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

2. 2 MODULE 2 Strategic and Operation Management

3. 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 4

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

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

7. 7 OUT PUT S Max INPUTS AA B CC C Systems Optimization

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

9. 9 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

10. 10 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

11. 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. 12 Smart Objectives

13. 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 14

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

16. Estimating Profits and returns on investment for each period (Life of project and Assets) Income for each period1000 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 16

17. Income Vs Profits 17 Cost and Income Level of Activity Fixed Costs Total Cost Break Even Point 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 18

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

20. 20 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

21. 21 MARKETING MIX_ THE 4Ps

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

23. 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 QTY TIME SS EOQ ROL STOCK CONTROL SYSTEM