UNFPA Business Model Options: For Discussion

1. UNFPA Business Model Options: For Discussion Brad Herbert Brad Herbert Associates January 24, 2013

2. Why consider changing the business model? • External factors • MDG 5 is worst performing of all MDGs • Key elements of current model developed decades ago but the external environment has changed: • Increasingly sophisticated developing countries have different needs • Increased demand for results • Internal factors • UNFPA resources are spread thinly • UN-wide focus on efficiency • Current activities are often driven existing capabilities rather than actual need (i.e., supply-driven) 2

3. Current UNFPA business model

4. Challenges • Three major challenges: • The current approach to where UNFPA works needs to be more strategic. • The lack of clarity about how UNFPA achieves impact reduces overall effectiveness. • The world has changed but UNFPA’s structure and division of labor has not kept pace with those changes and does always reflect strategic decision-making about who will be responsible for different activities. • The Good News • UNFPA has a clear understanding of its strategic direction. (The What)

5. Our Challenge: Focus on the Where, How, Who.

6. Key Questions: • Should UNFPA shift from the status quo to a country business case justification with performance standards? • Should UNFPA shift from doing too much in too many countries to delivering an enhanced support package to a limited set of priority countries while providing a more basic package to others?

7. High-level summary of options 1. Prioritization 2. Modes of engagement Key element: shift from default assumption that the status quo must continue to business case justifications and performance standards Objectives: increased performance across the organization through better role definition and increased accountability • Key element: reorient the organization to deliver enhanced support to limited set of priority countries • Objectives: improved ability to contribute to attainment of MDG 5 and of other key ICPD indicators

8. Option 1: Prioritization • The current approach to where UNFPA works is not as strategic as it could be. • A limited number of countries are responsible for the majority of needs globally but do not receive a commensurate share of UNFPA resources • 5 countries: 47% global maternal mortality, 13% UNFPA funding • 25 countries: 82%global maternal mortality, 44% UNFPA funding • Response: support priority countries with an enhanced package of engagement; other countries receive only a basic package • Group of 30-40 priority countries receive enhanced package of advocacy, policy, knowledge management, capacity development, and service delivery • Other countries receive basic package of advocacy, policy, and knowledge management • Allocation of resources should follow from the package

9. Option 1: implications for HQ and ROs • Support from HQ and ROs has to be reconfigured in line with priorities

10. Option 2: Modes of engagement by Country Setting • The lack of clarity about how UNFPA achieves impact diminishes the organization’s effectiveness • The organization does not have a shared understanding (based on a clear theory of change) of how the various activities completed lead to the impact that it seeks. • Response: clarify what activities the organization will focus on in which settings and what should be the expected outcomes • Starting point set out in matrix on following slide, but final decision based on business cases • Allocation of resources should follow from the package

11. Modes of engagement by setting A = Advocacy P = Policy advice/dialogue KM = Knowledge management CB = Capacity building SD = Service delivery RM = resources mobilization * physical presence only if a strategic priority

12. Option 2: implications for HQ and ROs • Roles of HQ and ROs to be clarified based on business cases

13. Pros and cons 13

14. Open For Discussion: • Which of the two business options is best for the new Strategic Plan (2014-2017) • What are your reasons for your choice>