Presentation 3 How to Prepare the Basic Design for a CPC?
What will we learn here? • 3 How to prepare the basic design for the CPC? • How to formulate the mission of the CPC? • How to formulate the objectives of the CPC? • How to develop the basic strategy to meet the objectives of the CPC? • How to develop targets based on the objectives? • How to develop tasks to be carried out to meet those targets? • How to develop the organizational structure of the CPC? • How to identify the physical location and host institution of the CPC? • How to identify the basic resource requirements for the CPC?
How to formulate the mission of the CPC? Next Slide
How to formulate the mission of the CPC? • A mission statement commits and proclaims the basic intent of the CPC • Formulation of the mission therefore requires careful consideration • The best way to formulate a mission statement is to start with a brainstorming session between all the stakeholders, looking for those key phrases and words that best capture what the new Centre will be about • Remember, the best mission statements are always short and concise
How to formulate the mission of the CPC? The mission of the Kaunas Centre is to "becomethe primary centre in Lithuania for providing industrial sectors with relevant research, technical assistance and training on various environmental subjects (e.g. EMS) and critical management skills (e.g. problem solving and raising funds), all with the ultimate goal of introducing cleaner production techniques, preventing pollution, and achieving economic savings. These industry aimed services will be supplemented by educational efforts for related governmental organizations, NGOs and academia." Cover at least the following aspects in the mission statement: • Geographical focus of the CPC • Focal sectors it will serve • Ultimate purpose of the activities of the CPC  Organization for Co-operation and Economic Development: Task Force for the Implementation of the Environmental Action Programmes for Central and Eastern Europe (EAP) CCNM/ENVIRONMENTAL/EAP(99)25. "Pollution Prevention Centre at the Institute of Environmental Engineering, Kaunas University of Technology, Lithuania" in Cleaner Production Centres in Central and Eastern Europe and the New Independent States.
How to formulate the objectives of the CPC? Next Slide
How to formulate the objectives of the CPC? • After setting the mission, the stakeholders should formulate the objectives of the CPC. Objectives tend to be situation-specific • Objectives should be derived from the mission statement • Objectives are concrete aims, so that the stakeholders may build a strategy around them • Objectives should be short-termas well as long-term; i.e. the steps the CPC must take at the present time to fulfil its mission may not be what it may need to do in several years’ time. The cleaner production needs that the CPC is responding to can change, as can the overall economic and environmental context of the country • The stakeholders will have to go through the exercise of tweaking the objectives for the Centre on a periodic basis
How to develop the strategies of the CPC? Next Slide
How to develop the strategies of the CPC? • Once the initial objectives have been set, the stakeholders can lay down the strategies that the CPC must follow to meet them • Again, strategies will depend very much on the localconditions • There could be more than one strategies needed to realize an objective. Two objectives may share a common strategy • Strategies evolve based on experience, gaming and simulation workshops. • Strategies tell us how to use networking, partnerships, existing regulation and fiscal frameworks, local interests, scientific and technical information to promote, action and sustain cleaner production; eliminate or alleviate the barriers …..
How to develop the strategies of the CPC? • In general, strategies may be evolved based on the following principles • Follow closely the mission, associated objectives and the stay close to the niche • Address the objective in clear targets, over short and long term. Don’t try to do everything at a time • Do not loose focus on the key clients that the CPC should target for each of the services • Do not forget building market intelligence • Work in partnerships
How to develop the strategies of the CPC? • The strategies should not concentrate on making short-term gains. Idea should be get on to creating confidence and achieving a credence • While certain services may not earn revenue (for e.g. awareness raising and networking), they are extremely crucial from the point of view of laying the foundation of cleaner production, and thus triggering other services • Similarly, the evolution of cleaner production related policies may take some time, however, once the policy framework is in place, cleaner production projects will follow.
How to develop the organizational structure of the CPC? The mission of the Kaunas Centrewill be achieved by concentrating on the following four strategic efforts: Technical assistance (including waste minimization / cleaner production opportunity assessments, research, laboratory services, etc.) in Lithuania and other CEEC / NIS; Environmental management (including training, auditing, consulting in EMS and standards, certification); Financial intermediary (including training in “Financial Engineering”, preparation of bankable cleaner production projects and loan applications, project monitoring and supervision, project progress reports); and Education (including courses on cleaner production and EMS for undergraduate and postgraduate students, coordination of Ph.D. studies in environmental engineering.  Organization for Co-operation and Economic Development: Task Force for the Implementation of the Environmental Action Programmes for Central and Eastern Europe (EAP) CCNM/ENVIRONMENTAL/EAP(99)25. "Pollution Prevention Centre at the Institute of Environmental Engineering, Kaunas University of Technology, Lithuania" in Cleaner Production Centres in Central and Eastern Europe and the New Independent States.
How to develop the targets and tasks of the CPC? • Once the strategies of the Centre are formulated, the stakeholders will need to decide on the targets to be achieved and the tasks to be executed • The targets will entail the accomplishment of short-term and long-term objectives • Thus, targets have a direct bearing on the resources the CPC would need • It is important that the targets set are not over-ambitious! • Setting targets is also an adaptive process; long-term targets may need to be reviewed and revised depending on the achievements of short-term targets and / or changing economic and environmental situations
How to develop the targets and tasks of the CPC? • After deciding the targets for the Centre, the stakeholders will have to allocate tasks needed to meet a particular target • The tasks will entail answering the following questions - who, what, when, where, how and how long. In this context, the following questions arise: • Human resource requirements for the CPC: The number of people required for the CPC, their skills, in-house training needs, and the possibilities of the host institution / stakeholders providing the CPC with a part of its human resource requirements • Financial resource requirements for the CPC ( We will visit this aspect in the Lecture “How to Estimate Resource Requirements and Meet the Financial Needs of the CPC”)
How to develop the targets and tasks of the CPC? Tasks must be developed by considering various options As in the case of targets, tasks also need to be executed over a period of time It is important that the tasks have performance indicators against which the progress of the CPC can be measured (We will visit this aspect in the Lecture “How to Monitor and Review the Progress of the CPC”)
How to develop the organizational structure of the CPC? • Different elements of the organization chart: • Director of the CPC reports to the Executive Board • The Advisory Committee provides strategic advice to the Executive Board and the Director • The core staff report to the Director. They are responsible for the delivery and marketing of services. There could be local consultants as well – used on need basis. • Another division within the CPC could be to manage administrationand other routine back-office functions • The CPC may also supported by counterpart institutions and local / international consultants, who may be required to provide the necessary expertise in certain aspects of cleaner production and / or assist the CPC in the delivery of services
How to develop the organizational structure of the CPC? • A few points to remember… • Deciding the organizational structure of the CPC must be a partnership process amongst all stakeholders • It is best to keep the organizational structure within three tiers and with permanent staffassmall as possible • The Director of the CPC should be able to function as an entrepreneur. The Director must be able to take decisions independently for the operation of the Centre in the best manner possible
A generic organizational structure for an CPC Source: Vietnam Cleaner Production Centre: Organizational Set-up. Available at: http://www.un.org.vn/vncpc/introduction/organisational.htm
The Advisory Committee and the Executive Board • If there are more than five stakeholders, a better alternative is to have two bodies - one with advisory functions (Advisory Committee) and one with executive functions (Executive Board) • Advisory Committee and Executive Board could be possible oversight bodies of the CPC • The Executive Board may approve work programmes, budgets and financial statements submitted to it by the Director, monitor the progress of the CPC, and its success in meeting its objectives in terms of accomplishment of targets • Advisory Committee may provide strategic advice to the CPC
The Advisory Committee and the Executive Board • The Executive Board should have a small membership (not more than 5) to facilitate consensus building and decision-making • Members of the Executive Board should have good management / business skills • The Advisory Committee should be constituted of members who are in influential positions or who are well-known experts • The Advisory Committee should be composed of a cross-section of stakeholders (government, industry and other important communities), although membership should not be so large that it becomes difficult to manage (suggested number = 10 to 15 members) • The Advisory Committee is neither a decision-making nor a consensus-building body. It should provide strategic advice to the Executive Board and the Director
Examples of Advisory Committee / Executive Board Like most CPCs, the NCPC of India has an Advisory Committee, which consists of a broad range of influential members including: ·Ministry of Industry (Joint Secretary); ·Ministry of Environment (Senior Advisor); ·UNIDO (Country Director); ·Central Pollution Control Board (Chairman); ·Confederation of Indian Industries (Head - Environmental Management Division); ·National Productivity Council – the host institution (Director General) The India NCPC no Executive Board, because this is an example of a centre that is to all intents and purposes an integral part of the host institution’s organizational structure.
Examples of Advisory Committee / Executive Board • The Centre in Guatemala has an Executive Board and an Advisory Committee. Its Executive Board consists of: • Cámara de Industria de Guatemala (National Chamber of Industry and the host institution), • Presidencia de la Républica (the Office of the President of Guatemala), • Universidad del Valle (University), • Federación de Pequeña y Mediana Empresa (FEPYME or Federation of Small and Medium Enterprises), • Swiss Government (for the term of funding), • UNIDO / UNEP (for the term of funding).
Examples of Advisory Committee / Executive Board • To ensure good co-operation of the NCPC in Guatemala with small- and medium-sized enterprises, academic and governmental sectors, the Advisory Committee includes the following members: • Universidad de San Carlos (University), • Comisión Nacional de Medio Ambiente (CONAMA) (National Commission on the Environment), • Consejo Nacional de Ciencia y Tecnología (CONCYT or National Council of Science and Technology), • Comisión Centroamericana de Ambientey Desarrollo (CCAD or Central American Commission of Environment and Development). The co-operation of the NCPC with the CCAD is especially important to support the harmonization of national legislation within the region.
Counterpart institutions for a CPC • A centre in developing countries and countries with economies in transition does not have, nor is it expected to have available to it in the country all the necessary expertise and skills to perform its task, especially during the initial stages of its establishment. • Therefore, in their programme UNIDO and UNEP have always provided professional support to new centres in the form of twinningarrangementswith an experienced counterpart institution. • This institution is responsible for training and developing the centre’s staff to undertake the tasks of cleaner production promotion and implementation. • As the specific needs vary from centre to centre, UNIDO has found it important to ensure that this support be tailor-made to fit the individual requirements of the centre. • Furthermore, as the responsibilities and functions of the centre evolve, UNIDO has ensured that the nature of the support needed also changes.
How to identify the physical location and the host institution for the CPC? Next Slide
How to identify the host institution • MODEL 1: • Locate the CPC in the premises of the host institution • Centre can “piggy-back” on its host institution, which can introduce it to its potential clients • Centre can get itself known more rapidly • The model reduces demands on funds that the centre must have at the beginning of its life… • MODEL 2: • Locate the CPC in a rented commercial place like a business centre. • The centre must have a certain amount of funds at the time of establishment itself • Centre would probably have a less easy task in promoting itself • The Director of the centre would need to do aggressive promotions… Or…
How to identify the host institution • Model 1 has always been chosen for the UNIDO / UNEP NCPCs. • Disadvantages of Model 1… • The host institution may come to feel an exclusive sense of ownership towards the CPC. • Other stakeholders may feel excluded. • The host institution may start to “micro-manage” the centre. • However, • This can be mitigated by bringing together other stakeholders as members of an Executive Board (discussed in a later section of this Manual), where they make decisions collectively about the centre, thus rightly perceiving themselves as a part of the centre.
How to identify the host institution Selecting a host institution has to be done with great care! It is a key prerequisite for success. Getting it wrong means having to start all over again!! It should be mentioned, however, that host institutions have not always been able to meet their promised commitments to the CPC. The UNIDO/UNEP Programme now requires NCPCs to develop business plans around basic business principles and update them according to local realities and financial possibilities.
Estimating the Basic Resource Requirements for the CPC • Basic resource requirements will be essentially broken up into either capital costs or operating costs • Capitalcosts could include office space, furniture, books, specialized periodicals, software, on-line cleaner production databases, equipment, office equipment (fax machines, phones, computers, photocopying machines, etc.), training equipment (overhead projectors, etc.), monitoring equipment (pH meters, volumetric flow meters, sampling equipment, other laboratory analysis equipment, etc.), vehicles for travel, and so on
Estimating the Basic Resource Requirements for the CPC • Operating costs could include salaries for person-power (which is the main operating cost), office utilities (lighting, heating, air-conditioning), office stationery, communication and Internet, vehicles for travel, charges for using laboratory facilities of the host institution,, charges for using space for conducting seminars / awareness / training sessions, costs associated with travelling on the field, costs of technical documentation, costs for printing promotional brochures, training materials etc., costs for establishment and upkeep of the Centre's website, and so on
Estimating the Basic Resource Requirements for the CPC • It is prudent to keep capital costs as low as possible • Look for opportunities to offload certain capital costs as operating costs. For e.g., the host institution could provide the CPC access to laboratory equipment and laboratory analytical facilities. Thus, the CPC may pay the host institution a fee for using such facilities, which would thus be absorbed as operating costs. Similarly, vehicles for travel may also form part of the operating costs • It is recommended that the stakeholders minimize a Centre’s rental requirements and utility costs in the initial 3 to 5 years after its establishment, by giving it as an in-kind contribution the necessary office space and utilities. Once the Centre becomes financially self-sufficient, it may explore the options of renting or even owning its office space. It may even consider opening branches in different locations of the country / region
Estimating the Basic Resource Requirements for the CPC • The main resource requirement will be the person-power. If the CPC can be designed to work within a strong network of other institutions working on cleaner production, the person-power resources can be quite modest. Many CPCs work with no more than 5 professional staff and 2 administrative support staff even at full operating capacity. If the Centre is designed to be part of a network, it will require access to the person-power of its partners • The CPC will require access to Localand/or International Consultants for specialized services that neither it nor its partners can supply, and also for capacity building within the CPC
Lastly… It is very important to document all the decisions taken in the context of preparing the basic design of the CPC