KANDUNGAN TAKLIMAT

1. Strategic Effectiveness

2. Operational Efficiency

3. Best Practices

4. Organizational Growth

5. Way Forward

OUTLINE OF PRESENTATIONOUTLINE OF PRESENTATION

STRATEGIC EFFECTIVENESS

KANDUNGAN TAKLIMAT1.1 STRATEGIC FOCUS1.1 STRATEGIC FOCUS

• Corporate Strategy (VBM)

• SBU Strategy (VBM)

• Functional Strategy (VM) Financial

Human Resource

Technology (ILT)

KANDUNGAN TAKLIMATFEATURES CORPORATE STRATEGYFEATURES CORPORATE STRATEGY

Allocation Techniques

Scope Of Public Finance Management & Role Of Ministries Of Finance

General Government & Rest of Public Sector

Crisis … Political economy

Budget Preparation & Execution

Structural & Regulatory

Real exchange rates Real wages Interest rates Price Levels

Macroeconomy

Deficit

Budget constraint & absorptive capacity

Decentralization Laws & regulations relating to

finance

Regulations of financial

sector

Other lawsBudget Law

Audit Law

Allocation formulae

Tax Expenditures

‘Non-budget’ Expenditures

Extra-budgetary

expenditures

Quasi Fiscal Activities

Costing

Budget Formats

Expenditure Planning

Expenditure Control

RevenueFinancing

Borrowing Grants

Natural Resources

Accounts Systems

Expenditure Control

Treasury System

Cash management

Financial Reporting

Revenue Structure

Debt management

Non-taxTaxation & tax structure

User ChargesInvestment Income

Accrual Double Entry

Output Program PerformanceIndicators & Targets

Budget Structure Charts of Accounts

Everything is related to everything else

Appropriation

Rest of the world

Integration Harmonization Capital flows

Rights & other treaties

LegislatureExternal

Audit

Contingent liabilities

Insurance

Banking

Capital markets/ supervision/

securities regulation

Multi-year plans

Performance Structure

Allocation

Revenue & expenditure

determinants: fiscal architecture

KANDUNGAN TAKLIMATSTAKEHOLDER MANAGEMENTSTAKEHOLDER MANAGEMENT

Identify and Develop Stakeholder Portfolio in

the Context of the Organization

External Stakeholders comprise of Intermediate Beneficiaries and Direct

Clients

Internal Stakeholders comprise of the Leaders

and the Employees entrusted to achieve the

Organizational Goals

KANDUNGAN TAKLIMATSTAKEHOLDER MANAGEMENTSTAKEHOLDER MANAGEMENT

Relationship with the

Stakeholdersneed 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

StakeholderEngagement

in the Management

of the Oganization

KANDUNGAN TAKLIMATBALANCE SCORECARDBALANCE SCORECARD

Financial Business Process

Customer Focus

Learning Organization

KANDUNGAN TAKLIMATSTRATEGIC KPI (PDRM)STRATEGIC KPI (PDRM)

Improve public perception of safety,

especially through volunteerism

KPIs

1.2 Percentage reduction in reported snatch theft and robberies

2.1 Percentage of people who fear becoming a victim of crime

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)

1.1 Percentage reduction in overall reported index crime

Sub-KRA 2010 target

▪ 5% reduction

▪ 20% reduction

▪ Work in progress

▪ Additional 1,000 convictions

▪ Work in progress

Reduce overall reported index crime

with a focus on street crime

Improve performance of enforcement

agencies

KANDUNGAN TAKLIMATFUNCTIONAL STRATEGY : HRMFUNCTIONAL STRATEGY : HRM

Prof. Ulrich

KPPA KPPA (CEO)(CEO)

Director of Admin Director of Admin Services Services

Director of Admin Director of Admin ServicesServices

Prudent ExpenditurePrudent Expenditure

Obtimum Resource Obtimum Resource UtilizationUtilization

KPI 1 : Performance of Operating BudgetKPI 2 : Performance of Development Budget KPI 3 : Reduction of Overtime ClaimsKPI 4 : Reduction in Travelling Claim

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

Enhance Quality Enhance Quality of Work of Work

ProcessesProcesses

KPI 9 : Reduction in Payment Voucher Preparation (9 days) KPI 10 : Reduction in Bill Payment (14 days)

KANDUNGAN TAKLIMATFUNCTIONAL STRATEGY: FINANCIAL FUNCTIONAL STRATEGY: FINANCIAL ENTERPRISE RESOURCE PLANNINGENTERPRISE RESOURCE PLANNING

KANDUNGAN TAKLIMATFUNCTIONAL STRATEGY: TECHNOLOGY (ICT) (e-ENHANCEMENT OF FINANCIAL PROCESS)

ROI of ICT Investments

Reduce Manpower

Increased Efficiency (cost and time)

e-Government

eServices (JPJ)

e-Payment

e-Bidding

e-Procurement

e-Applications

Telemedicine

KANDUNGAN TAKLIMATTHE JAPANESE CORPORATE STRATEGYTHE JAPANESE CORPORATE STRATEGY

Robotic

Electronic Automobile

Electric National Level

Long term welfare of employees

Employee

AppraisalRecruitment –

Aptitude

Low RoI

Company Level

Business

network

OPERATIONAL EFFICIENCY

KANDUNGAN TAKLIMAT2.1 BUDGET (IRBM)2.1 BUDGET (IRBM)

KANDUNGAN TAKLIMAT2.2 OBA CHART2.2 OBA CHART

IRBMIRBM

Management Management Information Information

SystemSystem

Provides critical information to support informed decision making for program improvement and

adjustments to strategies & policies55

Integrated Integrated Development Development

PlanningPlanning11

Systematic & structured approach to dev’t planning with full vertical-horizontal integration &

focus on program outcomes & impact

Result Based Result Based

BudgetingBudgeting 22Provides an integrated Outcome-Based Program Budgeting system for planning & management

of financial resources to turn policies into reality

Monitoring & Monitoring & EvaluationEvaluation

44Mandates structured monitoring and evaluation to

support systematic program performance management

Personnel Personnel PerformancePerformance

Ensures personnel performance at every level is linked systematically with substantive program

performance33

KANDUNGAN TAKLIMAT2.3 VALUE DRIVERS2.3 VALUE DRIVERS

KANDUNGAN TAKLIMAT2.4 VALUE MANAGEMENT

VALUE MANAGEMENT

Program Appropriateness

Program Efficiency

Program economy

Program Effectiveness

KANDUNGAN TAKLIMAT2.4.1 PROGRAM APPROPRIATENESS (Do It the 2.4.1 PROGRAM APPROPRIATENESS (Do It the Right Way)Right Way)

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)

KANDUNGAN TAKLIMAT2.4.2 PROGRAM EFFICIENCY (Doing the Thing 2.4.2 PROGRAM EFFICIENCY (Doing the Thing Right)Right)

What is the cost of an output unit?

Cost – Benefit Ratio Status

How efficient is the program delivery? Any complaints? Why? What?

Example : Online Renewal of Road Tax

Are there better and cheaper way of doing things?

KANDUNGAN TAKLIMAT2.4.3 PROGRAM EFFECTIVENESS (achievement 2.4.3 PROGRAM EFFECTIVENESS (achievement of Objectives)of Objectives)

Did program achieving stated objectives and desired results?

What are the programs unintended consequences?

Example : University education and Employability of Graduates

KANDUNGAN TAKLIMAT2.4.4 PROGRAM ECONOMY (Value For Money)2.4.4 PROGRAM ECONOMY (Value For Money)

Does the wastage have any effect on the activity results?

Example : The Case of Building Prison (Value Engineering)

Is there any wastage of resource?

Where is the wastage?

Are the resources optimized?

How can the wastage be minimized?

BEST PRACTICES IN FINANCIAL MANAGEMENT

KANDUNGAN TAKLIMATBEST PRACTICESBEST PRACTICES

KANDUNGAN TAKLIMATINTERNAL AUDITINTERNAL AUDIT

KANDUNGAN TAKLIMATINTERNAL CONTROLINTERNAL CONTROL

OBJECTIVES

OBJECTIVES

PROCESSES

Appropriateness, Effectiveness, Efficiency & Economy of Operations

Compliance with Laws,

Regulations & Policies

Reliability of Internal & External

Reporting

GOOD GOVERNANCE

KANDUNGAN TAKLIMATRISK MANAGEMENTRISK MANAGEMENT

Risks identified & assessed

Transfer

Pass on the risk to another party

Avoid

Withdraw from the activity

Reduce

Mitigate the impact of risk

Accept

Accept the consequence of risk

Take up insurance Share (JV, partnership) Contract out Diversify/spread

Insure/share

Cease activity Divest Change or recalibrate

objectives Do it another way

Terminate

Heighten controls Increase supervision Enhance work

processes Impose limitation

Control

Finance the loss Build in contingencies Develop recovery plans Fall-back arrangements Charge premium price

Take

What you can do with each risk?

How to do that?

Risks identified & assessed

Transfer

Pass on the risk to another party

Avoid

Withdraw from the activity

Reduce

Mitigate the impact of risk

Accept

Accept the consequence of risk

Transfer

Pass on the risk to another party

Avoid

Withdraw from the activity

Reduce

Mitigate the impact of risk

Accept

Accept the consequence of risk

Take up insurance Share (JV, partnership) Contract out Diversify/spread

Insure/share

Cease activity Divest Change or recalibrate

objectives Do it another way

Terminate

Heighten controls Increase supervision Enhance work

processes Impose limitation

Control

Finance the loss Build in contingencies Develop recovery plans Fall-back arrangements Charge premium price

Take

Take up insurance Share (JV, partnership) Contract out Diversify/spread

Insure/share

Cease activity Divest Change or recalibrate

objectives Do it another way

Terminate

Heighten controls Increase supervision Enhance work

processes Impose limitation

Control

Finance the loss Build in contingencies Develop recovery plans Fall-back arrangements Charge premium price

Take

What you can do with each risk?

How to do that?

ORGANISATIONAL GROWTH

KANDUNGAN TAKLIMATORGANISATIONAL GROWTHORGANISATIONAL GROWTH

10 – 30% new blood

30% unrelated activity

Tacit K-Management

Employer of Choice

Creating Employability

Voluntary Separation Scheme

Context Management (Jack Welch)

2010 Government Mantra - Year of Creativity and Innovation

- Speed of Decision Making and Execution

Engage the Young Workforce

KANDUNGAN TAKLIMATHR PERFORMANCE APPRAISAL HR PERFORMANCE APPRAISAL

• Fair and equitable evaluation• Linking evaluation to program performance• Reward and Punishment System

<95% 93% – 94% 90% – 92% 87% – 89% 84% – 85% 80% - 83%

KANDUNGAN TAKLIMATCONCLUSIONCONCLUSION

KANDUNGAN TAKLIMAT