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MODULE 2
Strategic and Operational Management in Public Sector
Chief Information Officers Chief Information Officers (CIO) (CIO)
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MODULE 2
Strategic and Operation Management
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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.
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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
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Processes and
Activities
RESOURCES Outputs RESOURCES
GOALS
Keys factors in Management Process
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Processes and Activities
RESOURCES Outputs RESOURCES
GOALS
Monitoring Evaluation and Control
External Environment
An Open Management System
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OUTPUTS
Max
INPUTS
AA
B
CCC
Systems Optimization
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STRATEGIC
TACTICAL
OPERATIONAL
DECISION MAKING
PROCESS
Senior Management
Middle Management
Junior/ Supervisory
Management Processes and Organizational Levels
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•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
Main Management Processes
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Long Term Organizational Goals
Organizational Objectives
Objective Department 1 Objective Department 2 Objective Department 3
Objective Section 1a
Objective Section 1b
Objective Section 2a
Objective Section 2b
Objective Section 3a
Objective Section 3b
Management by Objectives: Hierarchy of Objectives
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STRATEGIC PLANNING PROCESSVISION
MISSIONGOALS and OBJECTIVES
Evaluation the EnvironmentEvaluate Strengths and Weaknesses
Assess OpportunitiesAssess Threats
Identify and Evaluate Strategic OptionsDesign Strategy and policies
Implementation Plan
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Smart Objectives
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Budgeting and Investment Concepts
Return on Investment ( ROI) Net Present Value (NPV):
Compounded valve
Budgeting and Budgetary Control
:-*
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Investment Cost
Composed ofPre investment Expenses: 1 mil ( example)Capital Cost 10 milLand 3 milEquipment 4 milServices 3 milWorking Capital 5 milTotal 16 mil
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Working CapitalWorking Capital
Money locked up for running the enterprise(working capital cycle)
• Staff salaries• Rent• Utilities• Other expenses
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Estimating Profits and returns on investment for each period (Life of project and Assets)
Income for each period 1000Fixed costs 300 Salaries, rent etc 200 Depreciation 100Variable Costs 200 Cost of materials etc 200Income before tax 500Profit after tax 400
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Income Vs Profits
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Cost and Income
Level of Activity
Fixed Costs
Total CostBreak Even Point
Variable Cost
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BudgetBudget Lines
• Manpower Costs• Salaries• Professional Fee• Equipment Costs• Running Costs
• Travel• Supplies
• TOTAL BUDGET ( Sum total of all)• Standard costs and Forecasts
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Budgetary Control
Assigned Budget on each line AActual Expenditure on each line BVariance ( A-B)Budget Delivery
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•Marketing Concept•Market Orientation•Marketing Strategy•Target Market•Marketing Mix• How and where CIOs can apply scientific marketing concepts and techniques.
Marketing & Customer Relationship Management
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MARKETING MIX_ THE 4Ps
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Procurement Management• Procurement Processes• CIOs Role in Procurement• Tendering, Vendor Development, RFP• Organization for Procurement• Project Procurement• Stocking and Inventory Control
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A = Estimated demand for the item during the yearCp = Cost of placing a single orderCh = Cost of holding one single item in inventory for a year
QTY
TIME
SS
EOQ
ROL
STOCK CONTROL SYSTEM