STRATEGIC PLAN FOR STRENGTHENING EXTERNAL FUNDING - Strategic Counsel for Organizational Development and Management for Results Department of ...

 
STRATEGIC PLAN FOR STRENGTHENING EXTERNAL FUNDING - Strategic Counsel for Organizational Development and Management for Results Department of ...
STRATEGIC PLAN FOR STRENGTHENING
EXTERNAL FUNDING

Strategic Counsel for Organizational Development and
Management for Results
Department of External and Institutional Relations (DEIR)

DECEMBER 2017
STRATEGIC PLAN FOR STRENGTHENING EXTERNAL FUNDING

                                                                INDEX

I.       INTRODUCTION AND MANDATE .................................................................................. 2

II. VISION AND MISSION ....................................................................................................... 3

     1. VISION ............................................................................................................................... 3

     2. MISSION ............................................................................................................................ 3

III. EVOLUTION OF CONTRIBUTIONS ............................................................................... 4

IV. CURRENT SITUATION OF DEVELOPMENT AID ....................................................... 6

V. CURRENT WORK FRAMEWORK................................................................................... 7

VI. DIAGNOSIS ........................................................................................................................... 8

     A. EXTERNAL DIAGNOSIS .................................................................................................. 9

     B. INTERNAL DIAGNOSIS ................................................................................................... 9

VII. STRATEGIC ANALYSIS .................................................................................................. 11

     A. STRENGTHENING THE OAS’ ADVANTAGES ....................................................... 11

     B. DIRECTIONAL STRATEGY ........................................................................................ 13

     C. MASTER AND SUPPORT STRATEGIES................................................................... 15

     D. SCOPE STRATEGY ....................................................................................................... 18

VIII.         PLAN OF ACTIVITIES .............................................................................................. 20

          WORK CYCLE FOR THE STRATEGY’S IMPLEMENTATION ................................. 20

IX. FORECAST OF THE EVOLUTION OF SPECIFIC FUNDS ....................................... 22

X. ORGANIZATIONAL STRUCTURE ................................................................................ 23

ANNEXES ................................................................................................................................... 25

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I.        INTRODUCTION AND MANDATE

In accordance with the Organization’s vision and strategic guidelines, Resolution 2911 – adopted during
the Cancun General Assembly on June 21st, 2017 – instructs the Secretary General to “present, in consul-
tation with the Permanent Council, a strategic plan for mobilizing the external support and funding needed
to implement the mandates of the Member States and the priorities of the Organization, by November 30,
2017.”
The Strategic Plan for Strengthening External Funding, which seeks to fulfill this mandate, was coordinated
by the Strategic Counsel for Organizational Development and Management for Results (SCODMR)/De-
partment of External and Institutional Relations (DEIR), in collaboration with the Organization’s Secretar-
iats, and in consultation with Member States (consultations are still underway). This methodology was used
in order to maximize the Organization’s experience in resource mobilization and project implementation,
as well as leverage the existing interdependence between the Organization’s pillars.
Principles of efficiency, effectiveness, transparency and accountability have been taken into account in the
drafting of this Plan. The foundation is the understanding that the strengthening of external funding must
be based on a close alignment between the advantages of the OAS, the needs of Member States and the
priorities of the donors who provide resources.
Herein, the analysis has been structured as follows: first, the findings from a study on the evolution of
contributions made to the Organization during the last few years. Following, the current situation of official
development assistance at the global and regional levels is examined. Subsequently, a diagnosis is carried
out to explain the downward trend in contributions during recent years. The current work methodology for
fundraising and project funding cycles are explained. Lastly, in order to develop a strategic proposal, an
analysis on Strengths, Weaknesses, Opportunities and Threats (SWOT Analysis) was carried out, from
which four strategies are derived: Directional, Master, Scope, and Support strategies. Through these strat-
egies, the necessary actions and expected results are identified.

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II.       VISION AND MISSION

      1. VISION
      The Department of External and Institutional Relations (DEIR)’s vision is to become the primary ref-
      erence to facilitate cooperation from donors to Member States in the areas of democracy, human rights,
      development, security and institutional strengthening in the continent.

      2. MISSION
      The Department’s Mission is to coordinate the Organization’s comprehensive Strategy for mobilizing
      and strengthening external funding through strategic partnerships with Member States, Permanent Ob-
      servers, international organizations, foundations and the private sector, while providing quality ser-
      vices and information for the decision-making processes of Member States, Secretariats and donors.
      In its efforts to strengthen organizational development and effective resource management, the Strate-
      gic Counsel for Organizational Development and Management for Results/Department of External and
      Institutional Relations began undertaking a series of measures to coordinate relations with donors and
      address the specific funds’ downward trend. A Donor Relations Committee, made up of project man-
      agers and directors of departments across all four pillars of the Organization, was established with the
      goal to align funding needs and donor coordination. The Committee expressed concern about the cur-
      rent situation of specific funds that finance the Organization’s projects.

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III.      EVOLUTION OF CONTRIBUTIONS
The evolution of contributions from Member States, Permanent Observers and other partners displays a
clear downward trend that we have tried to curb in 2017.
Contributions from Member States decreased from US$46.7 million in 2012 to US$27.5 million in 2016.

On the other hand, contributions from Permanent Observers peaked in 2008 from which they have main-
tained an irregular evolution with increases in 2013 and 2015 but with a downward trend in 2016.

In relative terms, the weight of the contributions of other strategic partners (international organizations,
private sector, and foundations) has yielded as a second source of financing after the contributions of the
Permanent Observers. In 2005, contributions under other partners reached US$15.4 million while in 2016,
they barely surpassed US$4 million.

Due to the large differences in contributions, the evolution of contributions from Member States is better
observed if the analysis is divided into two groups of countries. The first group comprises the top five
donors that allocate the most funds to the OAS while the second group gathers Member States in places six
to ten according to their contributions. Among the top five donors, the United States remains as the sole
large contributor to the specific funds although with a downward trend since 2013. Meanwhile, Canada
after decreasing its contributions due to the conclusion of the CIDA program, has begun to change this

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trend since 2016. Brazil seems to have started an upward trend. Within the second group of Member States,
a downward trend is observed in the contributions from Colombia following a peak with the re-launching
of the Mission to Support the Peace Process in Colombia (MAPP), and a slight progress is observed in the
contributions from the Dominican Republic and Panama.

Contributions from the main donors among Permanent Observer countries have also experienced a decrease
in recent years. Within the top six Observer donors, Spain stood as the largest contributor from 2006 to
2012 with the Netherlands taking the forefront until 2014. Recently, the European Union has become the
largest contributor of funds to the Organization.

 While the second group of contributors displays uneven trends, a sharp increase in donations from the
 United Kingdom is notable maintaining an upward trend in 2015, doubling its contributions in 2016.

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IV.        CURRENT SITUATION OF DEVELOPMENT AID

    The Organization can play a more active role in attracting funding from official development assistance
    (ODA).

    Although for some donors Latin America and the Caribbean has ceased to be a priority, official aid for the
    Americas1 exceeds US$10.000 million, with a per capita ratio that is superior to the aid received by Asian
    countries.

    With respect to the Development Assistance Committee (DAC) members that contribute the most to ODA,
    the United States and Germany are the most active contributors, followed by France, Norway, Canada and
    Switzerland. In relative terms, as a percentage of total aid, Spain occupies the first place in this ranking,
    followed by Norway and France (which holds third place in both tables).

    If we take into account the $45.8 million in specific funds received by the OAS in 2016, there is,
    undoubtedly, capacity to increase the funding for the Organization’s projects.

1
    The Americas includes Latin America and the Caribbean and EU countries’ overseas territories)

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V.        CURRENT WORK FRAMEWORK
In light of the general downward trend in the contributions from Member States and Permanent Observers,
the Strategic Counsel for Organizational Development and Management for Results is working on a series
of measures aimed at the efficient management of projects and the funding cycles in order to improve access
to resources and to optimize the efficiency and effectiveness of project management.
     A. PROJECT FUNDING CYCLE
          A procedure to standardize the different phases of a project financing cycle has been established.
          The steps of a project financing cycle are detailed below:
          1. PROPOSAL. Written by the corresponding Department, and submitted for evaluation to the
             Project Evaluation Committee (CEP). If the results are favorable, the project will move on to
             the following phase.
          2. DONOR RELATIONS COMMITTEE/DEIR. Receives the proposal and begins the resource
             mobilization cycle. It decides whether or not the project is presented to a donor roundtable. If
             so, the scheduling process for the roundtable begins.
          3. DONOR ROUNDTABLES
               These roundtables can be held either in Washington or in Member States’ capitals.
               (i)       Roundtables in Washington. They are organized by the Department of External and
                         Institutional Relations (DEIR) in coordination with the Department presenting the pro-
                         ject.
               (ii)      Roundtables in capitals of Member States. The DEIR coordinates the Donor
                         Roundtable with National Offices and the Departments that are presenting projects to
                         be funded. DEIR relays information to the representatives of Member States and Ob-
                         servers.
          4. DISBURSEMENT OF FUNDS. The DEIR acknowledges receipt of funds and sends out the
             corresponding thank you letters. On their part, the concerned areas have to make sure that they
             claim funds on time and that they allocate these funds to the implementation of projects that
             have been agreed upon.

          5. NARRATIVE REPORTS. The goal is to keep donors informed to the best capacity and in
             accordance with their expectations. The Department of Planning and Evaluation (DPE) assists
             Departments in standardizing reports and coordinating projects’ evaluation.

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      B. STRENGTHENING OF PARTNERSHIP WITH DONORS

The Strategic Counsel provides support on different fronts:

          a. Department of Planning and Evaluation (DPE): provides training in Results Based Manage-
             ment (RBM) and support with project design based on the RBM guidelines; coordinates project
             evaluation.
          b. Department of External and Institutional Relations (DEIR)/RBM: Coordinates donor relations;
             organizes donor roundtables ensuring alignment between donor priorities and OAS strategic
             guidelines. Since 2016, the SCODMR began coordinating donor relations and donor
             roundtables for the presentation of projects to Member States and Observers. The DEIR drafted
             the first publication on the Organization’s achievements and success stories aimed at donors in
             particular to Permanent Observers (2015-2016 Report to Permanent Observers).
          c. Organizational Development/Integrated Programs/RBM: Supports the implementation of the
             Strategic Plan; designing projects from an inter-pillar perspective, seeking equality and inter-
             dependence between the four pillars and serving the Organization’s Vision. It is important to
             note that the aforementioned projects have potential hemispheric impact.
          d. Press Department/RBM: Helps give the Organization’s projects, programs and political reso-
             lutions increased visibility; contributes to spreading of the Organization’s results and maintains
             the webpage as main information source for potential clients.

VI.       DIAGNOSIS
An analysis of the contributions in recent years reveals that during the last 10 years, specific funds have
decreased in approximately US$21 million. The reasons for this decline are varied and pertain to both con-
textual and structural situations. In order to shed light on the causes that are affecting the Organization the
most, the focus has been placed on the analysis of (i) external elements (External Diagnosis) – these are
related to circumstances pertaining to donors: Member States, Permanent Observers and Institutions; and
(ii) internal elements (Internal Diagnosis), which are centered in the context of the Organization itself.

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      A. EXTERNAL DIAGNOSIS

      1. Member States

      Traditional donors demand that Results Based Management (RBM) be used as a measure of a project’s
      success. Thus, the focus is no longer placed on the quantity of activities that are carried out, but rather
      on the measurable results of these activities. It is necessary, then, for the Organization to align with
      this philosophy.
      When the organization fails to appropriately report results back to donors, its implementation capacity
      is questioned. This has direct repercussions on the inflow of donations and further translates into a
      problem of image and credibility.
      Nowadays, there are greater demands from donors in terms of transparency, efficiency, effectiveness
      and accountability.
      Furthermore, donors have changed their operating modes by decentralizing help and focusing on pro-
      jects in capitals of countries.
      There has also been an increase in the number of entities/organizations that compete for the funds that
      donors allocate to the Latin American and the Caribbean region.

      2. Permanent Observers
      Donor countries among the Permanent Observers have redirected their priorities, considering that
      Latin America is no longer a region of priority concern. For the European Union (EU) countries in
      particular, the migration crisis has influenced the reorientation of its priorities to other regions. Latin
      America is considered a middle-income region and not anymore a priority destination for financing
      and cooperation.

      At the same time, some donors have instructions not to contribute to organizations whose membership
      is in arrears or to projects where beneficiary countries or Member States do not take part in the financ-
      ing of the initiatives.

 B. INTERNAL DIAGNOSIS
      The main problems that are internal to the Organization are derived from:
      (i)       Indirect Cost Recovery (ICR). The effectiveness of the current ICR percentage is questioned,
                given that it limits the Organization’s competitiveness. As an example, the MAPP registered
                a loss of an approximate US$1.2 million, hypothetically due to high ICR costs that impeded
                its participation in several stages of the observation process of the Peace Agreements. The
                European Union applies an ICR of 7% to its projects, while different UN agencies implement
                a variable ICR that reaches a maximum of 8% of a project’s cost.
      (ii)      Accounting System. The OAS’ accounting system limits its capacity to apply for grants from
                organizations such as the European Union and the World Bank due to the fact that the Organ-
                ization does not comply with modern accounting standards.
      (iii)     Donors Development/Relations. So far, the search for donors has been carried out in a disperse
                and ad hoc manner. This leads to donor fatigue and undermines the Organization’s image.

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      (iv)      Limited resources in the search for new donors, which requires personnel that is fully dedi-
                cated to searching for new opportunities as well as to developing relations and custom-made
                material.
      (v)       Too many small projects, each of which requires a significant workload that is often similar
                to that of larger projects.
      (vi)      Lack of a modern system for Member States and donors to gather information on active pro-
                jects, including results, indicators and direct/indirect beneficiaries.
      (vii)     Lack of annual planning with Member States and donors.

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VII.      STRATEGIC ANALYSIS
Having analyzed the current situation, identified the problem’s diagnosis and understood that current
measures are not enough to appropriately deal with the decline in contributions, we have sought to design
a Strategic Plan that, aligned with the strategic guidelines and priorities of Member States and donors,
will help stop the current trend and increase funding.

We start from the premise that the strengthening of external funding must be based on the close alignment
between the Organization’s advantages, the needs of Member States and the cooperation priorities of do-
nors that allocate resources.

On the one hand, Member States demand projects tailored to their needs as well as flexibility and swift
response capabilities. On the other hand, our strategic partners expect an Organization that continues to
exercise political leadership in a more efficient manner, maintaining quality standards, while strengthen-
ing project implementation. In this scenario, the Organization must focus on responses based on its
strengths and comparative advantages.

This Strategic Plan consists of the alignment between the Organization’s advantages, the needs of Mem-
ber States and the cooperation priorities of donors.

In order to reach this balance, it is imperative to have clarity about the Organization’s comparative ad-
vantages. These will be obtained from an analysis of strengths and weaknesses that will help determine
which areas must be reinforced and in which we must make strategic alliances with other institutions both
from the public and private sectors.

Lastly, we must investigate which donors allocate funds to address the particular needs of the Member
States and they must be persuaded about the advantages of working with the OAS.

On the basis of the OAS’ advantages, an analysis is carried out to determine the objectives on which the
Organization must focus to meet its external funding needs.

     A. STRENGTHENING THE OAS’ ADVANTAGES
     The OAS is an organization with presence in the entire Hemisphere and with access to decision-makers.
     This should be used by the OAS to conduct political dialogue setting favorable conditions for the im-
     plementation of mandates derived from its political bodies.

     This presence also allows the OAS to gain firsthand knowledge of the countries’ needs and offer its
     implementation capacity in the entire continent. The increasing decentralization of development aid
     must serve to enhance this geographical presence in accessing funding sources on the field.

     The cross-sectional approach fostered by the Strategic Counsels’ Integrated Programs can give the Or-
     ganization a leading edge in comparison to its competitors in the region. This crosscutting, inter-pillar
     alignment in the design of projects should also have a positive effect on the Secretariats that enjoy less
     coverage and funding. This is due to the fact that, in associating with other Secretariats that have greater
     visibility, the former might see their growth boosted.

     The Organization’s reduced bureaucracy also places it at the forefront with regards to other institutions
     in terms of its capacity to manage and implement small and medium-sized projects.

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     In order to maintain and gain the trust of both traditional and new donors, we must strive to coordinate
     fundraising procedures to avoid creating fatigue for the donor and strategic partners.

     Many of these donors are updating their ICR policies, restricting the maximum rate that may be allo-
     cated to projects receiving their collaborations. In this sense, the OAS is currently charging an ICR rate
     that is above that of its competitors in the market.

     Although Latin America is not a priority for the main players in the world of cooperation, the Organi-
     zation must take advantage of the growing role of Foundations, Global Funds and of the private sector
     as actors that offer cooperation and partnership opportunities.

     In order to do so, resources should be granted to the departments with responsibilities over donor de-
     velopment and relations as well as results based management. The opportunity that the Internet and
     social media offers as new communication and dissemination platforms must also be used in fundrais-
     ing efforts – just as done by NGOs, international organizations, and banks that compete with the OAS
     for external funding.

     Lastly, we must take advantage of the recognition of the institution as an actor in the Americas on issues
     of human rights and democracy as a way to channel donor aid through the creation of large Global
     Funds that may be managed by the Organization.

     The Strategic Proposal stems from the study of the OAS’s advantages through an analysis of strengths,
     opportunities, weaknesses and threats (SWOT). From there, the following strategies are developed:

         DIRECTIONAL STRATEGY

         MASTER STRATEGY

         SCOPE STRATEGY

         SUPPORT STRATEGY

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     B. DIRECTIONAL STRATEGY
     Based on the analysis of the OAS’s advantages (see figures 1 and 2 in the Annex), three direc-
     tional/guiding objectives have been identified. In order to improve external funding, the Organization
     should direct its focus to the following three directional objectives:
      i. Growth in pilot projects that are scalable and replicable by regional banks
      Pilot projects drawing fom the Integrated Programs methodology will be able to respond to the in-
      creasing crosscutting nature of the needs and emphasis on multisectoriality by donors.
      These projects will also take advantage of the knowledge base of the institution’s staff /experts to
      promote the organization, its leadership on issues and their ability to gain visibility with new donors,
      including foundations, global funds and the private sector.

      Furthermore, the Organization’s normative framework should be updated so that, in addition to im-
      plementing, the GS / OAS is able to offer services, infrastructure, experience and knowledge on the
      countries' needs in the design of projects of traditional donors, foundations and global funds.
      Collaboration agreements with UN agencies, foundations, global funds, private sector and NGOs for
      the implementation of projects should also be explored.

      ii. Diversifying the identification of opportunities through National Offices
      By fostering the OAS’s role in Member States, decentralizing technical assistance, bringing technical
      capabilities to the field while maintaining project design, supervision and accountability at headquar-
      ters. It is important to take advantage of the hemispheric and regional work experience that OAS head-
      quarters accumulates and the cross-fertilization efforts between the pillars of the organization.

      The decentralization of project-related actions could translate into important savings in operating costs
      for the Organization. The cost of a Staff Member in the field is, in many Member States, up to a 50%
      lower than the cost for that same Staff Member in Washington D.C. Therefore, only the critical com-
      ponents of a project should operate in headquarters.

      Additionally, the OAS could aim to manage mega-projects starting from a base similar to that of some
      competitors such as the UNDP, which relies on a team of private consultants that assists a team of
      professionals covering a vast array of specialties given the enormous quantity of projects on a global-
      level.

      On the other hand, given the very nature of the OAS, small contributions will always exist and their
      implementation will have to be subsidized by larger projects. Therefore, it is necessary to create a
      project portfolio with low implementation costs executing units.

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      The Organization can also serve as the main institution in the channeling of aid and cooperation from
      donors and Observers who do not have a presence in many countries of the region. This will require
      resource allocation to donor development. In parallel, the Organization will have to strengthen rela-
      tions with traditional donors and explore relations with new donors.
      The Organization should also be closer to the needs of the Member States, focusing on the search for
      financing in the capitals of the Members that have strong donor presence.

      iii. Reconversion of internal policies
      Of which the following should be underscored:
          a. Establishing a differentiated ICR on the basis of the project’s fees in order to be more compet-
             itive and responsive to donor policies.
          b. Implementing the first comprehensive Strategic Plan for strengthening external funding
             through the SCODMR/DEIR and coordinating the image, message and donor search.
          c. Establishing multiannual planning with countries and donors through annual meetings with the
             most important contributors.
          d. Working on ISO Quality Certificate.
          e. Evaluating and updating the accounting system according to the requirements of major donors.
          f.   Fostering Results-Based Management culture, strengthening evaluations and audits, standard-
               izing reports and using this information in communication strategies with donors.
          g. Implementing a communication strategy to promote the organization and its projects (achieve-
             ments, results, indicators) – including through the use of ICTs to give visibility to the organi-
             zation with donors.
          h. Opening online fundraising procedures.

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     C. MASTER AND SUPPORT STRATEGIES
     Having defined the guiding objectives towards which the Organization should direct its efforts, the way
     in which these objectives will be attained and the required resources must be established.
     Using the comparative advantages drawn from the SWOT analysis and on the proposed directional
     objectives of growth, diversification and reconversion, the Organization will have to seek for an align-
     ment of the actions of the entire General Secretariat, including those of National Offices.
      i. Growth in pilot projects that are scalable and replicable by other multilateral organizations
      Differentiation through a niche strategy by,
       1. Promoting pilot projects that hinge on the interdependence of the Organization’s pillars.
        Based on the Member States’ priority needs, the Organization’s expertise and the interests of donors,
        the SCODMR and Secretariats will identify inter-pillar pilot projects to be developed in integrated
        programs, with a particular focus on cross-sectional solutions.
        The goal is to design tailor-made, innovative programs that can later be replicated in larger scales
        by other multilateral organizations in collaboration with the OAS. In order to achieve this, collabo-
        ration, information and knowledge sharing between Secretariats must be encouraged. Furthermore,
        these types of projects must be fostered by, for example, establishing differentiated ICRs, so that
        they are competitive with regards to those of other International Organizations.
        Knowledge-management shall also be promoted in order to retain lessons learned in the design and
        implementation of these pilot projects.
        A series of meetings and donor roundtables at headquarters will be scheduled for these innovative
        projects when they concern Member States that do not have donor representation in their capitals.
        Likewise, donor roundtables will be held in Member States’ capitals where there is an important
        presence of donors. These will be organized hand in hand with National Offices and the directors
        and project managers of the different Secretariats involved. It is proposed that Staff at both head-
        quarters and National Offices receive training in promoting these projects as well as in donor rela-
        tions. These meetings shall also be carefully scheduled to avoid donor fatigue at both headquarters
        and in capitals.
        Another proposed mechanism involves organizing annual planning meetings with major donors in
        order to program funding, discuss new pilot projects, new phases and/or results of funded projects.
        The linkage, coordination and collaboration with International Organizations and entities of the In-
        ter-American system – including regional banks and agencies of the United Nations – must be ac-
        tively promoted. Annual meetings must be carried out to identify work areas and signed agreements
        that have expired – so that they may be updated – and to promote new cooperation agreements.
        These meetings will have to include an update on all the projects being carried out by each institution
        in the Member States.

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       2. Promoting institutional strengthening in Member States and at a hemispheric level.
        The OAS has limited resources for the development of cooperation projects that will enable big
        social change or capacity-development in Member States.
        Nevertheless, it is a privileged space in the continent as a political forum, with periodic inter-minis-
        terial meetings that can provide an edge to the Member countries in terms of access to best practices,
        designs of model laws and discussions and developments of new inter-American instruments.
        No other organization in the continent possesses these strengths in developing cooperation projects
        in these areas.
        The DEIR will promote the identification of these types of projects in every Secretariat during inter-
        ministerial meetings as a way to maximize their funding.
      ii. Diversifying opportunity identification through National Offices
        When donors have a strong presence in Member States’ capitals, the OAS will take advantage of its
        National Office infrastructure to promote a cooperation agenda, resulting from annual planning
        meetings between Member States, donors and senior staff of the General Secretariat. Similarly, per-
        sonnel in National Offices shall receive training in order to present a common image and message
        to donors, thus contributing to strengthening donor relations.
        A database gathering information on foundations that implement projects with Member States’ gov-
        ernments across the pillars of the OAS will be developed, and meetings with Member States and
        National Offices will be held to explore collaboration opportunities and cooperation agreements.
        Additionally, a database gathering information on donors and Observers with and without presence
        in the Hemisphere, as well as on the areas to which they allocate aid, will be developed. Furthermore,
        it is suggested that a meeting between donors who do not have a presence in the Americas, the
        General Secretariat and beneficiaries be held with the goal of programming projects and cooperation
        agreements.
        In order to further strengthen relations with donors on the field, a work plan will be drafted with
        National Offices to provide guidelines for the searching of cooperation opportunities.
      iii. Reconversion of internal policies
      In order for the Organization to gain space in an increasingly competitive environment, to gain credi-
      bility with donors and to maintain and increase its external funding levels, the OAS must revise its
      financial practices and modernize its standards.

      It is important to study the ICR of the organizations that compete with the OAS for funding as well as
      the percentages allocated to indirect costs that donors are willing to bear. It is suggested that a series
      of criteria be developed and integrated in the Organization’s regulations to apply a differentiated ICR
      based on the characteristics and costs of the project.

      Fragmented fundraising practices may be addressed through the establishment of an annual plan be-
      tween the SCODMR/DEIR and the different Secretariats, IACHR, CIM and CITEL in order to coor-
      dinate the search for funding and cooperation, including “secondments” and exchange of experiences.

      A vast majority of donors develops strategic cooperation plans that surpass the OAS’ implementation
      periods. It is important to establish multiannual plans for larger projects.

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      Another element that will enable the consolidation of the Organization’s credibility is the ISO Quality
      Certification. To do so, audits will have to be organized and a process certifying company will have
      to be hired to accompany the OAS through the entire certification process.

      In order to update the OAS’s accounting system, the Organization will have to study the requirements
      of major donors regarding accounting standards. The cost of not updating the system and the needs of
      the institution to comply with the requirements will also have to be considered. A project to update
      the accounting system can be presented to potential donors.

      None of these reforms would make sense if they are not accompanied by an appropriate communica-
      tion strategy that promotes the Organization’s projects and programs. The web page, which promotes
      the institution’s capacities, achievements, projects and success stories, must have updated and useful
      information for donors– in the form of an interactive map of projects by country, for example.

      It is also suggested that, in an effort to disseminate the knowledge accumulated by the Organization’s
      professionals, a blog be published through which ideas, thoughts, experiences and lessons can be
      shared, thus contributing to the consolidation of the OAS’ image and strengths.

      All of the aforementioned proposals will require a significant coordination effort on behalf of the
      Organization, which will have to intensify its Results Based Management, strengthen evaluations and
      audits, standardize reports and use this information in a communication strategy with donors. Incor-
      porating these criteria in the Performance Evaluation of personnel will contribute to promoting this
      culture.

      The Support Strategy takes into account the necessary resources for the implementation of the direc-
      tional/guiding objectives with activities detailed in the Master and Scope strategies.

      This Strategic Plan requires an enormous effort of internal and external coordination, an effort of
      alignment, culture change, internal procedures update, and capacity building where the SCODMR/De-
      partment of External and Institutional Relations plays a central role as coordinator. This will require
      the SCODMR/DEIR to be strengthened and for some proposals – such as the flexibility of the ICR –
      to be submitted to the consideration of Member States. Likewise, the Organization must prioritize its
      actions in order advance on the crucial issues for the strengthening of external financing.

      Figure 4 of the Annex includes the actions described under the Master Strategy and Support Strategy
      that require human, technological and coordination and communication resources.

Strategic Counsel for Organizational Development and Management for Results/Department of External and Institutional Relations   17
STRATEGIC PLAN FOR STRENGTHENING EXTERNAL FUNDING

     D. SCOPE STRATEGY
     In order to complete this strategy, a calendar of consultations with the OAS Member States was estab-
     lished. These consultations (still under way) seek to allow Member States (See Annex Figure 5) to
     express their needs in order to appropriately identify donors that are allocating funds to alleviate those
     needs in each subregion.
     While waiting to receive the inputs of Member States, we researched thematic regional priorities of the
     Central American Integration System (SICA) and of the CARICOM, as well as the priorities of donors
     with which the Organization works.
     1. Central American Integration System (SICA)
     As an example, and in order to explain the reach of the Scope Strategy, we include some of SICA’s
     priority axes while waiting to receive official information from Member countries. Here, the advantages
     of the organization are crossed with the needs of Member States and the priorities of donors.

     The Declaration by the Heads of State and Government of SICA countries established a regional prior-
     ity agenda with coherent actions according to agreements reached at the summits of July 20, 2010 and
     of July 22, 2011. This agenda can be summarized into five priority axes for action, from which we
     developed opportunities for collaboration and funding only for two topics:

      i. Social and economic integration.
          This SICA priority coincides with the OAS strategic guidelines on the promotion of inclusive and
          competitive economies. Both Member States and Observers allocate funding and assistance for this
          topic. Among others, the following countries can be highlighted: Argentina, Canada, Chile, United
          States, Mexico, Panama and Peru. Among the Permanent Observers, Germany, China, Croatia,
          Spain, Philippines, Finland, Japan, Kazakhstan, Latvia, Malta, Poland, Romania, Switzerland and
          the European Union. Institutions that contribute to this topic include SICA, the Development Bank
          of Latin America (CAF), the IDB, the World Bank and the Inter-American Institute for Cooperation
          on Agriculture.
      ii. Institutional Strengthening.
          Aligned with the Democracy pillar and the Organization’s advantage in the strengthening of dem-
          ocratic institutions and the promotion of inclusive dialogue in the Hemisphere, the OAS must seek
          alliances with SICA, Member States and Observers that allocate funds to this topic: Argentina,
          Canada, United States, Austria, Germany, Bulgaria, Italy, Spain, Japan, Kazakhstan, Lithuania,
          Norway, Serbia and Sweden, the Netherlands, and the EU. Also, SICA, IDB and World Bank.

Strategic Counsel for Organizational Development and Management for Results/Department of External and Institutional Relations   18
STRATEGIC PLAN FOR STRENGTHENING EXTERNAL FUNDING

     2. Caribbean Community (CARICOM)

     In the same manner, and as an example, for the Caribbean Community, one of the strategic priorities
     of the CARICOM 2015-2019 Strategic Plan is analyzed.

     The priority “Building Environmental Resilience” is one of the work lines where the OAS can channel
     assistance and funding for the countries of the Caribbean that do not have diplomatic representations
     of bilateral donors nor of global funds. The OAS with 34 Member States and 72 Permanent Observers,
     can serve as a catalyst in the area of reduction of environmental vulnerability, in which donors and
     Permanent Observers possess great experience.

     With regards to these countries, whose participation in other institutions is less representative and who
     are of paramount importance to the OAS, the objective would be to act as a champion in relaying their
     needs, given that many Permanent Observers and donors do not have representation in Caribbean cap-
     itals.

     For each of the strategic regional priorities, the OAS can implement a plan that, on the one hand, iden-
     tifies potential donors to whom financing and technical assistance can be requested and, on the other
     hand, contacts the authorities of the beneficiary countries and donor institutions and countries, so that
     communication flows through them under the influence of the OAS.

Strategic Counsel for Organizational Development and Management for Results/Department of External and Institutional Relations   19
STRATEGIC PLAN FOR STRENGTHENING EXTERNAL FUNDING

VIII.     PLAN OF ACTIVITIES
The implementation of this Strategic Plan is an exercise in the short, medium and long terms, given that it
does not only contemplate activities that would be easily carried out through the implementation of man-
dates, but that it also includes recommendations that are related to a change in culture and mentality for the
Organization and its staff in general.
This part of the analysis will present a plan of activities for the year following the approval of the Plan and
the allocating of resources for its implementation.

    WORK CYCLE FOR THE STRATEGY’S IMPLEMENTATION
January – February: Drafting of a Donor Relations Guidebook
This guidebook will systematically detail the way in which communication with donors is to be coordinated,
identifying criteria to give them visibility, among others.
The guidebook will be drafted by the Department of External and Institutional Relations in collaboration
with the Work Committee that was established for the drafting of the Strategic Plan and will be under
supervision of the Strategic Counsel for Organizational Development and Management for Results.
Once the guidebook has been concluded, it will be presented to Secretaries, Directors, Project Managers
and other Staff with direct responsibilities in the developing of projects so that they begin adapting their
work to the suggested methodology.
Similarly, it is proposed that the search for information for the elaboration of databases on OAS projects
being carried out in Member States (as well as information on their financing) begin as soon as possible.
Databases on donors and Observers with presence in the Americas should also be completed.
March – April: Internal training course on Donor Relations
With the support of organizations like PAHO, we will try to organize trainings to acquire first-hand
knowledge and lessons learned from organizations that have made strides in the strengthening of external
funding and results based management.
The DEIR will be in charge of coordinating these workshops to which Permanent Missions, Secretaries,
Directors, Project Managers and other personnel with responsibilities in project design will be invited.
The general trend towards decentralization of development aid suggests that counting with the participation
of Directors and staff of National Offices would be very useful given that, with their field knowledge, they
will actively partake in fundraising processes.
May – June: Updating of the webpage
A project for which work is already being undertaken by the Press Department is the updating of the
webpage, with the objective of modernizing online access to information on activities, projects and success
stories of the OAS.
With the proliferation of the use of new technologies in development cooperation, the webpage of any
organization becomes its presentation card to the world. The new webpage’s design should be attractive
and of easy interaction, with precise information for potential donors who might wish to quickly ascertain
the advantages of collaborating with the OAS.

Strategic Counsel for Organizational Development and Management for Results/Department of External and Institutional Relations   20
STRATEGIC PLAN FOR STRENGTHENING EXTERNAL FUNDING

July – August: Developing promotional material
As a supplement to all the other activities that seek to improve donor relations. Different promotion mate-
rials shall be produced for different media: paper, video, online, social media, etc. These materials can also
be developed on the basis of successes and best practices of each Secretariat, using persuasive marketing
techniques for engaging of new donors.
The Departments of External Relations and of Communication will work together in developing this mate-
rial in order to confer increased visibility to the Organization’s competitive advantages with regards to other
competitors as well as to the benefits of associating with us.
September – October: Beginning audits for ISO certifications.
It is estimated that the entire process might take two years.
ISO Certification (International Organization for Standardization) determines the requirements for a quality
management system that may be internally applied by organizations in order to achieve certification or for
contractual purposes.
This type of certificates is required by several donors to be able to access aid and many times lacking the
certification makes the participation in some Global Funds impossible.
An external audit that would certify OAS quality processes would need to be hired so that the Organization
could strengthen a weakness area that is key to obtaining external funding.
In parallel, it is suggested that the ICR of competing organizations and of major contributing donors be
studied.
November – December: Plan of Action with National Offices
This plan seeks to benefit from the knowledge that these offices have on countries’ needs and donor prior-
ities on the field.
A mechanism for the information to flow from National Offices in Member States’ capitals to headquarters
(and vice-versa) will be established. This communication mechanism will allow both parties to jointly im-
plement the most adequate fundraising strategy for the concerned country.
Collaboration between National Offices and the DEIR for the holding of donor roundtables in beneficiary
countries will also be encouraged.

Strategic Counsel for Organizational Development and Management for Results/Department of External and Institutional Relations   21
STRATEGIC PLAN FOR STRENGTHENING EXTERNAL FUNDING

IX.       FORECAST OF THE EVOLUTION OF SPECIFIC FUNDS

Following the implementation of the Strategic Plan, the Organization should be better equipped to
strengthen external funding and resource mobilization.

With some of the measures undertaken in 2016-2017, it is estimated that 2017 will signal a slight recovery.
Nevertheless, for funding forecast purposes, it is assumed that 2017 will present the same level of donor
contributions as 2016.

It is important to take into account the context in which the Organization operates, where the American
continent has ceased to be a priority for donors and where competition for the management of development
aid has multiplied with the appearance of new agents and the consolidation of previously existing ones.
Thus, the reversal of the downward trend experienced so far should be considered a success in itself. From
there on, work shall be carried out so that the OAS may benefit from figures that are closer to the ones seen
towards the end of the previous decade.

This forecast shall be analyzed on an annual basis in order to ascertain that the estimates are consistent with
the reality of collected data. Only then will the impact of measures taken to ensure the Organization’s
financial future be guaranteed.

Strategic Counsel for Organizational Development and Management for Results/Department of External and Institutional Relations   22
STRATEGIC PLAN FOR STRENGTHENING EXTERNAL FUNDING

X.        ORGANIZATIONAL STRUCTURE

The Strategic Counsel for Organizational Development and Management for Results/Department of Exter-
nal and Institutional Relations will work in coordination with the Permanent Council’s Working Group for
the OAS’s Institutional Strengthening. This group has, among its responsibilities, topics that are of central
importance for this Strategic Plan:

     -    Efficiency, transparency, accountability and communication for a better administration of the Gen-
          eral Secretariat;
     -    Cooperation and resource mobilization Strategy; and
     -    Relations with other regional international organizations.
On the other hand, it would not be possible to implement the Strategic Plan for Strengthening External
Funding without making changes to the way the organization carries out the relations and coordination with
donors.

The proposal is based on the establishment of a multidisciplinary team coordinated by the SCODMR/De-
partment of External and Institutional Relations made up by one representative of each Secretariat, as well
as by the Directors of National Offices. Secretariats and National Offices shall provide feedback to seize
opportunities for external funding and to assist with better coordination of fundraising.

Strategic Counsel for Organizational Development and Management for Results/Department of External and Institutional Relations   23
STRATEGIC PLAN FOR STRENGTHENING EXTERNAL FUNDING

This Working Group shall have a meeting in January 2018 with the objective of establishing the general
guidelines for funding that are to be followed. Another meeting in mid-2018 will be organized to evaluate
actions undertaken and to correct, if necessary, in order to ensure an adequate level of external funding for
the Organization.
In addition, as part of the work with this multidisciplinary team, the SCODMR/DEIR will coordinate, to-
gether with the Technology, Finance and Press Departments as well as with National Offices, to achieve a
coordinated, common image and institutional message to donors.

Strategic Counsel for Organizational Development and Management for Results/Department of External and Institutional Relations   24
STRATEGIC PLAN FOR STRENGTHENING EXTERNAL FUNDING

ANNEXES
Figure 1: SWOT Analysis

                      STRENGTHS                                                   OPPORTUNITIES

     Presence in the entire Hemisphere                           Decentralizing of development aid
     Access to decision-makers and main stakeholders             Growing role of Foundations
     Cross-sectional alignment                                   “Bilateralization” of cooperation

     Knowledge of countries’ needs                               Growing interest in projects that integrate several sectors

     The OAS as a political forum                                Donors require work infrastructure on both national and re-
                                                                 gional levels
     Visibility of the organization as an important actor
                                                                 Internet and social media as new communication platforms
     in the Americas in topics relating to human rights
                                                                 where messages can be disseminated
     and democracy
                                                                 Channeling of development aid through important Global
     Implementation capacity for small and medium-
                                                                 Funds
     sized projects
     Reduced bureaucracy

                     WEAKNESSES                                                         THREATS
     Fragmented fundraising efforts                              Latin America is not a priority area
     High ICR costs                                              Proliferation of specialized agents (NGOs)
     Organizational bureaucracy makes for slow pro-              Greater competition from regional banks and the United
     jects and reports                                           Nations in the pillars of development and security
     Outdated accounting system                                  New demands on reporting and performance indicators
     Lack of multiannual project plans with donors               Changes in the foreign policies of major donors
     Lack of prioritization and focusing of resources
     Absence of standardized reporting and of ISO
     quality certificates
     Difficulties in accessing private financing
     Lack of resources for donor development and do-
     nor relations
     Limited capacity in the executing of mega contri-
     butions
     Absence of resources for the developing of pro-
     motional material

Strategic Counsel for Organizational Development and Management for Results/Department of External and Institutional Relations   25
STRATEGIC PLAN FOR STRENGTHENING EXTERNAL FUNDING

         Figure 2: SWOT Analysis

                                                                               OPPORTUNITIES                                                                                       THREATS
                                                                                                                        Internet                                                   Greater com-
                                                                                                        Donors re-      and social                                                 petition from
          SWOT                            Decentral-
                                                       Growing role   “Bilateraliza-
                                                                                       Growing in-
                                                                                       terest in pro-
                                                                                                        quire work
                                                                                                        infrastruc-
                                                                                                                        media as
                                                                                                                        new com-
                                                                                                                                       Channeling
                                                                                                                                       of Aid        Latin Amer-
                                                                                                                                                                    Prolifera-
                                                                                                                                                                    tion of spe-
                                                                                                                                                                                   regional
                                                                                                                                                                                   banks and the
                                                                                                                                                                                                    New demands
                                                                                                                                                                                                    on reporting
                                                                                                                                                                                                                    Changes in
                                                                                                                                                                                                                    the foreign
                                          izing of                                                                                     through im-   ica, not a
         ANALYSIS                         Develop-
                                          ment Aid
                                                       of Founda-
                                                       tions
                                                                      tion” of co-
                                                                      operation
                                                                                       jects that in-
                                                                                       tegrate sev-
                                                                                                        ture on both
                                                                                                        national and
                                                                                                                        munication
                                                                                                                        platforms
                                                                                                                                       portant
                                                                                                                                       Global
                                                                                                                                                     priority re-
                                                                                                                                                     gion
                                                                                                                                                                    cialized
                                                                                                                                                                    agents
                                                                                                                                                                                   United Na-
                                                                                                                                                                                   tions in the
                                                                                                                                                                                                    and perfor-
                                                                                                                                                                                                    mance indica-
                                                                                                                                                                                                                    policies of
                                                                                                                                                                                                                    major do-
                                                                                       eral sectors     regional lev-   where mes-                                  (NGOs)         pillars of de-   tors            nors
                                                                                                                                       Funds
                                                                                                        els             sages can be                                               velopment
                                                                                                                        spread                                                     and security

              Presence in the entire
              Hemisphere                     X                             X                                X                             X              X              X               X                              X
                                                           X

              Access to decision-mak-
              ers and main stakehold-        X                            X                 X                X                                           X              X              X                               X
              ers
              Cross-sectional align-
              ment                                                                          X                                             X                                            X                                 X
FORTALEZAS

              Knowledge of countries’
              needs                          X             X               X                X                X                            X              X                                                             X
              The OAS as a political
              forum                          X                             X               X                 X             X              X              X                                                             X
              Visibility of the Organi-
              zation as an important
              actor in the Americas in
              topics relating to Hu-         X             X               X                X                X                             X             X                                                             X
              man Rights and De-
              mocracy
              Implementation capac-
              ity for small and me-          X             X              X                 X                X                            X             X               X               X                              X
              dium-sized projects

              Reduced bureaucracy            X                             X               X                 X                             X            X                               X               X                X
              Fragmented fundrais-
              ing efforts                    X                            X                 X                                             X                             X               X
              High ICR costs                 X             X               X                X                X                             X                            X               X
              Organizational bureau-
              cracy                          X             X              X                 X                X                             X
              Outdated accounting
              systems                        X             X               X                                                              X                                             X               X

              Lack of multiannual
              project plans                  X                                              X                                              X                                            X

              Lack of prioritization
DEBILIDADES

              and focusing of re-                                                          X                X                              X
              sources

              Absence of standard-
              ized reporting and of          X             X              X                X                                               X                                            X               X
              ISO quality certificates

              Difficulties in accessing
              private financing                            X                                                                                                            X

              Lack of resources for
              the searching and de-
              veloping of donor rela-
                                             X             X              X                X                                              X                                             X                                X
              tions
              Limited capacity in the
              executing of mega con-         X             X               X               X                 X                             X                                            X
              tributions
              Absence of resources
              for the developing of          X             X               X                X                X              X             X                                                                              X
              promotional material

         Strategic Counsel for Organizational Development and Management for Results/Department of External and Institutional Relations                                                                             26
STRATEGIC PLAN FOR STRENGTHENING EXTERNAL FUNDING

Figure 3: Directional Strategy Matrix

Figure 4: Master and Support Strategies

                                                                                                                                SUPPORT STRATEGY (Re-
         DIRECTIONAL STRATEGY (What?)
                                                                                                                                   quired resources)
                                                                MASTER STRATEGY DIFFERENTIATION SUPPORT
                                                                                                                              COORDI-        TECHNOL- COMMUNI-
                         GROWTH                                                                                               NATION
                                                                                                                                        HR
                                                                                                                                               OGY     CATION

                                                                 • Identifying pilot projects by pillar with Secretaries
 1. Carrying out of projects that are scalable and replicable
                                                                 while taking Member States’ priority needs, the Organi-
 by regional banks and where there is an emphasis on                                                                            X       X      X         X
                                                                 zation’s strengths and donor interest into account.
 countries’ needs.
                                                                 • Drafting of a database of replicable pilot projects.

                                                                 • Trainings to promote collaboration, information and
 2. Continuing with the development and starting the im-
                                                                 knowledge sharing between Secretariats. Incentive of
 plementation of integrated programs (cross-pillar pro-
                                                                 differentiated ICR for integrated programs.
 grams) in order to appropriately respond to the cross-sec-                                                                     X       X      X         X
                                                                 • Promoting knowledge management in order to retain
 tional nature of needs and to the emphasis that donors
                                                                 lessons learnt in the design and implementation of pro-
 place on cross-sectionality.
                                                                 jects.
                                                                 • Identify projects on institutional strengthening at min-
 3. Fostering strengthened institutions in Member States         isterial meetings for their internal funding.
 and at a hemispheric level, drawing from the Organiza-          • Identify donors that possess best practices in ministe-
 tion’s strength as a political forum.                           rial topics and drafting cooperation agreements, includ-
                                                                 ing secondments.

Strategic Counsel for Organizational Development and Management for Results/Department of External and Institutional Relations                               27
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