Strategy Implementation of Financial and General Services Development (FGSD)

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