SAF Transformation and Modernization Initiative:

December 4, 2007 SAF/DHR

SAF Transformation and SAF Transformation and Modernization Initiative:Modernization Initiative:

The Human Resources ComponentThe Human Resources Component

December 4, 2007 SAF/DHR 2

What will this presentation cover?

I. Purpose of Transformation Initiative: Context

II. Personnel Costs

III. Our Staff

IV. Contracting Mechanisms

V. Actions towards Transformation

VI. Next steps


I. Purpose of Transformation Initiative:I. Purpose of Transformation Initiative: ContextContext


Purpose of Transformation and Modernization

We seek to remain a dynamic organization with policies and practices that reflect “state of the art” management and are supportive of future requirements.

This requires the General Secretariat to engage in an on-going review of current and past practices, learn from experience and develop new, improved approaches in a proactive matter.

Since the human resource base of the Organization has not grown at the pace of new mandates, it must become more efficient and effective.


Complex and Evolving Environment

The role of the General Secretariat is changing as the mandates and projects increase in number and complexity.

The GS/OAS has to respond to the mandates and expectations of Member States and contributors.

In 2007, we managed:

Approximately 720720 projects in Member States, impacting a vast population throughout the Hemisphere. An annual budget of US$163.0US$163.0 million. Funds from 170170 donors.

The GS/OAS provides its services through its human resources.


II. Personnel CostsII. Personnel Costs


Budget and Funds

The GS/OAS managed in 2007 a budget of US$ 163.0 million.

Regular Fund: $ 84.4 MillionOther Funds: $ 78.6 Million

Regular Funds52% Other Funds

48%


Personnel Costs

The GS/OAS estimated personnel expenditures in 2007 is US$ 65.2 million.

Regular Fund Personnel: US$ 52.8 MillionSpecific Fund Personnel: US$ 12.4 Million

* Total Specific and Regular Fund Personnel Expenditures= 41% of total budget.

Total budget of US$ 163 million

SF (Non-Personnel)

40%

SF (Personnel)

8%

RF (Personnel)

33%RF (Non-

Personnel)19%

Total Expenditures for 2007

Non-Personnel

Expenditures59%

Personnel Expenditures

41%*


Evolution of Personnel Costs in millions of US$

In 1999 payroll was 46.5% of total budget and in 2007 it is 41%.

$47.20 $45.90 $47.40$51.53 $53.40 $55.80 $55.30

$59.50$65.20

$41.6 $41.5 $42.9$46.7$45.1

$48.0 $46.9 $49.0$52.8

$5.6 $4.4 $4.5 $6.4 $6.7 $7.8 $8.4 $10.5 $12.4

1999 2000 2001 2002 2003 2004 2005 2006 2007

RF Personnel SF Personnel Total Personnel

*

Total Budget US$ 101.4 Million

Total Budget US$ 163 Million


674750 741

632 626669

612 637719

597 609671

724

544550541560578576

657709

536478 486 509 529

18313041 84 56 48

10971 87

195162

123119

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Sta

ff

Total RF SF

Staff Member Count 1995-2007


III. Our StaffIII. Our Staff


Please note that:

The staff figures presented are based on the “Headcount” Report as of September 30, 2007, including 21 Associate staff.

It is important to note that the record for Local Professionals and Temporary Support Staff is incomplete at this time.


0

10

20

30

40

50

60

70

SG/ASG D02 D01 P05 P04 P03 P02 P01 G07 G06 G05 G04 G03 G02 G01

Female

Male

Gender Staff %

Male 322 44%

Female 402 56%

Total 724 100.0%

Our StaffGender and Grade

473 Professionals 251 General Services


Organization Average Age

OAS 44

UN 46

World Bank 45

26

197

186

151

164

0 50 100 150 200 250

18-25

26-35

36-45

46-55

56+

18-25 26-35 36-45 46-55 56+

*

Our StaffAge

* Mandatory Retirement Age is 65.


Please note:

• Mexico is included in North America

• Geographic Representation will be reviewed in January 2008 per Budget Resolution AG/RES. 2353 (XXXVII-O/07)

Our StaffDistribution by Region*

Region Staff RF SFALADI 393 275 118CARICOM 86 74 12Central America 81 62 19North America 150 116 34Other 14 2 12TOTAL 724 529 195

* Based on Citizenship on date of hire

ALADI54%

Other2%

Central America

11%

North America

21%

CARICOM12%


Our StaffProjected retirements 2007-2011

Year G-1 G-2 G-3 G-4 G-5 G-6 G-7 Total P-1 P-2 P-3 P-4 P-5 D-1 Total TOTAL

2007 1 4 5 1 3 3 7 12

2008 1 2 1 4 1 5 6 10

2009 1 1 1 2 1 6 1 2 5 1 9 15

2010 3 4 1 8 1 1 2 2 6 14

2011 1 3 4 1 3 2 6 10

Total 2 3 10 10 2 27 2 3 3 13 13 34 61


IV. Contracting MechanismsIV. Contracting Mechanisms some issues encountered…some issues encountered…


OAS and all other multilaterals have not kept pace with industry standards and trends with regards to human resources contracting.

Changes to the standards have been minimal and with a focus on solving crises or specific issues, not the long term management of resources.

As a result, hiring mechanisms are not user friendly.

Mechanisms now in place respond more readily to the mandates of the Regular Fund. They do not respond appropriately to Specific Fund needs.

In the following slides you will find a short description of the hiring mechanisms currently used by the General Secretariat.

Contracting MechanismsSome issues encountered…


Permanent Staff: Career Service: perform any function or task or hold any post corresponding to the personal grade. The SG/OAS shall give them preferential consideration in the case of a RIF. The career service is being phased out as incumbents retire (125 staff members).

Continuing Contracts: Individuals with 5 years or more of service in posts financed by the Regular Fund who have won a recruitment competition and fulfill requirements (93).

Staff on contract for a limited time:Long term:(1 to 5 years) Designated to carry out continuing GS needs(164 staff members).

Short term: (Less than 3 years) Designated to carry out special projects or activities (236).

Trust Appointment: Appointed by the SG to perform the duties and functions entrusted to them. Their duration is the SG’s term, with exception of career and continuing contract appointments (56).

Contracting MechanismsDefinitions

Complex and confusing hiring mechanisms are a major subject for review of the transformation initiative.


Local Professional Contracts (LPC):Professionals who provide services in national offices and are regulated by national labor laws of duty station.

Temporary Support Personnel (TSP): General Service staff who provide services away from Headquarters and are regulated by national labor laws of duty station.

Special Observers Contractors (SOCs): Short term contracts. Event based projects or missions in national offices with a maximum length of service of 11 months, 29 days (28 staff members).

Associate Personnel: Individuals appointed in accordance with agreements or contracts concluded with other institutions participating in programs of common interest. Not paid by the OAS (21 staff members, including 12 in the Trust for the Americas).

Contracting MechanismsDefinitions (Continuation)


Regular Fund (529 staff members)

Career23%

Other RF59%

Continuing Contracts

18%

Contracting MechanismsContinuing Contracts

Facts:

According to Article 19 of the General Standards, the GS shall maintain a target percentage (between 40-50%) of RF financed personnel appointed under Career and Continuing Contracts.

The current continuing contract target percentage represents 41% of the RF.

The Continuing Contracts and Career Services (93 persons), constitute 30% of RF & SF.

Regular and Specific Funds (724 staff members)

Other contracts

70%

Career17%

Continuing Contracts

13%


Contracting Mechanisms Trust Positions

Facts:

According to Article 21 of the General Standards, the number of trust appointments should

not exceed 8% of the posts financed by the Regular Fund.

With the growth of SF staff, the GS/OAS considers, and will make a proposal, to base the trust percentage on the total staff, irrespective of funding source.

522 RF Approved Posts (2007 Budget)

Trust10.7%

Other RF posts89.3%

Regular and Specific Funds Posts

Other posts92.27%

Trust7.73%

Profile based on Existing NormsProfile based on

Proposal to cover all staff


The CPR mechanism was created as a tool to contract independent service providers to meet GS/OAS requirements, as specified in the terms of reference.

It allows the GS/OAS to procure vital services, including janitorial, maintenance, security; as well as to conduct studies, carry out special projects, and fill short-term human resources gaps with some degree of flexibility.

A CPR is neither an employee nor a staff member.

Over the last decade, the use of the CPR mechanism has expanded to become a “hiring” tool by which technical areas supplement the need for additional staffing. This is partially because it is too complex to hire them under other mechanisms and because of the RF limitations.

Next Steps for SAF:

Analysis of current CPR flow, processes and applicable rules and regulations.

•For more details see the Semi-annual report for June 2007. CP/CAAP-2930/07

Contracting MechanismsPerformance Based Contracts (CPRs)


V. Actions towards TransformationV. Actions towards Transformation……solving issuessolving issues


A. Organizational DesignStaff Rules Review Project

Posts classification

B. Recruitment and SelectionContracting Mechanisms

C. Retention and Development

Performance Evaluation System

Training

Transformation and ModernizationWhat are we focusing on?


Organizational DesignStaff Rules Review Project

Purposes: Harmonize existing Staff Rules with General Standards. Identify areas of improvement.

Actions Taken: Task force has completed its work to harmonize Staff Rules with current General Standards.Draft of a revised version of the Staff Rules containing clarification and streamlining of procedures and concepts.

Next Steps for SAF:

Continue to identify areas for improvement.Review of best practices from other International Organizations and incorporate into the revised version of the Staff Rules. Issue an Executive Order with the revised Staff Rules.


Purpose:To ensure the staffing structure responds to staffing requirements.

Actions taken:Benchmarking with other International Organizations, such as UN, World Bank and PAHO.

Review of the entire classification process.

DHR with the assistance of a UN classification expert reviewed and audited urgent reclassification requests.

Next Steps for SAF: Propose a clear procedure and calendar linked to budget.

Implement standardized job descriptions for same level jobs in the GS/OAS.

Organizational DesignPosts Classification


Recruitment and SelectionContracting Mechanisms

Purposes:

Modernize standards and systems to streamline recruitment process.Simplify and make contracting mechanisms more user friendly.

Actions Taken:Analysis of existing contracting mechanisms, including CPR, TSP and Local Professionals.For the first time since the implementation of ORACLE we have corrected the ORACLE database, linked budget to positions, and designed a Position Control System.

Next Steps for SAF: OASES Upgrade (maximize use of existing ORACLE functionality and integrate redefined business processes into the system).Early Involvement in the program/project design to ensure mechanisms meet Organizational needs.DHR is creating a LP/TSP personnel database.


Purposes: Align individual work objectives to Organizational goals.Manage and evaluate staff performance.Take specific actions as a result of the Performance Evaluation.

Actions taken:Launching PES and training on Individual Objectives (June & July 2007).2/3 of staff members’ individual objectives already in the system by their supervisors.

Next Steps for SAF:Continuous training. Complete Performance Evaluation System in place by March 2008.

Retention and DevelopmentPerformance Evaluation System (PES)


Training programs are essential to prepare and equip staff with the skills and tools necessary to both navigate the transformation process and to operate within a modernized GS/OAS.

SAF is developing a structured and targeted Training Strategy and Policy to support the development of staff members.

Will be aligned with post competencies.

SAF is training staff on: Management Skills, Administrative personnel development (e.g. AGA Courses), Effective communication and negotiation skills, Performance Management, Software Skills, Spanish for the OAS Offices in the Caribbean, and is developing a training program to support the OASES Upgrade.

Retention and Development Training


VI. Next StepsVI. Next Steps for CAAPfor CAAP


Next Steps for CAAP

CAAP’s commitment and support is paramount to ensure the process of transformation and modernization within the Organization.

We will share with you in the coming months our evolving plans on revisions to the contracting mechanisms and Staff Rules, and we will propose changes to the General Standards.

This will facilitate the General Secretariat and CAAP to:

Monitor organizational trends, anticipate changes and measure their impact on budgetary and administrative decisions.

Support organizational strengthening and capacity to deliver on mandates.

SAF Transformation and Modernization Initiative:

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