November 29, 2007 (Thursday ) by Professor Ting-ko Chen

1. Key Factors of Controlling Function in NPO Management November 29, 2007 (Thursday ) by Professor Ting-ko Chen Ph.D. University of Michigan （1973） Former Dean of Graduate School Business Administration National Taiwan University Former Dean of College of Management , Tamkung University Chairman, Chinese Academy of Business 中華企業研究院學術教育基金會 Chinese Academy of Business

2. I 、No Successful Results without Controlling Function • 1-1.  Things Starting from Planning , but Success • Coming from Controlling • l 50 - year Plan in China • – The Environment Conservation Project •        – The Water Direction Changing Project •        – The Big Dam Project •        – The High Mountain Railway Project 中華企業研究院學術教育基金會 Chinese Academy of Business

3. I 、No Successful Results without Controlling Function l 10 - year Plan – Group of Companies (Corporate) Growth Strategies (Merger & Acquisition, Vertical Integration, Horizontal Integration, Chain Operation, etc.) l 5 - year Plan – Division (Company) Competition Strategies (Cost Leadership, Quality Leadership, Technical Standards, Focus, Differentiation, Business Model-Blue Ocean Strategy, etc.)    中華企業研究院學術教育基金會 Chinese Academy of Business

4. I 、No Successful Results without Controlling Function l 1 - year Plan – Functional Operation Programs (Value- Chain Core Competence Efficiency and Effectiveness; Marketing Programs, Production Programs, R&D Programs, Human-Resources Programs, Finance- Accounting Programs, Information Technology Programs, 6 Sigma, TQM, Cost-Profit-Investment Centers, etc.) 中華企業研究院學術教育基金會 Chinese Academy of Business

5. I 、No Successful Results without Controlling Function lMonthly Plan – Finance, Human Resources , R&D, Project Management lWeekly Plan – Marketing - Sales, Maintenance lDaily Plan – Field Productions , Quality, Safety, Morale 中華企業研究院學術教育基金會 Chinese Academy of Business

6. I 、No Successful Results without Controlling Function 1-2.  Management by Objective (MBO)’s Participation Approach to Set Up Criteria for Performance Review lTop-Down Approach to establish Criteria – Centralization of Authority lBottom-Up Approach to establish Criteria – Decentralization of Authority lMBO Participative Approach to establish Criteria – Balancing Authority 中華企業研究院學術教育基金會 Chinese Academy of Business

7. II、The In-Progress Steering- Control Method (Control without Interruption of Operation) lBreak-Downs of Big Objective into Series of Small Objectives – Week or Day; Small Group and Individual Objectives for everyone l The Daily, or Weekly, or Monthly Intensive Reviews of Performance Against Small Objectives (Criteria) – The GM’s Bi-Weekly Reports and Senior Staff’s Bi-Weekly Reports 中華企業研究院學術教育基金會 Chinese Academy of Business

8. II、The In-Progress Steering- Control Method (Control without Interruption of Operation) lThe Autonomous Corrections and Intensive Follow-ups from Top to Ensure Success l The Self-Control and Self-Dignity to Promote Employee Morale lThe IT Function in Steering-Control Method 中華企業研究院學術教育基金會 Chinese Academy of Business

9. III、The Stop-Control Method (Control with Interruption) lWholesome of Objectives without Breaking Down (Only down to the Levels of Department Goals and Seasonal Goals) lA Semester or 6-month Review and Comment is Too Loose to Remind the Attention and Correction for the University Students and Company Employees l No Individual Accountability, No Responsibility Center, and No Punishment-Reward, No Success can be Achieved. 中華企業研究院學術教育基金會 Chinese Academy of Business

10. IV、The Intensive Follow - ups and Continuous Small Successes will Ensure the Final Big Success and High Morale. (QCC, TQC, Weekly Meetings of General Manager,Department Mangers, Sectional Managers, and Foreman with Immediate Subordinates are Very Powerful Control Tools) 中華企業研究院學術教育基金會 Chinese Academy of Business

11. Thank You 中華企業研究院學術教育基金會 Chinese Academy of Business