Unido on track: 2006 and beyond

UNIDO ON TRACK: 2006 AND BEYOND

Opening Session of the UNIDO Investment Forum, Amman, Jordan, 2006 Group photograph of the G8 meeting of Ministers of Environment, Siracusa, Italy, April 2009

Mr. Cheikh Diarra, Chairman, Microsoft Africa, Vienna, Austria, 2008

H.E. Ms. Benita Ferrero-Waldner, Commissioner for External Relations, European Commission, September 2008

H.E. Mr. Cham Prasidh, Senior Minister, Ministry of Commerce of Cambodia, and Mr. Pascal Lamy, Director-General, WTO, at the LDC Ministerial Conference, Siem Reap, Cambodia, November 2008

Mr. Jean Ping, Chairman, African Union Commission, Vienna, Austria, September 2008

Ms. Huda Janahi, Award Winner, Gender Conference, Vienna, Austria, 2008

Opening session of the Global Renewable Energy Forum, Foz do Iguaรงu, Brazil, May 2008

UNIDO ON TRACK: 2006 AND BEYOND 3

FOREWORD

This publication offers the reader a snapshot of the Organization’s achievements over the past four years and a preview of the years to come.

Since its very inception, UNIDO has been assigned a challenging role. As the specialized agency charged with promoting industry for development, UNIDO has sought to strengthen the linkages between its analytical, normative, convening and technical cooperation functions, as well as providing policy advice to the public and private sectors.

The mission remains unchanged: inclusive, equitable and sustainable industrial development.

That aim has had to be achieved against a backdrop of changing needs and changing times, both within UNIDO and without. UNIDO has brought the key debate on

industrial development closer to field realities. Its convening role as a global forum for industrial development issues has contributed to refocusing the programmes of UNIDO and realigning them with the global challenges posed by climate change and the extreme volatilities in the global fuel, food and financial markets.

We have learned from experience and have changed our ways. In common with our sister agencies, we have been seized with the spirit of UN system-wide reform and coherence at the global, regional and national levels. The changes in UNIDO are to be seen in the qualitative and quantitative improvements of our technical cooperation and related activities.

They are also apparent in the manner in which the Organization

goes about its work and in the set of values it has adopted. In order to maximize its contribution to achieving internationally agreed development goals, UNIDO has entered into a series of groundbreaking partnerships with other UN agencies, international financial institutions and the private sector.

In the past four years we have done more than ever before. In the next four years we can and shall do still better.

We owe it not only to the countries we serve, but also to ourselves. Commitment and excellence go hand in hand.

Kandeh K. Yumkella

4 UNIDO ON TRACK: 2006 AND BEYOND

THE MANDATE

UNIDO TECHNICAL COOPERATION DELIVERY (US dollars million) 2005 112.9 2003 94.6 2001 84.9 2000 68.7

2004 98.8

2002 81.6

Mandated to promote sustainable industrial development and international industrial cooperation, UNIDO helps to create wealth and reduce poverty through industry and manufacturing. Its role as a global forum and an effective provider of technical cooperation services is universally recognized.

2006 113.7

UNIDO ON TRACK: 2006 AND BEYOND 5

DOING MORE, DOING BETTER

Forecast 2015 and beyond 250-300

Forecast 2011 150

2007 117.3

2008 123.6

Estimate 2009 129.1

UNIDO TECHNICAL COOPERATION Net Approvals by Theme, 2006-2008 (US dollars million)

A prime, but not sole, indicator of the Organization’s success in promoting sustainable industrial development over the past four years is the increase in its delivery of technical cooperation services.

The increase in delivery has been matched by tangible efforts to improve programmatic quality based on: Clear overall strategic direction Continuous results measurement and improvement Cost-effective programme support services An equally important indicator of success has been the gradual ‘adjustment of balance’ in the three priority areas over the past four years.

The overall improvement in the Organization’s delivery of services and its responsiveness to the needs

and demands of its constituents came about as a result of realigning the organizational structure of UNIDO over the period 2006-2009.

It involved the establishment of a number of new units such as: the Trade Capacity-building Branch, the Resource Mobilization and Quality Assurance Branch, the Public Advocacy and Communications Unit, the International Financial Institutions Partnership Unit, and the Energy and Climate Change Branch. This was complemented by a series of innovative changes across the Organization.

Total 151 Total 138.2

Total 104.4 71.5

54.2

Environment 60.9 and energy 35.8 53.4

Poverty reduction through productive 13.6 activities 42.8 Trade 26.8 capacity- 27.4 building Other

2.4

1.0

3.7

2006 2007 2008

6 UNIDO ON TRACK: 2006 AND BEYOND

AVERAGE RECRUITMENT AGE

National Professional Officer (NPO)

Professional

General Service

Total

46 43

43

42

41

43

41

41 39

42 39

35

2005

In the Programme Development and Technical Cooperation Division (PTC), these included: Strengthening the ties with the Global Environment Facility (GEF) and the Multilateral Fund for the implementation of the Montreal Protocol Cooperating with the European Commission on preparing programmes within the framework of Economic Partnership Agreements Institutionalizing technical seminars as well as regular peer and project review meetings to heighten the quality of services provided Introducing staff/unit compacts: an online consultative planning tool for determining annual work plans In the Programme Coordination and Field Operations Division (PCF), these included: Increasing the field presence of UNIDO to the current level of 28 UNIDO Regional and Country Offices and, in partnership with UNDP, 17 UNIDO Desks

42

41

39

38

37

36

34

2006

2007

Securing a 69 per cent increase in

field staff under the field mobility policy since 2006 Inaugurating a South-South development modality and opening the first two centres for South-South Cooperation (SSC) for industrial development in India and China Strengthening the research and statistical capacities of UNIDO and re-launching the Industrial Development Report (IDR) In the Programme Support and General Management Division (PSM), these included: Improving the efficiency of the recruitment process and introducing rigorous assessment of candidates, leading to the appointment of 194 new staff over the period 20062009 Rejuvenating the workforce and introducing the Young Professionals Programme Expanding the training programme for both headquarters and field staff and increasing the

2008

number of staff training hours from 7,373 in 2005 to 16,780 in 2009 Promoting a culture of meritocracy and rewarding staff achievements, resulting in 176 promotions since 2006 Introducing the International Public Sector Accounting Standards (IPSAS), upgrading the Agresso system and implementing InfoBase Complying with a significant number of the GEF Fiduciary Standards and providing a monitorable action plan with definite timelines for the elements remaining In addition, the establishment of the Bureau for Organizational Strategy and Learning (OSL) contributed to: Introducing the principles of results-based management (RBM) and results-based budgeting into UNIDO activities Strengthening the role of UNIDO as a learning organization Ensuring continuous feedback of evaluation findings into strategic decision-making processes

2009

38

UNIDO ON TRACK: 2006 AND BEYOND 7

THREE PRIORITIES The work of the Organization is focused on three closely interrelated thematic priorities.

Poverty reduction through productive activities UNIDO attaches particular importance to achieving the target of halving the number of the world’s poor by 2015 as set out in the Millennium Development Goals.

Empowerment of the poor through productive activities and income generation is key to reaching that target.

FRESH HOPE FOR THE WORLD’S POOREST The Organization’s applied research and analysis has a direct bearing on the design and development of successful poverty reduction strategies and policies. In 2009, UNIDO re-launched its flagship publication Industrial Development Report entitled Breaking in and

moving up: New industrial challenges for the bottom billion and the middle-income countries.

As the Director-General of UNIDO pointed out, the report, co-authored

by Paul Collier of Oxford University and John Page of the Brookings Institution, would enable ‘the Bottom Billion nations… to arrive at their own, tailor-made solutions to successfully tackle poverty’.

8 UNIDO ON TRACK: 2006 AND BEYOND

Applying energy-efficient technology

Starting anew with a small pastry business

DEVELOPING SME CLUSTERS

BOOSTING AGRO-INDUSTRY

Strengthening linkages between small businesses and support institutions helps small and medium enterprises (SMEs) to realize their full growth potential.

The synergies gained improve energy efficiency, productivity and competitiveness.

The Organization’s success in building up or strengthening the productive agro-industrial capacities of developing countries is reflected in the increase in agro-industrial projects by some 60 per cent since 2006.

INDIA: UNIDO assisted the hand-tools SME clusters in Jallandar, Punjab and Nagaur, Rajasthan to enhance their competitiveness by promoting energy-efficient technologies and fostering quality and productivity improvements, ultimately yielding energy savings of 18-20 per cent per year and an increase in exports of more than 20 per cent per year

LEBANON: UNIDO assisted more than 100 small and medium agro-industrial enterprises that had been damaged or destroyed during the hostilities in 2006 to rehabilitate their infrastructure, create employment and improve household incomes

ECUADOR: UNIDO assisted two industrial clusters, comprising some 30 enterprises in Atuntaqui (textile and apparel) and Ambato (leather and footwear), to improve the quality and design of their products, increase productivity and incomes, create new jobs and open export opportunities

UGANDA: The UNIDO skills for peace and income (SKIPI) project provided training to ex-combatants and their dependants in selected industrial occupations, yielding employment or income-generating opportunities for 90 per cent of the trainees (34 per cent of whom were women)

UNIDO ON TRACK: 2006 AND BEYOND 9

Combating gender bias

MAKING INDUSTRY A WOMAN’S WORLD Gender equality and empowerment of women, in particular their economic empowerment, have a significant positive impact on economic growth and sustainable industrial development; they contribute to poverty reduction and social integration. In 2009 UNIDO introduced a policy on systematically mainstreaming gender into all its industrial development activities.

VIET NAM: Drawing on the findings of an ongoing UNIDO analysis of gender bias, women are being assisted in breaking down legal, institutional and attitudinal barriers to their becoming entrepreneurs MOZAMBIQUE, NAMIBIA, ANGOLA, RWANDA AND TANZANIA: UNIDO has introduced a programme to train young girls and boys in entrepreneurial attitudes, skills and knowledge, thus helping to trigger cultural change and a shift in the perception of the role of women and girls

EXCHANGING INDUSTRIAL KNOWLEDGE AND EXPERTISE In March 2009, UNIDO set up an interactive platform, the Industrial Knowledge Bank/Banco Industrial de Conocimiento, to promote the exchange of industrial knowledge and best practices, covering more than 10 countries in the Latin American and Caribbean region. The innovative structure enables the participating countries to act as both donor and recipient of knowledge, with UNIDO facilitating the process.

PROMOTING INVESTMENT AND TECHNOLOGY Foreign direct investment, technology transfer and technology diffusion are key elements in the Organization’s poverty reduction strategy. The African Regional Programme on Investment Promotion, launched by UNIDO within the framework of the African Investment Promotion Agencies Network (AfrIPANet), was endorsed by the Conference of African Ministers of Industry as a strategically important and highpriority programme. It will contribute to informed investment promotion strategy design and improve the competitiveness of domestic enterprises.

10 UNIDO ON TRACK: 2006 AND BEYOND

Trade capacity-building UNIDO recognizes the pivotal role played by trade as an engine for growth and the need to help developing countries ‘trade their way out’ of poverty and marginalization in increasingly globalized markets.

Largest portfolio of trade-related

In response, UNIDO has undertaken the following activities and assignments: Adoption of a systemic, valuechain oriented trade capacitybuilding approach supporting developing countries in their endeavours to compete, conform and connect to markets (The 3Cs Approach)

capacity-building projects in the UN common system Partnership with trade-related UN system organizations in the CEB inter-agency cluster on trade and productive capacity Publication of the UN Inter-Agency Resource Guide describing traderelated support services offered by

various organizations of the UN system in 2008, with an expanded version being issued in 2009 Active association with the Aid for Trade Initiative Implementing partner in both the Enhanced Integrated Framework (EIF) initiative for the Least Developed Countries (LDCs) and the Standards and Trade Development Facility (STDF) Observer on the EIF Interim Board Preparation of a Guide to Private Standards in cooperation with the Norwegian Agency for Development Cooperation

TRADE-RELATED TECHNICAL ASSISTANCE PROVIDED BY UNIDO AND OTHER MULTILATERAL AGENCIES, 2001-2009 UNIDO

UNDP

ITC

FAO

UNCTAD

60

US$ millions

50 40 30 20 10 0 End year 2001

2002

2003

2004

2005

2006

2007

2008

2009

Source: WTO/OECD TCBDB (tttp://tcbdb.wto.org) and UNIDO (UNIDO estimations 2008, 2009), October 2009 (more recent data for other organisations not yet available)

UNIDO ON TRACK: 2006 AND BEYOND 11 Seeking agribusiness solutions

MEETING MARKET STANDARDS A key element in overcoming barriers to trade is the improvement of supply capacity, upgrading of standardization capabilities and greater conformity to market requirements.

PAKISTAN: International accreditation has been granted to 19 testing laboratories under a â‚Ź 2.5 million traderelated technical assistance programme funded by the European Commission, with a follow-up â‚Ź 9.5 million programme from the same source for supplyside development and trade capacity-building initiatives CENTRAL, SOUTHERN AND EASTERN EUROPE: In 2008, UNIDO, with the support of the Government of Croatia, launched a project to establish a regional corporate social responsibility network. This network ensures the continuous improvement of environmental and social conditions in industrial SMEs in the region, thus enhancing their competitiveness and market access.

EGYPT: Following the success of the Egyptian Traceability Centre for Agro-industrial Exports (ETRACE), UNIDO convened an International Conference on Sharing Innovative Agribusiness Solutions in November 2008 in Cairo, Egypt

12 UNIDO ON TRACK: 2006 AND BEYOND

APPROVED FUNDING AND ODS PHASE-OUT, UNIDO, 1994-2008 50

Approved funding, millions of US dollars ODS phase-out (consumption) ODP tonnes

6000 5000

30

4000 20

3000 2000

10

1000 0 Year ‘94 ‘95 ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02

0 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08

Access to clean, affordable energy and a healthy, ecologically balanced environment are of essential importance to sustainable development. The LDCs are disproportionately affected by environmental degradation and lack of access to clean, affordable energy and environmental services. These issues are also global as attested, inter alia, by climate change, loss of biodiversity and ozone layer depletion.

They cannot be tackled by countries acting alone.

The recently launched UNIDO Green Industry strategy addresses these key issues.

The Organization assists countries to strengthen their capacity to meet these challenges at the global, national and community levels, seeking out and sharing best practices, providing innovative policy advice and linking partners through pilot projects that help developing countries to build sustainable industries.

PROTECTING THE GLOBAL ENVIRONMENT UNIDO was ranked top

implementing agency of the Multilateral Fund of the Montreal Protocol with more than 600 projects and 500 non-investment activities over the past five years UNIDO contributed to eliminating a significant amount of the world’s overall consumption of ozone-

depleting substances (ODS) UNIDO programmes focused on

meeting compliance targets under the Montreal Protocol and reducing greenhouse gas emissions under the Kyoto Protocol UNIDO has been recognized as a key implementing partner of GEF for projects related to persistent organic pollutants, climate change, protection of international water systems and ozone depletion.

ODP tonnes

US$ millions

8000 7000

40

Environment and energy

9000

Climate change impact: UNIDO’s Montreal Protocol Programme phased out a net 359,000,000 CO2 equivalent tonnes.

UNIDO ON TRACK: 2006 AND BEYOND 13

MANAGING WASTE AND PROMOTING RENEWABLE ENERGY Two of the main vehicles for improving the efficient use of natural resources in industry are recycling waste and introducing renewable sources of energy.

Inaugurating the bio-gas plant

Managing waste through non-combustion technology

INDONESIA: Under a UNIDO project, a minigrid based on a small 40kW hydropower plant was installed to promote productive uses on a remote disaster-stricken island, replacing diesel generators and serving 200 households, a community development centre and various productive facilities CUBA: The UNIDO pilot project for environmentally sound management of municipal solid waste follows an integrated approach encompassing waste separation, compost production, a bio-gas plant, a testing laboratory and landfills. It is envisaged that the project will be scaled-up and replicated across the country

CHINA: UNIDO is the executing agency for a project aimed at establishing an environmentally sustainable medical waste management infrastructure designed to eliminate the release of persistent organic and other harmful pollutants, protect human health and meet Stockholm Convention standards

KENYA: A UNIDO-funded green energy project, Lighting Up Kenya, will promote solar energy, biomass, wind and bio-gas to add 100 MW to the national grid

14 UNIDO ON TRACK: 2006 AND BEYOND

CROSS-CUTTING THEMES UNIDO has sharpened its focus on a number of cross-cutting themes such as youth employment, women’s entrepreneurship, South-South Cooperation and support for the LDCs. YOUTH EMPLOYMENT

SOUTH-SOUTH COOPERATION

LEAST DEVELOPED COUNTRIES

A Youth Employment Initiative was

A Special Programmes Group was

Technical cooperation resources

set up at headquarters in 2006

assigned to LDC programmes and projects increased by 30 per cent per year over the period 20032008 UNIDO has been nominated an implementing partner in the EIF Eight pilot project proposals have been developed for LDCs in Africa (Benin, Lesotho, Mozambique, Rwanda and Senegal) and Asia (Cambodia, Lao PDR and Yemen) within the EIF

launched by the UNIDO DirectorGeneral in 2006 A multi-agency/multi-stakeholder approach to youth employment has been adopted in a number of countries in sub-Saharan Africa, Northern Africa and China Entrepreneurship and technical training is being provided for youth in Angola, Côte d’Ivoire, Ghana, Guinea, Iran, Liberia, Mozambique, Namibia, Rwanda, Senegal, Sierra Leone, Sudan, United Republic of Tanzania, Timor-Leste and Uganda

Government-funded SSC centres

came on stream in India (2007) and China (2008) SSC centres are envisaged for Indonesia, Iran and Morocco Ties have been established with key institutions such as the UNDP Special Unit for SSC, the South Centre in Geneva and the African Development Bank

UNIDO ON TRACK: 2006 AND BEYOND 15

MAJOR CONFERENCES Major conferences are a source of guidance on operational and normative policy for the Organization and a seedbed for innovative action-oriented partnerships.

Over the past four years they have led to: POLICIES AND PLANS OF ACTION Manila Declaration on Green

Industry in Asia Energy development goals for

2030 Plan of action for renewable

energy in Africa Ministerial-level policy advocacy

group on renewable energy Impact of the economic crisis on

LDC productive capacity Support for the International

Renewable Energy Agency

The President of the Philippines, H.E. Ms. Gloria Macapagal-Arroyo being welcomed by the DirectorGeneral to the International Conference on Green Industry in Asia, September 2009, Manila, Philippines

16 UNIDO ON TRACK: 2006 AND BEYOND

Opening Session of the Global Renewable Energy Conference, León, Mexico, October 2009

PARTNERSHIPS UN-Energy and industry

A SELECTION OF UNIDO CONFERENCES Second Technology Foresight Summit, Water Productivity in Industry, September 2007,

UNIDO and Itaipú Binacional

Budapest, Hungary

corporation in Brazil UNIDO and AGFUND UNIDO and Michigan State University

Ministerial Conference of the Least Developed Countries, December 2007, Vienna, Austria Global Agro-industrial Forum, April 2008, New Delhi, India International Conference on Renewable Energy in Africa, April 2008, Dakar, Senegal Global Renewable Energy Forum, May 2008, Foz do Iguaçu, Brazil Ministerial Conference of the Least Developed Countries, November 2008, Siem Reap,

PROGRAMMES

Cambodia International Conference on Sharing Innovative Agribusiness Solutions: From Farms to

Agribusiness solutions exchange

Markets, Providing Know-how and Finance, November 2008, Cairo, Egypt

programme Financial facility for promoting agribusiness in Africa Proposals for establishing supplyside capacities in the LDCs within the framework of the Aid for Trade and the EIF process

Bahrain Forum: Clean Technologies for Economic Development, February 2009, Manama,

Bahrain Vienna Energy Conference - Towards an Integrated Energy Agenda Beyond 2020, June

2009, Vienna, Austria International Conference on Green Industry in Asia, September 2009, Manila, Philippines Global Renewable Energy Forum – Scaling Up Renewable Energy, October 2009, León,

Mexico

UNIDO ON TRACK: 2006 AND BEYOND 17

GLOBAL PARTNERSHIP FOR DEVELOPMENT UNIDO remains fully committed to implementing the UN reform process and enhancing the coherence, effectiveness and results-orientation of the common system.

SYSTEM-WIDE COHERENCE 2006 UNIDO and the Federal Government of Austria hosted the Thematic Consultation on the Role of the Resident Coordinator System 2007 UNIDO Director-General was

Group photograph of the AGECC meeting, New York, United States of America, November 2009

appointed Chair of UN-Energy, the group tasked with securing coherence in the UN system’s multidisciplinary response to the World Summit on Sustainable Development UNIDO played a prominent role in establishing the CEB Inter-Agency Cluster on Trade and Productive Capacity

18 UNIDO ON TRACK: 2006 AND BEYOND

UNIDO began its active involvement in the Delivering as One initiative in eight pilot countries (Albania, Cape Verde, Mozambique, Pakistan, Rwanda, the United Republic of Tanzania, Uruguay and Viet Nam) 2008

UNIDO organized the high-level

dialogue on UN System-wide Coherence: The Next Steps UNIDO systematized its participation in the roll-outs of the UN Development Assistance Frameworks UNIDO and UN-DESA were appointed co-convenors for the focus area of the transfer of climatefriendly technologies UNIDO was selected as one of the 10 non-rotational members of the UNDG Advisory Group 2009 The Director-General of UNIDO

was selected by the UN SecretaryGeneral to chair his Advisory Group on Energy and Climate Change

STRATEGIC PARTNERSHIPS WITH UN-SYSTEM ORGANIZATIONS Food and Agriculture Organization (FAO) Joint activities to meet mounting global challenges related to agribusiness and agro-industry development, bio-energy, economic recovery in post-crisis countries and the convening of major conferences International Fund for Agricultural Development (IFAD) Focus on value-chain development and market linkages, agro-industry and agro-processing, food production and bio-energy in all regions International Labour Organization (ILO) Cooperation in the multistakeholder programme for productive and decent work for youth in the Mano River Union countries, joint entrepreneurship development training programmes and support for businesswomen and young entrepreneurs International Organization for Standardization (ISO) Collaboration in the formulation and dissemination of industrial standards and the development of the ISO 26000 standard on Social Responsibility to Small and Medium Enterprises

United Nations Conference on Trade and Development and the International Trade Centre (UNCTAD/ITC) Joint activities in trade and productive capacity-building within the framework of the CEB United Nations Development Programme (UNDP) Cost-effective expansion of UNIDO field coverage through the establishment of UNIDO Desks in UNDP Country Offices and developing joint activities in private sector development United Nations Environment Programme (UNEP) Joint efforts involving the National Cleaner Production Centres Programme in 42 countries aimed at reducing environmental pollutants, improving efficiency of resource use and enhancing industrial productivity through cleaner production and the application of environmentally sound technologies World Trade Organization (WTO) Partnership in trade capacitybuilding and technical cooperation programmes for developing manufacturing and export capacities in selected industrial sectors within the framework of such WTO-led initiatives as Aid for Trade and the STDF on Sanitary and Phyto-Sanitary issues

Displaying the outcome of a joint project in Kigali, Rwanda

UNIDO ON TRACK: 2006 AND BEYOND 19

PARTNERSHIPS WITH BUSINESS Hewlett Packard (HP) More than 12,000 unemployed youth in Africa and the Arab region were trained under the UNIDO/HP partnership, Graduate Entrepreneurship Training through Information Technology (GET-IT) Microsoft Corporation Joint UNIDO/Microsoft computer

refurbishment programme was launched in Uganda to provide affordable computers to SMEs to enhance competitiveness and the transfer of skills. A similar programme has been started in Trinidad and Tobago; others are planned for selected countries in sub-Saharan Africa and the Caribbean

PARTNERSHIPS WITH CIVIL SOCIETY 143 non-governmental

METRO Group A joint METRO-MAKRO/UNIDO

demonstration programme was conducted through the UNIDO/ETRACE Centre in Egypt to enhance the compliance of food safety staff and suppliers with requirements set by the Global Markets Working Group of the Global Food Safety Initiative. This project forms part of the programme to build up supplier capacity in Egypt

organizations (NGOs) were granted consultative status Memorandums of understanding were signed with two NGOs (without consultative status)

Acquiring computer skills

20 UNIDO ON TRACK: 2006 AND BEYOND

REVITALIZING UNIDO SHARPER AND CLEARER PROGRAMMATIC FOCUS

RBM INITIATIVES Adoption and mainstreaming of

Reduction of thematic

programme components from 21 to 12 Alignment of structure and composition of thematic programme components and strategic objectives and outcomes with those in the programme and budgets Identification of measurable policy and institutional outcomes at the regional and country levels Integration of outcomes and indicators into a consolidated UNIDO results matrix STRUCTURAL REFORM AND STREAMLINED PROCEDURES Higher degree of decentralization

to field offices Introduction of comprehensive

Technical Cooperation Guidelines Establishment of a unified

Programme Approval Committee and Quality Assurance Group Greater delegation of authority and empowerment Enhanced IT support for administrative and financial processes

RBM principles throughout UNIDO via a cross-organizational RBM Steering Committee RBM-based work plans for all UNIDO field offices Comprehensive RBM training programme for all UNIDO staff and managers Development of an RBMcompliant performance appraisal system DELIVERING AS ONE UNIDO Greater synergies between core

functions and organizational units in service delivery Change management to support the strategic direction of the Organization A culture of teamwork, accountability, transparency and ethical conduct Continuous improvement in the sharing of knowledge and information

UNIDO staff at the retreat on Delivering as One UNIDO, January 2009

UNIDO ON TRACK: 2006 AND BEYOND 21

LOOKING AHEAD: PRIORITIES FOR THE FUTURE The challenges facing UNIDO in the coming years will call for programmatic and organizational change.

PROGRAMMATIC CHALLENGES

ORGANIZATIONAL CHALLENGES

CHANGE MANAGEMENT

The programmatic challenges will relate to formulating the substantive content of the Organization’s future activities. This will encompass four pillars (analysis and policy advice, convening of international conferences, norm-setting and technical cooperation) and service delivery in a strategic and integrated fashion. The focus shall be on: Scaling up poverty reduction programmes Strengthening activities in ‘green’ industries, energy and cleaner production Expanding and enhancing TCBrelated activities

The organizational challenges facing UNIDO have a long history. Over the years, UNIDO has taken many steps to enhance the procedural and operational aspects of its work in line with the requirements and best practices of the UN system. A continuous effort has been made to simplify business processes, procedures and organizational structures, as well as upgrade the IT structure to cope with the growing demands placed on UNIDO.

Significant further improvements cannot be achieved with the same incremental and isolated approach.

If the Organization is to respond to its programmatic and organizational priorities and meet the demands of internal and external stakeholders, it has to modify its business model fundamentally. UNIDO has to: Implement a rapidly growing portfolio of programmes/projects in the order US$ 150 million by 2010 and a projected US$ 250-300 million by 2015 and beyond Comply with strict donor requirements Monitor results and resources systematically Strengthen linkages between headquarters and the field

22 UNIDO ON TRACK: 2006 AND BEYOND

Contribute effectively to the UN

system-wide coherence agenda Address risks in a pro-active manner This will call for a major comprehensive and holistic change in culture, structure and management systems:

VISION

PEOPLE

Based on an independent feasibility study of current processes, structures and systems of UNIDO in October 2009, the aim will be to reengineer business processes and supporting IT systems/tools, including the introduction of an integrated organization-wide enterprise resource planning system. Designed to strengthen the interlinkage and interdependence of major organizational change interventions, this holistic approach to change management initiated in 2008 will enable UNIDO to:

STRUCTURE

SYSTEMS

THE THREE INGREDIENTS OF CHANGE MANAGEMENT

Deliver as One UNIDO Recognize trends in complexity Create a flexible, pragmatic institution Balance continuity and change Institutionalize RBM Support the system-wide harmonization process Achieve effective decentralization Introduce knowledge management

If change management is to be successful, it needs to address traditional structural and cultural barriers to learning and promote knowledge-sharing in order to improve services and results. UNIDO has adopted a pragmatic approach to knowledge management aimed at matching conceptual discussions

with the identification of ways forward, opportunities for action and knowledge management tools. One such tool is the creation of communities of practice: groups of people who share an interest in or a passion for something they do and so learn how to do it better through regular interaction.

The gains in efficiency and effectiveness achieved through holistic change management will permit UNIDO to meet future challenges head on and achieve a quantum leap in the Organization’s capacity to deliver technical cooperation services to its Member States and support them in their aspirations to achieve the Millennium Development Goals.

The set of values crucial to UNIDO fulfilling its mandate extend from commitment to excellence. It involves continued dialogue, genuine teamwork and achievement of predetermined results. It is firmly based on the principles of accountability and integrity, as well as innovative responsiveness to changing needs and time. UNIDO will continue to stand for inclusive, equitable and sustainable industrial development.

Signing ceremony with Mr. Yao Shenhong, Director-General, CICETE, Lanzhou, China, November 2009

Mr. Rajendra Pachauri, Chairman, Intergovernmental Panel on Climate Change and UNIDO Goodwill Ambassador, Vienna Energy Conference, Vienna, Austria, June 2009

UNIDO-ICIE International Conference on Cooperation in Commercialization and Financing of Innovation and Technology, Vienna, Austria, March 2007

Opening session of the Global Agro-Industries Forum, New Delhi, India, April 2008

Group photograph at the Technology Foresight Summit on Water Productivity, Budapest, Hungary, September 2007

Closing Ceremony of the International Conference on Green Industry in Asia, Manila, Philippines, September 2009

Mr. Kurt Waldheim, former United Nations SecretaryGeneral, with the current Director-General of UNIDO and his predecessors, at the 40th Anniversary of UNIDO, Vienna, Austria, October 2006

H.E. Ms. Michelle Bachelet, President of the Republic of Chile, Santiago de Chile, Chile, September 2006

Panel discussion at the Conference of the Parties (COP14) in Poznań, Poland, December 2008

Design: Smith+Bell, UK www.smithplusbell.com Print: Phoenix Design Aid A/S, Denmark

The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations Industrial Development Organization concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

This document has not been submitted for formal UN editing.

Statistical data for 2009 cover the period from 1 January to 31 October.