Change Management

Progress Report
November 2007
Original: English

© International Trade Centre 2007

 Change Management  
 
Progress Report 

Table of Contents

I. ITC’s operating environment is changing 1

Background to the change process 1
Responding to clients needs and expectations 1
ITC’s key challenges 5

II. ITC’s strategic thrust 7

New core competences 7
Business lines 7
ITC’s new conceptual framework 9

III. Implementing change 11

Identity and core values 11
ITC branding 12
Communications 13
Consolidated Programme Document 13
Strategic planning and project management 15
Results based management 17
Human resources development 18
Governance structure 19
Programme support functions 19

IV. Priorities for 2008 20

I. ITC’s operating environment is
changing
Background to the change process
The new management team of ITC took over the organization in June 2006 and in doing
so took stock of the historical performance of the organization, the changing business
environment and the recommendations of the Danish-led evaluation. The most critical
recommendations of the evaluation were that the organization was relevant, had clear
comparative advantages in the field of Trade Related Technical Assistance (TRTA) and
competitive advantage in a number of its tools and services. However, needs of clients and a
changing business environment required the organization to develop a change management
strategy to build common values among staff at all levels and to strengthen key management
functions. The recommendations called for an organization with more emphasis on country-
specific activities, a results based management (RBM) culture, and a performance management
framework. The JAG endorsed these recommendations in April 2006.

The senior management team also needed to take into account two particular challenges:
the growing number of organizations offering TRTA and ITC’s need to establish itself as the pre-
eminent Aid for Trade organization in the multilateral system; and the shift of decision-making
and resource allocation to the country level in line with the spirit of the 2005 OECD-DAC Paris
Declaration on Aid Effectiveness.

Results of a client survey (see below) also highlighted a key challenge for ITC to develop
a good client relationship management (CRM) mechanism, and to create more solutions-
oriented rather than supply-driven responses to clients. This implies the need for more
comprehensive and refined methods of needs assessment and relationship building with ITC
clients to serve them better. ITC clients also face the challenge of needing to move beyond
information and awareness building to the building of real capacity. This requires the
organization to move beyond strategy to implementation and development support, requiring
closer partnerships.

Against this background, the organization has over the last 15 months drawn on the
evaluation’s recommendations, and the recommendations of the previous evaluations of ITC
dating back from 1977, to develop a change management programme and implement a reform
process. A new structure, which is nearing completion at the end of 2007, will recognize this and
will commit resources to meet the needs of ITC’s clients’ growing requests.

The present document updates our stakeholders on progress achieved so far and sets out
the next steps in the change process.

Responding to clients needs and expectations

ITC conducted an in-depth client survey for the first time, during September and October
2007. The objective of the survey was to determine how well our current offering corresponded
to clients’ needs and how well our corporate objectives were being delivered to clients.

Change management: Progress report 1

 The client survey was designed to contribute to the overall change management process
with the following specific objectives:

1. To provide insights into the business environment in which ITC is operating.

2. To help develop a targeted marketing strategy, plan and programme to achieve

ITC’s strategic objectives.

3. To identify and understand the drivers of ITC’s brand/reputation and image.

4. To monitor the relevance, utilization and performance of ITC products and

delivery modes.

5. To obtain feedback to help direct future ITC product and programme offerings.

Over 1,500 respondents from all regions, representing trade support institutions (TSIs),
business enterprises and government agencies, completed the survey.

On the whole, our clients appreciated ITC’s products and services: overall, 38% of them
rated ITC positively in terms of helping their organization to achieve positive results in export
development. A small minority gave negative ratings. Among categories of respondents, the
TSIs were the most positive.

Clients’ rating of ITC in helping them to achieve export development results (%)

The white space in this chart represents "don't know" or no answer.

Source: ITC Clients’ Survey 2007, Dalberg/ Globescan.

NB: Trade Support Organizations (TSOs) = Trade Support Institutions (TSIs)

2 Change management: Progress report

 The top three descriptors of ITC (measured by number of times mentioned in answer to an
open question) were “informative”, “helpful” and “international/global”.

When respondents were asked an open question about their major trade challenges to
develop exports from client's country/company, the results were as in the chart below. When
looking at Least Developed Countries (LDCs) as a group, Export financing was rated as the
number two challenge.

Main challenges to developing exports

Source: ITC Clients’ Survey 2007, Dalberg/ Globescan.

Change management: Progress report 3

 ITC’s ratings on key issues are shown next. ITC is considered efficient in serving its
clients but should engage with them better in order to identify needs and tailor solutions — which
are the most important factors in overall performance. The quartered chart of importance and
performance highlights (‘focus’ — top left) the need for ITC to refine its understanding of client
needs, present integrated solutions and ensure follow up. These conclusions broadly confirm
the results of the ITC evaluation.

Rating of ITC’s performance on key issues

Source: ITC Clients’ Survey 2007, Dalberg/ Globescan.

4 Change management: Progress report

ITC’s key challenges
The overriding objective of the change management process is for ITC to better serve its
clients. This is reflected in a new expression of ITC’s mandate: “Export Impact for Good”.

The three fundamental pillars of the reform process are:

Focus
ITC needs to focus its interventions based on systematic and thorough needs
assessments at country, regional and global levels. Partnerships are essential. The organization
will have to strengthen its network of partnerships, including with TSIs, and put in place action
plans with well-defined responsibilities and commitments. ITC will also rely on this network of
alliances to establish an efficient monitoring and evaluation system to track progress in its
activities.

Integration
ITC will develop integrated programmes in countries that would most benefit from a
holistic approach to identifying and focusing on their trade needs. These programmes are being
designed and implemented in close collaboration with the respective governments and private
sectors. They encompass a customized, comprehensive array of planned technical assistance
initiatives which, when implemented together, create capacity and improve a country’s overall
export performance.

Scale
The Consolidated Programme Document (CPD) illustrates ITC’s pipeline of pre-qualified
technical assistance projects (proposed to be financed from extra-budgetary resources) totaling
US$130 million for the biennium 2008-2009. Of this, we have projected implementation of
US$80 million in our budget document presented to the UN and WTO. This will require us to
scale up our activities (from US$55 million in the 2006-2007 biennium).

To achieve greater impact, we have proposed larger integrated programmes with a critical
mass and based on countries’ needs. Partnerships will be critical to success: partnerships with
old and new donors and with other international organizations, like UNCTAD and WTO with
which we are organically linked, and also UNIDO, World Bank, the Regional Development
Banks, the African Union, UN Regional Commissions and the One UN country programmes. In
each case, ITC is making already significant progress in signing Memoranda of Understanding
and developing joint programmes, where none existed before.

In addition, contributing to the Millennium Development Goals (MDGs) is becoming an

essential function of ITC. As an UN development organization, ITC is committed to promoting
the fulfillment of the MDGs. ITC believes that wealth generated by trade can be interdependent
with, and mutually reinforced by, social development and environmental protection. The
organization intends to increasingly determine indicators related to the MDGs as part of its work
and to monitor the achievement of results. More emphasis on the MDGs is leading ITC to
strengthen effective human resources in this field.

Change management: Progress report 5

 Finally, a results based management (RBM) and performance management system is an
integral part of the change management process. ITC, together with its stakeholders, believes in
results and impact. RBM will require an approach to the organization’s work that ensures
improved quality and relevance of its services. Programmes will need to be more client-focused,
emphasizing the achievement of agreed outputs and outcomes for client countries. Results will
be essential elements in the change process, and extremely important in building trust and
confidence with its stakeholders.

6 Change management: Progress report

II. ITC’s strategic thrust
New core competences
As clearly highlighted by the Danish-led evaluation, refocusing the organization on its core
competencies, in terms of products and services delivery, is a priority. Efforts have been
particularly focused on the definition of ITC’s new business lines — as these competences are
referred to —during the second and third quarters of 2007. The cornerstones of this exercise
have been the following principles:

Alignment with key strategic objectives

Engineering the future business lines so that their goals, objectives, and results provide
measurable outcomes and outputs that enable us to reach our objectives.

Focus on core business

Making sure that our new business lines reflect our intent to concentrate our activities on
specific competencies to deliver our mission.

Integration and scale

Ensuring that our activities are better integrated to provide solutions to our clients, not just
products and services.

Relevance and impact

At policymaker, TSI and, especially, at enterprise level, to be more client-oriented.

Business lines
Initiated in June 2007, the process involved the following steps:

A critical review of the existing 17 lines of business, plus the numerous tools and
service offerings

A series of workshops on lines of business involving more than 40 staff

Core teams created to define the future business lines

The definition of goals, objectives and results for each business line

The definition of output and outcome indicators, in line with objectives and
expected results, and an analysis of the cross dependencies across business lines.

The result of this work has been the definition of five new business lines that will shape
ITC.

Change management: Progress report 7

 Export strategy
This business line helps policymakers and governments, as well as enterprises, to
develop successful export development strategies, compatible with national planning
frameworks and diagnostic studies (such as the Diagnostic Trade Integration Study (DTIS) for
LDCs). It also plays a key role in developing assessment methodologies and tools to be used by
ITC for project and programme development. It will provide the methodologies and tools to
monitor and control implementation. The objective is that ITC develops approaches to strategy
development that are fully consistent across national, sectoral and enterprise levels and where
best practice is promoted across a global network.

Business in trade policy

The purpose of this business line is to ensure that business priorities are integrated into
national trade policies, and that the needs of business — and especially of small and medium
enterprises (SMEs) — are taken into consideration in the negotiation of international trade
agreements. Linking the business sector, especially SMEs, through their representative TSIs, to
policymakers is a key success factor for the creation of a conducive business environment.

This business line will play a pivotal role at the interface with governments and
beneficiaries. It will ensure a much stronger ITC presence in the overall debate on key strategic
issues that impact export success. By getting more closely involved with policymakers and
governments with counseling and support for business, ITC will be in a much better position to
formulate export programmes that provide practical solutions, based on a more in-depth and
coherent understanding of client stakeholder demands and the trade policy environment in
which business operates.

Trade intelligence
This business line provides trade related information, research and analysis to help
policymakers and enterprises to build national and regional capacities to make better export
decisions.

This business line works closely with all other business lines to deliver effective trade
intelligence services.

TSI strengthening
This business line plays a critical role through the development of TSI networks. It will
further develop, and better implement, benchmarking methodologies and tools for TSIs to be
able to network and measure their own performance at an international level. ITC will channel
the majority of its technical support services through TSIs to ensure the widest dissemination
and most sustainable transfer of knowledge and expertise, close to the final users.

The business line plays a dual role in ITC’s strategy:

To guarantee sustainable exporter support at national/regional/sectoral level;

As a channel for our export services delivery, in order to reach out to the largest
number of exporting SMEs.

8 Change management: Progress report

 Exporter competitiveness
This business line develops and offers products and services responding to the specific
needs of exporting enterprises, with the aim of making them more competitive. These services
are delivered with and through intermediary organizations (the TSIs) by certifying trainers and
programmes. Issues covered will include enterprise management, procurement and supply
chain management, quality and standards, export packaging, logistics and distribution, as well
as marketing and business environment solutions.

Cross dependencies
The business lines will work closely together in a sequenced, coordinated manner to
deliver solutions to ITC’s customers, with a view to ensuring the best synergies at programme
delivery level.

ITC’s new conceptual framework

Concurrent with the definition of ITC’s five business lines (core competences),
organizational experts worked between September and December 2007 to assess ITC’s current
structure and work process and to propose options for the most effective structure to deliver its
services.

The proposed organizational structure expands the number of regional teams enhances
the role of the regional country offices by closely aligning them with the export strategy and
business in trade policy business lines. In future, needs assessments and programme
development will reflect this close cooperation. The other three business lines are divided
between two other divisions, with work processes designed to ensure greater collaboration.

The need to institutionalize a results-based culture and to support the organization to

monitor and evaluate its effectiveness is also a key feature of the new structure. Greater
synergy with the communications and information services, as well as recognition that
technology should be used as a solution to disseminating both information and services, are
also features of the new organization.

The Division of Programme Support will be reviewed in 2008 to ensure that our support
services are aligned to the functions of the organization. We will also be looking for greater
efficiency in the support and delivery of services.

A better-focused organization — focusing on our core business — will avoid duplicating the
work of other agencies and will ensure that we intervene where we can make a difference, with
the ultimate outcome of export impact for good.

Linking ITC’s core competencies and Impact for Good

Change management: Progress report 9

 From products to solutions, from supply to demand driven
As the client survey and the Danish-led evaluation suggest, providing a set of integrated,
coherent products and services is essential for ITC’s clients. The business lines are designed to
bring to bear ITC’s full range of talents, skills and resources on the needs of clients. In
developing and further deepening the business lines, our approach starts with the needs of the
clients and reverse-engineers the process, moving from a supply-driven to a demand-driven
approach.

Towards relevant and measurable results

A series of performance indicators has been developed for each business line, conforming
to RBM practices, in order to ensure that our interventions are relevant and our impact
measurable. A logical framework has been developed for the new business lines and will be
fully aligned with the new Project Cycle Management framework under development for
implementation in 2008.

10 Change management: Progress report

III. Implementing change
Identity and core values
In a competitive environment, ITC needs an identity and core values that differentiate it
from others and provides visibility vis-à-vis its stakeholders. Following the determination of ITC’s
strategic framework, work started on developing a brand identity to improve the communication
of our work to our clients, donors and staff. Through a series of facilitated workshops, nearly 170
staff and external stakeholders contributed to the definition of a brand blueprint that articulates
ITC’s vision, mission, and values.

“The development partner in export success”

ITC’s vision statement sets ITC’s direction and indicates the wish to be recognized as
“The” preferred partner in development work/assistance, targeting success in exports, which is
ITC’s market segment.

In other words, the vision describes the market where ITC works, its individuality and how
it competes (emphasis on development and exports). One of the comparative advantages of ITC
is its “universality” as a United Nations organization.

ITC enables small business export success in developing countries

by providing, with partners, trade development solutions to the
private sector, trade support institutions and policymakers
ITC’s mission statement elaborates who the organization is, what it does, how it does its
work and for whom it does it. The mission describes how ITC differentiates itself from other
development providers in the TRTA field. It describes ITC’s unique proposition.

“Export Impact for Good”

At the heart of what we stand for is the essence or credo of the brand, “Export Impact for
Good”. The credo describes ITC’s promise in the simplest manner and sits at the heart of ITC. It
cannot be compromised and is used to anchor and filter the organization’s initiatives.

“Vision, Integrity, Pragmatism, Excellence, Responsiveness”

Defining values will help ITC live up to its promises. These values reflect long-term
commitments and will drive the organization’s individual and collective behavior. Business
decisions must adhere to ITC values. When in doubt, decisions are guided by values. Values
cannot be compromised and will act as a benchmark to measure ITC’s performance and
behaviors.

The vision statements are written in the present tense as an affirmation of ITC’s
commitment to them. The organization recognizes that they describe future aspirations.

Vision Our vision is shaped by our dynamism, innovation, and ability to lead
and voice insights of real value to our clients and stakeholders.

Change management: Progress report 11

 Integrity Integrity is a shared UN value, fundamental to our operations and
reflected in our impartiality and accountability to clients and
stakeholders. We advocate mutual respect and equity of opportunity in
the world.

Pragmatism Our pragmatic methodology is a perfect fusion of thinking and doing,

while ensuring we have the right partners to deliver results.

Excellence As a development agency working towards sustainable impact for our

clients, our ability to communicate with clarity and credibility is essential
to our organization’s success.

Responsiveness Our responsiveness and flexibility are built around the empathy we have
for our clients needs, and the commitment and drive to help them
achieve export success.

ITC branding
The new ITC logo is directly inspired by the building blocks required for the effective
delivery of programmes in developing countries. These blocks signify the importance of working
with partners to multiply ITC’s impact from one to one to many. In effect, the whole is greater
than the sum of the parts. The choice of colors makes reference to ITC’s origins and its
relationship with both the UN and the WTO and provides a modern contemporary feel as well as
a strong platform for co-branding with donors and technical partners. It clearly communicates
the essence of the ITC brand: “Export Impact for Good”.

In March 2008, the brand identity guidelines will be completed. Extensive training
sessions with staff will be undertaken to ensure that the new values and communication tools
are adopted and that the organization’s work reflects its values. ITC will continue to work with its
partners at all levels to ensure that its values are well understood and well communicated.

ITC’s new logo

12 Change management: Progress report

Communications
ITC has initiated an extensive communications effort in support of the change
management process. This includes weekly breakfast meetings among management and staff,
a weekly change management newsletter and a website on the ITC intranet. Work has also
begun to identify potential changes in the communications function in order to build a
communications platform that can serve clients more effectively. This review included an
assessment of the communications function and top line recommendations on changes in
direction covering ITC’s website, flagship events, publications, advocacy, public relations and
media management. A decision was taken to suspend work in this area in anticipation of the
rollout of the new brand identity and the organizational review. This will enable the ongoing
consultancy work to support staff in the execution of their duties to ensure that there is
maximum ownership of the recommendations.

Externally, extensive consultations have been undertaken with ITC stakeholders, both in
Geneva and abroad, and with UNCTAD and WTO. As identified by the findings of the client
survey, the new organizational structure will emphasize a new approach to client relationship
management.

Consolidated Programme Document

The Consolidated Programme Document (CPD) is also a response to the evaluation,
which recommended a single programming framework encompassing all regular and extra-
budgetary funded activities. With the CPD, ITC has also aligned the extra-budgetary funding
cycle (originally (June to May) with the calendar-year regular budget cycle.

The CPD is ITC’s comprehensive response to the challenge of Aid for Trade. It seeks to
confirm the organization as the pre-eminent multilateral team specializing in TRTA. It is the
product of a lengthy planning process. The programmes were developed and validated through
a thorough process of consultation with ITC’s stakeholders, starting with the JAG of April 2007
where stakeholders from different regions debated the priority needs of their regions.

By way of follow up, a large number of missions were conducted in all regions to help
determine the most important trade development needs. For all the integrated country
programmes, these consultations were held at ministerial level, with private sector and, in some
cases, with Heads of Government. ITC has also received Heads of Government in Geneva and
a large number of trade delegations, often headed by Trade Ministers. This was supplemented
by ITC’s participation in WTO’s three regional Aid for Trade meetings during September (Peru
and Philippines) and October (Tanzania). These meetings provided the opportunity to further
discuss and validate programme proposals. The World Export Development Forum in Montreux
in October 2007 brought together more than 200 trade stakeholders — including over 30 country
teams — with which programming consultations were also held. Finally, the proposals in the CPD
have been refined through a series of regional and sub-regional consultations in Geneva to
which all the local missions were invited.

The CPD for 2008-2009 represents the validated pipeline of requests for ITC technical
assistance over the last several months and includes newly defined strategic approaches to
integrated countries and regional programmes. The document is presented in seven volumes:
one volume for each of the five regions, one volume presenting ITC’s vision and one volume for
the index. Each regional volume is further broken down by sub-region, highlighting ITC’s sub-
regional strategy (analysis, including the identified trade challenges, and ITC’s proposed
response). Following the analysis, tables detail the proposed programmes. Regional or country
initiatives are listed first, followed by programmes representing ITC’s response to the previously
identified trade challenges of policymakers, TSIs and enterprises in the sub-region. ITC has also

Change management: Progress report 13

 included details on resources committed, resources required, current donors and partners
involved with the project, as well as measurement indicators from ITC’s strategic framework.

Regional programme approach

ITC has focused on improving coordination and involvement from all ITC divisions to
ensure the successful development of the CPD. Emphasis has been put on larger, multi-year
projects to ensure more sustainability and measurability of impact. In particular, special attention
has focused on identifying programmes that would have higher impact through regional delivery,
elaborating conditions to create such programmes, identifying criteria for deciding whether
delivery at a regional level would be best, and suggesting means for effective implementation
and coordination of regional programmes. Three principles leading to the definition of a regional
programme have been defined:

To ensure full ownership by beneficiary countries, the objectives of any regional

programme need to be aligned with both national and regional objectives.

To improve sustainability of impact, the geographical coverage of regional

programmes should be aligned as closely as possible to those of the Regional
Economic Commissions (RECs).

RECs can play the role of anchor for regional programmes provided they have the
human and technical resources to do so. Should this not be the case, regional or
national TSIs may be a more appropriate partner, though the programme should
also address the capacity constraints of the REC.

On this basis, ITC is developing new (and integrating current) programmes into its
regional programme framework. In 2008 work will continue to refine and standardize the
methodology for implementing regional programmes, and ensuring it is aligned to other ITC
initiatives, including the new business lines, the new RBM system, programme evaluation and
the CRM system. ITC’s planned regional programmes for 2008-2009, including resource
requirements, are listed in the appropriate volumes of the CPD.

Integrated country programme approach

An integrated country programme approach is followed when ITC activities have greater
impact from taking a holistic approach to improving a country’s trade performance. This
approach requires close collaboration with the Government and business sector, taking into
account national export strategies or national trade initiatives planned or under way. It also
encompasses a customized, comprehensive array of planned technical assistance initiatives
which, when implemented together, create capacity and contribute to improving a country’s
overall export performance. To maximize the impact of ITC’s role, trade strategy roadmaps will
be developed for new integrated countries.

ITC is also developing a methodology and criteria to determine which countries would
most benefit from an integrated country programme, based on in depth needs assessment. The
selection of countries to become part of the initiative is a consultative process, taking into
account a number of factors including: desire of the country to be part of the programme,
government and private sector commitment to improving export development, and country
capacity to partner with ITC to implement the various initiatives. Priority is given to LDCs, land-
locked and small island states, as well as One UN and post-conflict countries.

In 2008 ITC will refine and standardize the methodology for implementing integrated
country programmes, ensuring it is aligned to other ITC initiatives, including the new business
lines, the new RBM system, programme evaluation and the CRM system.

14 Change management: Progress report

Strategic planning and project management
ITC’s main challenge for 2008 is to develop a structured long range planning process and
to link it with the annual plan. To meet this challenge, it will be necessary to strengthen the
strategic planning functions at the top level of the organization, and the monitoring and
evaluation functions throughout ITC.

Strategic Plan 2008-2011

The introduction of a strategic planning process at ITC will cover the next two UN budget
biennia. Developing a strategic plan will provide a strategic direction to the organization in its
competitive environment. In the light of ITC’s vision and mission, it will set targets to be
achieved and identify the financial, human and organizational resources required. It will allow
the organization to set up disciplined processes to achieve these results. It will also commit the
organization to measuring its performance. It will contribute to identifying and defining the
relevant products and services to be developed and marketed in the context of demand from our
beneficiaries and donors. It will also address the critical issues of delivery (direct, online, or via
TSIs).

The four-year Strategic Plan should be finalized in the first quarter of 2008. It will be
developed in two stages:

The Strategic Brief — will define a theme and outline the strategic direction over the
next four years, taking account of the changes in ITC’s operating environment, as
well as donors’ and clients’ demands and their impact on ITC. Developed by the
Office of the Executive Director (OED), it will include the high-level targets for the
organization and a roadmap to achieve these, including organizational, financial
and human resources dimensions. ITC’s divisions and functions will use the
strategic brief as an entry point for the development of their own respective four-
year strategic plans.

Strategic Plan Reviews — will take place at all levels. The OED Strategic Planning
Team will review and agree the plans submitted by all divisions and functions and
incorporate them into ITC’s four-year Strategic Plan.

Monitoring progress
The first year of the Strategic Plan will be ITC’s Annual Plan, which will contain more
operational detail than the Strategic Plan. The Strategic Plan and the Annual Plan will be
updated, published and presented every year to ITC’s stakeholders.

RBM will be an essential component of the strategic planning monitoring and evaluation
process. It will be linked to employees via the performance appraisal system through the
cascading of targets from the objectives of ITC, through those of divisions, down to those for
each member of staff. In terms of monitoring and implementation and in order to facilitate
delivery, the Strategic Plan will be complemented by the implementation of a new project
management tool (see below).

Project management
ITC has been working since 2006 on the preparation of a Project Cycle Management
(PCM) Manual, which is fully consistent with UN system models. The objective, to be
implemented in 2008, is to develop a disciplined approach to project management across the
organization.

Change management: Progress report 15

 The PCM manual elaborates two concepts:

The Project Cycle as a management tool. A project moves through various distinct
phases during its life. Each phase is described in terms of processes required
(flowcharts), decision points, criteria and responsibilities, as well as supporting
documents and their templates. The phases of the project cycle are as follows.

The Logical Framework as an analytical tool. Any project or programme should

articulate an intervention logic that relates rationally its goals, objectives, outputs
and activities. The logical framework also comprises indicators, targets, sources of
verification and assumptions in a predefined format.

Project cycle and logical framework

Project Cycle Logical Framework

External trends Initiatives and

and Policies requests

Objectively
ITC Policy Sources of
Goal Verifiable
Setting Verification
Indicators

Outcomes Sources of
Objective
indicators Verification

Evaluation Concept
Outputs Sources of
Results
indicators Verification

Activities Means Costs

Monitoring

Implementation Design
Assumptions

The combination of these two concepts will enhance organizational learning within ITC
and among its partners, and promote a common approach and clear consistent language.
Particular emphasis is put on the assessment of, and contributions to, the specific trade related
needs of countries as well as to the attainment of the trade related MDGs and, thus, ITC
strategic objectives. Compliance checklists for each phase are built in to assure quality
throughout the project cycle as part of the performance assessment framework and ITC’s RBM
practice. Currently, five of the seven chapters have been drafted. Finalization of the manual and
rolling out of the methodologies is foreseen to start early in 2008.

A disciplined strategic planning and project management process should drastically

improve ITC’s relevance, coherence and impact. It should also contribute to creating a new
delivery-oriented culture in ITC and be a significant success factor towards delivering ITC’s
mission and vision.

16 Change management: Progress report

Results based management
ITC corporate quality standards
The progressive development of a corporate culture based on planning for results and
measuring performance relies on the progress registered in the other change management
initiatives, in particular in the areas of strategic planning and project management. Quality
standards are being determined to ensure high quality and high impact at all levels of the logical
framework:

Immediate objectives — are determined for each project. To measure how these
objectives are met, a series of outcome indicators needs to be developed.

Outcome indicators — should reflect the performance of ITC’s contribution as well

as those of its implementing partners (e.g. TSIs). Outcomes are only partially the
result of ITC activities. So, for outcomes, performance is a result of the combined
partner and ITC delivery efficiency and effectiveness.

Outputs — are the results achieved through the use of products and services
developed under ITC activities. These outputs are measurable through output
indicators (quantitative and qualitative); they are under full control of ITC.

A first series of quantitative indicators have been developed related to ITC sub-objectives
and embedded in ITC’s strategic framework. The business line development process puts a
strong accent on performance indicators and sets different levels of measurement to fulfill these
objectives.

Development objectives — have been defined in ITC’s strategic framework and

endorsed by the UN General Assembly. They correspond to the three different
categories of ITC clients. Progress towards these objectives will be periodically
measured through the client survey process.

Resources required
Defining and implementing an RBM system is an on-going process that requires the
mobilization of significant human and financial resources, as well as the evaluation of how these
resources are being allocated and the impact that they are having. Availability of these
resources is a pre-condition for successful implementation of the system. The indicators that are
defined to ensure suitable measurement of impact need to be validated through systematic
review. There will need to be a performance reporting system that sets out the impact that the
allocation of resources is having, as well as measuring resource inputs. This will require that ITC
review, on a project-by project basis, both the impact of a project and all the costs of a project.

ITC’s proposed regular budget programme document for 2008–2009 is 0.4% growth, or for
practical purposes zero growth, but it includes a request for a P4 position to work on RBM
practice.

Change management: Progress report 17

 New performance culture
The experience of other development organizations clearly shows that a shift in working
culture is indispensable for the success of a results-based system. The development of a new
set of corporate values as described in the present document is only the first step in this
direction. Creating a results-oriented organization implies a significant departure from the status
quo. RBM will only be effective with a much larger level of empowerment delegated to ITC staff
over the allocation of resources to achieve objectives, with clearly defined responsibilities and
accountabilities.

Cost performance — all the costs of projects will need to be taken into account,
including staff members’ and consultants’ time, as well as overseas travel and
accommodation and the use of in-house resources.

Performance assessment system — should be an integral part of RBM. The

objectives of ITC and divisions identified through strategic planning will be
cascaded down to Directors, Chiefs of Section and individual staff members and
reflected in the assessment of their performance. This will provide the adequate
level of transparency required to ensure accountability measurement.

The establishment of the RBM system will require the active participation of ITC’s
networks, especially TSIs. The system will have to evolve and improve over time, as success
will require multiple stakeholders to participate and dedicate sufficient management resources.

Human resources development

ITC’s relevance and performance primarily relies on its own people. In this context, the
consolidation of an efficient human resource function is a fundamental element for a more
relevant organization and the introduction of a competency framework for human resources is a
must in the change management process.

Progress in this area has been dependent on advancement in up-stream elements of the
change management process, namely the definition of the organizational vision, mission and
values, the definition of the business lines, and the finalization of the new structure. Following
the definition of the organizational structure, and on the basis of the competencies and skills
identified through the five new business lines, the redesign of senior managers’ job descriptions
is currently under way. This will enable a decision on the number of positions to be advertised,
and information gathering for the competency framework.

Priorities to be undertaken in early 2008 include the revision of staff selection policies with
a view to making them more competency-based and streamlined. The intention is to have them
redefined when the selection process is carried out for new management positions, reflecting
new competencies identified through the business lines exercise. Other key activities relate to
the finalization of the competency framework. A training strategy will be defined, and
implemented during the first half of 2008, to update competencies and develop those that staff
are lacking. The competency-based performance appraisal system will be developed during the
course of 2008, on the basis of progress registered by the strategic planning and monitoring
function.

ITC’s success will be based on its ability to motivate and employ competent staff to meet
the goals and objectives of the organization.

18 Change management: Progress report

Governance structure
The External Evaluation of ITC recommended a review of ITC’s governance structure.
During the last few months options have been discussed during informal regional consultations
and at a stakeholders’ retreat on 19 November 2007.

Consultations were held to discuss a proposal to continue to convene an annual two-day

JAG meeting, to establish a Consultative Board to replace the existing Consultative Committee
of the ITC Global Trust Fund, and to setup a single ITC Trust Fund. The Consultative Board
would meet two to three times per year. The Evaluation Report recommended that donors
should discuss this issue.

ITC took the initiative to follow up on the recommendation and has facilitated the process
by organizing a large number of consultations with Permanent Missions and the convening of a
stakeholders’ retreat on 19 November 2007. These consultations resulted in agreement to
continue an annual meeting of the JAG and to establish a Consultative Board, and endorsement
of a single ITC Trust Fund. Some issues regarding the establishment of the Consultative Board
were still discussed at the end of 2007.

Programme support functions

Success of the change management process will require the organization to ensure
effective and efficient support for the new business processes while complying with UN and
WTO administrative requirements. The change management process has set a roadmap for a
review of the support functions of in the Division of Programme Support (DPS). Low-value
added and redundant administrative processes will become unsustainable within the context of
the new emphasis on larger-scale programmes, while smaller projects will imperatively require
value-added processing. ITC will need to increase its reliance on technology, increase the
quality and relevance of its delivery, as well as ensure the availability of high-skilled staff and
efficient business processes.

As a result, the change management process will strive to increase efficiency of support
services. Business processes must not only meet the UN regulatory framework but also be
reviewed for performance. A plan for change will be defined in 2008. The first phase, which
includes streamlining of cross-functional processes which impact on delivery in the field, is
scheduled for completion in September 2008. A second phase, which includes the preparation
and implementation of service-level agreements between DPS and technical divisions, is
planned for completion in December 2008.

A critical look will also have to be taken at the organization’s procurement rules as
decision- making on TRTA is moving to countries and ITC will have to ensure it is not excluded
as a service provider.

Change management: Progress report 19

IV. Priorities for 2008
2007 2008
01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 06 07 08 09 10 11 12

Strategic Plan 2008-2011 Development Implementation

Project Cycle
Training Roll out
Management
Results Based Concept
Implementation
Management development

Human Resources Redeployment, training

Client survey Update

Communication Launch

Client Relationship
Concept Design Implementation
Management

Strategic planning
Strategic planning will be developed in the first quarter of 2008. The next critical
challenge will consist of training teams in the organization to develop four-year strategies and
plans, as well as an operational plan for 2008. Each division will be required to appoint a
specialist team to oversee the successful cascading down and completion of this process,
working in communication with OED’s strategic planning group. These “gatekeepers” will also
participate in the project planning process and oversee the successful implementation of the
plans, in the context of the new RBM culture.

Project management cycle

A new project management cycle will be introduced early in 2008. Extensive training will
be required. ITC aims to develop expert trainers at division level, who will initially be able to help
staff implement the new concept.

Result based management

RBM will become an integral part of, and will be imbedded into, the strategic planning and
project management processes. Work is required to define the foundations of an RBM-oriented
culture and train the organization in a process of continuous improvement.

Client survey
Having set a baseline in 2007, ITC intends to survey our client requirements on a regular
basis in order to measure progress against the milestones set, based on the initial comments
received.

20 Change management: Progress report

Human resources
One of ITC’s key success factors moving forward will be the effective redeployment of its
human assets, in line with the new organizational structure. Next to this, a significant training
and development effort will need to be put in place, to ensure that teams are fully able to take on
the new challenges, applying ITC’s new operating rules in a progressive way.

Communication
ITC will redeploy its new organization with a new communications strategy and the official
launch of its new ITC identity in the first part of 2008. A key challenge of the communication
team will also be to enhance its web-based services in partnership with other parts of the
organization.

Client relationship management

A key success factor for ITC is to have a better understanding of our client needs and
requirements. The organization will have to develop a long-term approach to client relationship
management. New methodologies and tools will be developed to ensure our product offering
remains relevant to client needs.

Challenges
The critical challenge for ITC will be to manage the change process without losing
organization momentum. Implementation of the first phase will be a success factor. Decisions
will have also to be made in the following areas:
Implementing the change management process of ITC’s programme support
functions (DPS).
Starting a new initiative on CRM. This was foreseen for 2007 but was not started
due to prioritization of other change management initiatives under way.
Roll out of the new ITC brand identity, with the design and implementation of a
strategy and communications plan for the new ITC, including the redesign of ITC’s
website.

Change management: Progress report 21

The Development Partner for Export Success

The International Trade Centre (ITC) is the technical cooperation agency of the United Nations Conference on Trade and
Development (UNCTAD) and the World Trade Organization (WTO).
Street address: ITC, 54-56, rue de Montbrillant, 1202 Geneva, Switzerland Postal address: ITC, Palais des Nations, 1211 Geneva 10, Switzerland
Telephone: +41-22 730 0111 Fax: +41-22 733 4439 E-mail: itcreg@intracen.org Internet: http://www.intracen.org