2007 Annual Report

Common Systems

In 2006 and 2007, even as the preparation of the Strategic Plan began, UNDP kicked off a series of initiatives to strengthen its coordination role and improve its internal management. One important step involved a reconfiguration of management structures at the global and national levels. A clearer division of responsibilities between the UNDP Administrator and the Associate Administrator means that the former focuses on strategic policy guidance and overall coordination of development in the UN system, including by chairing the UN Development Group. The Associate Administrator oversees the daily operations and management of UNDP programmes.

A clearer division of responsibilities between UNDP Administrator Kemal Derviş (left) and Associate Administrator Ad Melkert (right) supports UNDP’s coordination and operational roles.

Reflecting this structure, within countries the lines of responsibility between the UN Resident Coordinator and UNDP have been further clarified. This ensures that while the UN Resident Coordinator system remains funded and managed by UNDP, it is dedicated to the impartial coordination of country teams of UN agencies and to promoting synergies in UN operations. UNDP country offices work as part of the teams, contributing programmes that draw on UNDP expertise, support national priorities and fit within the overall framework of the UN development plan in a given country.

To strengthen the position of Resident Coordinators as joint UN entities, candidates are now appointed through an inter-agency process and assessed. In 2006, the UN Development Group conducted a 20-country pilot of a two-way system of performance evaluation between the coordinators and the managers of individual agencies. The system assesses factors such as communications skills, team leadership and team commitment, and has now been expanded to 100 countries. In 2007, in addition to induction training meant to cultivate a common understanding of the Resident Coordinator system, Resident Coordinators began participating in in-service briefings on emerging global trends. These provide an opportunity to share knowledge and draw connections to national issues. Since the UN is essentially creating a new model for its operations, other training focuses on accountability, leadership and assessment.

A priority for the UN Development Group agencies has been to articulate a common strategy for capacity development that supports national development plans. In 2006, the group agreed on joint guidance for UN country teams that will help national partners assess capacity strengths and weaknesses, and map out how the UN can help fill the gaps.

A second agreement harmonized the transfer of funds from the core UN Development Group agencies to national recipients, a process that had previously been fraught with many different and complex requirements. This simplifies procedures for national partners, and puts in place systems for assessing and managing risk. The UN Development Group also agreed in 2006 on principles for a harmonized cost recovery rate for joint programmes and multi-donor trust funds, a step towards streamlining implementation.

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Managing for results

Within its own house, UNDP has developed an organizational culture oriented around producing results, as has been widely recognized by national partners, donors and other international institutions. The Strategic Plan builds upon this achievement while making a substantial advancement in a critical area: better measurement and evaluation of results. The plan proactively links programme activities with a set of strategic outcomes that reflect the core of UNDP’s development support. Country offices will use these outcomes to align their programmes with the Strategic Plan, while having some flexibility based on national circumstances.

Through the focused and accessible production of performance data based on the strategic outcomes, the plan will help capture immediate outcomes so that all development partners can scrutinize the quality of UNDP’s contributions. At the same time, through a central emphasis on capacity development, the plan recognizes that the growth in capacities, although at times harder to pin down, will sustain these outcomes and continue producing others over the long term.

In the Strategic Plan and elsewhere in its operations, UNDP has made a strong commitment to increased accountability and transparency, essential elements for the responsible stewardship of its resources. As a decentralized organization embracing an array of cultures, with current operations in 166 countries and staff from 152 nations and territories, UNDP faces unique management challenges. Some of these relate to performance expectations, so in 2006 the organization began putting in place a new management accountability framework. It draws tighter links between planned results and the responsibility of individual managers for delivering on them. A revised legal framework covers non-compliance with ethical and professional standards. To uncover any potential conflicts of interest, senior staff, and those in procurement and investment functions are now required to file financial disclosure statements. An internal online Executive Snapshot platform presents comprehensive and instantly available information on any UNDP office in the world, including data on expenditures, programme delivery rates and staffing.

Additional resources have gone into internal audit and investigative functions. Internal audit reporting now includes new elements to improve the analysis and monitoring of significant and recurring issues, while a quality assurance unit at headquarters analyses systemic concerns rising from audit recommendations. Web-based dashboards track follow up, ensuring that responsible managers and offices or units take action. UNDP is now developing an Enterprise Risk Management system, which consolidates existing risk management policies and procedures into one systematic framework for monitoring and managing risks. The initiative will also respond to recommendations from UNDP partners and audits, and will positively affect how the organization operates, makes decisions and proactively manages its activities.

Other developments during the year included the introduction of a risk-based system for planning internal audits. A risk-based methodology to assess complaints resulted in more timely and effective responses to cases requiring full investigation, and a doubling in the number of cases closed within the year. The strengthening of regional audit offices based in Bratislava and Beirut is allowing a more thorough and tailored response to country offices in each region. Globally, UNDP is moving with the rest of the UN system towards implementing the International Public Sector Accounting Standards.

Evaluation has now been built into all aspects of UNDP’s programming, and is conducted in accordance with a new corporate evaluation policy approved in 2006. A total of 231 evaluations were carried out that year. Baseline criteria assess performance related to advancing human development and human rights, supporting UN system coordination, engaging in global partnerships, encouraging national ownership and managing for results. The organization’s online information management system, the Evaluation Resource Centre, was revamped to provide timely access to data on evaluation planning, management response and follow up, with reports from 2002 onwards.

New operational efficiencies have been introduced through a centralized procurement system. Atlas, UNDP’s resource management platform, now permits the instantaneous collection of data on all procurement services globally. Substantial cost savings have come from streamlining UNDP’s payroll process so that all staff are paid on the same schedule. Staff from UN Volunteers were integrated into Atlas for the first time, paving the way for the integrated human resources management of all staff from UNDP and its affiliated funds.

A particular priority at UNDP has been improving the organizational track record on gender balance, both internally and in external programmes. Steady progress was made in 2006 on appointing more women to senior posts; they now comprise a third of Resident Representatives, the leaders of UNDP country offices, up from a quarter two years ago. Five of the nine managers in the second highest tier of the organization’s global administration are women. A gender committee reports to the UNDP Administrator on gender issues across the organization, and the staff capacity of the global gender programming unit has increased. A next step will be expanding the Atlas system to precisely identify the whole range of UNDP’s investments in women’s development and rights. 

Within the UN system, UNDP is unique in conducting annual global surveys of its staff, a practice that began in 1999. Over the years, participation has soared, and marks have significantly and steadily improved on issues such as the performance of management, staff morale and the resolution of grievances. In 2007, UNDP began summarizing the survey and making it available to the public through the UNDP website.

UNDP continually invests in the professionalism of its staff—71 percent now participate in UNDP’s global knowledge networks, online communities that facilitate collaboration and the exchange of information on subjects narrow and broad, from particular details of how to implement UN reform initiatives to the MDGs. Eighty percent have said the networks benefit their professional development and the productivity of their office. Over 2,000 UNDP staff members have been certified in project management, procurement, human resources and finance.

In 2007, after a global search, UNDP chose suppliers for training and certification assessments related to project management and business process design. These services will be available to most UNDP offices, helping to standardize and boost the effectiveness of its staff training, as well as to some counterpart government institutions. UNDP also began an initiative to identify highly experienced staff who could be quickly deployed in the immediate aftermath of crises, ensuring the organization can maximize its response and have the right people in place in situations where they are needed most.

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