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By: Mr. S. Kumaran Under Secretary Financial Strategic Management Division Ministry of Finance PowerPoint Presentation
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By: Mr. S. Kumaran Under Secretary Financial Strategic Management Division Ministry of Finance

By: Mr. S. Kumaran Under Secretary Financial Strategic Management Division Ministry of Finance

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By: Mr. S. Kumaran Under Secretary Financial Strategic Management Division Ministry of Finance

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  1. PRUDENT FINANCIAL MANAGEMENT IN THE CONTEXT OF ORGANIZATIONAL EFFICIENCY AND GROWTH THROUGH A CORPORATE CULTURE BASED ON A SENSE OF BELONGING By: Mr. S. Kumaran Under Secretary Financial Strategic Management Division Ministry of Finance

  2. OUTLINE OF PRESENTATION KANDUNGAN TAKLIMAT Strategic Effectiveness Operational Efficiency Best Practices Organizational Growth Way Forward

  3. STRATEGIC EFFECTIVENESS

  4. 1.1 STRATEGIC FOCUS KANDUNGAN TAKLIMAT • Corporate Strategy (VBM) • SBU Strategy (VBM) • Functional Strategy (VM) • Financial • Human Resource • Technology (ILT)

  5. FEATURES CORPORATE STRATEGY KANDUNGAN TAKLIMAT Mission Strategic Plan Vision Stakeholder Management Key Performance Indicator (KPI)

  6. Scope Of Public Finance Management & Role Of Ministries Of Finance General Government & Rest of Public Sector Crisis … Political economy Real exchange rates Real wages Interest rates Price Levels Macroeconomy Legislature External Audit Budget constraint & absorptive capacity Appropriation Structural & Regulatory Deficit Budget Preparation & Execution Allocation Decentralization Laws & regulations relating to finance Regulations of financial sector Expenditure Control Expenditure Planning Financing Revenue Accounts Systems Expenditure Control Borrowing Grants Insurance Allocation Techniques Budget Formats ‘Non-budget’ Expenditures Natural Resources Banking Treasury System Debt management Revenue Structure Extra-budgetary expenditures Tax Expenditures Capital markets/ supervision/ securities regulation Costing Cash management Financial Reporting Multi-year plans Taxation & tax structure Non-tax Quasi Fiscal Activities Contingent liabilities Budget Law Audit Law Other laws Investment Income User Charges Rest of the world Integration Harmonization Capital flows Rights & other treaties Allocation formulae Output Program Performance Indicators & Targets Good data Performance Structure Revenue & expenditure determinants: fiscal architecture Budget Structure Charts of Accounts Accrual Double Entry Everything is related to everything else

  7. STAKEHOLDER MANAGEMENT KANDUNGAN TAKLIMAT (i) StakeholderPortfolio Identify and DevelopStakeholder Portfolio in the Context of the Organization External Stakeholderscomprise ofIntermediate Beneficiaries and Direct Clients Internal Stakeholderscomprise of the Leaders and the Employees entrusted to achieve the Organizational Goals

  8. STAKEHOLDER MANAGEMENT KANDUNGAN TAKLIMAT ii) Stakeholder Relationship Planning Relationship with the Stakeholders need to be identified Establish the Relationship Structure and the Mechanism for two-way communication Ensure Quality Feedback on Agency Performance is obtained from the Stakeholders StakeholderEngagementin the Management of the Oganization

  9. BALANCE SCORECARD KANDUNGAN TAKLIMAT BALANCE SCORECARD Financial Business Process Learning Organization Customer Focus

  10. STRATEGIC KPI (PDRM) Sub-KRA KPIs 2010 target Reduce overall reported index crime with a focus on street crime 1.1 Percentage reduction in overall reported index crime • 5% reduction 1.2 Percentage reduction in reported snatch theft and robberies • 20% reduction Improve public perception of safety, especially through volunteerism 2.1 Percentage of people who fear becoming a victim of crime • Work in progress • Additional 1,000 convictions Improve performance of enforcement agencies 3.1 Total violent crime offenders successfully brought to justice (i.e., convicted and sentenced) 3.2 Public satisfaction on police "customer service" elements (e.g waiting time, response time) • Work in progress KANDUNGAN TAKLIMAT

  11. FUNCTIONAL STRATEGY : HRM KANDUNGAN TAKLIMAT Prof. Ulrich

  12. FUNCTIONAL STRATEGY: FINANCIAL ENTERPRISE RESOURCE PLANNING SUPERVISORY LEVEL STRATEGIC OBJECTIVES KPI Prudent Expenditure Obtimum Resource Utilization KANDUNGAN TAKLIMAT Strategi dan Petunjuk Prestasi KPI JPA • KPI 1 : Performance of Operating Budget • KPI 2 : Performance of Development Budget • KPI 3 : Reduction of Overtime Claims • KPI 4 : Reduction in Travelling Claim KPPA (CEO) • KPI 5 : Reduction in Utilities Expenditure • KPI 6 : Reduction in Maintenance Cost • KPI 7 : Performnce of 1 % Emolment for Staff Training • PR 8 : Reduction in the quantum of OE Virement Director of Admin Services • KPI 9 : Reduction in Payment Voucher Preparation (9 days) • KPI 10 : Reduction in Bill Payment (14 days) Enhance Quality of Work Processes Director of Admin Services

  13. FUNCTIONAL STRATEGY: TECHNOLOGY (ICT) (e-ENHANCEMENT OF FINANCIAL PROCESS) KANDUNGAN TAKLIMAT • ROI of ICT Investments • Reduce Manpower • Increased Efficiency (cost and time) Telemedicine e-Procurement e-Payment e-Government eServices (JPJ) e-Applications e-Bidding

  14. THE JAPANESE CORPORATE STRATEGY KANDUNGAN TAKLIMAT National Level Company Level Low RoI Electric Long term welfare of employees Robotic Business network Automobile Recruitment – Aptitude Employee Appraisal Electronic

  15. OPERATIONAL EFFICIENCY

  16. 2.1 BUDGET (IRBM) KANDUNGAN TAKLIMAT

  17. 2.2 OBA CHART Systematic & structured approach to dev’t planning with full vertical-horizontal integration & focus on program outcomes & impact Integrated Development Planning 1 Provides an integrated Outcome-Based Program Budgeting system for planning & management of financial resources to turn policies into reality Result Based Budgeting 2 Ensures personnel performance at every level is linked systematically with substantive program performance Personnel Performance 3 Monitoring & Evaluation Mandates structured monitoring and evaluation to support systematic program performance management 4 Provides critical information to support informed decision making for program improvement and adjustments to strategies & policies Management Information System 5 KANDUNGAN TAKLIMAT IRBM

  18. 2.3 VALUE DRIVERS KANDUNGAN TAKLIMAT Development Expenditure (Projects) HRM (Productivity) ROI of ICT Projects Operating Expenditure (Procurement) ROI of R&D Projects

  19. 2.4 VALUE MANAGEMENT KANDUNGAN TAKLIMAT Program Appropriateness VALUE MANAGEMENT Program economy Program Efficiency Program Effectiveness

  20. 2.4.1 PROGRAM APPROPRIATENESS (Do It the Right Way) KANDUNGAN TAKLIMAT • Reflect the Client Groups need/problem? • Are program objectives still relevant? • How is the exhibiting program meeting the objectives? • Example : Doble Cropping Program (Infrastructure/Mechanisation)

  21. 2.4.2 PROGRAM EFFICIENCY (Doing the Thing Right) KANDUNGAN TAKLIMAT • What is the cost of an output unit? • Cost – Benefit Ratio Status • How efficient is the program delivery? Any complaints? Why? What? • Are there better and cheaper way of doing things? • Example : Online Renewal of Road Tax

  22. 2.4.3 PROGRAM EFFECTIVENESS (achievement of Objectives) KANDUNGAN TAKLIMAT • Did program achieving stated objectives and desired results? • What are the programs unintended consequences? • Example : University education and Employability of Graduates

  23. 2.4.4 PROGRAM ECONOMY (Value For Money) KANDUNGAN TAKLIMAT • Is there any wastage of resource? • Where is the wastage? • Are the resources optimized? • How can the wastage be minimized? • Does the wastage have any effect on the activity results? • Example : The Case of Building Prison (Value Engineering)

  24. BEST PRACTICES IN FINANCIAL MANAGEMENT

  25. BEST PRACTICES KANDUNGAN TAKLIMAT Internal Control Risk Management Internal Audit Dashboard & Alert System with drill down capabilities

  26. INTERNAL AUDIT KANDUNGAN TAKLIMAT

  27. INTERNAL CONTROL KANDUNGAN TAKLIMAT

  28. RISK MANAGEMENT KANDUNGAN TAKLIMAT

  29. ORGANISATIONAL GROWTH

  30. ORGANISATIONAL GROWTH KANDUNGAN TAKLIMAT • 10 – 30% new blood • 30% unrelated activity • Tacit K-Management • Employer of Choice • Creating Employability • Voluntary Separation Scheme • Context Management (Jack Welch) • Engage the Young Workforce 2010 Government Mantra - Year of Creativity and Innovation - Speed of Decision Making and Execution

  31. HR PERFORMANCE APPRAISAL KANDUNGAN TAKLIMAT • Fair and equitable evaluation • Linking evaluation to program performance • Reward and Punishment System

  32. CONCLUSION KANDUNGAN TAKLIMAT

  33. KANDUNGAN TAKLIMAT TERIMA KASIH