MODULE 2 Strategic and Operational Management in Public Sector

1. Chief Information Officers (CIO) MODULE 2 Strategic and Operational Management in Public Sector

2. MODULE 2 Strategic and Operation Management

3. 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.

4. 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

5. Processes and Activities Outputs RESOURCES RESOURCES GOALS Keys factors in Management Process

6. Processes and Activities GOALS RESOURCES Outputs RESOURCES Monitoring Evaluation and Control External Environment An Open Management System

7. Systems Optimization Max CC C B OUTPUTS AA INPUTS

8. Senior Management DECISION MAKING PROCESS STRATEGIC Middle Management TACTICAL Junior/ Supervisory OPERATIONAL Management Processes and Organizational Levels

9. 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

10. Management by Objectives: Hierarchy of Objectives Long Term Organizational Goals Organizational Objectives Objective Department 1 Objective Department 2 Objective Department 3 Objective Section 2a Objective Section 2b Objective Section 3a Objective Section 3b Objective Section 1a Objective Section 1b

11. 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

12. Smart Objectives

13. Budgeting and Investment Concepts Return on Investment ( ROI) Net Present Value (NPV): :-* Compounded valve Budgeting and Budgetary Control

14. 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

15. Working Capital Money locked up for running the enterprise (working capital cycle) • Staff salaries • Rent • Utilities • Other expenses

16. Estimating Profits and returns on investment for each period (Life of project and Assets) Income for each period 1000 Fixed costs 300 Salaries, rent etc 200 Depreciation 100 Variable Costs 200 Cost of materials etc 200 Income before tax 500 Profit after tax 400

17. Break Even Point Total Cost Cost and Income Fixed Costs Level of Activity Income Vs Profits Variable Cost

18. Budget Budget Lines • Manpower Costs • Salaries • Professional Fee • Equipment Costs • Running Costs • Travel • Supplies • TOTAL BUDGET ( Sum total of all) • Standard costs and Forecasts

19. Budgetary Control Assigned Budget on each line A Actual Expenditure on each line B Variance ( A-B) Budget Delivery

20. 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.

21. MARKETING MIX_ THE 4Ps

22. Procurement Management • Procurement Processes • CIOs Role in Procurement • Tendering, Vendor Development, RFP • Organization for Procurement • Project Procurement • Stocking and Inventory Control

23. STOCK CONTROL SYSTEM QTY EOQ ROL SS TIME