Performance Management Framework Appraisal of the United Nations Property Management Unit (PMU) (A Case of the Department of Field Support (DFS), United Nations Headquarters, New York USA.) MSc program in Information and Service Management Master's thesis John Opoku Aduadjei 2015 Department of Information and Service Economy Aalto University School of Business Powered by TCPDF (www.tcpdf.org) Performance Management Framework Appraisal of the United Nations Property Management Unit (PMU) (A Case of the Department of Field Support (DFS), United Nations Headquarters, New York USA.) Master’s Thesis Aduadjei, John Opoku [email protected] 01 October, 2015 Information and Service Economy Approved in the Department of Information and Service Economy __ / __ / 20__ and awarded the grade _______________________________________________________________________ Aalto University, P.O. BOX 11000, 00076 AALTO www.aalto.fi Abstract of Master’s thesis Author Aduadjei, John Opoku Title of thesis PERFORMANCE MANAGEMENT FRAMEWORK APPRAISAL OF THE UNITED NATIONS PROPERTY MANAGEMENT UNIT: A CASE OF THE DEPARTMENT OF FIELD SUPPORT (DFS) UNITED NATIONS HEADQUARTERS, NEW YORK, USA. Degree Master of Science in Economics and Business Administration Degree Programme Information and Service Economy Thesis advisor(s) Professor Markku Kuula Year of approval: 2015 Number of pages: 111 Language: English Abstract Purpose: The United Nations (UN) Property Management Unit (PMU) under the Logistics Support Division (LSD) of the Department of Field Support (DFS), in exercising effective stewardship over United Nations Owned Equipment (UNOE), sought to develop a Property Management Performance Management Framework. The present research was written to assess the current performance of the Property Management Performance Management Framework (PMPMF) and suggest further improvements. The scope of the PMPMF was also envisioned to be expanded to include other services with emphasis on the overall end to end processes of DFS/UN supply chain. Design/Methodology/Approach: Both qualitative and quantitative based approaches were adopted in this study. Several Academic literatures were reviewed to develop a robust performance management framework, TOTS Canvas. KPI categorization under the TOTS Canvas includes: Technological, Operational, Tactical and Strategic (TOTS). Findings: The research provides a novel framework for measuring the overall end to end processes within organizations with special emphasis on supply chain. The research results showed, that 91.2% of the users of the framework agree that the PMPMF has helped their missions to exercise good stewardship over UN assets. Consequently some benchmarking KPIs were identified and deemed as very significant to PMU/LSD/DFS/UNHQ end-to-end Supply Chain. These KPIs were categorized under eight sub-groupings. Other services under LSD were also identified to be included in the expansion of the current PMPMF. Research Limitations/Implications: Future studies can be conducted to validate the TOTS Canvas in different organizational settings.The envisioned end to end processes of the United Nations supply chain is still ongoing, certain Organizational principles might not be applicable in the near future so it will be vital to conduct further researches to validate the results and findings of this present research. Practical Implications: The thesis provides robust practical contribution applicable to mainstream supply chain performance management initiatives. This is achievable by applying the TOTS Canvas offered in this research. Practitioners and researchers who seek to identify an extensive end to end performance management involving several downstream and upstream processes can apply the TOTS Canvas Originality/Value: To the candid knowledge of the researcher, the categorizations of KPIs have not been done in a way reflecting the TOTS Canvas. It’s tested with United Nations Supply Chain and proven relevant to PMU/LSD/DFS PMPMF. Keywords: Performance Management, Performance Measurement, Performance Management Framework, United Nations, Property Management, UNHQ, USA, Department of Field Support (DFS), Supply Chain KPIs, SCOR, TOTS Canvas i Acknowledgements The author wishes to express his deepest gratitude to his Savior Christ Jesus, for the diverse strength He bestowed on him in the pursuit of his MSc. studies. To the God in three Persons, I say a very big thank you for the immense grace to finish this academic research. Also, the author wishes to acknowledge the efforts of his parents Mr. Osei Twumasi-Ankrah and Adelaide Mensah-Bonsu for their selfless investment into his academic trajectory. I say I’m most grateful. To the only University that identified the researchers’ potential and offered him the opportunity to pursue his MSc. Studies, the researcher really appreciates Aalto University School of Business, Finland for this opportunity. In this regard as well, I say a huge thank you to my supervisor, Professor Markku Kuula who persistently supervised this research even while on holiday. Thank you so much Professor Markku Kuula. A big thank you to all the staff in PMU/LSD/DFS/UNHQ in New York: Mr. Kiril Serafimov, Mr. Koukommaha Santy-Ateyaba, Mr. Garcia Casimiro, Michele Acevedo and Anna Ruducha. The researcher also acknowledges the Head of COE/PMU section, Mr. Andrei Vesselov. I say a very big thank you to all the staff in PMU for your endless contributions right from the beginning of this research to the end. Again, the researcher appreciates all the enormous sacrifices he received from all the staff at the front office of the Office of the Director, LSD/DFS/UNHQ. All of you were so helpful during my six (6) months internship period. Lastly, the researcher expresses his appreciation to Mrs. Esther Oppong for the editorial work done on the thesis. Thank you so much for the huge amount of time you spent on this research and I’m forever grateful. Also to my uncle Richard Agyemang and his family who gave me shelter in New York during my six (6) months stay in the US. Thank you and may God bless you all. ii ABBREVIATIONS BI Business Intelligence COE Contingent Owned Equipment DFS Department of Field Support DPKO Department of Peace Keeping Operations ERP Enterprise Resource Planning GFSS Global Field Support Strategy HPSB Headquarters Property Survey Board, IPSAS International Public Sector Accounting Standards IS Information Systems IT Information Technology LPSB Local Property Survey Board PCIU Property Control & Inventory Unit PM Property Management PMF Performance Management Framework PMS Property Management Section PMU Property Management Unit PMPMF Property Management Performance Management Framework P&E Plant and Equipment PP&E Property, Plant and Equipment R&I Receiving and Inspection SAU Self Accounting Unit SCOR Supply Chain Operations Reference SC Supply Chain SPM Special Political Missions UN United Nations iii UNHQ United Nations Headquarters UNOE United Nations Owned Equipment UNP United Nations Properties UoM Unit of Measurement USG Under- Secretary- General VTC Video Teleconferencing WOC Write-off Case WOR Write-off Request iv Table of Content Acknowledgements ........................................................................................................................... ii 1 Introduction ............................................................................................................................. 11 1.1 Motivation and Research Background ................................................................................... 11 1.2 Objectives and Research Questions ........................................................................................ 13 1.3 Research Problem ........................................................................................................................ 14 1.4 Significance of Research ............................................................................................................ 16 1.5 Thesis Structure ........................................................................................................................... 17 2 Review of Literature and Thesis Positioning ................................................................... 18 2.1 Performance Measurement and Performance Management ............................................ 18 2.2 Property Management ................................................................................................................ 22 2.3 Upstream and Downstream Processes .................................................................................... 26 2.4 Factors Influencing PMPMF Development .......................................................................... 28 2.4.1 Stakeholder Management ................................................................................................................... 28 2.4.2 Governance ............................................................................................................................................. 29 2.4.3 Organizational Culture ........................................................................................................................ 30 2.5 Management Systems and Tools to Improve Performance Management ..................... 31 2.6 Literature Gap ............................................................................................................................. 32 3 Case Organization (UNHQ, NY USA) ............................................................................... 33 3.1 Department of Field Support (DFS) ....................................................................................... 33 3.2 Logistic Support Division (LSD) .............................................................................................. 33 3.3 Property Management Unit (PMU) ........................................................................................ 35 3.4 UNHQ ERP System ..................................................................................................................... 36 3.4.1 Umoja ....................................................................................................................................................... 36 3.4.2 Umoja Business Intelligence (UBI) ................................................................................................ 37 3.5 Current Property Management Performance Management Framework ..................... 37 3.6 International Public Sector Accounting Standards (IPSAS) ............................................ 39 3.7 DFS Supply Chain Focus ........................................................................................................... 40 3.7.1 Functions of DFS SC Processes (SCP) .......................................................................................... 40 4 Research Framework and Theory ...................................................................................... 43 4.1 Supply Chain Framework (Gunasekaran et al. 2001 and 2004) ...................................... 44 4.2 Tactical-Operational-Strategic (TOS) Level and Technological Level .......................... 44 4.2.1 Tactical-Operational-Strategic (TOS) Levels .............................................................................. 45 4.2.2 Technological level (Relevance of IT in Performance Management) .................................. 46 v 4.3 Benchmarking .............................................................................................................................. 47 5 Methodology ............................................................................................................................ 48 5.1 Research Methods ....................................................................................................................... 48 5.2 Data Collection and Analysis .................................................................................................... 49 5.3 Application of TOTS Canvas .................................................................................................... 56 5.4 KPI Identifications (TOTS) ...................................................................................................... 57 5.4.1 Technological Level KPIs ................................................................................................................. 58 5.4.2 Operational Level KPIs ...................................................................................................................... 59 5.4.3 Tactical Level KPIs .............................................................................................................................. 59 5.4.4 Strategic Level KPIs ............................................................................................................................ 60 5.5 Benchmarking KPIs .................................................................................................................... 61 6 Results ....................................................................................................................................... 66 6.1 Research Findings ....................................................................................................................... 66 6.2 Evaluation of Results .................................................................................................................. 67 7 Discussion and Conclusions.................................................................................................. 70 7.1 Practical Implications ................................................................................................................. 70 7.2 Research Limitations and Future Studies ............................................................................. 70 References ......................................................................................................................................... 72 Books and Reports ................................................................................................................................................ 72 Articles ..................................................................................................................................................................... 72 Interviews ................................................................................................................................................................ 79 Internet-references ................................................................................................................................................ 80 Appendix1: Thesis position in the LSD/DFS Chart (Emphasis on where the research was conducted- red Boxes): ................................................................................................................... 81 Appendix 2: Research Objectives and Expected Results Chart ........................................... 82 vi •Studying the Property Management's Performance Management Framework in DFS •Familiarizing and Evaluating ongoing Departmental Strategies (Global Field Support Strategy,Supply Chain Strategy) •Assessing Opportunities for Expanding the Scope of the current Property Management Performance Management Framework to include upstream and downstream processes involving various service components (Supply Chain + Service Delivery) •Identify areas to be included in the enhanced Performance Management System, including but not limited to: a)What performance areas to measured b) Associated key actions and action owners c) Supporting tools and Management Systems (Umoja, Business Intelligence, etc.) Appendix 3a: Draft of LSD/DFS Work Plan 1 April 2015-30th March, 2016 ................... 82 Appendix 3b: Draft of LSD/DFS Work Plan ........................................................................... 84 Appendix 4: BODs Concerns for Better Asset Management (Extract from PM’s 2015 Directive) ........................................................................................................................................... 85 Appendix 5: Research, Typesetting and Timeframe for Thesis Work ............................... 86 Appendix 6: Positioning of FM & PM, Chotipanich (2004) ................................................. 87 Appendix 7:Sections of the Real Property Asset Lifecycle (MacNair, Gordon E. 2010) 88 Appendix 8: Governance-Extract from DFS 2014 Supply Chain Vision Strategy .......... 89 Appendix: 9 Governance Mechanisms (Hernández-Espallardo et al. 2010) ..................... 89 Appendix 10: Integrated Framework for BI and ERP. Chou et al. (2005) adapted from Datamonitor (2001) ......................................................................................................................... 90 Appendix 11: Spectrum of BI benefits. "As business users mature to performing analysis and prediction, the level of benefits become more global in scope and difficult to quantify"(Watson and Wixom, 2007) ......................................................................................... 91 Appendix 12: DFS-DPKO Offices as of 03.02.2015 (United Nations Website 1, 2015) ... 92 vii Appendix 13: PMU and COE Organization and Staffing Chart as of June, 2015. (Director Briefing - February 2014 COE&PMSS) .................................................................................... 93 Appendix 14: Galileo Gap Analysis (Project Initiation Document for Migration of Peacekeeping Entities to Umoja Foundation Supply Chain and Decommissioning of Galileo, Proposal 02.03.15 KH) .................................................................................................... 94 Appendix 15: Comprehensive list of Envisaged benefits and associated KPIs (IPSAS benefits realization Plan for UN, 2014) ...................................................................................... 97 Appendix 16: Comprehensive list of Envisaged benefits and associated KPIs (IPSAS benefits realization Plan for UN, 2014) ...................................................................................... 98 Appendix 17: Supply Chain Framework (Gunasekaran et al. 2001 & 2004) ................... 99 Appendix 18: Samples of Survey Questions ........................................................................... 100 Appendix 19: Supply Chain Performance Measures by other researchers (Gopal and Thakkar, 2012) .............................................................................................................................. 102 Appendix 20: Overall Response Rate to Staff Competence ............................................... 103 Appendix 21: Overall Benchmarking KPIs (SAP, 2015) .................................................... 104 Appendix 22: Questions and Answers to Open Questions ................................................. 108 viii