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Consideration of Elements of the Draft Strategic Framework and Medium Term Plan
Functional Objectives
Executive Summary Building on comments made at earlier meetings of Working Group I, as well as at recently concluded sessions of the Programme and Finance Committees (May 2009), revised formulations for the two identified Functional Objectives (FO X and FO Y) are submitted for Working Group I consideration, together with fuller justifications of their rationale.
Background
- At its meeting of 16 April 2009, CoC-IEE Working Group I considered a paper: Discussion of Draft Results Frameworks (Strategic Objectives and Functional Objectives) , including the work-in-progress formulations of the Functional Objectives X (Effective collaboration with Member states and stakeholders) and Y (Efficient and effective administration). The Working Group concluded, inter alia, that additional information was needed for Members to better appreciate the rationale of Functional Objectives and contribute to their final formulation. In addition, Members specifically requested a review of gender and country representation targets under Functional Objective Y.
- The Joint Meeting of the Programme and Finance Committees (13 May 2009) also reviewed the draft formulations of the two Functional Objectives and expected further improvement, informed by the findings of the Root and Branch Review.
- The purpose of this paper is to clarify the purpose and scope of the Functional Objectives, and present updated formulations for review by Working Group 1.
The purpose and scope of the Functional Objectives
- The Functional Objectives cover how FAO works – the enabling environment and means of action – to effectively and efficiently achieve what the Organization has committed to deliver to Members – the Organizational Results of the Strategic Objectives. The Functional Objectives apply a results-based framework to management and administrative services, and to the eight core functions highlighted in the IPA. The aim is to ensure a corporate approach to execution of these functions and services, while also providing a basis for measuring improvements.
- A set of guiding principles^1 was applied by management in the formulation of the Functional Objectives and their associated Organizational Results and Indicators, as follows:
- define clear, measurable results and indicators wherever resources are applied, in particular for support functions and those that manage or coordinate substantive inputs or approaches;
- provide for measurable results and indicators related to the strategic and coherent application of core functions across the Organization;
(^1) Management paper “ Possible Functional Objectives and Organizational Results for FAO ” considered at the WG I meeting of 28 July, 2008.
- distinguish between administrative and other “overhead” activities (FO-Y) and collaboration activities leading to an enabling environment for the Organization to effectively undertake its work (FO-X);
- consolidate and focus results, in order to address areas where the IEE found improvements were required.
Functional Objectives – Overview
- In line with the guiding principles, management’s delineation of what should be encompassed within the Functional Objectives proceeded from the basic requirement that all of the work of the Organization, including support functions and other transverse areas, be subjected to a results-based framework. This was conditioned by the nature of the work being undertaken within the defined Strategic Objectives, as well as the need to separately identify an administrative budget.
- Functional Objective Y provides for efficient and effective administration in carrying out FAO’s work_._ It sets out the expected improvements in services provided to all organizational units in the areas of finance, human resources and administrative and infrastructure services. This will allow for improved monitoring and reporting on administrative services and related costs, continuous enhancements to service levels and identification of possible savings and efficiency gains. FO-Y will also define the administrative budget called for in the Immediate Plan of Action, which could potentially be placed in a dedicated Chapter in the new PWB structure. Further discussion on a possible new Chapter structure and the related Appropriations Resolution will take place at the Finance Committee session in July 2009.
- Functional Objective X provides for effective collaboration with member states and stakeholders covering a diverse range of functions in four Organizational Results:
(X1) Effective programmes addressing Member priority needs are developed, resourced, monitored and reported at global, regional, national levels , through: identification of priority areas for FAO's support and their translation into effective programmes at all levels, ensuring a solid funding base using a resource mobilization strategy which increases un-earmarked funding and better targets priorities, a coherent corporate framework to ensure that HQ and field units work together as one organization, mainstreaming of results-based practices across FAO and a corporate framework for quality assurance;
(X2) Effective and coherent delivery of FAO core functions and enabling services across Organizational Results by promoting the application of interdisciplinary approaches for achieving results, ensuring coherence in the application across the Strategic Objectives of the FAO core functions covering: advocacy and communication; information, knowledge and statistics; technical, policy and legal advice; support to capacity building; and support to development of international instruments. X2 revolves around strategies and related approaches, tools and methodologies for each of the core functions, for example:
- a strong policy assistance node will be established in order to ensure coherent, coordinated and high quality policy assistance;
- the Organization will disseminate information regarding best practices in drafting legislation in agriculture and natural resource management;
diverse set of areas, in particular how Core Functions can be adequately represented and measured through primary tools and indicators under Organizational Result X2.
Next steps in the formulation process
- Given that the bulk of the work covered under the Functional Objectives is delivered as internal support to managers of the Strategic Objectives, the FO formulations will require further input from the Strategic Objective Teams – a process that has begun for Functional Objective Y. Moving forward, there is the need to ensure adequate and appropriate focus within FO X, validated by consultation with the Strategy Teams, on improving the Organization’s approach to applying Core Functions across the Strategic Objectives.
- Feedback on FO Y formulation has thus far been largely positive, although some improvements to Organizational Result Y3 title and indicators have been proposed based on the outcome of Finance Committee discussions of document FC 126/16 “ Progress Report on Implementation of Human Resources Management ”, to better reflect the importance of appropriate HR policies.
- Based on the process described above and input received from Members, management will continue to refine the structure, content and formulation of the Functional Objectives and their associated Organizational Results, indicators and primary tools.
- The results-based formulations of the two Functional Objectives in the standard IPA presentation format are shown in Annex, including elaboration on the indicators and targets for improved gender and country representation under Functional Objective Y.
FUNCTIONAL OBJECTIVE X -
EFFECTIVE COLLABORATION WITH MEMBER STATES AND
STAKEHOLDERS
Issues
The Organization relies on a variety of services, delivered both in-house as well as in collaboration with Members and external Partners, in order to achieve results. Many of these services go well beyond the scope of pure administration, touching upon elements directly related to honing strategic direction, leveraging and focusing on comparative advantage and properly governing and overseeing the totality of FAO operations. In the new FAO results hierarchy, these services provide the enabling environment without which the outcomes of the Organizational Results under the Strategic Objectives cannot effectively be achieved.
Four sets of services have been identified, involving cooperation among a wide range of organizational units and applied at all levels of FAO’s work, to ensure:
- Effective programmes addressing Member priority needs are developed, resourced, monitored and reported at global, regional, and national levels
- Effective and coherent delivery of FAO core functions and enabling services across Organizational Results
- Key partnerships and alliances that leverage and complement the work of FAO and partners
- Effective direction of the organization through enhanced governance and oversight
These four sets of services are defined as Organizational Results under this functional obective.
Assumptions and Risks
- Assumption of continued commitment of all stakeholders and partners to the mission of the Organization, matched by a climate of transparency and trust between Members and the secretariat
- Assumption that a wide range of organizational units will collaborate efficiently and effectively
Organizational Result X1 - Effective programmes addressing Member priority needs developed, resourced, monitored and reported at global, regional and national levels
The Challenge is to ensure that FAO can effectively leverage the available resources – both assessed and voluntary – to address the issues facing Members in the areas of its mandate. To do so requires that FAO’s programmes be based on a systematic identification of Members’ priorities at global, regional and national levels, along with a careful analysis of FAO comparative advantages and capacity vis-à-vis other UN agencies and development partners. The new results-based approach provides the framework and means to sharpen the focus of the Organization’s interventions and improve organizational learning so as to contribute to enhanced credibility with Members and other stakeholders.
Organizational Result X2 - Effective and coherent delivery of FAO core functions and enabling services across Organizational Results
The Challenge is to ensure that the world’s knowledge of food and agriculture is available to those who need it, when they need it and in a form they can access and use. FAO must therefore emphasize its dual role as both a provider of knowledge and a facilitator of knowledge flow within the global community. In order to accomplish this, the Organization must effectively leverage its core functions – the critical means of action embodying FAO’s comparative advantage – across the Strategic Objectives. This will require coherent approaches, mutual learning and the pursuit of excellence.
The Organization is in need of a coherent approach for statistics , as called for in the recent evaluation, and will need to implement adequate measures in order to achieve this. Communication and advocacy are at the heart of FAO’s functions as a Knowledge Organization. The Organization must communicate internally and externally in a timely and consistent way at global, regional and country level – demonstrating leadership and rallying support for the global drive to eradicate hunger. This should lead to an improved understanding by policy makers of the need for development policies that promote agriculture and the rural sector and lessen food insecurity and poverty, including the need to mobilise increased resources. There is also the need to ensure that the role and contribution of FAO is recognized among policy makers and those who can influence them, including the general public. Information Systems and Technology must assist the Organization to achieve its goals through enhanced information generation and dissemination systems that provide both internal and external stakeholders’ access to relevant and integrated information and global coverage.
The Organization must play a catalytic role in partnership with national and international actors by delivering high quality integrated Capacity Building/Development support grounded in national, regional and global plans that combines normative, operational and convening activities. Guided by a corporate capacity building/development strategy, FAO will facilitate a sustainable capacity base in member countries and regions relating to food security, agriculture and rural development.
FAO must effectively utilize the knowledge available within the Organization as well as its partners to support Members and their Regional Economic Integration Organizations (REIOs) in the areas of policy advice, capacity building in policy formulation and implementation, institutional strengthening and restructuring, country policy intelligence and information, policy monitoring and field programme development. To ensure coherent, coordinated and high quality policy assistance requires a corporate approach supported by appropriate mechanisms for greater interdepartmental collaboration. One important tool to implement policy is legislation – and the Organization has recognized the need to improve the coherence, consistency and timeliness of legal advice and legal services provided to governing bodies and international instruments. Interdisciplinary work is carried out across a network of geographical locations (headquarters, regional, subregional, country and liaison offices) requiring due attention to coherent action, while allowing for sufficient autonomy and responsiveness at all levels. Similarly, technical support is provided from the most effective source, including through outsourcing in accordance with comparative advantages.
Indicator Target (4 years)
X.2.1 Percent of resources deployed across organizational boundaries
To be defined
X.2.2 Share of field projects/programmes for which technical oversight has been delegated to Decentralized Offices
30%
X.2.3 Share of technical support and quality assurance outsourced to certified partners
10%
X.2.4 Percent of outputs related to information and knowledge management and statistics, and associated information systems, implemented in accordance with FAO's corporate strategy
To be defined
X.2.5 Percent of IT initiatives implemented according to the information technology strategy
80%
X.2.6 Monthly/annual traffic to www.fao.org To be defined
X.2.7 Percent of capacity building outputs implemented in accordance with FAO's corporate strategy
To be defined
X.2.8 Percent of policy assistance outputs implemented in accordance with FAO's corporate approach
To be defined
X.2.9 Percent of outputs related to the provision of legal advice and legislative assistance implemented in accordance with corporate programmes
To be defined
Primary Tools
- Instruments for ensuring interdisciplinary approaches.
- Appropriate technical support through optimal use of internal and external resources.
- Development and promotion of corporate approaches in the areas of information and knowledge management, statistics and information systems and technology.
- Strategies and tools to ensure coherent approaches in the areas of communication and advocacy.
- Coherent and effective communication and advocacy programmes implemented at all levels.
- Corporate strategy, tools and methodologies to enhance FAO support to Capacity Building at global, regional and national levels.
- Coherent and well-coordinated policy assistance to member countries and Regional Economic Integration Organizations.
- Programmes to enhance coordination and consistency in delivery of legal and legislative advice.
- Tools to collect, maintain and disseminate information on the creation, governance and use of international instruments.
Organizational Result X4 - Effective direction of the organization through enhanced governance and oversight
The Challenge is to effectively service FAO’s governing and statutory bodies and implement their decisions in a responsive and transparent way. FAO's programmes and operations require oversight to help the Organization achieve its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and internal governance processes. An environment of integrity throughout the Organization's operations is promoted through the detection, investigation and prevention of fraud and unsatisfactory conduct, development of lessons learned and procedural and policy changes needed to enhance integrity within FAO.
Indicator Target (4 years)
X.4.1 Percent of the Organization's budget (Regular Programme accruing to the Evaluation Function
0.8%
X.4.2 Percent of accepted evaluation recommendations implemented within the agreed timeline
X.4.3 Percent of audit recommendations that are accepted and implemented by management
90%
X.4.4 Percent of all complaints/allegations of fraud and misconduct that are processed and/or investigated within set timeframes
80%
X.4.5 Percent of actions taken on Conference and Council decisions by deadlines.
85%
X.4.6 Percent of documents produced according to statutory requirements
75%
Primary Tools
- A Charter for the Evaluation Function in FAO.
- Develop and implement a comprehensive risk based audit plan.
- Identify, process and/or investigate in a timely manner all complaints of fraud and misconduct in the programmes and operations of the Organization.
- A comprehensive plan for the satisfactory servicing and transparent conduct of meetings of Governing and Statutory Bodies.
- The timely implementation of amendments to the Basic Texts relating to the role of the Governing Bodies.
FUNCTIONAL OBJECTIVE Y -
EFFICIENT AND EFFECTIVE ADMINISTRATION
Issues and Challenges The IEE described FAO as a heavy and costly bureaucracy characterized by excessive transaction-control processes, high levels of overlap and duplication, and low levels of delegated authority. It noted that FAO's administrative structure excessively focuses on ex- ante controls and does not emphasize delegation, which leads to a negative impact on efficiency and staff motivation. FAO will meet its challenges by becoming more flexible by more explicitly undertaking risk assessment, which will require changing the way it works. Therefore, major changes are needed in the way FAO works. Management and administrative services need to meet high standards of efficiency and quality, while discharging fiduciary responsibilities. Clear lines of authority, responsibility and accountability are required, especially in a context where resources -- and decisions on their use -- are increasingly decentralized to locations where projects and programmes are implemented. As a knowledge organization, FAO must attract and retain high-quality and well-motivated staff, providing a learning environment in which people can grow and improve their professional and managerial skills. Assumptions and Risks
- Projects related to the reform of administrative and management systems in the Immediate Plan of Action are resourced and executed.
- Lack of required resources would impede implementation.
- FAO's ability to implement the changes required to respond to the IEE and achieve Functional Objective Y would require culture change in the Organization and in the way FAO works. Expectations for immediate change may overwhelm the Organization's capacity to adjust.
- In a resource-constrained environment, the various reform processes will require prioritisation and inter-dependencies and potential conflicts will need to be managed carefully.
- "Silo" mentality, entrenched attitudes, inertia, and fragmented processes may inhibit ability to change.
- The corporate restructuring will involve the integration of services that were formerly separate. This will imply transitional costs that need to be minimised.
- Lack of transition funding to meet costs for improvements to administrative services would constitute a major risk. Organizational Result Y1 - FAO's support services are recognized as client-oriented, effective, efficient and well-managed
Indicator Target (4 years)
Y.1.1 Percentage of corporate services covered by a Service-Level Agreement (SLA).
Y.1.2 Share of services benchmarked. 40%
Y.1.3 Percentage of processes and procedures streamlined.
Y.1.4 Introduction of formal internal control reporting. Introduction of formal internal control reporting.
Y.1.5 Improvement in client satisfaction. 75% satisfied
Y.3.3 Percentage increase in mobility in workforce. Percentage of staff members on the same grade or post for the last 8 years: Reduction to 11% Y.3.4 Improved gender representation at all levels. Proportion of female staff by category: GS: 50%; P: 35%; D: 20% Y.3.5 Percentage increase in the number of countries that are equitably represented.
Y.3.6. Increased client satisfaction with HR policies 75% Primary Tools
- Core Management Training Programme for all FAO managers to undertake within a 24 months period from appointment, which includes development, management, leadership, and coaching programmes.
- Staff performance evaluation system linked to work plans, competencies, and a rewards and recognition system.
- Communication strategy for staff and managers.
- A function and system to monitor, administer, and report on staff mobility to all Departments/Offices.
- HR policies that contribute to implementing best practices in people-management.
- Regular client surveys.
Indicators and targets for gender and country representation
In reviewing Functional Objective Y at its meeting of 16 April 2009, the following comments are recorded in the Chair’s Aide-Memoire:
indicators and targets for gender and country representation needed to be carefully reviewed and adjusted. It was further suggested that the Governing Bodies should decide to re-consider the gender target of 35% previously established by the Conference. Management undertook to provide baseline data related to this indicator in the near future and was open to demonstrating through projections and extrapolations why substantial changes were not possible from one year to another.
The following paragraphs give the reasoning and data used in arriving at the above gender and geographic targets over a four year timeframe.
Y.3.4 Improved gender representation at all levels
The present Conference-endorsed corporate target on gender is to reach 35% professional women. This has been nearly achieved, as shown in Figure 1. The Director-General is committed to promoting gender equality both in its technical work and in its human resources policies. To achieve this vision and align FAO with other organisations of the UN common system, a gender plan is being developed and a new target of gender balance of 50% female representation, to be progressively reached at all levels of the Organization, will be proposed to the Conference.
Figure 1
1994 2001 2005 2008 F M T %F F M T %F F M T %F F M T %F All Locations (^) 216 991 1207 18% 261 828 1089 24% 314 821 1135 28% 305 696 1001 30% D-1 and above 6 187 193 3% 20 153 173 12% 24 146 170 14% 23 129 152 15% Professionals (^210 804 1014) 21% 241 675 916 26% 290 675 965 30% 282 567 849 33%
31 December
Including Professional and Above Staff on PWB Posts, and on Continuous or Fixed-Term Appointments, except DG, DDG and NPO's
Staff on PWB Posts By Gender, Location and Grade - Summary Table
Whereas the proportion of female staff in the GS positions is well above a 50% target^2 , significant efforts are needed to make progress at the Director and Professional level, for which stretch targets have been derived.
At the Director and above level, about 55 positions are likely to be vacated over the next four years, of which at least 10 will be women. It is assumed that 13 positions will be filled each year and, based on recent trends, that about half would be filled with external candidates. If the Organization were to fill 5 of these vacant positions with women, and considering that about three women will be leaving each year, a net of two women could be added to the category, changing the total number of women from the current 23 (15%) to 27 (18%) in two years and 31 (20%) in four years, the proposed target for indicator Y.3.4.
In the professional category, it is expected that an average of 60 positions will be filled each year, and that about 20 women will be leaving the Organization over the next four years. The recent tendency is that 30 of the 60 positions are filled with external candidates, of which 8 are women. If the number of women recruited annually were to be increased to at least 15 (i.e. a gender parity on external recruitment) and considering that about 5 women will be separated each year, a net of 10 women would be added to the category annually, bringing the total number of women from the current 282 (33%) to 302 (36%) in two years, and to 322 (38%) in four years, the proposed target for indicator Y.3.
Y.3.5 Percentage increase in the number of countries that are equitably represented
Of the 68 Member countries (about 30% of the total 191) that are currently non- or under- represented, nearly 40 would become equitably-represented with only one appointment. If the Organization were to recruit nationals of at least five non- and under-represented countries among the 30 external candidates appointed each year, and considering that about two equitably-represented countries could change their status, a net of three non- and under- represented countries could be added to the equitably-represented category each year, bringing the current number of 118 (61%) to 124 (64%) in two years. If the new initiatives impacting geographic balance (wider dissemination of vacancies; iRecruitment and iRoster; inclusion of targets in managers’ PEMS) were to be rigorously applied, there is an expectation that a net of five countries could become equitably-represented annually during the following two years, leading to a total of 134 (70%) four years from now, the proposed target for indicator Y.3.5.
(^2) C 2009/8 PIR 2006-07 paragraph 341.
