STRATEGIC IMPLEMENTATION
Three keys to keep in mind:
Execution is a discipline, and integral
to strategy.
Execution is the major job of the
business leader.
Execution must be a core element of
an organization’s culture.
Source: Strategic Implementation www.ryerson.ca/~kjensen/strategic.../strategic_implementation2.pp
AMONG OTHER THINGS, IMPLEMENTATION HAS
TO DO WITH:
Rigorously discussing ‘hows’ and ‘whats’, questioning,
tenaciously following through.
Ensuring accountability
Making assumptions about the business environment
Assessing the organization’s capabilities
Linking strategy to operations and the people who are going to implement
Linking rewards to outcomes
Changing assumptions as the environment changes
Upgrading the company’s capabilities to meet the challenges of an ambitious strategy.
Strategic Implementation www.ryerson.ca/~kjensen/strategic.../strategic_implementation2.pp
STRATEGIC IMPLEMENTATION
people strategy operation
“The heart of execution lies in the three core
processes: the people processes, the strategy
processes and the operations processes.”
Larry Bossidy, Execution. The
Discipline of Getting Things Done.
A FRAMEWORK FOR EXECUTING STRATEGY.
INPUT PROCESS OUTPUTS
FEEDBACK
- Job for the whole management team.
- Affects every part of the firm.
- Each manager must answer, ‘what has to be done in my area to implement our part of the strategic plan, and what must I do to get these things accomplished?’
- All managers become strategic implementers in their areas and all employees are participants.
A FRAMEWORK FOR EXECUTING STRATEGY
Source: Strategic Implementation www.ryerson.ca/~kjensen/strategic.../strategic_implementation2.pp
A FRAMEWORK FOR STRATEGY IMPLEMENTATION
Implementation
should be
addressed initially
when the pros and
cons of strategic
alternatives are
analyzed.
Source: Strategic Implementation www.ryerson.ca/~kjensen/strategic.../strategic_implementation2.pp
OVERVIEW
The Finance and General Services Department (FGSD_ is responsible for the overall effective discharge of accounting, cashiering and assist the management in the formulation and implementation of relevant & effective financial programs, plans, policies, decisions and actions through the exercise of good advisory judgment and submission of timely and comprehensive reports.
STRUCTURE AND GOVERNANCE
For any organization to be able to operate and attain the purposes for which it was created. It has to have its formal structure. Formal structure is the established patterns of relationships among the component units of the organization.
STRUCTURE AND GOVERNANCE
The structure of an organization serves three basic functions. First, structure designates formal reporting relationships including the number of levels in the hierarchy and the span of control of managers and supervisors. Second, structure identifies the grouping together of individuals into departments and of the different department’s into the total organization. Third, structure includes across departments (R. L. Daft, 1989)
FINANCE & GENERAL SERVICES DEPARTMENT MANAGER
FGSD SECRETARY
ACOUNTING SERVICES DIVISION SUPERVISOR
CASH & RECEIPT SERVICES DIVISION SUPERVISOR
GENERAL SERVICES DIVISION SUPERVISOR
GENERAL SERVICES OFFICER
MESSENGER
CASH & RECEIPT OFFICER
BUILDING & OFFICE EQUIPMENT OFFICER
ACCOUNTANT
STOCK & RECORS OFFICER
COST ACCOUNTANT
ACCOUNTING OFFICER (2)
PAYROLL OFFICER
BOOKKEEPER (2)
ACCOUNTING SERVICES ASSISTANT
FINANCE GENERAL SERVICES DEPARTMENT (FGSD)
SECURITY SERVICES(64 GUARDS)
JANITORIAL SERVICES(13 JANITORS)
ORGANIZATIONAL
STRUCTURE (OLD)
FINANCE SERVICES DEPARTMENT
MANAGER
SECRETARY
ACOUNTING SERVICES DIVISION
SUPERVISOR
METER READING & BILLING DIVISION
SUPERVISOR
METER READING OFFICER
ACCOUNTANT
BOOKKEEPER (3)
BUDGET SPECIALIST METER READING INSPECTOR (4)
BILLING OFFICER
CASHIER
COMPUTER OPERATOR & DATA
CONTROLLER (4)
PURCHASING OFFICER
DISCONNECTION SERVICES
(OUTSOURCING)
METER READING & BILLING SERVICES
(OUTSOURCING)
ORGANIZATIONAL
STRUCTURE (NEW)
ROLE AND IMPORTANCE OF FINANCIAL
MANAGEMENT
- Efficient management of finance is crucial to an
organization’s success. They have to ensure adequate funds are
available for resources needed to help achieve organizational objectives
- Ensure costs are controlled - Ensure adequate cash flow - Establish and control profitability levels
CASH BUDGET & THEIR IMPORTANCE TO
THE ROLE OF MANAGEMENT
Management Function
Plan -Look ahead and set aims and strategies management base decisions on projected cash flow fig.
-By identifying where cash is being spent and where it is being earned, management can plan to borrow, either to finance short-term cash flow problems or to finance long –term plan expansion.
- make arrangements for all the resources of the organization to be in the right place at the right time and in the right quantities. Quite obviously such resources have to be financed, and management must be able to ensure that it can afford the resources it requires and take full advantage of bulk purchase discount. Trade credit and other financial incentives.
Organize
- Tell subordinates their duties
- It is essential for the efficient running of the organization that each department is given a budget for expenditure on routine requirements. Each department must also know its limits when making one off requests for additional finance for specific jobs, projects or capital expenditure.
Command
Make sure everyone is working towards the same aims and that activities of individual works fit in with the work of other parts of the organization
Financial reports and summaries from each department will allow management to keep a clear overview of the operation as whole. It may be that surpluses in one department can used to offset short-fall in another
Co-ordinate
Cash Budget
Plan
Organize
Command
Co-ordinate
IMPLEMENTING PROCEDURE IN PROCESSING OF BUDGET
Finance & General Services
Department (Preparation & Releasing of
Budget)
Approved RV Supply/Work plan Project
Payment to Supplier/Contractor
Request Payment of the supply/project by the proponent
Project Completion Certificate/Supply Delivery w/ sales invoice & Receiving Report
Notice to Proceed & MOA of the Project
BOD Resolution of Final Choice of Supplier/contractor
Bid Award Committee(BAC) Evaluation of Supplier/Contractor
1,483,193,8231,483,193,823
1,483,193,823
Statement of Financial PositionAs of December 31, 2012
total assets
total member's equity &liabilities
IMPLEMENTATION
This phase of the planning process answers the following queries. “How do we execute the plan?” “Who is responsible with which activity?” “How do we determine whether plan are implemented as planned?”
IMPLEMENTATION
Implementation is the act of carrying out the plans, programs and projects in accordance with the strategic plan in order to attain the set goals and objectives (K. Mathur and Inayatullah, 1980
STRATEGIC QUALITY MANAGEMENT
It is in this context that strategic quality management (SQM) is ushered in to cause these changes to happen and be implemented.
STRATEGIC QUALITY MANAGEMENT
It is be recalled that SQM is the process by which an organization formulated plans, objectives and strategies (strategic planning), allocates resource for plans, programs and projects (organizational resource), and identifies accountable entities, managers and front-line workers (organizational structure), in the implementation, monitoring, and evaluation of said plan and programs (strategic control). More particularly therefore, the competent on strategic control has to be mobilized to implement the formulated strategic plan.
DEFINITION OF TERMS
Objective, which emanates from the goal,
refers to medium-range expectation which is
pursued to satisfy the goal.
Target, flowing out of the objective, is the
most specific statement of purpose which is
measurable and achievable.
A goal is a broad statement of an image of
the future the organization seeks to achieve.
Programs and projects are identified in order to effectively channel resources to development programs and projects considered strategic in the over-all attainment of goals. Prioritization of programs and projects is done through the conduct of
feasibility studies resulting to
a listing of priorities viewed as responsive to the development needs of the people.
Once the broad goals,
objectives and targets are
framed, more specific policy
statements and strategies are
formulated for each area of
concern.
LONG TERM
PLAN OF
PANELCO III
Year 5
Year 1
Year 2
Year 3
Year 4
Panelco III Mini Hydro
Power Plant in operation
Upgraded system facilities
thru modern technology
I
mprove consumers
services & more investor
& business
Power Substation
upgraded &
automation(scada)
No more pilferages &
flying connection
more revenue collection
Low system loss
FINANCE & GENERAL SERVICES
DEPARTMENT LONG TERM PLAN
Program/Project Key Result Area Expected Results
1. Legal & Regulatory Frameworks of PCB Management R.A. 6969 of 1990: Toxic Substance and Hazardous and Nuclear Wastes Control Act.
Control, monitor & online inventory of Toxic & Non Toxic PCBs Liquids & Equipments through the DENR-EMB
Treatment , Storage & Disposal by the year 2020 as the schedule total phase out PCBs all through out the Philippines
2. Feasibility Study for the Construction of Mini-Hydro Projects
Alternative source of power to offset the rising cost of Electricity
Lower rate of electricity and additional power supply of Panelco III which will served & benefits majority of the member-consumer
SMART ANALYSIS
Program/Project
Stretching
Measurable
Achieva
ble
Related to Member
Time Target
1. Legal & Regulatory Frameworks of PCB Management R.A. 6969 of 1990: Toxic Substance and Hazardous and Nuclear Wastes Control Act.
x
x
x
x
x
2. Feasibility Study for the Construction of Mini-Hydro Projects
x
x
x
x
x
FGSD MEDIUM TERM PLAN
Program/Project Key Results Area
Expected Results
1. Proposed Purchased of 3000 sqm Lot for proposed relocation of the Binalonan Substation and the site for the New Northern Area Office which was affected by the MPWH widening of Manila North Road
Reliable and conducive workplace
New Presentable bldg. and accessible load distribution of power to end users
2. Proposed Construction of a New Panelco III Administration Office building
Reliable and conducive workplace
Image Building & Reflects the Integrity & Moral of the workforce and progress of the Cooperative
SMART ANALYSIS Program/Project
Stretching
Measurable
Achievable
Related to Member
Time Target
1. Proposed Purchased of lot for proposed relocation of the Binalonan Substation and the site for the New Northern Area Office which was affected by the MPWH widening of Manila North Road
x
x
x
x
x
2. Proposed Construction of a New Panelco III Administration Office building
x
x
x
x
x
FGSD MEDIUM TERM PLAN
Program/Project Key Results Area
Expected Results
3.Proposed Purchased of 150 sqm Lot and Construction of Collection Offices at Villasis, Balungao, Sto. Tomas, Pozorrubio, Sn. Manuel, Laoac, Sta. Maria, Sn. Nicolas, Sn. Quintin.
Eliminate huge payment of collection office rentals
Additional fixed Assets of the Panelco III
4. Proposed purchased of three (3) Units 60 KVA Generator Set for: 1. Southern Area Office 2. Southeastern Area Office 3. Eastern Area Office
Ensure uninterrupted power supply for continuous respond and services to consumers' requests and complaints.
Continuous operation even during power interruption
SMART ANALYSIS
Program/Project
Stretching
Measurable
Achievable Related to
Member
Time
Target
3.Proposed
Purchased of Lot and
Construction of
Collection Offices at
Villasis, Balungao,
Sto. Tomas,
Pozorrubio, Sn.
Manuel, Laoac, Sta.
Maria, Sn. Nicolas,
Sn. Quintin.
x
x
x
x
x
4. Proposed
purchased of three (3)
Units 60 KVA
Generator Set for: 1.
Southern Area Office
2. Southeastern Area
Office 3. Eastern Area
Office
x
x
x
x
X
FGSD SHORT TERM PLAN Program Key Results
Area Expected Results
1. Monitor to all areas and main office to ensure availability of funds
Maintain the 3% prompt payment Discount to Power Supplier
Good company standing and good payer
2. Monitor and reconcile loan balances and due dates
Update payments to banks and other coop. creditors
Attract more business opportunities to come
3. Submit reportorial requirements
Provide timely and accurate financial reports and compliance to all reportorial
On time submission of requirements & avoid sanctions & penalties
SMART ANALYSIS
S M A R T
1. Monitor
Collection to all
areas and main
office to ensure
availability of
funds
x
x
x
x
2. Monitor and
reconcile loan
balances and
due dates
x
x
x
x
3. Submit
reportorial
requirements
x x x x
CONT.
Program/Project Key Results Area Expected Results
4. Full implementation of Customized Accounting. System
Help improve its operations, planning, and ensure updating of records any risk
Improve the system operation of the dept..
5. Reconcile and verify
BIR Tax Remittance Deficiency Assessments
Monitor and reconcile BIR Tax Payments
Updated tax payments and Avoid penalties
6. Wireless Communication Add-on CCTV Telephone Paperless System & Ethernet Connection
Provide security and protection of consumers, employees as well as cooperative properties.
Fast & reliable systematic operation using modern technology
SMART ANALYSIS
Program\Project S M A R T
4. Full implementation of Customized Accounting. System
x
x
x
x
5. Reconcile and verify BIR Tax Remittance Deficiency Assessments
x
x
x
x
6. Wireless Communication Add-on CCTV Telephone Paperless System & Ethernet Connection
x
x
x
x
CONT.
Program/Project Key Results Area Expected Results
7. Utilization of the Share Capital instead of applying of loan to banking institutions
Investment of share capital of member consumers
Buffer funds of the cooperative use for energy purchase payment
8. Reconciliation of PAGIBIG/SSS/PHILHEALTH Remittances of Employees & Officers
Update & reconcile remittance of monthly contribution
No complaints on the employees remitted benefits
SMART ANALYSIS
Program\Project S M A R T
7. Utilization of the Share Capital instead of applying of loan to banking institutions
x
x
8. Reconciliation of PAGIBIG/SSS/PHILHEALTH Remittances of Employees & Officers
x
x
x
“The best game plan is
the world never blocked or
tackled anybody.”
V. Lombardi
STRATEGIC IMPLEMENTATION
“People think of execution as the tactical
side of business, something leaders delegate
while they focus on the perceived ‘bigger
issues’. This idea is completely wrong.
Execution has to be built into a company’s
strategy, its goals, and its culture. And the
leader of the organization must be deeply
engaged in it.”
Larry Bossidy,
The Discipline of Getting Things Done.
IMPLEMENTATION IS DIFFERENT
- Strategy requires few;
- Execution requires everyone.
Execution is the true measure of
success.
References
- The Poor Cousin
- Strategic Planning Modules
- FGSD Records
- Miclat Jr (1998) Development Planning and
Budgeting