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The principle of mutual recognition facilitates the development and implementation of BOS. It allows entities to use or rely on another entity’s policies, procedures, system contracts and related operational mechanisms for the implementation of activities without further evaluation, checks or approvals being required. Agencies at the corporate level have committed and endorsed the statement of Mutual Recognition to ensure a global facilitation of this commitment.
The impact of UN programmes at the country level is reliant on the effectiveness, efficiency, and cost of the operations that support them. Overtime with the BOS implementation it is likely that, with better quality and lower cost business operations, more resources remain within the programme budget. Although it is no longer mandatory for the BOS to be aligned to the timelines of the country programmatic framework, UNCTs may still choose to align the two at specific points where this interaction is particularly valuable. This could be at the planning or the review steps where the BOS can be adjusted to better support programme operations.
The 2020-2030 UN Strategy for Environmental Sustainability in the area of management commits UN entities to raise its collective aspirations in the areas of greenhouse gas emissions (reduce emissions from use of electricity, energy sources, air, and ground travel); waste management (reduce single-use plastics across UN compounds, minimize, and properly dispose of all forms of waste); air pollution (ensure UN premises and fleets do not exacerbate local air quality issues); water and wastewater (conserve water and avoid release of untreated water into the environment); and biodiversity degradation (conserve biodiversity and avoid adverse impacts).
Developing a BOS provides an opportunity for UNCTs to increase and improve sustainable development practices, bringing us a step closer to achieving our SDGs. The functions of facilities and events management, procurement, logistics, human resources, risk management, and ICT are identified as core functions for mainstreaming environmental action. For all common services, OMTs are strongly encouraged to integrate environmental sustainability considerations at the earliest opportunity, so as to enhance resource and cost efficiencies of UN operations and limit adverse impacts on the local environment. Specific KPIs monitoring progress towards environmental sustainability are clearly marked in the online platform.
The BOS is results focused and structured around six common service lines. The figure below depicts the six common service lines that form the basis of cooperation in the BOS:
A list of common services was added to the platform as examples of common services from the many different collaborating experiences included by countries in their BOS. The common services are grouped into categories to facilitate the selection process.
The common services included in the online platform are meant to guide and inspire UNCTs and OMTs to collaborate and not meant as a prescriptive list. OMTs are encouraged to collaborate on the services that would be most beneficial in terms of quality and cost-efficiency in their country context. OMT working groups can search for common services within the common service lines. If a specific service is not found on the list, a context specific common service can be added.
Background:
The Business Operations Strategy (BOS) is a results-based framework that focuses on joint business operations with the purpose of eliminating duplication, leveraging the common bargaining power of the UN and maximizing economies of scale. The BOS was created in 2012 as a response to a call for simplification and harmonization of the United Nations system. The Secretary-General mandates all United Nations Country Teams (UNCTs) to ensure compliance with an improved BOS by 2021, in support of a more effective programme delivery on the 2030 Agenda.
The BOS focuses on common services that are implemented jointly or delivered by one UN entity on behalf of other UN entities. Building on lessons learnt and feedback from numerous country offices that developed a BOS since 2012, this guidance outlines the improved approach to BOS.
This guidance replaces all other guidance on BOS and aims to support UNCTs to establish quality and cost-effective common services at the country level. This guidance should be read in conjunction with the principles of mutual recognition [1] which substantially facilitate the cooperation between signatory UN entities.
The BOS Executive Summary accompanies this guidance and targets Resident Coordinators (RCs), UNCT members, and OMT Chairs/members to support their oversight, implementation and advocacy towards meeting their obligations to roll-out BOS, as set down by the UN Secretary-General.
The BOS is now:
Dynamic and adaptable: It encourages brainstorming, innovating and researching new opportunities to collaborate in response to programmatic needs. It is reviewed and updated yearly to ensure it remains relevant in changing country contexts.
Focused on quality and cost – It strives to improve timeliness, responsiveness, flexibility and professionalism while streamlining processes and reducing direct costs. The Cost Benefit Analysis has been revamped and standard quality and cost KPIs have been developed to provide a measure of impact for all common services.
Results oriented – It has a stronger focus on the implementation of selected common services and on simplified annual reporting of results, tracking cost avoidance and quality enhancements.
Promotes environmental sustainability – Highlighting the potential of common services to improve sustainable development practices bringing us a step closer to the achieving our Sustainable Development Goals (SDGs).
Dedicated support – A Task Team for BOS has been set up to provide dedicated support to UNCTs.
The foundation for Common Back Offices – It aims to build quality into the planning, implementation and reporting of BOS to support a reliable evidence-based foundation for the establishment of Common Back Offices worldwide.
[1] See Annex 1
It is recognized that country contexts differ, and one size does not fit all. Country programming and humanitarian responses benefit from collaborating on different common services lines. In recognition of the diversity of UNCTs globally, a country typology comprised of three main country/multi-country types has been defined to indicate the recommended minimum requirements for BOS. The three define typologies are: small operations of a maximum expenditure of 40 million USD, medium operations with an expenditure between 40 – 100 million USD, and large operations with an overall expenditure of over 100 million USD. The country typology is based on the overall UN investment overseen by that particular UNCT for one country or multiple countries (total amount).[1]
UNCTs are recommended to discuss and consider opportunities to collaborate on all common service lines and to take steps to identify a minimum of two common service lines for collaboration. The table below outlines suggested areas of collaboration that have proved to provide a higher return on investment based on feedback received from previous BOSs for each particular country typology. The table below is not prescriptive, and the extent of collaboration is ultimately the decision of the UNCT.
Agencies are strongly encouraged to participate in all common service lines selected for collaboration by UNCTs, but their involvement is ultimately on an opt-in basis considering quality assurance and cost effectiveness.
[1] Statistics on the total UN investment in country can be found on the HLCM website: https://www.unsystem.org/content/FS-I00-07
The success of the BOS rests on the consultative and collaborative interaction between the RC and the UNCT. In line with the Management Accountability Framework:
“The RC and UNCT jointly (including with the Head of Mission in contexts where the RC is serving as the DSRSG) advance country-specific measures to promote UN common business operations including common premises and back-offices, to enable joint work and generate greater efficiencies, synergies and coherence and compliance with an improved Business Operations Strategy by 2021.”[1]
This is to be implemented through regular discussions between the RC and UNCT members to identify efficiencies through the pooling of assets locally or off-shore with decisions on common services.
Taking into consideration the collaborative nature of BOS, at country level, the RC is accountable to the Secretary-General for advances towards UN common business operations to enable joint work and generate greater efficiencies, synergies and coherence. The UNCT provides overall oversight of the BOS process, approval, and mobilization of necessary agency and joint resources. It is also responsible for endorsement of the final BOS and its annual reporting. The OMTs and its working groups are responsible to facilitate the development and implementation of the BOS at the country level.
The Development Coordination Office (DCO) is responsible for coordination, guidance, and support to RCs and UNCTs on the BOS.
Two key elements are essential for a successful BOS: the leadership of the RC and the active engagement by UN entities (both resident and non-resident) through the assignment of relevant human resources and common services budgets.
For detailed information on roles and responsibilities on the BOS, refer to Annex 2.
[1] Management and Accountability Framework of the UN Development and Resident Coordinator System