Bringing Brazil back office innovations into the spotlight
BY Maria Helena Mizuno Moreira | December 6, 2017|Comments 0
If you work outside the United Nations system you might assume that we consistently pool our resources. But we don’t. This is largely due to the fact that the UN organisations were created one by one by the UN Member States over the last 70 years, and the different UN organisations therefore had to set up their own internal management structures – not unlike different ministries in a government. In the past, cost savings have been pursued UN agency by UN agency within their sometimes very different business models. As part of the drive for better services and reduced costs, however, the UN has been reconsidering this model, and are trying out new methods for pooling back office functions to better serve the populations we work for.
The UN in Brazil is one of the four integrated business centers across the UN system that are piloting this new way of working. We named it the Joint Operations Facility, or the JOF (yes, we love acronyms in the UN!). The other integrated business pilots are in Cape Verde, Copenhagen and Viet Nam.
In Brazil, we began 18 months ago with the idea of simplifying business processes and integrating services across UN entities. Out of 22 funds, programmes, and specialized agencies working in Brazil, six agencies endorsed this project: UNDP, UNFPA, UNESCO, UN Women, UNOPS and UN Environment, with UNAIDS as a partner agency.
With the support of the UNDG Business Operations Working Group and the UN High-Level Committee on Management, we conducted a strategic review of business operations in the country. We assessed our procurement, IT and human resources needs and created a business case for pulling these back office functions together. This analysis was the official start of our Joint Operations Facility in Brazil.
What does integrating business operations really mean?
Setting up this facility meant creating a new team to fully address the new needs of these agencies in country. We created new positions for procurement, travel, ICT and a manager that oversees the work of the team. The JOF Manager reports to the UN Resident Coordinator, who shares the governance of the facility with the six agencies participating in the initiative.
For decisions, we follow the General Assembly “one vote one voice” principle, so each agency has an equal say regardless of the size or volume of goods or funds they channel through the facility.
Now 18 months later, we are proud to say that the members of this facility are working together on a single service platform centralizing procedures and business operations in the areas of procurement, travel, information and communications technology. Centralizing services allows for several benefits such a sharing the costs and risks, and allowing staff to specialise and therefore increase the quality of services.
The bumpy parts
As with any new endeavor, the UN in Brazil faced several obstacles including entrenched practices, cultural clashes, and different ways of thinking. Some entities felt that they took an unfair financial hit and perceived a disadvantage in their business services, while smaller entities already counted on the facility to sustain their activities.
Other lessons that we learned during these 18 months of journey are:
- Never underestimate transition periods: What we realized during the process is that setting up solid administrative support services requires an investment, and the transition period shouldn’t be underestimated.
- Technology to the rescue: The ICT tools that the facility used were initially connected with specific UN entities’ requirement. We soon learned that this was too complex. A second generation of ICT applications and portal will be released soon allowing automated monitoring to improve control, transparency and operational efficiency.
- When duplication happens, breathe, and phase it out: Some of the participating agencies preferred to keep parallel internal operational structures. This was redundant to the purpose of the Joint Operations Facility, and agencies quickly realized that it was not sustainable and these structures are being phased out gradually.
The lack of a global UN-wide common procurement manual has been a challenge, and we are trying to identify and adopt already existing operational good practices across the UN system to have a common framework. As a work-around, we are now working on our own common manual for procurement to consolidate practices including the adoption of a harmonized procurement manual. This has been a difficult and time consuming process.
We believe that by expanding and providing additional procurement services, as well as launching the shared human resource services, we will ensure the sustainability and relevance of the facility. We are currently negotiating the provision of services to more agencies through service legal agreements, we will keep you posted in the number of agencies joining us!
The silver lining
It’s safe to say that our hard work ultimately paid off. Since launching the facility in March 2016, we are developing new procedures and tools to streamline our work. By simplifying and revamping our internal business flows, we are reducing our common operation footprint while improving the collective efficiency and saving costs.
In terms of next steps, some already see the opportunity to expand this facility into a regional hub. As the only integrated service center in the Latin America and the Caribbean region, building in the current structure we would have the potential to provide business operations services to multiple countries to increase cost savings and improve quality of office services. So we feel that this is just the beginning of an exciting project.
Despite the hurdles, we trust that we are on the right track and will continue to support the United Nations to think outside the box and construct innovative, efficient and effective mechanisms to achieve the 2030 Agenda.
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