CFO Conference Introduction to Umoja

1. CFO Conference Introduction to Umoja 9 November 2009

2. Agenda Umoja Overview: • What Umoja is • Objectives of Umoja • Highlights of Umoja’s Scope • Current Work • Umoja Partnerships • Timelines Change Management Overview: • What Change Management is • What Change Management does • How to fail … • How to succeed … • Change Case Study: Broken Payments process

3. Umoja is… • “Unity” in Swahili • A programme to improve how the UN Secretariat manages human, financial, and material resources • An opportunity to streamline existing practices and procedures • A strategy to realize fully all the benefits of a modern and global information technology platform • A way to better fulfill our mandates and serve our beneficiaries • A collaborative effort to improve how our organization works by improving how we work together

4. Objectives of Umoja • Analyze current practices to understand how we can improve • Partner with experts throughout the UN to design better solutions • Adopt leading practices to meet our organization’s needs • Support the Secretariat’s implementation of IPSAS • Make the best use of our new global information solution • Help the UN be more responsive to Member States & beneficiaries • Empower staff with the training and tools to execute their responsibilities • Reduce our administrative burden and focus more resources on the mandates • Improve alignment of authority, accountability and controls • Deliver improved service and faster transaction cycle times

5. Scope Highlights of Umoja’s scope includes: • Material planning and management, asset management, procurement • Travel, conference, and facilities management • Human resource management and administration • Payroll • Finance • Support services unique to field missions

6. Current Work • Detailed Design Phase has two major sets of activities: • Design Sessions now underway • Working with Subject Matter Experts (SMEs) • Over 350 SMEs participating to date • Preparing an Executive Solution Summary (ESS) for each process to explain new solutions • Validation Sessions

7. SG Reform Steering Committee Strategy and Vision Solution Validation Process Owners Business Owners SME’s Solution Design Umoja Partnerships ... To produce Work together… Sponsor Project Director Team Leads Team Members UN PARTNERS UMOJA TEAM SHARED RESPONSIBILITIES

8. Timelines Approved by GA in Resolution 63/262 Design Phase • Analysis of current “as is” processes completed and validated • Design phase launched May, 2009 • Concluded initial design workshops (high-level design, identifying opportunities) in June, 2009, with 193 participants from HQ, OAHs, Peacekeeping Operations and ECs • Detailed Design sessions started in September 2009 to develop the “to be” processes involving 350 participants from 25 different duty stations throughout the Secretariat DEPLOY PREPARE DESIGN BUILD PHASE 1 (Pilot) PHASE 2 PHASE 3 STABLIZE STABLIZE STABLIZE 2007 2008 2009 2010 2011 2012 2013

9. What Change Management is… Change Management is a structured approach for managing the process of organizational change.

10. What Change Management is… • Structured means… • CM must be coordinated within the project & organization • Organized – sponsorship, leadership, and resources • Managing means… • CM must be managed like any other project function • Set goals and timetables, plan resources, monitor delivery • Process means… • CM is a process – steps happen in a logical order • Deliverables must be produced in a rational sequence

11. What Change Management does… Change Management helps an organization get from where it is to where it wants to be. ] [ Change Management bridges the gap from “asis” to “tobe”.

12. How To Fail… “Baby Steps” – Deny the need for major change and try to sneak across one step at a time. ] [ The worst way to cross a big gap is with small steps.

13. How To Fail… “Split the Difference” – Avoid decisions, cling to the past, and try to keep all your options open. ] [ Failing to decide is deciding to fail.

14. How To Succeed… The best way to cross a big gap: build a bridge. ] [ To change an organization, we have to analyze where we are (“as is”), decide where we want to go (“to be”), and manage how to get there.

15. Change Case Study: The Broken Payments Process Another organization’s “as is” payment process (not the UN Secretariat) • Average time to process payment exceeded 44 days • Some invoices outstanding for over 200 days • Impeded core purchasing activities of organization • “As is” process required coordination of many org units with up to 25 steps – mostly manual and paper • Extreme cases threatened supplier relationships • Frustration led to “fix the blame, not the problem” ] [ You know you have a bad process when the people work but the process does not.

16. Where we are: Analyze “as is” Process

17. Where we want to be: Design “to be” Process • Re-engineer “to be” process using Automated 3-WayMatching • Uses automated ERP system controls to compare Purchase Order, Receipt & Voucher • Eliminates all manual steps • Eliminates hand-offs between units • Automates most payments based on previously entered and approved documents on-line.

18. Where we want to be: Map “to be” Process

19. Are We There Yet? Evaluate “to be” solution • 79 % reduction in steps = More efficient process • All critical path steps done on-line = Less work • No hand-offs between Org. Units = Fewer Delays Result: Average payment processing time went from 44 days (before) to 3.5 days (after)

20. The moral of the story… • That broken payment process was actually implemented as part of the new ERP system. • Bad processes happen by default. Good processes happen only by design. • To the extent that we do not customize the system to fit old practices, those old practices must change. • Organizational change is not easy, but change is easier than failure. • Building a new system around a bad practice is like trying to teach a bear to square dance. ] [ ERP systems make efficiency gains possible. They do not make them happen.