, policies, and manual;

The Agency has reviewed and revised the roles and terms of reference of some standing committees including the Headquarters Committee on Contracts, the Human Resources Committee, the Advisory Committee on Internal Oversight (formerly the “Audit Inspection Committee”) and the Information Management Committee (formerly the “Information Systems Policy Advisory Committee”).

Functional networks, which meet on a regular basis, have been established for the following functions: legal, public information, training, procurement, HR, finance, ICT, Field Human Resources/Field Administration Officers, programme support, protection, and gender.

Organisational assessments have been conducted on the Agency’s Education, Health, and Relief and Social Services departments. All assessments included a review of the department’s organisational design in the context of SPARE and OD reforms being undertaken in the Agency.

At the Field Office level, the following changes have taken place:

Field Offices have been bolstered with additional Deputy Directors

Field Offices have been provided with Field Programme Support Offices, headed up by international Field Programme Support Officers;

Field Human Resources functions have been strengthened, with internal Field Human Resources Officers included in Field Office plans.

Key field posts (e.g. Area Officers, Head Teachers) have been upgraded and redefined to recognize their key managerial roles in the direct delivery of services. These upgrades have been implemented on a field by field basis, where resources have been available.

Key outputs: January 2010 – December 2010

Initiatives Outputs

Decision-making frameworks for key support processes

Definition of roles, responsibilities, accountabilities of Fields and Departments in financial management.

Programme development

Review of findings of Organisational Assessments in Education, Health, and Relief and Social Services.

Development of plans for future reforms to the Agency’s Education, Health, and Relief and Social Services departments, including the function of Headquarter programme departments and field programme departments.

Field design Continued implementation of field-level organisational design improvements.

Part Two—Programme Management

Introduction

Part Three focuses on the articulation of the vision, goals and strategy of the Agency to provide the basis for on-going programme cycle management.

During the design of OD, the Agency noted the need for a medium term strategic perspective firmly rooted in a set of organisational goals, to ensure that all programming and service delivery activities reflect agreed priorities and policies, thereby achieving maximum impact.

In the OD Plan, the lever of change was entitled the Programme Management Cycle. In further discussions, two aspects of programme management were defined:

Medium-term strategy (MTS); and

Programme cycle management (PCM).

The MTS is the Agency’s six year strategic framework. It was developed using a best practice approach to strategic planning. This approach encompasses internationally recognised tools and techniques of PCM which have been documented in the PCM Handbook. The 2010 – 2011 cycle has been prepared entirely using a PCM approach with all the tools in place to enable Results Based Management according to UN best practices.

Outcomes

Our goals were to have a clear sense of strategic direction that provides:

Clarity and unity of vision, purpose, priorities and goals;

Tools to support the Agency, to the extent possible, in making strategic choices; and

Strategic focus, based on evidence, performance reviews and priorities that we have the capacity and resources to pursue and deliver effectively.

This meant the need to have well-defined and comprehensive definitions of the impact that the Agency seeks to have in support of the human development of Palestine refugees, with a corresponding set of human development performance indicators. This required comprehensive strategic and policy direction in the five fields of operation, for each of the programme areas, and for the thematic areas. With this in place, it should ensure that we implement a coherent and well-prioritised set of activities regardless of the source of funding.

To achieve the above we therefore needed:

A well-defined and coherent strategy development and programme cycle that incorporates all the key systems and processes relating to performance management, needs assessment, strategy and priority development, resource allocation, implementation, monitoring and reporting;

The capacity to integrate our strategic and operational planning system with our resource allocation mechanisms, so that the planned results are driven by our strategic priorities and policies, and are matched by the necessary budget and staff;

Maintaining the momentum of change

Organisationaldesign

Organisationalprocesses and

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Systems, processes, tools and guidance to support our work and organisational units to ensure full and sustainable implementation.


Since 2007, we have adopted and implemented a best practice, medium term, integrated approach to strategy development and performance management. The achievements to date include:

Development of a Medium Term-Strategy for 2010-2015;

Development of a detailed process for present and future development of Medium Term Strategies;

Development of Field Implementation Plans (FIPs) and Headquarter Implementation Plans (HIPs);

Alignment of our planning instruments with MTS, FIPs and HIPs having coherent objectives that are reflected in the budget structure to allow us to monitor and evaluate at all levels of implementation (output, outcome, strategic objectives and goal);

Improved project management capacity and integration of the project delivery in the FIPs and HIPs to ensure coherent and well prioritized projects;

Development of indicators and targets for all plans;

Establishment of a Resource Allocation Committee;

Development of a handbook on Programme Cycle Management (PCM):

Training of staff across the Agency on PCM tools and methodologies (which were utilised in the development of the MTS, FIPs, and HIPs;

Strengthened the programme support capacity of Field Offices through the introduction and mainstreaming of Field Programme Support Offices (led by an international Field Programme Support Officer) and Deputy Directors;

Developed a monitoring and evaluation policy;

Developed a new monitoring and evaluation system, with full implementation of the system in 2010;

Developed cross-cutting policies in gender and protection, with substantial work in both areas underway to ensure integration into all programming decisions;

Developed structured policy analysis, priority setting and needs assessment approaches; and

Conducted external reviews of our Education, Relief and Social Services, and Health programmes;

Ongoing Activities: January 2010 – December 2010

Initiatives Outputs

Accountability Full implementation of accountability and decision-making frameworks with regards to budget management and programme delivery

Monitoring, evaluation and reporting

Results Based Monitoring system implemented throughout the Agency, ensuring quality assurance of indicators and enhanced capacity for evidence based decision making.

Initiatives Outputs

Programme management capacity

Project Management capacity further strengthened through the development of a Project Procedures Manual, Training on project design and reporting, and a further enhanced prioritization process

Cross-cutting policies

Policy and strategy on disability developed,

Part Three - Human Resources Management

Introduction

The OD Plan was based on the Human Resources Management Strategy, which was developed by the Human Resources Task Force in 2006.

2006 – 2009 HRM Strategy

The HRM Strategy is divided in eight substantive sub-strategies to guide Human Resources in the Agency. In light of the developments since January 2007, some of these sub-strategies have been slightly adapted.

Staffing: To provide the Agency with a sustainable, competent, motivated and adaptable

workforce, thereby ensuring that knowledge is retained and enhanced in the Agency.

Staff development and training: To ensure that staff have the knowledge, skills and attitudes to perform their current duties and responsibilities successfully, and are prepared for future challenges and opportunities.

Classification, compensation and performance management: To develop a competitive, motivating and cost-effective classification and compensation system that: (i) enhances the Agency’s ability to attract and retain high-calibre staff; (ii) recognizes team and individual contributions; and (iii) ensures that all posts are classified at appropriate levels in accordance with transparent, objective and equitable principles; and (iv), to establish and maintain a performance management system for staff that is clear and objective, rewards achievement and competence, is free of bias and abuse, encourages dialogue and feedback and is consistent with the strategic objectives for the Agency, thereby ensuring that all staff perform effectively.

HR service delivery in the Field Offices and HQ: To provide HR services that are clear, flexible, reliable, confidential and empowering, through the development of HR capacity and improved processes (see below).

HR policies, processes and procedures: To put in place user-friendly and efficient HR policies, processes and systems.

Gender equality: To develop and implement measures to enhance the gender balance, particularly among senior staff; to develop policies to promote and empower women; to promote gender awareness among staff at all levels through training; to ensure managers are accountable for achieving gender equality.

Line management: To ensure that all managers are competent and accountable for their HRM roles in partnership with the relevant HR service providers.

Relations with staff: To build effective working relations between management and the staff, particularly the staff unions.




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Expected outputs

The implementation of the HRM Strategy will transform the Agency’s human resources management and results in:

Attractive conditions of service will allow the Agency to recruit and retain qualified staff;

All staff will perform effectively, and will be accountable for their work;

Managers will motivate staff and manage performance in a fair and responsible manner, without resorting to micromanagement;

HRM policies, processes and systems will be clearly communicated and efficient;

Staff will receive timely and consistent support on HRM issues, including information on rights, obligations and conditions of service;

HRD will develop policies, and will monitor their implementation and will provide senior management with advice on HRM matters;

Measurable progress will be made towards achieving gender equality and gender parity;

Staff will be treated with respect, cultural sensitivity and fairness in a climate of trust, transparency, responsiveness and commitment so serving Palestine refugees;

Staff will consider UNRWA a good and fair employer.


Since the approval of the HRM Strategy in September 2006, the Human Resources Department has achieved the following:

Conducted an in-depth assessment of current staffing patterns under the title The Snapshot—UNRWA’s Current Staffing Profile (July 2007). The Snapshot was updated in 2008 and 2009 and will continue to be updated annually, providing key information on the allocation and composition of the workforce;

HRM strategyand

Workforcestrategy

HR servicedelivery

Policies,processes and

procedures

StaffingGenderequality

Staff developmentand training

Partnership withline managers

Classification, compensationand performance management

Relationswith staff

Consultatively developed an HRM strategy for 2010 - 2011 which is aligned with Field and HQ implementation plans, focussing on HR service delivery and on partnership with line managers in all aspects of management of staff;

Strengthened human resources management capacity of Field offices through the restructuring and transformation of Field Personnel Departments into Human Resources Departments. The Field Administration Officer jobs were transformed to become senior Human Resources Officers. Professional training in HRM and external certification was provided to HR Area staff in all fields. Job descriptions and organisational structures were adjusted giving more emphasis to quality of client service, HR planning, performance management, training and staff development;

Established a Human Resources Network for Agency-wide HR professionals to strengthen knowledge sharing, best practices and consistency in HR practice across all Fields and Headquarters;

Redefined the role of the Human Resources Committee to ensure improved capacity to advise the Commissioner-General on HR strategic and policy matters, while delegating authority for HR processes to the Director of Human Resources. Granting greater delegation of authority for recruitment decisions to Field and HQ Department Directors;

Developed an HR gender policy and implementation strategy to underpin the Agency’s gender mainstreaming strategy. A number of measures to improve gender balance have been implemented and are have resulted in increased gender representation across all functions and levels for international staff as well as for senior area staff between grade 16-20;

Developed a comprehensive staffing framework reflecting greater decision-making authority of Field and HQ Department Directors, while emphasizing the oversight and monitoring role of the HQ Human Resources Department;

Consultatively developed and implemented Area staff and International staff staffing and recruitment policies and guidelines to enhance the selection and retention of highly qualified and motivated staff through an efficient and transparent process which is perceived to be fair and objective. Shorter recruitment times, proactive use of rosters, attention to gender issues, more delegation of recruitment authority to Field Directors are some of the features of the new policies;

Developed and implemented Agency-wide ORIS: a web-based automated recruitment system for Area and International staff;

Developed and implemented a new contractual modality, the “Limited Duration Contract (LDC)” to address short- and medium-term staffing needs. ‘Light’ recruitment and administration processes make this contractual tool particularly useful for staffing in emergencies;

Developed and implemented a new Organisation Directive to regulate the use of service contracts for the hiring of consultants and contractors;

Updated Area and International Staff Regulations, Rules and related administrative issuances and made all of these accessible to staff through the HR intranet site. Area Staff Regulations and Rules and most administrative issuances are also provided in Arabic;

Developed an HR planning policy and process for International staff to achieve optimal deployment, forward planning as well as career development for the international workforce;

Conducted an international staffing review and re-aligned international staffing with Agency priorities, in particular strengthening of Field management, planning and monitoring and evaluation;

Designed and implemented a Leadership and Management Development Programme (LMDP) for senior Area staff providing them with the tools to more effectively lead and manage programme and support services across the Agency. Particular attention was paid to developing women managers. By mid-2010, some 140 senior Area staff will have graduated from the LMDP with external certification by Cambridge University. More than half of this group are women managers. All LMDP graduates are now engaged in training and coaching of staff in their technical fields;

Increased the training capacity of the Agency by appointing Training Officers in all five Fields, and through a TOT (training-of-trainers) programme for a wide range of Agency-specific training needs;

Considerably expanded training at all levels through on a comprehensive and inclusive training needs assessment, aligning HQ and Field training plans;

Increased significantly the language training programme (English and Arabic) with some 2,000 staff trained to date;

Re-designed and implemented an automated performance management system for senior Area and International staff. Features include work planning, structured performance feedback at mid-term and end-of-cycle, training and staff development.

Developed a new Agency-wide results-based, automated performance management policy for Area staff, which was piloted with Education staff in Gaza. This system is to be implemented Agency-wide in 2010 – 2011. In parallel, performance management policy guidelines have been issued for rewards and recognition of high performers and a toolkit for supervisors in managing under-performance;

A comprehensive review of the Agency’s classification and compensation systems was undertaken. A reformed classification and compensation model was developed and reviewed by staff representatives and senior management. Implementation of this reform is currently underway and will be completed by December 2010;

Backlog of pending appeal cases was eliminated. Introduction of new UN internal justice system required complete overhaul of the Agency’s approach to managing its internal justice processes. Implementation is underway; and

Conducted a comprehensive assessment of labour relations with the Management Committee adopting a number of recommendations to improve the mechanisms between management and staff unions in negotiating and communicating. Implementation is underway and will be completed in December 2010.


Initiatives Outputs

Staffing framework

New policies developed for selection and management of all types of staff and complementary personnel (including international and area staff, junior professional officers, experts-on-loan, volunteers and interns, consultants and contractors, and daily paid workers).

Training and staff development

Development of a new staff development and training strategy by end 2010.

Development of web-based and multi-media training materials, for use by staff across the Agency.

Classification, compensation and performance management

Development of a new classification and compensation system across all occupational groups and in all five Fields by end 2010. Upon completion UNRWA will have a new grading structure for area staff as well as a new compensation methodology in place based on a transparent, fair and easy to administer system.

Agency-wide roll-out of a new results-based performance management policy for all staff, in a phased approach, starting with teachers and head teachers in the scholastic year 2010, to be followed by other main cadres of area staff in the calendar year 2011.

HR strategies Development of an updated HRM strategy with a focus on the development of Field HR strategies, which reflect the specific context of each Field, the development of HR capacity in each Field, and capacity of HR in monitoring and evaluation.

Administration of Justice

Design and current implementation of an independent and professional internal justice system in line with General Assembly resolution 59/283. The new system will contribute to a more transparent, efficient and expeditious case administration. Informal dispute resolution will be strengthened through the establishment of a mediation mechanism.

Labour relations & Staff communication

Implementation of distinct activities to strengthen relations between management and staff unions and improve management communication to all staff.

Part Four—Leadership and Management

Introduction

This lever of change focused on leadership and management at three levels:

Individual managers throughout the Agency, including the definition of their roles and accountabilities, and development programmes in leadership and management;

Management teams: the MC, Agency committees and the development of management teams in Field Offices and departments;

Agency management: Executive office, oversight, support to governance, internal communication, and resource mobilisation.

Outcomes

Our goals under this lever are to ensure that the Agency has in place, at all levels, appropriate mechanisms and competencies for effective management and decision-making.

For managers, our desired outcomes are that all managers are:

Clear about their roles in terms of substantive/support functions, management of people and programmes, their delegated decision-making authority and accountabilities;

Held accountable for the achievement of results, for the utilisation of resources entrusted to them and for the exercise of the delegated decision-making authority;

Understand and are committed to their roles of managing people and programmes;

Results-oriented and closely linked to communities and clients; and

Manage their staff and performance, they build teams and take decisions.

In turn, our desired outcomes for our Management Committee are that it:

Provides direction to the Agency under the leadership of the Commissioner-General;

Thinks strategically;

Has high-quality dialogue on key policy-level issues;

Makes effective recommendations on key strategic and management decisions to the Commissioner-General; and

Is a cohesive and collegial body providing vital unity and coordination to the Agency in the context of delegated decision-making under SPARE.

To complement the above:

The Executive Office must be strengthened to provide the Commissioner-General, MC and the Agency as a whole with an engine for the efficient flow of information, ideas, decisions and reporting;




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The MC’s standing committees will need to assume new roles in the context of SPARE and function effectively in their capacity as management, advisory and oversight bodies;

All Field Offices and departments will need to establish effective senior management teams.

An effective governance structure for the Agency, in terms of direction and oversight, must be established.

Furthermore:

The Agency needs to strengthen its relationship with hosts and donors; and

Enhance its advocacy and external communication role.

Lastly, this lever aims to also ensure an effective governance structure for the Agency, through various levels and functions, such as: Governance oversight by the General Assembly, Host and Donors Meeting and the

AdCom;

The oversight function of the Agency: the UN Board of Auditors, Advisory Committee on Internal Oversight, UNRWA’s Department of Internal Oversight Services, and specific oversight bodies such as the new Resource Allocation Committee;

The oversight functions of the HQ departments in the context of SPARE: finance, budget, HRM, procurement, and programme;

Monitoring and evaluation carried out by the Fields and all managers within their areas of responsibility.

Leadershipand

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Individualmanagers

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Managementof the Agency

Managementtools

Internalcommunication

Oversightof the Agency

Support togovernance

Financingthe Agency


So far:

A new architecture for governance was put in place in 2006-7, focussed on the AdCom and its sub-committees;

A strengthened secretariat for the expanded AdCom was set up;

Six additional international posts were obtained from the UN budget for 2008 – 2009 and onwards;

Fourteen additional international posts were obtained from the UN budget for 2010 – 2011 and onwards

A special fundraising function was established in 2007 to help expand the Agency’s donor base in the Arab world. This function is now fully mainstreamed and a dedicated Arab Partners Unit, located in Amman, is fully staffed and functional;

A Leadership and Management Development Programme was designed and has undergone three years of management training for more than 200 senior managers in the Agency. They in turn, through a training of trainers programme, have proceeded to provide management training to a wider group of managers across the Agency;

The Audit and Inspection Committee was transformed into the Advisory Committee on Internal Oversight, with three external members, starting in 2007;

A dedicated investigation function, at senior international grade, based in the Department of Internal Oversight Services, was established;

A dedicated senior ethics functions, reporting to the Commissioner-General, but administratively within the Department of Internal Oversight Services, was established;

The evaluation function of the Agency was strengthened and, following advise from the Advisory Committee on Internal Oversight, housed within the Department of Internal Oversight Services;

Risk management was enhanced with the development of risk registers for all field offices and HQ departments. In 2010, a system will be put in place to ensure continuous management of identified risks.

Executive coaching was provided for MC members and other selected senior managers, including 360-degree feedback;

Management workshops were provided to senior management teams in departments and field offices;

An internal communications review was conducted in 2009 and field offices and departments have undertaken specific initiatives to improve internal communications in their respective areas;

An internal review of the Agency’s emergency management capacity and procedures was conducted, with recommendations for further improvement to be implemented in 2010;

The Executive Office and the Human Resources Department established full-time translation capacity to further communication with the Arabic-speaking public, hosts, and donors, and with staff at large.

The Executive Office was strengthened through the establishment of Special Assistant positions for both the Commissioner-General and Deputy Commissioner-General, thereby providing further support to the Commissioner-General and Deputy Commissioner-General in their management of all Agency activities;

The Agency’s advocacy and public information capacity was significantly strengthened through the establishment of a Spokesperson and an Arabic spokesperson. Both positions have been instrumental in providing the public with information and advocating for the protection of Palestine refugees, as demonstrated during Operation Cast Lead in 2008/2009 and during UNRWA’s 60th anniversary year.


Initiatives Outputs

Leadership Training

Rollout of third year of Leadership and Management Training

Development of a new Leadership programme.

Accountability Development of an Agency-wide accountability framework

Risk management Development of a system to integrate risk management in Agency, Field, and department decision-making systems.

Relations with staff

Implementation of distinct activities to strengthen relations between management and staff unions.

Part Five—Organisational Processes and Systems

Introduction

The purpose of this lever was to:

Create, within the Agency, a practice of constantly reviewing and improving processes and of reengineering processes in line with the principles of the SPARE paradigm;

Review and reform rules, regulations, policies, and procedures so that changes are grounded in the organisational foundations; and

Build and strengthen Agency systems, including ICT systems, to support organisational reforms.

Outcomes

The primary outcome of this lever is to improve delivery of services to the Agency’s refugees in terms of cost, time and quality.

Furthermore, this lever aims to provide the Agency with the capacity to focus more of its resources on service delivery and less on administrative support. Through improved processes, up to date, user-friendly, and clear and concise rules and regulations, and ICT systems that support reforms, this lever aims at providing managers and staff with the guidance and tools to undertake their duties, without unnecessary bureaucracy.


Process Improvements

The area of process improvement has proved to be one of the most challenging aspects of OD. Despite concerted efforts, the Agency has not yet developed a comprehensive strategic process simplification process. This will occur now through the development of the ERP, which will require review and improvement to existing processes before they are incorporated into one information management system. Notwithstanding, progress on certain individual processes have been made. Since 2007, over 30 teams across the Agency have been trained on a standard methodology to review and improve organisational processes. Such methodology has been utilised in the achievement of the following process improvements:

Agency-wide:

Management of staff appeals and elimination of backlog of old staff appeals

Financial management of data from Agency’s Financial Management System

Low-value budget adjustments

Area staff recruitment




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Post establishment and amendment process

Electronic payslips

Application review and governance of Provident Fund Humanitarian Withdrawals

Management of individual online donor experience and communications

Syria Field Office:

Planning, design, and construction of facilities

Recruitment

Management of health clinics

Jordan Field Office:

Printing and copying services

Packing and distribution of rations

Transportation services for employees

Recruitment

Acceptance of donations

Payment of suppliers

Payment of utility bills

Gaza Field Office:

Automation of personnel processes (electronic payslips, leave management, performance plans)

HR processes related to delivery of education services

Modification of commodities distributed in rations

Redesign of performance measurement plans

Delivery of emergency assistance

Lebanon Field Office:

Recruitment

Maintenance of water facilities

Procurement and supply chain management

Communication and selection process for scholarship programme and admission to vocational training centres


West Bank Field Office:

Issuance of pay-checks for emergency job creation programme beneficiaries


Maintenance of installations

Monitoring and barcoding of fixed assets

Monitoring use of vehicles

In addition, in 2009 the Agency commenced development of an ERP system. An integral proponent of a successful ERP system is the re-engineering of present processes to enable the future ERP system to incorporate best practice processes in Finance, HR, and Procurement. As such, starting from 2009, a series of internal processes in these key support functions are undergoing extensive review and improvement, for future incorporation into the ERP system.

Review and Reform of Rules, Regulations, Policies, and Procedures

During the period of OD, a series of regulatory reforms were conducted to ensure that reforms in the Agency are embedded into the rules, regulations, policies, and procedures that guide daily operations. The achievements in this area are:

Review of Agency’s regulatory framework conducted in 2009 (reform of regulatory framework to be completed in 2010)

Procurement Manual developed

Fixed Assets Manual developed

Programme Cycle Management Manual developed

Staff Regulations and Rules amended

Organisational Directive on Procurement updated

Organisational Directive on Recruitment updated

Organisational Directive on the Engagement of Contractors developed

New Agency budget structure and instructions developed

Committees dealing with human resources, procurement, information technology, and internal oversight reviewed and updated.

Strengthening Agency Systems

A key component of enabling organisational reforms has been the Agency’s ability to enhance its ICT infrastructure to support increased automation and efficient sharing and use of data. To this end, the Agency’s ICT infrastructure has been considerably enhanced as follows:

Creation of the Information Management Committee

Development of an information security policy

Partnership with the International Computing Centre (ICC)

Development of an intranet

Upgrading of the Agency’s email system

Upgrading of the Agency’s network connectivity

Agreement with the UN Department of Field Support (DFS) to “host” systems at DFS IT centre in Brindisi

Development of a business continuity/disaster recovery plan

Improvement of the Agency’s Helpdesk functions

Development of the Information Technology Infrastructure Library

Furthermore, ICT systems have been developed for specific reforms taking hold in the Agency. Specific systems and modifications were developed for the :

Refugee Records Information System

Loan Management System

Limited Duration Contract

Online Recruitment Information System

Procurement and Inventory Management System

Fixed Asset Modules in present Financial Management

Treasury System

Budget reform-related system modifications

Electronic payslips

Through OD, the Agency started the process of developing an Enterprise Resource Planning (ERP) system. This system will enable the Agency to adopt best practice processes in human resources, procurement, and financial management and incorporate those processes into one integrated system that grounds reforms and provides managers across the Agency with complete information for improved decision-making. While implementation of the ERP system continues as a separate Agency project, OD has been instrumental in ensuring its start-up. Aside from establishing the overall organisation framework (i.e. SPARE) upon which the ERP system should be developed, during OD the Agency conducted a gap-study to assess the need for an ERP system, undertook recruitment of the ERP Director, formed the initial ERP team, commenced project planning and development of the ERP system, and proceeded with fundraising for the ERP project.


Initiatives Outputs

Rules and regulations

High-level regulatory framework developed.

Part Six—Effective Programmes and Services for Palestine Refugees

Introduction

OD focuses on the management and the organisation of the Agency, but its purpose is to improve services and thereby increase the human development of Palestine refugees in four key goals:

a long and healthy life;

acquired appropriate knowledge and skills;

a decent standard of living; and

human rights enjoyed to the fullest extent possible.

Outcomes

OD aims to ensure that all our services and interventions are driven by:

excellence, and quality services and standards driven by results and outcomes;

evidence-based planning and needs based service delivery;

decentralization and empowerment, with a focus on delivery in the field;

active participation of, and consultation with, our stakeholders;

integration and coordination of planning leading to a holistic approach to service delivery;

innovation and responsiveness; and

effective partnerships with beneficiaries and coordination with other service providers.

In its essence, OD aims to complement the technical elements of programming by focussing on inculcating a climate and culture of innovation, change and productivity.

OD has created the space for staff to propose and implement new – and better – ways of designing activities and interventions. The aim, in Part One of this paper, is to illustrate examples of reformed service delivery that have been made possible due to the “space” provided through OD.

Examples of reform initiatives underway

As a result of the space provided to field offices and departments through OD, the Agency has undertaken a series of reform initiatives that seek to improve the quality of services provided to refugees. The table below highlights some of the reform initiatives that have begun across the Agency.

Drivers Examples of initiatives that have been designed and are underway

Quality and Excellence

The “Towards a Brighter Future” education reforms in the West Bank

“Schools of Excellence” initiative in Gaza and other reform initiatives in health and emergencies.

At the Damascus Training Centre, competency-based curricula adopted to ensure maximum compatibility with market needs.


Respect and Discipline in Violence-Free schools initiative in Gaza.

Benchmarking of Microfinance and Microenterprise Programme services and outcomes against authoritative micro lending criteria and performance.

Curriculum reform and improved teaching initiative in Lebanon

Reform to hospitalisation access and care in Lebanon

Participation and consultation

Integrated participatory community assessments in the West Bank.

Community development projects in Jerash, Talbiyeh and Husn camps in Jordan.

Community participation in reconstruction of the Nahr el Bared camp in Northern Lebanon

“Schools of Excellence” initiative in Gaza.

Summer recreation programme in Lebanon

Community Outreach activities in Lebanon

Evidence- and needs-based services

Development of the Social Safety Net

Engaging Youth Programme in Syria

Special Children, Special Needs initiative in Gaza

Individual household assessments in West Bank to identify households most in need of assistance.

Improved targeting of emergency assistance to beneficiaries in the West Bank and Gaza (moving from a “status-based” to a “poverty-based” approach).

Multi-Indicator Cluster Survey being planned in Syria (in cooperation with UNICEF and GAPAR) that will better focus services to needs of refugees.

Short term vocational training instituted in the Damascus Training Centre and in/near camps.

Comprehensive needs-assessments in Lebanon for installation maintenance and shelter allocation and rehabilitation

Integrated approach to Programming

Creation of the PCSU, the central purpose of which is to facilitate and coordinate HQ support to the Fields in strategic planning, integrated programming and operational policy within a Programme Management Cycle framework.

Establishment of the Infrastructure and Camp Improvement Department to provide a focal point for all services and activities related to the physical and socio-economic infrastructure, camp improvement and the design, implementation and maintenance of UNRWA facilities.

Dedicated HQ resources for emergency interventions, enabling the


Agency to provide a focal point for the delivery of emergency responses and fundraising for specific needs.

Development and strengthening of the Agency’s Protection function.

Poverty/health surveys and cross-programme working group in disadvantaged Ramadan camp in Syria has lead to targeted interventions within regular programming.

In Syria, Cross-programme and multi-organizational effort to develop youth strategy and interventions.

Establishment of an M&E Education unit in Lebanon

Innovation and responsiveness

Improved distribution of rations through pre-packaging.

Interactive Learning programme in Gaza

Community-based Youth Employability Strategy in Jerash and Talbiyeh camps in Jordan

“e-Health” – a process-improvement initiative being designed in Lebanon and presently being implemented in Jordan.

In Syria, multi-faceted project being implemented to address life and employment prospects of youth. Includes partnerships with practitioners in field of youth enterprise.

“Do-it-Better” Engineering and Maintenance Handbook in Lebanon

Effective partnerships

Working with the Palestinian Central Bureau of Statistics (PCBS) to improve data collection.

Coordinated responses to emergencies in Gaza in early 2007 and 2009.

Integrated assessments in refugee camps in the West Bank with the assistance of Non-Government Organizations operating in those camps.

Effective and long-term partnership with UNICEF in Syria including on youth leadership and participation, and child-friendly schools. Partnerships with UNICEF also strengthened in Jordan and Lebanon.

Strengthened partnerships, Agency-wide, with the Australian Volunteer International programme, the Norwegian Refugee Council, and the Swiss Agency for Development and Corporation

Through UNRWA@60, partnerships with private sectors entities such as Zain, NovoNordisk, and Saatchi & Saatchi.

Partnership with public and private hospitals in Lebanon, leading to increase of refugee access to hospitals from 15 to 35.

Part Seven—Conclusion

Introduction

Over the past three years, we have undertaken a complex and far-reaching basket of reforms that have undoubtedly improved the way the Agency operates.

The OD Plan we developed in 2006 has proven to be sound and we have, to a large extent, developed and implemented the initiatives agreed upon in 2006. In addition, we have also undertaken further reforms, deemed vital to the Agency over the period of OD.

The UNRWA of today has more strategic focus and is better placed to assess the needs of refugees and plan delivery of our services, taking into account our financial constraints. The policies and process that underpin and pave the way for us to delivery quality services are stronger and more aligned to meetings the needs of refugees. An acceptance and willingness to change has also filtered across the Agency. Our field offices are undertaking an array of innovative approaches to improving the quality of services and our headquarter departments continue to review and improve policies and practices for use across the Agency.

Implementation of OD has also come during a period where the Agency has had to respond to considerable external pressure, ranging from intense conflicts in some of our fields of operations to a global financial crisis that has adversely affected our financial situation. Our ability to continue and deliver reforms while addressing these challenges is testament to the importance we hold to improving our management capacity and, ultimately, our services for Palestine refugees.

Along with our success, we have also met with some challenges in implementing OD. Our work on process re-engineering and communication has made some progress, but more needs to be done. Our financial management systems and process also require considerable improvement. We have experienced delays in implementing a new classification and compensation system. And, we need to further build the capacity of staff, especially those that manage front-line services.

We recognise, however, that change, especially of the nature and complexity as we have embarked upon, does not occur overnight. The fruits of what have worked towards these past three years are gaining traction, but time is needed for their impact to ground into the Agency. The formal period of OD may be nearing its end, but change must continue to ensure full beneficial impact to the refugees we serve.

Through the period of OD, an important aspect in making long-lasting change has been ensuring the sustainability of our actions. As of the end of 2009, all twenty international posts, introduced through OD, were regularised into the Secretary-General’s budget. Other local posts brought on by OD have been, for the most part, included in our 2010-2011 biennium budget. The basic foundation to carry-on reforms has therefore been laid.

At the same time, sustaining change requires further work on our part to build management systems and develop staff so that the gains of OD reside in the fine fabric of the Agency. Full realisation of our OD goals will however not take place until the human development of the refugees we serve is bolstered. To this end, a series of reforms are now being introduced to improve our services in education, health, and relief and social services and in our fundraising capacity. The initial plans for these reforms will be discussed with the Advisory Commission at its June 2010 session.

Annex 1 - Financial Report of OD 2007 – 2009 Introduction

The present annex provides information on UNRWA’s utilisation of Organisational Development (OD) funds for the period starting from 2007 until 2009. It provides information on expenditures during this period by lever of change.

Taking into account that the Agency will complete implementation of initiatives under OD in 2010, the report also provides information on the expected expenditures in 2010.

Overview of Donor Contributions to OD

From 2006 until 2009, the Agency received generous contributions towards the OD programme. The table below provides the full list of contributions to the OD budget:

Table 1: Donor Contributions to Organisational Development

Donor Contribution (USD)

Netherlands 1,219,600

Australia 708,250

Canada 3,738,237

European Commission 2,836,405

Japan 250,000

Italy 2,819,012

United Kingdom 2,178,782

United States of America 4,550,000

Denmark 497,306

Sweden 3,087,385

Switzerland 2,459,912

TOTAL 24,344,889

Expenditures Incurred Under OD (2007 – 2009)

The OD programme was designed and implemented around four main areas of concentration. These were referred to as “Levers of Change” and formed the broad areas where developments occurred. The four levers of change were:

Lever One: Human Resources Lever Two: Programme Management Lever Three: Leadership and Management Lever Four: Organisational Processes and Systems

The OD budget was developed and managed in accordance with the above four levers of change. In accordance, the expenditures below are listed according to the levers of change they supported.

Lever One: Human Resources

Funds allocated under the Human Resources lever were used to support development of the Agency’s human resource practice. This included support to development of the Agency’s new classification and compensation management system, training of staff, performance management, HR policy and strategy development, and strengthening of the Human Resources Department and the Agency’s HR functional networks.

The below table provides an overview of the expenditures under the Human Resources Lever from 2007 to 2009.

Table 2: Expenditures under Level One: Human Resources

Initiatives Expenditure (USD)

Staff Development and Training 231,837

Building the capacity of Human Resources (staffing, policy development, consultancies)

1,058,682

Administration of Justice System 215,705

Compensation and Classification System 709,180

General Support Costs to HR reforms 179,795

TOTAL 2,395,199

Lever Two: Programme Management

Funds allocated under the Programme Management lever were used to increase UNRWA’s programme management capacity. This included development of Programme Cycle Management tools and processes, establishment of Field Programme Support Offices, strengthening of Headquarter departments, monitoring and evaluation capacity, development of the Medium Term Strategy and corresponding Field and Headquarter implementation plans, and development of cross-cutting policies.

The below table provides an overview of the expenditures under the Programme Management Lever from 2007 to 2009.

Table 3: Expenditures under Level Two: Programme Management


Development of Programme Cycle Management and Cross-Cutting Policies and Tools

833,140

Development of the MTS 197,756

Budget Reform 199,798

Strengthening the capacity of Programme Departments (Education, Health, Relief and Social Services, Infrastructure and Camp Improvement)

683,781


Strengthening Field Offices in terms of Programme Support

1,263,646

TOTAL 3,178,121

Lever Three; Leadership and Management

Funds under the Leadership and Management lever were used to cover a wide range of initiatives that strengthen overall leadership capacity of the Agency. These included the Leadership and Management Development programme, strengthening of the Agency’s audit, public information, and external relations functions. Funds under this lever were also used to assist in the development, coordination, and overall management of the OD programme.

The below table provides an overview of the expenditures under the Leadership and Management Lever from 2007 to 2009.

Table 4: Expenditure under Lever Three: Leadership and Management


External Relations 251,488

Strengthening Agency Oversight Capacity 45,520

Leadership and Management Development Programme

982,428

Strengthening the Agency’s Executive Management functions (Executive Office, Public Information, Communication, etc)

2,422,758


Development, Coordination, and Management of policies, processes, and initiatives related to OD

2,057,269

General Support Costs for implementation of OD (travel, workshops, equipment, support to field offices, audit, evaluations)

628,994

TOTAL 6,388,457

Lever Four: Organisational Processes and Systems

Funds allocated under the Organisational Processes and Systems lever were used to realize improvements in organisational processes and to bring about improvements to key Agency systems, such as in IT and procurement.

The below table provides an overview of the expenditures under the Organisational Processes and Systems Lever from 2007 to 2009.

Table 5: Expenditures under Level Four: Organisational Processes and Systems

Initiative Expenditure (USD)

Support to departments to realize policy and process improvements (procurement, IT, legal affairs)

439,919

Development of IT systems 477,644

Upgrade of IT infrastructure 1,644,731

Startup costs for ERP 1,332,000

TOTAL 3,896,350

Overall Expenditure

The below table provides an overview of the aggregate expenditures for all levers of change under OD from 2007 to 2009.

Table 6: Overall OD Expenditure (2007 to 2009)

Lever of Change Expenditure (USD)

Human Resources 2,395,199

Programme Management 3,178,121

Leadership and Management 6,388,457

Organisational Processes and Systems 3,896,350

TOTAL 15,858,127

Expected Expenditures under OD in 2010

In 2010, the Agency continues implementing its OD initiatives, using existing resources. The contributions provided under OD will be used in 2010 to finalise initiatives under OD and to allow field offices to continue with reforms under OD.

It should be noted that savings have been identified under OD. These savings are mainly attributed to the inclusion of posts, funded originally by OD, into the Secretary-General’s budget. In 2009, the Agency was unsure whether all twenty posts requested for inclusion into the Secretary-General’s budget would be regularised. As a result, to ensure continuity of these important posts (e.g. Spokesperson, HR Director, Field Programme Support Officers), arrangements were made to include these posts in 2010 into the OD budget. In December 2009, the Agency was notified that all twenty posts were included in the Secretary-General’s budget. As a result, savings, as highlighted below, have been identified. The inclusion of these posts provide the Agency with the capacity to sustain important OD initiatives and will also allow the Agency to proceed with continuing certain areas of reform that would be included in Sustaining Change Plan.

The below table provides an overview of the expected expenditures for 2010.

Table 7: Expected OD Expenditures in 2010


Human Resources

Classification and Compensation 2,138,135

Performance Management 145,000

Staff Development 388,000

Staff Relations 27,300

HR Strategy Development and HR Capacity

196,000

Internal Justice Reforms 180,000

Area Staff Reviews 219,464

Programme Management

Project Management Capacity 240,000

Jordan Multi-Indicator Cluster Survey 30,000

Disability Policy 30,000

Data knowledge management on strategic objectives

119,700

Gender 135,000

Development of Results Based Management System

238,500

Education Reform

200,000


RSS Reform 200,000

Health Reform 200,000

Infrastructure and Camp Improvement Capacity Building

70,000

Leadership and Management

Jordan Field Office Reform Support 153,642

Lebanon Field Office Reform Support 313,100

Syria Field Office Reform Support 169,606

Gaza Field Office Reform Support 171,334

Leadership and Management Development Programme

532,999

Fundraising Reform 13,000

Advocacy and Communications Initiative 100,000

Investigation and Evaluation Capacity 225,000

Change Management Support Costs (staff, audits, surveys)

312,200

Organisational Processes and Systems

Finance Reform 250,000

Financial reporting 41,700

Regulatory Framework 500,000

Funds to be allocated

Allocations to be made – funds to support, where possible, cost increases in some projects (e.g. CCPM) or sustaining change initiatives

947,082

TOTAL 8,486,762

Table 8: Overall Use of OD Funds

Funding Actions/Plans USD

Expenditures from 2007 to 2009 15,858,127

Planned expenditures for 2010 8,486,762

TOTAL 24,334,889

Organisational Development in UNRWA

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