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UNFPA Business Model Options: For Discussion . Brad Herbert Brad Herbert Associates January 24 , 2013. Why consider changing the business model?. External factors MDG 5 is worst performing of all MDGs

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unfpa business model options for discussion

UNFPA Business Model Options: For Discussion

Brad Herbert

Brad Herbert Associates

January 24, 2013

why consider changing the business model
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

challenges
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)
key questions
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?
high level summary of options
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
option 1 prioritization
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
option 1 implications for hq and ros
Option 1: implications for HQ and ROs
  • Support from HQ and ROs has to be reconfigured in line with priorities
option 2 modes of engagement by country setting
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
modes of engagement by setting
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

option 2 implications for hq and ros
Option 2: implications for HQ and ROs
  • Roles of HQ and ROs to be clarified based on business cases
open for discussion
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>