Chief Information Officers
MODULE(CIO)
2
Strategic and Operational Management in
Public Sector
1
MODULE 2
Strategic and Operation Management
2
OBJECTIVES OF MODULE 2
To impart basic training to CIOs in the
concepts and techniques of Strategic
and Operational Management as
applicable to public sector.
3
Scope of Module 2
This will cover basic management concepts and
techniques useful to CIOs in the areas of
•Systems and management processes
•Strategic Management
•MBO/ Managing for Results
•Finance, Budgeting and Investment
•Procurement
•Marketing and Customer Relations
4
Keys factors in Management Process
Processes
and
Activities
RESOURCES
Outputs
RESOURCES
GOALS
5
An Open Management System
Processes
and Activities
RESOURCES
Outputs
GOALS
RESOURCES
Monitoring
Evaluation and
Control
External Environment
6
Systems Optimization
Max
C
CC
B
OUT
PUT
S
AA
INPUTS
7
Management Processes and
Organizational Levels
Senior
Management
STRATEGIC
Middle
Management
TACTICAL
Junior/
Supervisory
DECISION
MAKING
PROCESS
OPERATIONAL
8
Main Management Processes
• Goal Setting and Planning
• Setting up systems, procedures, policies and rules and
regulations
• Setting up business processes
• Setting up the institution and organization
• Monitoring, Evaluating and Controlling
9
Management by Objectives:
Hierarchy of Objectives
Long Term Organizational Goals
Organizational Objectives
Objective Department 1
Objective
Section 1a
Objective
Section 1b
Objective Department 2
Objective
Section 2a
Objective
Section 2b
Objective Department 3
Objective
Section 3a
Objective
Section 3b
10
STRATEGIC PLANNING PROCESS
VISION
MISSION
GOALS and OBJECTIVES
Evaluation the Environment
Evaluate Strengths and Weaknesses
Assess Opportunities
Assess Threats
Identify and Evaluate Strategic Options
Design Strategy and policies
Implementation Plan
11
Smart Objectives
12
Budgeting and Investment
Concepts
Return on Investment ( ROI)
Net Present Value (NPV):
:-*
Compounded valve
Budgeting and Budgetary Control
13
Investment Cost
Composed of
Pre investment Expenses: 1 mil ( example)
Capital Cost
10 mil
Land
3 mil
Equipment
4 mil
Services
3 mil
Working Capital
5 mil
Total
16 mil
14
Working Capital
Money locked up for running the enterprise
(working capital cycle)
• Staff salaries
• Rent
• Utilities
• Other expenses
15
Estimating Profits and returns on investment for each
period (Life of project and Assets)
Income for each period
Fixed costs
Salaries, rent etc
Depreciation
Variable Costs
Cost of materials etc
Income before tax
Profit after tax
1000
300
200
100
200
200
500
400
16
Income Vs Profits
Break Even
Point
Total Cost
Variable Cost
Cost and
Income
Fixed Costs
Level of Activity
17
Budget
Budget Lines
•
•
•
•
•
Manpower Costs
Salaries
Professional Fee
Equipment Costs
Running Costs
•
•
Travel
Supplies
• TOTAL BUDGET ( Sum total of all)
• Standard costs and Forecasts
18
Budgetary Control
Assigned Budget on each line
Actual Expenditure on each line
Variance ( A-B)
Budget Delivery
A
B
19
Marketing & Customer Relationship
Management
•
•
•
•
•
•
Marketing Concept
Market Orientation
Marketing Strategy
Target Market
Marketing Mix
How and where CIOs can apply scientific marketing
concepts and techniques.
20
MARKETING MIX_ THE 4Ps
21
Procurement Management
•
•
•
•
•
•
Procurement Processes
CIOs Role in Procurement
Tendering, Vendor Development, RFP
Organization for Procurement
Project Procurement
Stocking and Inventory Control
22
STOCK CONTROL SYSTEM
EOQ
ROL
QTY
SS
TIME
A = Estimated demand for the item during the year
Cp = Cost of placing a single order
Ch = Cost of holding one single item in inventory for a year