Public Administration NQF Level 5 © Public Service Sector Education & Training Authority 2013

1

SAQA ID

QUALIFICATION TITLE NQF LEVEL

MIN CREDITS

50060

National Certificate: Public Administration

5

141

LEARNER GUIDE

Skills Program Four (4):

Strategic Planning

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Learner Guide Introduction

About the

Learner Guide

This Learner Guide provides a comprehensive overview of the STRATEGIC

PLANNING, and forms part of a series of Learner Guides that have been developed

for NATIONAL CERTIFICATE: PUBLIC ADMINISTRATION LEARNING

PROGRAMME AT NQF LEVEL 5, WORTH 156 CREDITS.

The series of Learner Guides are conceptualized in modular’s format and developed

for NATIONAL CERTIFICATE: PUBLIC ADMINISTRATION LEARNING

PROGRAMME. They are designed to improve the skills and knowledge of learners,

and thus enabling them to effectively and efficiently complete specific tasks.

Learners are required to attend training workshops as a group or as specified by their

organisation. These workshops are presented in modules, and conducted by a

qualified facilitator.

Purpose The purpose of this Learner Guide is to provide learners with the necessary

knowledge related to STRATEGIC PLANNING

Outcomes At the end of this module, you will be able to:

Plan strategically to improve business performance

Create opportunities for innovation and lead projects to meet innovative ideas

Apply accounting principles and procedures in the preparation of reports and

decision making

Analyse, interpret and communicate information

Assessment

Criteria

The only way to establish whether a learner is competent and has accomplished the

specific outcomes is through an assessment process.

Assessment involves collecting and interpreting evidence about the learner’s ability to

perform a task.

This guide may include assessments in the form of activities, assignments, tasks or

projects, as well as workplace practical tasks. Learners are required to perform tasks

on the job to collect enough and appropriate evidence for their portfolio of evidence,

proof signed by their supervisor that the tasks were performed successfully.

To qualify To qualify and receive credits towards the learning program, a registered assessor

will conduct an evaluation and assessment of the learner’s portfolio of evidence and

competency

Range of

Learning

This describes the situation and circumstance in which competence must be

demonstrated and the parameters in which learners operate

Responsibility The responsibility of learning rest with the learner, so:

Be proactive and ask questions,

Seek assistance and help from your facilitators, if required.

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Learning Unit

UNIT STANDARD NUMBER : 114585

LEVEL ON THE NQF : 4

CREDITS : 4

FIELD : Business, Commerce and Management Studies

SUB FIELD : Generic Management

SESSION 1.

Define and discuss the concept of strategic planning in managing business performance.

Learning Outcomes

• The concept of strategic planning is defined and discussed using examples from a business venture.

• Benefits of strategic planning for performance monitoring are listed using examples from a business

venture.

• Aspects of a good strategic plan are identified using examples from a business venture.

• The relationship between the timing of a strategic plan and performance of a venture is determined

and evaluated using examples from a business venture.

PURPOSE:

The qualifying learner will be able to define the concept of strategic planning: discuss and

explain the role of the various organisational structures in business performance; supervise

and monitor expenditure as a crucial aspect of business performance and analyse marketing

objectives.

The learner will be able to identify and rectify problems occurring in a/own business and

develop various attributes of a/own business venture to improve performance.

The qualifying learner will be able to:

• Define and discuss the concept of strategic planning in managing business

performance.

• Discuss and explain the role of the various organisational structures in business

performance.

• Supervise and monitor expenditure as a crucial aspect of business performance.

• Analyse marketing objectives related to business performance.

• Identify and rectify performance problems occurring in own business.

• Develop business attributes in a specific context to enhance performance.

LEARNING ASSUMED TO BE IN PLACE:

The credit value is based on the assumption that people starting to learn towards this unit standard al-e competent in

Mathematical Literacy and Communications at NQF level 3.

Plan strategically to improve business

performance

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1.1 A description is given of the concept of strategic planning for a new venture.

Strategic planning determines where an organisation is going over the next year or more, how it is going to

get there and how it will know if it got there or not. The focus of the strategic plan is usually on the entire

organisation, while the focus of a business plan is usually on a particular product, service or programme.

There are a variety of perspectives, models and approaches used in strategic planning. The way that a

strategic plan is developed depends on the nature of the organisation's leadership, culture of the

organisation, complexity of the organisation's environment, size of the organisation, expertise of planners,

etc.

For example:

There are a variety of strategic planning models, including goals-based, issues-based, organic, scenario

(some would assert that scenario planning is more a technique than model), etc. Goals- based planning

is probably the most common and starts with focus on the organisation's mission (and vision and/or

values), goals to work toward the mission, strategies to achieve the goals, and action planning (who will

do what and by when). Issues-based strategic planning often starts by examining issues facing the

organisation, strategies to address those issues, and action plans. Organic strategic planning might start

by articulating the organisation's vision and values and then action plans to achieve the vision while

adhering to those values. Some planners prefer a particular approach to planning, e.g., appreciative

inquiry

Some plans are scoped to one year, many to three years, and some to five or ten years into the future.

Some plans include only top-level information and no action plans. Some plans are five to eight pages

long, while others can be considerably longer

Quite often, an organisation's strategic planners already know much of what will go into a strategic plan

(this is true for business planning, too). However, development of the strategic plan greatly helps to clarify

the organisation's plans and ensure that key leaders are all "on the same script". Far more important than

the strategic plan document, is the strategic planning process itself.

1.2 Benefits of strategic planning for performance monitoring.

Strategic planning serves a variety of purposes in an organisation, including to:

• Clearly define the purpose of the organisation and to establish realistic goals and objectives consistent

with the mission in a defined time frame within the organisations capacity for implementation.

• Communicate the goals and objectives to the organisations constituents.

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• Develop a sense of ownership of the plan

• Ensure the most effective use is made of the organisations resources by focusing the resources on the

key priorities.

• Provide a base from which progress can be measured and establish a mechanism for informed change

when needed.

• Bring together everyone’s best and most reasoned efforts has important value in building a consensus

about where an organisation is going.

• Provides a clearer focus of the organisation, producing more efficiency and effectiveness.

• Builds strong teams between staff members.

• Provides the glue that keeps the management together.

• Produces great satisfaction among planners around a common vision.

• Increases productivity from increased efficiency and effectiveness.

• Solves major problems

1.3 Aspects of a good strategic plan.

Read the article “Living strategies” Succeed magazine May/June

2004 p 6 –17.

LIVING STRATEGIES

Your strategy and whether you can make it work are fundamental to the success of any business. The

great businesses of the past have always been founded on workable strategies. The great failures have

not. In this feature South Africa’s leading business thinkers take us through the elements that make for

successful strategy.

Clem Sunter:

“You must have a strategic conversation with your key players"

“The future of your business depends on your strategy. And the first step towards, a living strategy is to

hold an effective conversation with your key players," says Clem Sunter. “Your business cannot function

properly unless managers and sections are aligned in a single direction, with a single purpose." In a big

company your strategic conversation will probably only include a relatively small group of executives,

in a small business the entire staff may be involved. The difference between the strategic conversation

that Sunter facilitates in companies and a social conversation is that the strategic one results in

measurable outcomes. The social one does not.

Sunter’s way of holding a strategic conversation, which is now being used by many large companies,

requires eight separate steps. Here they are.

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Step 1- Examine the scope of your business game. Ask yourself what your business is doing now and

what you intend to change to grow it. You may want to develop new products, reposition existing ones,

import new lines, enter new markets or take any other important step to stimulate the growth of your

business. You need to review these plans and write them down.

Step 2 - Establish who the really important players in your market are. Make a list of them. This will

include competitors, customers, suppliers, service providers, employees and their trade unions,

government in various ways, and any others that can seriously affect your business. You need to think

carefully about which side each one of them is on.

Step 3 - Review the rules of the game. Consider also how the rules have changed recently and how this

affects your business. Two major recent changes to the rules as they affect almost all South African

businesses are black economic empowerment and globalisation. Some years earlier, the introduction of

the labour laws changed the rules in a way that affected all but one-person businesses. There may be

changes to the rules that affect only some companies. The recent industry charters are examples of this.

Step 4 - Identify the key uncertainties. Look for those uncertainties that may have an effect on your

business. Their nature depends on the kind of business you are running. They may include fluctuations

in commodity prices, exchange rates, changes in the public's taste, economic cycles and technological

developments. Any area of uncertainty that can have an effect on your business needs to be included

so that contingency plans can be put in place.

Step 5 - Delineate possible paths into the future for your business. You need to establish where the

business was last year, where it is now and where you intend it to be in 12 months.

Step 6 - Examine the options to get you there, especially those that are within your control. Most of these

will be specific to your company and to particular scenarios. But some of them may be generic, in that

you may have to comply with a new rule of the game. Seeing all the options that you have may take

imagination, but once you start working on them there are more than you realize.

Step 7 - Select the decisions that you want for the future. Take them from the options that you have

already identified.

Step 8 - Establish the outcomes that you want and find ways to measure them. Then take the first few

steps in the process that will lead, to implementing the decisions you have taken. Most of all, identify

what has to be done, who has to do it and by when it must be completed.

Kobus Neethling

"The strategic thinker and the strategic planner are rarely found in the same person”

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Most companies are in a state of confusion over strategic thinking and planning. Many achieve poor

results because they see thinking and planning as being the same thing and appoint the wrong people

to perform them.

This is the view of Kobus Neethling, South Africa's eminent creativity guru. "Strategic thinking and the

planning that result from it are two completely different processes," he says. "It is rare that both qualities

are to be found in the same person."

While Neethling sees strategic thinking as vital to any enterprise, he does not believe that the term

strategic planning is a good one. "Every plan follows certain definite steps," he says. "Planning is

objective, logical and structured."

Planning is the work of a well-ordered mind, but the thinking that leads to a successful strategy is often

not. "Unlike planning, strategic thinking is non-linear, unorthodox and intuitive. It employs imagery."

The McKinsey team:

“The handful of decisions you make today determines all future decisions"

According to the thinking of top international consultants; McKinsey & Company, strategy is the handful

of decisions that drive all subsequent decisions and actions. To be complete, it has to include vision,

specific objectives, short and medium term planning and the monitoring and managing of all decisions

of which it consists.

“Strategic planning has to flow all the way down, permeating the entire organisation”’ says David Fine of

the organisation. “In the case of a small or medium sized business the process is reasonably simple. In

a big company, the strategy of every business unit has to be aligned with that of the larger organisation.”

Seen this way strategic planning is what sets the future direction for the entire company. Fine says: “It

has to be meaningful at executive level, middle management and even in the front line.”

Fine feels that too often companies fail to realise the real value of their strategic planning sessions. There

are a number of reasons for this:

Planning is time-consuming and paper heavy. People get bogged down in what seems to be a never

ending process.

Often planning rests on an ad hoc effort that lacks any real system. Meetings are infrequent and informal

and produce few results.

There is no link between planning, budgeting and operations. Often managers take the easy way out,

dusting off the previous year's budget and simply adding 10%, regardless of what may have changed in

the previous twelve months.

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In some companies there is no alignment within the organisation. The roles played by people are not

clear, activities are not linked and there is little or no communication.

Sometimes the strategic planning initiative is at odds with the culture itself. For strategic planning to work,

the culture has to be co-operative. A silo culture, in which each division operates independently of the

other, eliminates the flow of information that is essential to an effective strategy.

"Just as there are pitfalls to avoid, so there are certain things you simply have to do," says Judy Malan,

a colleague of Fine at McKinsey. "If you ignore them you could be setting yourself up for failure."

Here are some of the must-do's:

The CEO must be prepared to spend time on strategy. In some large companies successful CEOs spend

more than half their time on strategy. The CEO needs to understand each business unit and how it must

be aligned with the rest of the organisation.

You must establish clear roles for all the players who are part of the implementation strategy.

When making strategic decisions a small group is preferable. It is almost impossible to have a strategic

dialogue in a big group. McKinsey recommends a group of between eight and fifteen.

There must be an appropriate match between uncertainty levels and the tools used to deal with them. A

range of strategic issues will always have different levels of uncertainty. A range of tools is necessary to

deal with the uncertainties.

Your strategy must be integrated with the calendar. There must be a practical alignment with budgets,

operational plans and processes. Performance must be managed. The monitoring and implementation

are at least as important as the strategic planning. Above all, you must communicate your strategy to the

team as a whole.

Treat the strategic plan like a spider web, with strands into all aspects of your organisation, including

budget, human resource development, objective setting and performance management, all decision

making at every-day level, etc. It is part of the system of management, not a stand-alone piece.

Use every opportunity to relate whatever is being discussed to the strategic plan. Do your best to allow

sufficient time to do the strategic planning.

1.4 The relationship between the timing of a strategic plan and performance of a venture.

When Should Strategic Planning Be Done?

The scheduling for the strategic planning process depends on the nature and needs of the organisation

and its immediate external environment.

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For example:

Planning should be carried out frequently in an organisation whose products and services are in an industry

that is changing rapidly. In this situation planning might be carried out once or even twice a year and done

in a very comprehensive and detailed fashion (that is, with attention to mission, vision, values,

environmental scan, issues, goals, strategies, objectives, responsibilities, time lines, budgets, etc).

On the other hand, if the organisation has been around for many years and is in a fairly stable marketplace,

then planning might be carried out once a year and only certain parts of the planning process, for example,

actions planning (objectives, responsibilities, time lines, budgets, etc) are updated each year.

Consider the following guidelines:

Strategic planning should be done when an organisation is just getting started. (The strategic

plan is usually part of an overall business plan, along with a marketing plan, financial plan and

operational/management plan.)

Strategic planning should also be done in preparation for a new major venture, for example,

developing a new department, division, major new product or line of products, etc.

Strategic planning should also be conducted at least once a year in order to be ready for the

coming fiscal year (the financial management of an organisation is usually based on a year-to-

year, or fiscal year, basis). In this case, strategic planning should be conducted in time to identify

the organisational goals to be achieved at least over the coming fiscal year, resources needed

to achieve those goals, and funds needed to obtain the resources. These funds are included in

budget planning for the coming fiscal year. However, not all phases of strategic planning need

be fully completed each year. The full strategic planning process should be conducted at least

once every three years. As noted above, these activities should be conducted every year if the

organisation is experiencing tremendous change.

Each year, action plans should be updated.

Note that, during implementation of the plan, the progress of the implementation should be

reviewed at least on a quarterly basis by the board. Again, the frequency of review depends on

the extent of the rate of change in and around the organisation.

The strategic planning process is essentially a stepped process. It is not something that can be completed

in a single one day session. As such it is a good idea to communicate with staff and involve them in every

step.

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SESSION 2

Discuss and explain the role of the various organisational strategies in business

performance.

Learning Outcomes

• The role of key elements - purpose, process, props, prototype - are determined in the strategy/plan.

• Alternative organisational structures are identified and an explanation given of how key elements

operate within each structure.

• Advantages and disadvantages of all organisational structures are explained using examples from a

business venture.

• Reasons for choosing particular organisational structures are described in terms of a particular

business venture.

• Examples of organisational structures are provided for own context.

2.1 The role of key elements – purpose, process, props, and prototype – is determined in the

strategic plan.

The purpose of the strategic plan is to serve as a single source collector for results from various planning

and administrative processes. It provides the reader with a clear and concise overview of the organisational

goals and objectives, budgetary commitments, mission statements and performance measures. The plan

also serves as a “snapshot” of the organisation’s effectiveness and efficiency.

To get ready for strategic planning, an organisation must first assess if it is ready. While a number of issues

must be addressed in assessing readiness, the determination essentially comes down to whether an

organisation's leaders are truly committed to the effort, and whether they are able to devote the necessary

attention to the "big picture".

For example:

If a funding crisis looms, the founder is about to depart, or the environment is turbulent, then it does not

make sense to take time out for a strategic planning effort at that time.

An organisation that determines it is indeed ready to begin strategic planning must perform five

tasks to pave the way for an organised process:

• Identify specific issues or choices that the planning process should address.

• Clarify roles (who do what in the process).

• Create a planning committee.

• Develop an organisational profile.

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• Identify the information that must be collected to help make sound decisions.

The product developed at the end of the Step one is a Strategic plan.

Step Two - Articulating Mission and Vision

A mission statement is like an introductory paragraph: it lets the reader know where the writer is going, and

it also shows that the writer knows where he or she is going. Likewise, a mission statement must

communicate the essence of an organisation to the reader. An organisation's ability to articulate its mission

indicates its focus and purposefulness. A mission statement typically describes an organisation in terms of

its:

Purpose - why the organisation exists, and what it seeks to accomplish.

Business – the main method of activity through which the organisation tries to fulfil its purpose.

Values – the principles and believes that guide an organisations member.

Whereas the mission statement summarises the what, how, and why of an organisations work, a vision

statement presents an image of what success will look like. For example, the mission statement of the

Support Centres of America is as follows:

The mission of the Support Centres of America is to increase the effectiveness of the non- profit sector by

providing management consulting, training and research. Their guiding principles are: promote client

independence, expand cultural proficiency, collaborate with others, ensure our own competence, and act as

one organisation.

With mission and vision statements in hand, an organisation has taken an important step towards creating

a shared, coherent idea of what it is strategically planning for.

At the end of Step Two, a draft mission statement and a draft vision statement is developed.

Step Three - Assessing the Situation

Once an organisation has committed to why it exists and what it does, it must take a clear-eyed look at its

current situation. Remember, that part of strategic planning, thinking, and management is an awareness of

resources and an eye to the future environment, so that an organisation can successfully respond to

changes in the environment. Situation assessment, therefore, means obtaining current information about

the organisation’s strengths, weaknesses, and performance information that will highlight the critical issues

that the organisation faces and that its strategic plan must address. These could include a variety of primary

concerns, such as funding issues, new programme opportunities, changing regulations or changing needs

in the client population, and so on. The point is to choose the most important issues to address. The Planning

Committee should agree on no more than five to ten critical issues around which to organise the strategic

plan.

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The products of Step Three include:

A data base of quality information that can be used to make decisions; and a list of critical issues that

demand a response from the organisation regarding the most important issues the organisation needs to

deal with.

Step Four – Developing Strategies, Goals, and Objectives

Once an organisation's mission has been affirmed and its critical issues identified, it is time to figure out what

to do about them: the broad approaches to be taken (strategies) and the general and specific results to be

sought (the goals and objectives). Strategies, goals, and objectives may come from individual inspiration,

group discussion, formal decision-making techniques, and so on - but

the bottom line is that, in the end, the leadership agrees on how to address the critical issues.

This can take considerable time and flexibility: discussions at this stage will frequently require additional

information or a re-evaluation of conclusions reached during the situation assessment. It is even possible

that new insights will emerge that change the thrust of the mission statement. It is important that planners

are not afraid to go back to an earlier step in the process and take advantage of available information to

create the best possible plan.

The product of Step Four is an outline of the organisation's strategic directions - the general strategies,

long-range goals, and specific objectives of its response to critical issues.

Step Five - Completing the Written Plan

The mission has been articulated, the critical issues identified, and the goals and strategies agreed upon.

This step essentially involves putting all that down on paper. Usually, one member of the Planning

Committee, the executive director, or even a planning consultant will draft a final planning document and

submit it for review to all key decision makers (usually the board and senior staff). This is also the time to

consult with senior staff to determine whether the document can be translated into operating plans (the

subsequent detailed action plans for accomplishing the goals proposed by the strategic plan) and to ensure

that the plan answers key questions about priorities and directions in sufficient detail to serve as a guide.

Revisions should not be dragged out for months, but action should be taken to answer any important

questions that are raised at this step. It would certainly be a mistake to bury conflict at this step just to wrap

up the process more quickly, because the conflict, if serious, will inevitably undermine the potency of the

strategic directions chosen by the planning committee.

A C 2.2 Alternative organisational structures are identified and an explanation given of how key

elements operate within each structure.

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The elements to consider in organisational structures include the following:

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TYPES OF STRUCTURES

Functional Structures

Divisional Structures

Structures where the divisions are organised according to product groups, services, geography,

programmes or markets.

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Product Structure

Self-contained product groups’ structure

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Geographic structure

Divisional Market structure

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Hybrid structures

Structures that is multi-focused in that both product and function, or product and geography, are emphasized

at the same time.

Multidivisional structure

Project Based Structure

If your business engages in projects that differ from client to client and from project brief to project brief,

being able to assemble the right team for the job is helpful.

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This organisational structure example changes all the time. The director appoints a leader for every project

and makes people who have the necessary expertise part of the team. When the project finishes, team

leaders and managers are assigned to new projects.

Matrix Structure

Marketing Operations Finance HRM

Marketing Manager Operations Manager Finance Manager HR Manager

Project A Marketing Team (A) Operations Team (A) Finance Team (A) HR Team (A)

Project B Marketing Team (B) Operations Team (B) Finance Team (B) HR Team (B)

Project C Marketing Team (C) Operations Team (C) Finance Team (C) HR Team (C)

Project D Marketing Team (D) Operations Team (D) Finance Team (D) HR Team (D)

A C 2.3 Advantages and disadvantages of all organisational structures are explained using

examples from a business venture.

The Functional structure

Advantages

• Specialisation – each department focuses on its own work.

• Accountability – someone’s responsible for the section.

• Clarity - Know your and others roles.

• Economies of scale.

• In depth skills development.

• Routine technology.

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Disadvantages

• Closed communication could lead to a lack of focus.

• Departments can become resistant to change.

• Co-ordination may take too long.

• Gap between top and bottom.

• Slow in responding environment.

• Hierarchy overload.

• Less emphasis on innovation.

The Divisional structure

Advantages

• Increased co-ordination across functions.

• Allow adaptation.

• Decentralises decision making.

• Accommodates larger size.

Disadvantages

• reduces co-ordination across product lines.

• reduces economies of scale.

• reduces specialisation.

• reduces standardisation.

The Geographic structure

Advantages

• Serve local needs better.

• Positive competition.

• More effective communication between firm and local customers.

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Disadvantages

• conflict between local and central management.

• duplication of resources and functions.

The Multidivisional structure

Advantages

• Clear focus on market segment helps meet customer’s needs.

• More sophisticated control & integration systems.

• Corporate level can focus on long-term strategies.

• Positive competition between divisions.

• Better control as each division can act as separate profit centre.

Disadvantages

• Duplication of functions (e.g. different sales force in each division).

• Negative effects of competition.

• Lack of central control over each separate division.

• Measurement of divisional performance.

• New layers in management.

A C 2.4 Reasons for choosing particular organisational structures are described in terms of a

particular business venture.

Answer the question

Looking at the information given, give the reasons why you would choose a particular

organisational structure for your specific venture.

A C 2.5 Examples of organisational structures are provided for own context.

Find examples of organisational structures in books, magazines and on the internet or at

different companies.

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SESSION 3

Define and discuss the concept of strategic planning in managing business performance.

Learning Outcomes

• The concept of strategic planning is defined and discussed using examples from a business venture.

• Benefits of strategic planning for performance monitoring are listed using examples from a business

venture.

• Aspects of a good strategic plan are identified using examples from a business venture.

• The relationship between the timing of a strategic plan and performance of a venture is determined

and evaluated using examples from a business venture.

A C 3.1 A b u s i n e s s p e r f o r m a n c e m o n i t o r i n g t o o l i s s e l e c t e d f o r u s e i n

t h e n e w v e n t u r e .

Read the following article found on the website:

http://cne.gmu.edu/modules/workflow

A Vendor-independent tutorial

©2002 by Charles A. Plesums, Austin, Texas, USA

A C 3.2 Supervision practices, with reference to expenditure are evaluated in own business.

Supervision is extremely important to the individual enterprise. Authority is the right to give commands, make

decisions, take actions, and enforce obedience. The business owner should do an expenditure forecast for

his business. An expenditure forecast is an estimate of the amount of money an organisation will spend

during a specific period of time. In a well-managed organisation, just as concerted an effort is made to control

expenses as to increase revenues. The simple equation “Revenue – Costs

=Profit” indicates the importance of holding down costs. In business a small reduction in purchasing costs

may contribute more to profits than a substantial increase in sales.

Business owners should be more cost conscious. Much waste in organisations can be traced directly to the

inefficient purchasing of equipment, supplies and services.

Mismanagement of staff can lead to huge losses. It is important not to hire more personnel than needed,

purchase equipment that may not be fully used, or spend money in other ways unnecessary or excessively.

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Supervision is needed when it comes to expenditure within the business. Expenses such as the telephone,

refreshments and “small” expenses can influence the profit of an organisation. The need to

supervise and monitor expenditure in the New Venture is of utmost importance.

Make a list of the practices that you will implement in your business to supervise expenditure.

A C 3.3 Marketing expenditure is analysed in accordance with the scope of the business.

Marketing is defined as all activities aimed at enlarging or serving a market position. It includes market

research, advertising, promotion, sponsoring and public relations. These services may be provided 'in-

house' in which case the investment should be calculated at

production cost including labour cost, or may be bought in from third parties.

TIPS & TRUTHS

Only a part of this expenditure is of an investment nature and the rest is consumption. A precise demarcation

of marketing expenditure between investment and consumption cannot be made and a strict definition would

probably pose enormous data collection problems. In order to reduce this problem, it is necessary to make

some pragmatic simplifications for data

collection purposes.

The measurement of marketing expenditure should be limited to:

► Long-term marketing which covers the marketing of new products where the expected benefits will accrue

over a period longer than one year;

► Marketing costs of new market areas or segments where the expected benefits will accrue over a period

longer than one year;

► The marketing costs of improving the unit's strategic position;

What Is Workflow?

Workflow is defined as a series of tasks within an organisation to produce a final outcome. At each stage

in the workflow, one individual or a group is responsible for a specific task.

The workflow process is traditionally defined in office terms - moving the paper, processing the order,

issuing the invoice. But the same principles and tools apply to filling the order from the warehouse,

assembling documents, parts, tools, and people to repair a complex system, or manufacturing the

complex device.

With the automated workflow management system:

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Work doesn't get misplaced or stalled - expediters are rarely required to recover from errors or

mismanagement of the work.

The managers can focus on staff and business issues, such as individual performance, optimal

procedures, and special cases, rather than the routine assignment of tasks.

The army of clerks is no longer required to deliver and track the work.

The procedures are formally documented and followed exactly, ensuring that the work is performed in the

way planned by management, meeting all business and regulatory requirements.

The best person (or machine) is assigned to do each case, and the most important cases are assigned

first. Users don't waste time choosing which item to work on, perhaps procrastinating on important but

difficult cases.

Parallel processing, where two or more tasks are performed concurrently, is far more practical than in a

traditional, manual workflow.

With the best person doing the most important work following the correct procedures, not only is the

business conducted more effectively, but also costs are lowered and the service to the customers is

generally better. With the work equitably distributed and the confidence that they are always working on

the "right" thing, users are happier. Therefore, workflow provides benefits for all parties involved - for the

company, its employees, and its customers. Why Bother?

Work done by the best participant

A simple workflow system could evenly distribute work among all the available resources, or follow a

simple algorithm such as giving the waiting work to the resource with the shortest queue, or implement

assignments made manually by a supervisor. However, there are often significant benefits when the

system can optimize the assignment of the work. In order to do the assignment, the workflow

management system must know who or what is available to perform the work, and have a profile about

each user. This might include what work the resource is qualified to do, how good they are at that type of

work (can they only do routine processing or can they handle the toughest cases), and whether the

supervisor wants the work to be assigned to them.

"Assembly Line" or "Once and Done"

Much work, even office procedures, can be processed in an assembly line, where each step in the process

is simple and specialized. One person may enter data. The next person may check the data. The next

may retrieve the customer's credit bureau rating. A computer may automatically retrieve the current

customer status - recent orders, accounts receivable, etc. When all of the information has been

consolidated, a

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specialist may evaluate whether to extend the credit and accept the order. And so forth. Most of the steps

are simple. Training is minimized. Staffing is often flexible, because few steps require specialized skills,

authority, or licensing. However, an effort is required to move the work between steps, time is lost waiting

at each step, and there are more chances that the work will be lost or misplaced. The other approach,

equally popular among the experts, is to have highly trained staff handle the complete process, once and

done. Far more training is required, with corresponding delegation of authority, but there is far less

overhead in the work process itself. When the work is managed manually, once and done is generally

superior, because there is less overhead and chance for error. But with an automated work management

system, either approach can be used. The work management system tracks the work, dramatically

reducing the overhead of the assembly line process, with one remaining disadvantage. The elapsed time

to complete the work (as seen by the customer) may be longer with the assembly line if a queue is allowed

to build at each step in the process. Therefore, in practice, a blend seems to be best - separate people

to

enter data and proofread, to reduce the chance of errors, with total automation of any step where that is

practical. But minimize the number of steps where practical, to reduce the time waiting in queue, and thus

reduce the total time of service. Once there is a system that tracks the multiple steps, perhaps not all of

the steps need to be done sequentially. Manual systems often include a checklist or routing slip that

accompanies the work, thus sequential processing is the easiest way, by far. The limitations of the

checklist go away with an automated workflow system. Thus, most systems allow multiple tasks to be

assigned and performed concurrently, with a function to determine when all the parallel paths are

complete, so the consolidated part of the workflow can continue.

Vertical Workflow

One function of a workflow system is to get the work to the right person or process - to move the work

through the organisation. This is sometimes called "horizontal" workflow. Normally a case consists of

multiple tasks - programs, portions of programs, or manual steps - performed at each step in the workflow.

Therefore, another possible workflow function is to see that all the tasks are completed - the "vertical"

workflow. A senior person might be given the assignment, "review this order" without detailed instructions

on how the review should be performed. A beginner may need to be given the assignment, "to review this

order, perform the following 10 steps. 1) Look up the customer using…." While managing the individual

tasks at each step in the workflow, some systems automatically invoke the various computer systems

that are used. Some workflow systems even change the way the tasks are assigned based on the

experience of the person performing the work.

Completion

When the work is completed, the normal conclusion is to change the status (from waiting for decision to

either approved or rejected, or from waiting for input to ready for checking). Each workflow product has

its unique way to move the work to the next step in the process - not all use the term "status." But what if

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the processing isn't complete? The work may need to be suspended for the arrival of more information

(triggered by an outside event) or for a follow up (try calling again this afternoon). Most workflow systems

also allow the workflow to be changed to accommodate exceptions. To pass the work to someone else

for a consultation or special approval, and then resume the normal workflow process. Information easily

accessible As work is processed, computer systems and other data are often accessed. It is critical that

the information necessary to complete the processing is easily accessible. It doesn't do much good to

optimize the assignment of work to a person, then have that person spend hours looking for the

associated data - such as searching for the form to be processed among stacks of papers. With electronic

assignment possible across multiple locations, the data may even be in a different city! Therefore, it is

common for a work management system to: interface to existing computer databases and systems invoke

complex computer systems, possibly through terminal emulation link to document images, fax servers,

e-mail, or other "external" sets of data extract key information to move with the workflow - for example,

the items in an order, a credit limit, the limits of an insurance policy, or the current shipping address. (The

workflow system should not try to replicate all the primary data, or be a substitute for a normal database.)

Interface to the data systems. Many organisations are concerned with the complexity of interfacing the

workflow system to the business application, or even feel the need to integrate workflow with the

application. On the contrary, there are many levels of potential interface. Workflow can be used with no

interface to the legacy processing systems. These systems were often built in the days when work would

be delivered by a clerk, as a stack of paper, in an in-box. No interface to the in-box was required for

processing. If a work management system rather than a clerk controls the work, there is still no

requirement for an interface. As each item is processed, the system is routinely invoked. The legacy

processing system is used "side-by-side" with the work management system. The work management

system must know the key identification of the work,

such as the contract number, so that items of work can be located and special conditions can be

honoured. When the users know that a particular type of work always starts by invoking the same

program, and entering the same data, and the work management system has that information, it seems

like extra work is required - the users are unhappy. In practice, a minimal interface, to invoke particular

programs and enter key data (perhaps using techniques as simplistic as screen scraping) is popular with

users, inexpensive to implement, and contributes to productivity. A number of business application

vendors have seen the advantage of workflow, and want to be sure that advantage is available to the

users of their product. Therefore, they have embedded a basic workflow in the business application. As

discussed later, if the

users only process a single application, it is possible that the embedded workflow approach, where the

application drives the workflow, is sufficient. In practice, most users today must support multiple

applications - perhaps an order entry system (or several systems for different product lines), a billing and

accounts receivable system, a customer information system, a correspondence system, and others.

Therefore, it may be more practical to have a workflow system that invokes the appropriate legacy

computer system, rather than having one legacy system invoke workflow. In that case, the independent

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workflow system will drive the applications, rather than the application driving the workflow system. EAI,

or Enterprise Application Integration, the consolidation of numerous application systems, is often directly

or indirectly involved in workflow.

Image systems

Work management systems are often installed in conjunction with document image systems. If the paper

is scanned and only the image is used, there needs to be some way to identify the documents that need

processing, when, and by whom. Those are the functions of a work management system, although for

the simplest cases, a rather simplistic work management system may be sufficient. Likewise, image

systems often are installed in conjunction with work management systems. If there are paper documents

involved in the workflow, it doesn't do much good to make an assignment and then have to search for the

paper. On the other hand, if the necessary information is available in another form, there is no requirement

for an image system with every work management system. Therefore we should conclude that although

image and work management systems often go together, and often bring synergistic benefits to the other,

neither requires the other in all cases.

Logging and tracking

Workflow systems typically record the processing history, and provide the opportunity for the users to

enter comments. The history typically includes the date, time, person where each step was performed,

including the disposition of the step - for example, was the process approved and moved on in the

workflow, or was the work suspended for later processing. If the work is suspended, documentation of

why it is suspended is needed. For example, "More information is required, and I called and got their

voice mail" has far different implications than "I went to lunch." Once this special capability is provided,

then there are numerous other things this can be used for, such as explanations of variances and special

circumstances. The automated log of who/how/when the work was processed is a substantial advantage,

improving the record of what was done and when, while eliminating the manual logs that are often used

to find documents and recover from routing errors.

Search for work in process

Messages are often received - "What is the status?" or "Change my request" or "Cancel the order." A

work management system must not only manage the work in process, but must also identify the work so

that it can be found. Not only must it know that this is a queue of 200 orders, but it must be able to find a

specific order in that queue. And once the order has been found, we must be able to determine the status

of that work. If it has been completed, should we start some reversing action? For example, do we need

to reverse the transaction or authorize a return? If it is currently being processed, should the call be

transferred? Or is it idle but in mid-process, such as waiting for a credit report? Maybe it is not appropriate

to disclose all the details, but at least we know what is happening. If it has not yet been processed, am I

qualified to handle the case (probably yes, or I wouldn't have taken the phone call). Therefore should I

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"pull" the work (as discussed above), select it to be assigned to myself (so that somebody doesn't start

processing while I am working on it), and complete the process while working with this customer?

Control

One of the big advantages of an automated work management system is the control of the process,

manifest by the procedures that are implemented by the system, and the record keeping reporting on the

process. In some systems the control is focused in the users - the work is largely table driven, with the

tables maintained or controlled by user-oriented staff - perhaps supervisors, senior users, or others with

a

user background. In other systems the workflow application is tailored to the requirements of the

organisation by a programming staff, in the information technology area. The customized workflow

system is optimized for the application, at the expense of flexibility for "instant" changes. In either case,

the user profiles - qualifications, assignments, absences, vacations, training, and other factors are

maintained by the system. Managers need to be able to manually assign work to an individual - perhaps

because they made an error and need to fix it, or perhaps because it is a special case that they are

uniquely qualified to fix. Priorities must be adjusted to move critical work to the head of the list.

Monitoring

Practically all systems include reporting and analysis such as the total work accomplished - the volume,

and the turn-around time (the response time as seen by the customer). The systems also maintain data

to report the productivity of the individuals, teams, and groups. A few systems even maintain data about

the number and types of errors that are caught and corrected for each type of process and user. Work

management systems allow managers to examine the backlog of work throughout the day - in real time -

so that they can schedule staff as required, adjust assignments if necessary, to meet deadlines, and in

general, manage their teams. A few systems even let the managers set alarms - for example, "notify me

if the number of complaints exceeds 3, or if the total number of items to be processed is greater than

450." This is far better than the clerk having to constantly count the unassigned work, or noticing that the

stacks are getting too big. The automated work management system provides far better management

control of the work.

Measuring The Benefits

The benefits of a work management system can be put into three categories. The direct cost savings are

readily measured and recognized. But there is another set of benefits that are real and valuable but very

difficult to measure, sometimes called the hidden savings. And still more benefits where the value cannot

be quantified - the intangible benefits.

Direct Cost Savings

These are the readily measured benefits. Often, they involve better use of staff, or reduction of the staff.

How much clerical time is involved in sorting and delivering the work? How much clerical or supervisor

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time is spent assigning the work to particular individuals? And how much of the processing is really

logging that a particular piece of work was received at a certain time, or that it was completed and sent

on to…?

Less training is required. An automated work management system can move information through an

organisation, without an employee having to understand the entire organisation, or even the whole work

process - only their part. And a vertical work manager - a task management system - can guide a user

through a series of steps and programs, reducing training needs even farther. With the control of a work

management system, the work can always be found. It can't be buried in a desk drawer, when it is a tough

case that "I'd rather handle later." It can't "accidentally" be discarded, without a record of who touched it

last. If it is accidentally sent to a wrong place, it can still be located and recovered. A staff of "expediters"

to find the missing work and move it through the organisation is not required. The direct savings from

installing a work management system (or an image system with a work management system) are

primarily related to the reduction of the support staff. Those savings can be substantial, but often don't

quite cover the cost of the system. We need to look farther.

Hidden Savings

The hidden savings are actual cash savings, but those that are far harder to measure. For example, better

control of the work, savings of manager time, improved productivity of the professional staff, and the

opportunity for process improvement.

Control

What is it worth to have the best person handle each item? Remember that the best person for a simple

task may be the newest (lowest level) person in the department. One of the problems of manual work

management was that the most experienced people were also expert at finding the easy work, making

their productivity look even higher. Yet they are the ones who should be handling the hardest cases that

a beginner might struggle with for a long time. Have you ever searched the paper in your in-basket, to

see what was waiting for you? And after processing the first item (probably not the top item), have

searched again for that "other interesting case?" Have you ever skipped an item that you will "come back

to later?" And has "later" ever become the next day? A work management system that pushes work, one

item at a time, assures that the first item presented is the most important. If it needs to be deferred, fine,

but the history of the transaction will show that it was deferred, and perhaps record the reason. Experts

in workplace satisfaction and time management emphasize that the best way to work is to put one item

on your desk, do it to completion if possible, then move to the next. An automated work management

system can present work in this way. The most important work is done first. The hard cases can't get

buried. And experience has shown that users can find working with such a system very satisfying. How

much does it improve productivity? How many problems are eliminated because important work is done

first, and hard cases aren't deferred? Those factors are hard to measure, but the benefit is real.

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Management

What do your managers do today? Do they make every work assignment? Do they review work for

quality? Do they report on the quantity and timeliness of the work performed? Do they have time to

counsel employees, or even process the tough cases themselves? With the automated assignment of

work, automated data collection for reporting, and fewer problems such as lost work, one group was able

to expand the span of a supervisor's control from eight people to 20 people. And the supervisor was able

to spend more of her time counselling the employees, improving their skills, and helping with the tough

cases, rather than routine reporting and making assignments.

Professional productivity

By many definitions, professional work cannot be measured - it is work that varies from case to case,

requiring judgment, rather than a routine operation. How can we estimate productivity, much less project

a productivity improvement? One of the earliest workflow systems involved credit card adjudication -

investigation of whether a charge could be valid. After collecting data from the cardholder, the record is

examined for clerical errors, and then the merchant is contacted to provide evidence. After the merchant

responds, the expert decides whether to enforce the bill, or to issue a credit (recovering the funds from

the merchant). Every case is different - a different story, different evidence, and different judgments. Prior

to a

work management system, the experts averaged 10 cases per hour. Six weeks after installing a work

management system, the experts were averaging 13 cases per hour. Certainly individual cases could

take a variable amount of time, but averaging a large number of transactions indicated a 30 percent

productivity improvement. Considering a large number of workflow installations, the 30 percent

productivity improvement is pretty common. After quoting that figure many times, some companies were

disappointed to only get 28 percent (even though that is a great improvement, and very close to 30

percent), so a conservative number might be 20 percent improvement, just due to the automation. Poor

procedures are often characterized by many steps for no apparent reason, or lots of logging to prove

innocence (assign blame), or lots of expeditors to keep things moving and handle special cases.

Workflows like this have obvious process improvements that often lead to professional productivity

improving 50 percent or more. And with a thorough redesign or reengineering of a bad process, 100

percent improvement - doubling the amount of work processed - is not unusual.

Process Improvement Opportunity

Sometimes a process should be completely taken apart and redesigned - reengineered. This is an

expensive process and traumatic for the users but has the potential of the greatest improvements - like

tearing down a house and rebuilding it. More often, an existing process can be dramatically improved -

even though the changes may be substantial, the users can usually recognize the process and migrate

to the new process with far less training. With dramatic process improvement or reengineering, a work

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management system may allow new procedures that would not be possible in a manual system. For

example, mail entered early in the morning on the East Coast of the United States might be ready for

processing by the time U.S. West Coast users arrive. And the work left by the West Coast users can be

migrated to Asia and Europe for further processing by morning. Tasks that were sequential to be

manageable can now be processed in concurrent parallel steps.

Intangible Benefits

There are a number of benefits of work management that most people cannot quantify. Unlike the hidden

benefits that are real and, with enough effort, can be quantified, it is rare that a cash value can be assigned

to improved service, employee satisfaction, organisational options, security, and privacy. If any of the

areas have a quantified value in your company, great - that factor can simply be added to the direct or

hidden savings listed above.

Improved Service

If the most important work is distributed to the first available qualified person, and they have access to all

the information required to handle the case, this service is as good as it can get. With manual work

management, the user might casually select a work item, and struggle to find the data, get any necessary

authorization, and perhaps procrastinate - saving the tough case for later.

Employee satisfaction

In the early work management systems, there was fear that the users would be oppressed by being

directed by a computer - being told what to do. The actual experience was just the opposite - users were

more satisfied. Workplace experts recognized that the optimum work environment was to select the one

most important piece of work (doing the right thing), and complete it (feeling a sense of accomplishment),

before moving on to the next item. At the same time, the employees were given some control - if they

received a huge task at quitting time, they could save it until morning; if they didn't understand or weren't

qualified to handle something, it could be passed on to a supervisor to be reassigned. The employees

have been given that ideal environment, and enjoyed it.

Organisational options

A business that was an early user of workflow wanted to decentralize for a variety of reasons, but was

concerned about how the work would be processed. There could be tax advantages by performing certain

work in a particular location, while economies of scale dictated that other work should be done centrally.

A new, smaller office might lack the size to absorb peak loads among a small number of specialists.

Management was concerned about the difficulty of moving work between offices - and how much would

be "in the pouch" in transit to the other office whenever it was needed. The automated work management

system gave them the confidence to proceed. In the same organisation, a year or so later, the central

management noticed that there were many thousands of letters waiting for processing in the regional

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office. It didn't matter whether it was because of inadequate staffing, too many trainees, or an exceptional

peak in their workload, much of that work could be handled by "anyone." The home office staff members

were assigned to do the routine work from the field office, as time allowed, along with their regular work.

The regional office concentrated on the work that required their special knowledge. Within one week, with

no overtime, the entire backlog of work was caught up. Many felt that the savings in overtime and

employee stress from events like that alone might have justified the work management system. A different

company was growing rapidly, and realized that they would soon be out of space - just before their

seasonal peak. Half the people needed to be moved to a new location, miles away. Since work could be

routed to specialists at either location, all the support organisations did not need to be replicated. The

facilities were procured, furniture, computer, and network were installed, and the staff transferred in only

a few months. Their management credited the work management system with making the move possible

in record short time, with minimal disruption.

Workflow Technology

For many years, business analysts and authors categorized workflow systems. Although such categories

have fallen into disfavour, they are still instructive - they may help understand the differences between

various systems.

Ad hoc

Ad hoc, or collaborative, workflow is often used in the professional and administrative areas of an

organisation. It is characterized by negotiation, and a new workflow defined for each use. One group

decided that there were four steps to doing any piece of work

Negotiation - for example, "can you review my document by Friday?" Acceptance - for example, "no, but

how about by Monday afternoon?"

Assignment - delegating the work to the reviewers. There might be multiple people doing the review

concurrently, and as soon as all of them approved the document, it might be routed to the next step -

perhaps management or legal.

Review - was all the work done and approved. If not, how do I handle rejections or incomplete processing

(reviews)?

This type of workflow is tremendously convenient, and provides good control of the process (what is the

status of each step, who did what when, where is the work now). The ad-hoc workflows are often built on

an e-mail platform (using mail messages to deliver the work). However, if the mailroom gets 500

insurance claims today, we don't want the mailroom to negotiate with the claims adjusters about who

should handle each claim.

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Production

A production workflow is predefined and prioritized, and thus supports high volumes - there are no

negotiations about who will do the work or how it will be handled. However, there may be additional tasks

or workflows defined and added to the overall process. (Some writers claim that production workflow

cannot be used when all the steps are not known in advance - not true.) For example; settling a claim

following an auto accident will have some basic steps that are part of most claims - identifying all the

parties, confirming policy coverage, ordering copies of police reports. There will likely be other tasks (each

of which may be a kind of workflow in itself that become part of the larger workflow), such as:

Appraise the damage and arrange for the repair of each vehicle. Handle any bodily injury for each party

involved.

Settle any property damage, such as repairs to the fence that was hit. Salvage - sell what is left of the car

that was destroyed.

Subrogation - get the party that actually caused the accident to pay the losses.

The production workflow can be very simple (deposit these funds) or complex like the auto claim

described above. They can be completely predefined, or follow a general procedure, with additional steps

and processes added as required. They can be altered for questions or consultations. Normally it has a

dedicated delivery channel, rather than using e-mail to deliver the work. Overall the production workflow

system provides control of the process, and substantial productivity - thus it saves costs.

Administrative

A third type of workflow is sometimes listed, called administrative workflow. This is a cross between the

ad- hoc and production. The flow is predefined, such as the steps required to place an order or approve

an expense report. Sometimes the flow can be reviewed in advance or even altered (add a note asking

my boss to endorse the exceptional expense). The delivery may be a blend between e-mail (to

professional staff who only have a few cases each day, and are largely driven by the mail), and a custom

delivery mechanism (the clerks in purchasing or accounts payable who do this work all day).

Horizontal vs. Vertical

Another useful segmentation of the workflow technology is sometimes called horizontal vs. vertical

workflow. Horizontal workflow moves the work through the organisation - from person to person, or to

different departments or systems. Some people call the horizontal workflow "routing." It is the most

common type of workflow. Once the work gets to a point in the organisation, there may be several steps

that are performed. The vertical workflow directs the processing at each step. It may automatically invoke

computer programs, enter key data (known to the workflow system, such as account number), and may

provide guidance for each step of the process - at least for beginners if not for everyone. If the vertical

workflow system can invoke a program and enter data, couldn't it also do the entire process in some

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cases? The answer is obviously yes, in what some systems call "robotic" or "straight through" processing.

For example, a change of address may be read by an optical character recognition system. When it is

compared against the postal database of valid addresses, if there is a match, the confidence in the

process may be so high that there may be no need for human intervention, or at most, there is a human

"quality assurance" step.

Getting Started

Establish goals

There may be a variety of reasons to implement a work management system.

Improvement of internal processes is the traditional first purpose. This might be to increase capacity (the

amount of business processed) without increasing the costs. It might be to improve the quality of service.

Or it might be to reduce costs in an industry that is not growing rapidly. It is important to know what you

are trying to achieve - for example, increase work performed by existing staff, or reduce staff to do the

same amount of work. However, it is rare that reducing staff means direct lay-off, since normal staff

turnover is often comparable to the pattern of productivity improvement, as people become expert in

using the

workflow system. Managing processes between organisations is another potential use of workflow -

issuing and tracking the orders for products and services from a second company, perhaps integrated

with processes within the first company. Some of the new facilities for e-commerce have been established

and integrated with work management tools.

Workflow Implementation

Most people consider the simplest approach to workflow to automate the current process, exactly as it

exists. This may be a good starting point for discussion, and if the process has recently been analyzed, it

may work well. However, generally it isn't the best, since there are typically a lot of activities that are no

longer required, like logging and batching.

Process improvement, at least to some degree, is usually in order when going to an automated workflow.

Eliminate the record keeping of date stamping, logging, and tracking work. Cut out the effort looking for

particular items. And take advantage of the ability to suspend work, automate the follow-up, run parallel

processes, etc. Utilize the automatic assignment and optimization of the work - considering the priority of

the work (based on type and age), and the qualifications of the workers. Full scale reengineering should

probably not be considered just because a workflow system will be installed - most of the benefits could

be achieved by simpler process improvements. On the other hand, if a process needs to be reengineered

(because of the process, not because of workflow systems), then workflow is a great tool to include as

part of the reengineering.

Conclusion

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Go for it! An automated work management system

Improves control of the process, with far less management intervention, and far less chance for delays or

misplaced work.

Improves the quality of service, by responding more quickly, with the best person available.

Lowers the cost of training staff, since the work can be guided through complex procedures.

Lowers the cost of management, allowing a far wider span of control, while allowing the managers to

concentrate on nurturing the employees and handling special cases rather than routine reporting and

distribution.

Improves user satisfaction, by giving the user confidence that they are doing "the best item" and giving

them the satisfaction of completing that work with fewer conflicting requirements.

Altogether that means that an automated work management system is good for the company, good for

the

customer, and good for the user.

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SESSION 4

Monitor, measure and report on business performance.

Learning Outcomes

The concept of strategic planning is defined and discussed using examples from a business

venture.

Benefits of strategic planning for performance monitoring are listed using examples from a

business venture.

Aspects of a good strategic plan are identified using examples from a business venture.

The relationship between the timing of a strategic plan and performance of a venture is

determined and evaluated using examples from a business venture.

A C 4.1 Qualitative and quantitative performance indicators are considered for a particular business

venture.

Performance standards are needed for all activities performed in an enterprise. In the absence of standards

we cannot answer such questions as: ”Is Mrs Dlamini performing competently?”. “Should we discontinue

brand A?” In a sense, indicators are performance

targets. Set standards may be either quantitive or qualitative.

Quantitative Standards:

Quantitative standards are criteria for judging results that can be expressed in Rands, time elapsed,

percentages, weights, distances, or some numerical fashion. Quantitative standards have two basic

advantages. Firstly, they are reasonably precise, and secondly, they can be

measured with relative ease.

There are different quantitative standards such as:

• Time Standards-Time standards indicate how much time should be required to achieve a specific result.

• Cost Standards-How much money should be spent to perform an activity.

• Revenue Standards-Indicate how much income should be received from specific operations or

activities.

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• Productivity Standards-They are needed for all activities in the enterprise.

Productivity is a key standard, since it indicates the efficiency with which the operations are conducted.

• Market share Standards-Many firms develop a performance standard that concerns the percentage of

the total market they want to acquire.

• Profitability-Profitability standards may be based on past experience, performance of other firms in the

industry, and judgement. Profitability ratios are useful guides in controlling operations. Basically two

factors enter into profitability: sales volume and all costs of doing business. Profitability is affected by

any alteration in sales or business costs. For example, profitability is negatively affected if the firm paid

too much for the merchandise it resold, if production costs were excessive, or if the business had too

large a debt, requiring payment of excessive interest.

• Quantitative personnel Standards-While some standards relating to personnel are qualitative, many

may be expressed quantitatively. Objective standards can be set for such items as employee turnover,

accidents, absenteeism, grievances and suggestions received from personnel.

• A basic limitation of quantitative standards is that they are difficult to apply to all activities. Not all

standards can be expressed in time, weights, percentages, rands, or other numerical measures.

Qualitative standards:

• Qualitative standards are subjective and hard to apply. Examples include: “Personnel are expected

to be loyal to the business”. Because they are subjective, qualitative standards are difficult to use in

evaluating performance.

• Externally imposed Standards –

Some performance standards are not set by business owners or managers. Rather they are imposed

by government agencies and to a lesser extent by trade and professional associations.

• Standards for social responsibility –Businesses are under increasing pressure to act responsibly

toward customers, employees and the public. But acceptable standards for socially responsible

behaviour are extremely difficult to develop. At best they are highly intangible and subjective.

• Before a standard is set, as much knowledge of the activity as possible should be accumulated and

evaluated. Standards should not be developed without a clear understanding of the work to be done.

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A C 4.2 Financial indicators are measured and reported for a particular business venture.

Financial reporting is necessary to monitor an enterprise’s general financial position and, in the process to

limit the enterprise’s risk of financial failure as far as possible. Financial analysis will reveal certain trends in

the venture’s strengths and weaknesses.

If you want a clear understanding of how your business is doing financially, and you want to be able to

predict and plan for the future, a fairly thorough understanding of your financial statements is essential. A

sound understanding of financial statements will help you:

• Identify unfavourable trends and tendencies in your business's operations (for example, the unhealthy

build-up of inventory or accounts receivable) before the situation becomes critical.

• Monitor your cash flow requirements on a timely basis, and identify financing needs early.

• Monitor important indicators of financial health (for example, liquidity ratios, efficiency ratios, profitability

ratios, and solvency ratios).

• Monitor periodic increases and decreases in wealth (specifically, owners' or stockholders' equity).

• Monitor your performance against your financial plan, if you have developed one.

There are four basic kinds of financial statements that can help you determine the present condition of your

business. Here's a brief description of them:

• The income statement, also referred to as a "profit and loss statement," "statement of incomes and

losses," or "report of earnings," tells you or your investors:

1. the income the business has earned during the accounting period

2. the costs or expenses that were incurred by the business during the period

3. the difference between the costs and incomes for the period, or net profit (or loss)

• The balance sheet is a statement of a company's relative wealth or financial position at a given point

in time. It shows assets, liabilities, and owners' equity.

• The position statement, also known as the "statement of changes in financial position" or "sources

and uses of cash," helps to explain how a company acquired its money and how it was spent.

• The statement of changes in owners' equity is used to bridge the gap between the amount of owners'

equity at the beginning of the period and the amount of their equity at the end of the period.

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• What to do with your financial statements contains a checklist of ways to look at the data to put it in

perspective.

• Common size financial statements provide an easy way to spot trends in your balance sheets and

income statements over time is to convert the dollar amounts to percentages.

Limitations of financial statements

Keep in mind that your financial statements are only a starting point for analysis. Individual numbers aren't

good or bad in themselves — you may have to dig for the reason behind any numbers that seem out of

whack.

TIPS & TRUTHS

For instance, if your statements show that your accounts receivable has trended significantly downward

over the last few years, it could mean that you're collecting the accounts more aggressively (which is good),

or it could mean that you're writing off accounts as uncollectible too soon (which is bad). The key is to use

your statements to spot trends and anomalies, and then follow these up with further investigation.

A C 4.3 Customer satisfaction is measured and reported for a particular business venture.

A large factor in determining the likelihood of success and profits in an organisation is customer satisfaction.

When there is customer loyalty the customer retention rate is high and business results tend to follow.

There exists an interaction between the desired results and customer satisfaction, customer loyalty and

customer retention. They may go by other names such as patients, clients, buyers, etc. Without the customer

it is impossible for any business to sustain itself. Achieving the desired results is frequently a result of

customer actions. Any business without a focus on customer satisfaction is at the mercy of the market.

Without loyal customers a competitor will eventually satisfy those desires and your customer retention rate

will decrease.

There are several levels of customers:

• Dissatisfied customer- Looking for someone else to provide product or service.

• Satisfied customer---Open to the next better opportunity.

• Loyal customer--Returns despite offers by the competition.

NOTE

Dissatisfied customers are an interesting group.

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• For every one that complains there are at least 25 who do not.

• Dissatisfied customers, by word of mouth, will tell eight to sixteen others about their dissatisfaction. With

the web some are now telling thousands.

• 91% of dissatisfied customers never purchase goods or services from the company again. A prompt

effort to resolve a dissatisfied customer's issue will result in about 85% of them as repeat customers.

• Depending upon the business, new customer sales may cost 4 to 100 times that of a sale to an existing

customer.

• There has been less research on satisfied customers to determine what it takes for a satisfied customer

to change. Why take a chance on mere satisfaction? Loyal customers don't leave even for an attractive

offer elsewhere. At the very minimum they will give you the opportunity to meet or beat the other offer.

Maintaining loyal customers is an integral part of any business.

• One of the ways to help obtain loyal customers is by having products and services that are so good that

there is very little chance that the customer requirements will not be met.

• Of course one of the difficulties is understanding the true customer requirements. Even when you have

the requirements in advance the customer can and will change them without notice or excuse. Having

a good recovery process for a dissatisfied customer is a necessity.

A Customer:

• A customer is the most important person in any business

• A customer is not dependent upon us. We are dependent upon them.

• A customer is not an interruption of our work. He is the sole purpose of it.

• A customer does us a favour when he comes in. We aren't doing him a favour by waiting on him.

• A customer is an essential part of our business--not an outsider.

• A customer is not just money in the cash register. He is a human being with feelings and deserves

to be treated with respect.

• A customer is a person who comes to us with his needs and his wants. It is our job to fill them.

• A customer deserves the most courteous attention we can give him. He is the lifeblood of this and

every business. He pays your salary. Without him we would have to close our doors. Don't ever forget it.

Several surveys have been done on why customers do not give a business repeat business.

Reasons given by customers for not returning for repeat business:

• Moved 3%

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• Other Friendships 5%

• Competition 9%

• Dissatisfaction 14%

• Employee Attitude68%

These surveys would indicate that in addition to the technical training and job skill training provided to

employees, some effort aimed at customer satisfaction and employee attitude is appropriate. Remember

these may not be the people normally thought of as "Sales People". For example, Managers, Supervisors,

Secretaries, Accounts Payable, Engineers, Accountants, Designers, Machine Operators, Security, Truck

Drivers, Loading Dock, etc. if not helping to cultivate Loyal Customers are hurting your customer retention.

68% of lost customers are due to one cause, employee attitude!

TIPS & TRUTHS

In order to know how you are doing in this area there must be some measurement. Data indicate that less

than 4% of dissatisfied customers ever bother to lodge a complaint. Most just take their business elsewhere.

Test this on yourself. The next time you get less than what you consider ideal at a store, business supplier,

restaurant, movie theatre, hotel, or any other business what do you do?

Cultivating the customer relationship is key in achieving the desired business results. A passive

system that depends upon your customers to inform you without effort on your part is not likely to

yield the information necessary to improve customer retention.

A C 4.4 A variety of reporting lines are recognized and explained for a particular business venture.

Reporting line (Generic classical)

Worker - Supervisor - Manager - MD - Board

Reporting line (Specialist driven)

HR issues -HR Manager – MD - Board

Worker Operational issues – Supervisor - Manager

Financial issues - Fin. Manager – MD - Board

Worker Supervisor – Manager - MD - Board

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A C 4.5 Report priorities and requirements are described and documented for a particular business

venture.

How should you write a report?

Writing a report

What is this task?

A report could be written for a superior (a boss) or a peer group (club members, colleagues) and will certainly

contain some facts with the possibility of adding suggestions or recommendations. It should be clearly

organised and may include section headings.

Look at the following skeleton of a report. Below are five sections of text. Match each section to the correct

heading.

(1) To: The owner Mam’s Chicken

From: Shop 24, Vosloorus

Re: How to write a report

(2) Introduction

(3) Functions of the report

(4) Style and register

(5) Layout

(6) Conclusion

Reports need to be written clearly. They should begin with a clear indication of who the report is written for

and who it was written by and the subject matter. (At the beginning of this report is an example of a common

way of starting a report.) The report writer can help the reader by including section headings and by using

clear paragraphs.

A report is usually written to give information and probably to make recommendations. Therefore, it will

probably contain description, explanation, justifications and recommendations, or any combination of these.

A report should summarise the points made previously and usually includes clear recommendations, for

instance:

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Learn the expressions used in reports.

Remember to divide the report into sections and to use headings. Remember to keep the language formal.

Below are some suggestions.

As a report is often written for a superior and is a formal type of writing, the register should be neutral to

formal. In addition, reports should be factual and precise. They should not be personal or conversational.

Learners’ checklist: REPORT WRITING

1. Does your report have a heading?

2. Does your report indicate who the report is for, who it is written by and what it is about?

3. Does your report have an introduction?

4. Is your report clearly organised, e.g. does it use clear paragraphs? Does it have section headings?

5. Is the register neutral / formal?

6. Is the style factual?

7. Are the style and register consistent?

8. Does it include clear recommendations?

9. Does it end with a conclusion?

10. Have you checked your writing?

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Learning Unit

UNIT STANDARD NUMBER : 120304

LEVEL ON THE NQF : 5

CREDITS : 9

FIELD : Business, Commerce and Management Studies

SUB FIELD : Office Administration

1.

Collate and categorise information.

Learning Outcomes

• The information collation method is selected based on required analysis.

• Measures to minimise the impact are implemented in line with the required analysis.

• Data is captured in a format that protects its integrity and is accessible to users.

• Data is stored in accordance with information categories of the organisational knowledge

management system.

PURPOSE:

This Unit Standard will be useful for elected political leaders and public sector officials involved with

the service delivery activities that require use of public assets to render services to communities. This

Unit Standard will also be useful for South Africa's public officials and political executives, strategic

executive managers and other role-players. The qualifying learner will be able to apply communication

knowledge, skills and values which will contribute to the improvement in service delivery to

communities.

The qualifying learner is capable of:

• Collating and categorising information.

• Analysing information.

• Developing conclusions and recommendations.

• Communicating conclusions and recommendations according to organisational and legislative

requirements

LEARNING ASSUMED TO BE IN PLACE:

Description of required skills:

• It is assumed that learners are competent in Communication at NQF level 4.

• It is also recommended that learners are competent in Computer Skills at NQF Level 4.

Analyse, interpret and communicate

information

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Information, in its most restricted technical sense, is a sequence of symbols that can be interpreted as

a message. Information can be recorded as signs, or transmitted as signals. Information is any kind

of event that affects the state of a dynamic system. Conceptually, information is the message (utterance or

expression) being conveyed.

Gather information – ensure factually correct.

Gather information from more than one source to ensure the integrity of the information. You could well

access information from more than one medium, i.e. the

Internet and an encyclopedia.

Collate the information and create a content list.

Collate information into categorised lists. For example if you were to create an application about British

Wildlife, you could categorise the information into different

species.

Organise the information into a logical sequence(s).

This is best accomplished using a high level flowchart. The example below again uses

the British Wildlife example.

Planning Process

• Develop clear objectives

– Know what you want to achieve

– Know your organisation

– Identify your stakeholders

• Determine scope and resource allocation

– Scoped by type of information or coverage of the organisation

– Estimate level of human, financial, physical and technical resources

• Choose methodology

– Data Gathering (Survey)

– Data Analysis and Evaluation

• Develop communication strategy

– Communication before, during and after

– Communication of findings and recommendations

– Communication of implementation of recommendations

Ensuring Reliability of Data

Electoral computer systems such as voter registers, electronic voting systems, election results systems and

personnel management systems are developed and implemented to store and make use of data. Ensuring

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the reliability of this data is crucially important for any electoral process. There are several measures that

can be taken to ensure the reliability of data used in electoral computer systems.

Use reliable data sources

Methods to collect and capture data need to ensure that the data is reliable and that is not altered in the

process. Voter information, for instance, is more accurate if obtained directly from the voters themselves

and not from indirect sources such as other organisations' databases, which may be of questionable quality.

The most accurate election results data is obtained directly from the polling places or counting centres,

instead of media reports, election observers or political parties.

Data is captured in a format that protects its integrity and is accessible to users.

Data Capture and Storage

An official data storage location or system-of-record for each data element is identified by the Data Steward.

An official data storage location for valid codes and values for each data element is identified by the

appropriate

Data Steward.

UEDB data element definitions and codes are managed by the Data Steward to assure they are consistent

across all applications or that they conform to pre-established integration standards for code mappings and

crosswalks between systems. Archiving requirements and strategies for storing and preserving archived

historical data are pre-determined by the Data Steward for each UEDB data element. Information

Technology assists in determining archiving requirements and data storage location for UEDB data.

Data Integrity, Validation and Correction

Data Stewards are responsible for assuring that applications that capture and update UEDB data

incorporate edit and validation checks to protect the integrity of the data.

Any Data User may question the accuracy of any data element. The Data User is responsible for helping

to correct the problem by supplying as much detailed information as possible about the nature of the

problem. Data Stewards are responsible for assuring data integrity, responding to questions about the

accuracy of data, and correcting inconsistencies if necessary.

Upon written identification and notification of erroneous data, corrective measures are taken as soon as

possible to:

1. Correct the cause of the erroneous data.

2. Correct the data in the official storage location.

3. Notify users who have received or accessed erroneous data.

Data capture methods

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The next step to consider is the method by which data is captured from the source. Data can be captured

in a variety of ways: on a paper form (which could be handwritten, marked with computer readable marks

or typed), by telephone (after which the data is usually written down or typed into a computer by an

operator), by face-to-face inquiry (when the data may again be written down or typed into a computer by a

staff member), by users directly entering data into electronic forms connected to the organisation data

centre, by an electronic voting device, and so on.

Some forms of data capture are more reliable than others. Handwritten forms are probably most prone to

error, as handwriting can often be hard to read or decipher. To minimise the difficulty in reading handwriting,

persons completing forms can be encouraged to write clearly in capital letters in blue or black ink. Clear

writing can also be encouraged by printing forms with guide lines that are designed to make users write

each letter or number in a separate box on the form. If it is possible to pre-print any known data about

information needed in the form, this may help reduce the amount of handwriting needed and therefore the

error rate.

Where data is received verbally by an operator or staff member, appropriate training and procedures can

ensure that the operator faithfully captures the correct information. For example, information can be read

back to the client to check that it is correct, and the spelling of words checked if appropriate.

Forms that include optical mark recognition devices such as bar codes can be used to simplify data entry

and raise accuracy levels. Bar codes can be used to identify the type of form used, where the form was

obtained, what the unique number of the form is, and so on.

Data captured electronically, where the data is typed by a user directly into a computer supplied form can

be more reliable than data captured from handwritten forms or data taken verbally, as users can be

expected to know exactly how their data should appear. However, such data is only as reliable as the user

is accurate.

Training of data entry staff

Staff needs to be trained in techniques designed to optimise accurate input and to ensure a safe working

environment. For example, regular breaks prevent eye strain and fatigue. Furniture and computer

equipment can be situated to ensure good posture and sound ergonomic practices. Distractions such as

staff conversation and discussions while entering data can be minimised to ensure input accuracy.

Data verification

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One of the best ways to ensure the accuracy of data is to apply data verification techniques. The most

common data verification technique (where data is being typed into a computer from a paper record) is to

enter every piece of data twice, using two different operators for each piece of data. The results of the two

data entries are compared by computer. Any variation is highlighted, and a supervisor is required to make

any appropriate correction. This technique usually gives very high accuracy rates.

Double-keying of data can also be used to identify data-entry operators who are not achieving a high level

of accuracy. Where under-performing operators are identified, this may indicate that more training is needed

or that the operator is not suited to that kind of work.

Data can also be verified by entering the data once, and requiring another officer, perhaps a supervisor,

to recheck the data on the computer screen or on print-outs, to confirm that it is correct, or make any

necessary corrections.

Using either of the above techniques, it is desirable that data is entered once by one person and then either

re-entered or rechecked by a different person, since people can make systematic errors and therefore

repeat the same mistakes every time. However, it is less likely that two different people will make the same

systematic errors, so a second person is more likely to pick up the mistakes made by someone else.

It is also possible that form design can lead to users or data-entry operators making systematic errors. If

significant numbers of similar errors are discovered regularly when a form's data is being recorded, it may

be that the design of the form is at fault. Redesigning the form may help to lower error rates in this case.

Some data can also be verified by checks built into the data capture programs. For example, when entering

voting places into a database the data entry program may verify the voting place address against

a computer table with all valid addresses and accept only those voting places with valid addresses. Such

a verification technique does not necessarily ensure that the correct address for the voting place has been

entered, but it does ensure that all the recorded addresses are indeed real.

Similarly, arithmetic checks and logic tests can be built into data-entry systems involving entry of numbers

so that the data entry operator is prompted to correct the data, the entry is cancelled, an error log is written

or any another relevant action is taken. For example, if an operator is entering a polling place voting data,

the system can be programmed to query any result that shows more votes counted at the polling place than

there are voters registered to vote at that place. Trends can be also calculated by computer systems and

any results that vary from the trend by an unusual amount can be identified and queried.

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Data is stored in accordance with information categories of the organisational knowledge

management system.

Ensuring reliability of data after it has been captured

Once data has been entered into a computer system, it is important that it be stored securely and

maintained, as well as used in a manner in which its integrity is not compromised.

Ensuring availability of data

Once data has been captured and stored securely in a computer system, it must be made available to users

in a way that does not allow undue access to the data or the possibility of data corruption.

There are two main components to ensuring availability of data and thereby minimizing the risk in

entrusting valuable data to technology. These are ensuring that systems operate to deliver data as needed,

and backing up data to guard against system failure or data loss.

Making data available

Making data available to users is one of the main purposes of a computer system. At the same time,

however, ensuring the integrity of data is of key importance. When dealing with sensitive data, access

should be restricted only to those users that need it by using passwords, login permissions or other

available controlling mechanisms.

When data can be shared more widely, a difference may have to be made between users that need to

access data for information and those that need access to change or update the data. Similar mechanisms,

such as password and login permissions can be used to limit those users who are able to change data to

those who have a need to do so. In addition, where users are permitted to change data, verification

techniques can be used to minimize the chance of errors occurring.

Data backup

The final safeguard against system failure and loss of data is data backup. Regular back up can mean

taking these precautions at least once each working day, more often if crucial data is being collected, such

as during an electoral event. Data can be backed up on a wide variety of formats and media such as

removable disks of various kinds, multiple hard disks, DVDs, and magnetic tapes, to mention a few.

The organisation's overall information technology strategy can document a formal backup regime. Ideally,

data backup can be automated to ensure that human error does not cause problems. However, regular

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checks of automated backups will still be necessary to ensure that computer error does not also cause

problems.

“Live” data can be backed up as it is created, by use of mirrored hard disks, which could be located on the

same server or on separate servers. Using mirrored disks, the same data is simultaneously stored on two

or more disks. This means that if one disk fails, data can be restored from the other. It is preferable to use

separate servers for mirrored disks, as a second server can be used if the first server fails completely.

Software programs, both commercial programs and those developed in-house can also be backed-up so

that they are available to reload if the production versions of the programs are lost or corrupted. Most

programs come loaded on disks. Increasingly, however, programs can be downloaded from the Internet. In

this case, backup copies should be stored locally, as there is no guarantee that the same programs will be

available on-line in the future. Program disks that are stored in a data library and managed by a responsible

officer or staff unit can then be easily located and used if necessary.

Care should be taken, when backing up program data, that software licenses are not breached. Most

licenses include permission to keep backup copies of software.

Procedures

Data Administration

Data Collection and Maintenance

Data Stewards are responsible for complete, accurate, valid, and timely data collection. Operational

responsibility for data collection and maintenance is typically assigned to the Data Experts. Delegation and

decentralization of data collection and maintenance responsibility is encouraged in order to assure that

electronic data are efficiently updated at or near the data source or creation point. Furthermore, data-

handling steps that do not add value should be eliminated. Procedures may be added instead to provide

new informational status reports to interested parties.

Data Extracts and Reporting

Data Stewards are responsible for specifying business rules regarding the manipulation, modification, or

reporting of UEDB data elements.

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Session 2

Analyse information.

Learning Outcomes

• Data is analysed using analysis techniques based on information required.

• Analytical techniques are applied in accordance with methodological conventions.

• Variations and anomalies are recorded in accordance the prescripts of the methodology.

• Anomalies are acted upon without compromising the validity of the analysis.

Data is analysed using analysis techniques based on information required.

Analysis of data is a process of inspecting, cleaning, transforming, and modeling data with the goal of

highlighting useful information, suggesting conclusions, and supporting decision making. Data analysis

has multiple facets and approaches, encompassing diverse techniques under a variety of names, in

different business, science, and social science domains.

Data analysis and interpretation is the process of assigning meaning to the collected information and

determining the conclusions, significance, and implications of the findings. The steps involved in data

analysis are a function of the type of information collected, however, returning to the purpose of the

assessment and the assessment questions will provide a structure for the organisation of the data and a

focus for the analysis.

The analysis of NUMERICAL (QUANTITATIVE) DATA is represented in mathematical terms.

The most common statistical terms include:

• Mean – The mean score represents a numerical average for a set of responses.

• Standard deviation – The standard deviation represents the distribution of the responses around the

mean. It indicates the degree of consistency among the responses. The standard deviation, in

conjunction with the mean, provides a better understanding of the data. For example, if the mean is 3.3

with a standard deviation (StD) of 0.4, then two-thirds of the responses lie between 2.9 (3.3 – 0.4) and

3.7 (3.3 + 0.4).

• Frequency distribution – Frequency distribution indicates the frequency of each response. For example,

if respondents answer a question using an agree/disagree scale, the percentage of respondents who

selected each response on the scale would be indicated. The frequency distribution provides additional

information beyond the mean, since it allows for examining the level of consensus among the data.

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• Higher levels of statistical analysis (e.g., t-test, factor analysis, regression, ANOVA) can be conducted

on the data, but these are not frequently used in most program/project assessments.

• The analysis of NARRATIVE (QUALITATIVE) DATA is conducted by organising the data into common

themes or categories. It is often more difficult to interpret narrative data since it lacks the built-in

structure found in numerical data. Initially, the narrative data appears to be a collection of random,

unconnected statements. The assessment purpose and questions can help direct the focus of the data

organisation. The following strategies may also be helpful when analyzing narrative data.

Focus groups and Interviews:

• Read and organise the data from each question separately. This approach permits focusing on one

question at a time (e.g., experiences with tutoring services, characteristics of tutor, student

responsibility in the tutoring process).

• Group the comments by themes, topics, or categories. This approach allows for focusing on one area

at a time (e.g., characteristics of tutor – level of preparation, knowledge of content area, availability).

Documents

• Code content and characteristics of documents into various categories (e.g., training manual – policies

and procedures, communication, responsibilities).

Observations

• Code patterns from the focus of the observation (e.g., behavioral patterns – amount of time engaged/not

engaged in activity, type of engagement, communication, interpersonal skills).

The analysis of the data via statistical measures and/or narrative themes should provide answers to the

assessment questions. Interpreting the analyzed data from the appropriate perspective allows for

determination of the significance and implications of the assessment.

Analytical techniques are applied in accordance with methodological conventions.

Quality of data

The quality of the data should be checked as early as possible. Data quality can be assessed in several

ways, using different types of analyses: frequency counts, descriptive statistics (mean, standard

deviation, median), normality (skewness, kurtosis, frequency histograms, normal probability plots),

associations (correlations, scatter plots).

Other initial data quality checks are:

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▪ Checks on data cleaning: have decisions influenced the distribution of the variables? The

distribution of the variables before data cleaning is compared to the distribution of the variables

after data cleaning to see whether data cleaning has had unwanted effects on the data.

▪ Analysis of missing observations: are there many missing values, and are the values missing at

random? The missing observations in the data are analyzed to see whether more than 25% of the

values are missing, whether they are missing at random (MAR), and whether some form

of imputation is needed.

▪ Analysis of extreme observations: outlying observations in the data are analyzed to see if they

seem to disturb the distribution.

▪ Comparison and correction of differences in coding schemes: variables are compared with coding

schemes of variables external to the data set, and possibly corrected if coding schemes are not

comparable.

▪ Test for variance. The choice of analyses to assess the data quality during the initial data analysis

phase depends on the analyses that will be conducted in the main analysis phase

Variations and anomalies are recorded in accordance the prescripts of the methodology.

Causes of anomalies and variations

• Representative Sample

– Small, good enough, wrong

• Bias

– Outside consultant or third party

• Wrong methodology

– Open‐ended for qualitative data

– Close‐ended for quantitative data

• Timeline

– Be realistic. Plan for at least 3 months (10‐12 weeks)

Potential Pitfalls in Data Analysis

• Percentage vis‐à‐vis size of sample

• Keep it simple if possible

• Honest and accurate conclusions

• Inaccurate or improper sampling procedures

Data Analysis

Investigate your data analysis options

– Manual

– Desk top tools (spreadsheets & databases)

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– Survey software programmes

– Statistical packages

Data processing or preparation plan

– Transcription of interviews and observation findings

– Editing responses

– Coding responses

• Data entry

• Data analysis

Anomalies are acted upon without compromising the validity of the analysis.

Initial transformations

After assessing the quality of the data and of the measurements, one might decide to impute missing

data, or to perform initial transformations of one or more variables, although this can also be done during

the main analysis phase.

Possible transformations of variables are:

▪ Square root transformation (if the distribution differs moderately from normal)

▪ Log-transformation (if the distribution differs substantially from normal)

▪ Inverse transformation (if the distribution differs severely from normal)

▪ Make categorical (ordinal / dichotomous) (if the distribution differs severely from normal, and no

transformations help)

Did the implementation of the study fulfill the intentions of the research design?

One should check the success of the randomization procedure, for instance by checking whether

background and substantive variables are equally distributed within and across groups. If the study did not

need and/or use a randomization procedure, one should check the success of the non-random sampling,

for instance by checking whether all subgroups of the population of interest are represented in sample.

Other possible data distortions that should be checked are:

▪ dropout (this should be identified during the initial data analysis phase)

▪ Item non response (whether this is random or not should be assessed during the initial data

analysis phase)

▪ Treatment quality (using manipulation checks).

▪

Final stage of the initial data analysis

During the final stage, the findings of the initial data analysis are documented, and necessary, preferable,

and possible corrective actions are taken. Also, the original plan for the main data analyses can and should

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be specified in more detail and/or rewritten. In order to do this, several decisions about the main data

analyses can and should be made:

• In the case of non-normals: should one transform variables; make variables categorical

(ordinal/dichotomous); adapt the analysis method?

• In the case of missing data: should one neglect or impute the missing data; which imputation technique

should be used?

• In the case of outliers: should one use robust analysis techniques?

• In case items do not fit the scale: should one adapt the measurement instrument by omitting items, or

rather ensure comparability with other (uses of the) measurement instrument(s)?

• In the case of (too) small subgroups: should one drop the hypothesis about inter-group differences, or

use small sample techniques, like exact tests or bootstrapping?

• In case the randomization procedure seems to be defective: can and should one calculate propensity

scores and include them as covariates in the main analyses?

Analyses

Several analyses can be used during the initial data analysis phase:

• Univariate statistics

• Bivariate associations (correlations)

• Graphical techniques (scatter plots)

• It is important to take the measurement levels of the variables into account for the analyses, as

special statistical techniques are available for each level]

• Nominal and ordinal variables

Frequency counts (numbers and percentages)

Associations

• circumambulations (crosstabulations)

• hierarchical loglinear analysis (restricted to a maximum of 8 variables)

• loglinear analysis (to identify relevant/important variables and possible confounders)

• Exact tests or bootstrapping (in case subgroups are small)

• Computation of new variables

• Continuous variables

Distribution

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• Statistics (M, SD, variance, skewness, kurtosis)

• Stem-and-leaf displays

• Box plots

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Session 3

Develop conclusions and recommendations.

Learning Outcomes

• Interpretation methods are applied consistently to all the information.

• Conclusions drawn are derived from a logical interpretation of the information.

• Key points of the conclusion(s) are documented in accordance with organisational reporting format.

• A valid analysis is provided as an addendum to the report to support assumptions made.

Interpretation methods are applied consistently to all the information.

Decide what the information tells you.

• Avoid conducting any analysis until collection process is finished. This ensures you do not jump to the

wrong conclusion.

• When appropriate, involve others in interpreting the collected information. Different viewpoints

strengthen analysis of the results and help you recognize your own personal biases.

• Sort the information into manageable pieces that can be understood by others.

• Use suitable tools and methods to analyze the results. Don't hesitate to seek assistance from those

who are experienced with data interpretation techniques and tools. Key points of the conclusion(s) are

documented in accordance with organisational reporting format.

Calculations and Summarizing Data

Often, you will need to perform calculations on your raw data in order to get the results from which you will

generate a conclusion. A spreadsheet program such as Microsoft Excel may be a good way to perform

such calculations, and then later the spreadsheet can be used to display the results. Be sure to label the

rows and columns--don't forget to include the units of measurement (grams, centimeters, liters, etc.).

You should have performed multiple trials of your experiment. Think about the best way to summarize your

data. Do you want to calculate the average for each group of trials, or summarize the results in some other

way such as ratios, percentages, or error and significance for really advanced students? Or, is it better to

display your data as individual data points?

Graphs

Graphs are often an excellent way to display your results. In fact, most good science fair projects have at

least one graph.

For any type of graph:

• Generally, you should place your independent variable on the x-axis of your graph and the

dependent variable on the y-axis.

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• Be sure to label the axes of your graph— don't forget to include the units of measurement (grams,

centimeters, liters, etc.).

• If you have more than one set of data, show each series in a different color or symbol and include

a legend with clear labels.

Different types of graphs are appropriate for different experiments. These are just a few of the possible

types of graphs:

A bar graph might be appropriate for comparing different trials or different experimental groups. It also may

be a good choice if your independent variable is not numerical. (In Microsoft Excel, generate bar graphs by

choosing chart types "Column" or "Bar.")

A time-series plot can be used if your dependent variable is numerical and your independent variable is

time. (In Microsoft Excel, the "line graph" chart type generates a time series. By default, Excel simply puts

a count on the x-axis. To generate a time series plot with your choice of x-axis units, make a separate data

column that contains those units next to your dependent variable. Then choose the "XY (scatter)" chart

type, with a sub-type that draws a line.)

An xy-line graph shows the relationship between your dependent and independent variables when both

are numerical and the dependent variable is a function of the independent variable. (In Microsoft Excel,

choose the "XY (scatter)" chart type, and then choose a sub-type that does draw a line.)

A scatter plot might be the proper graph if you're trying to show how two variables may be related to one

another. (In Microsoft Excel, choose the "XY (scatter)" chart type, and then choose a sub-type .

Conclusions drawn are derived from a logical interpretation of the information.

Recording and Presenting Survey Results

– Descriptive summary

• Text or tabular (including cross‐tabulation)

– Descriptive statistics

• Frequency counts, ranges, measures of central tendency

– Graphical representation

• Charts, graphs, histograms

Determining Conclusions

Based on the available information, you will need to make a statement about the findings from your gathered

information.

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A valid analysis is provided as an addendum to the report to support assumptions made.

In an analysis report, sometimes called a recommendation report, the writer attempts to solve a problem

by evaluating options and suggesting solutions. Though objective data is presented, the bulk of the report

is analysis of that data to help the reader make a decision. The length of the report depends on the type

and extent of the analysis. Consider including at least the following sections in your analysis report:

Introduction/Background, Problem, Limitations, Conclusions and Recommendations.

Instructions

1. Begin the report with objective data presented clearly and succinctly in a section titled either

Introduction or Background. This section should suggest the significance of the problem addressed in

the next section as well as identify who requested the analysis and why. If the background information

is extensive, consider using an Introduction section (explaining why you are writing the report and its

purpose) and a Background section (describing the methods and sources used to gather information

and establishing their credibility).

2. Describe the specific problem addressed in the report in a Problem section. Ensure that your reader

understands the significance of the problem by providing solid supporting information.

3. Spell out limitations of the analysis or the upcoming recommendations in the report. Describe possible

threats to the validity of data garnered by certain methods such as questionnaires, interviews or focus

groups. This is the Limitations section.

4. Draw conclusions (simplified or generalized statements about the problem that can be reasonably

deduced from the presented data) in a Conclusions section. It may be helpful, when writing this section,

to interpret the data gathered by thinking about the implications of it.

5. Present---in a Recommendations section---your recommendations by placing each under its own

subheading or by itemizing them if your recommendations are concise actions

6. Include additional information if necessary under such headings as Method of Collecting Data,

Findings, Presentation of Facts, Analysis of Facts, Options, Summary and References.

Key points of the conclusion(s) are documented in accordance with organisational reporting

format.

• A summary of the main part of the text

• A deduction made on the basis of the main body

• Your personal opinion on what has been discussed

• A statement about the limitations of the work

• A comment about the future based on what has been discussed

• The implications of the work for future research

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• Important facts and figures not mentioned in the main body

How to draw conclusions

• logical interpretation based on prior knowledge and experience

• the reasoning involved in drawing a conclusion or making a logical judgment on the basis of

circumstantial evidence and prior conclusions rather than on the basis of direct observation

• logical conclusion based on observations

• a conclusion not directly provided by evidence, but able to be drawn from the facts at hand

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Session 4

Communicate conclusions and recommendations according to organisational and legislative

requirements

Learning Outcomes

• The information presented reflects the key points, is traceable, unambiguous and is a valid reflection

of the data.

• The information presented meets the requirements of organisational reports in terms of format, style,

detail and complexity.

• The method of presentation meets the organisational and legislative requirements of timing,

distribution, confidentiality and security.

• The information presented is in line with audience needs.

The information presented reflects the key points, is traceable, unambiguous and is a valid

reflection of the data.

Characteristics of a Good Requirements Document

• A good Requirements Document is:

1. Unambiguous

• A Requirements Document is unambiguous if and only if every requirement stated therein has only one

interpretation.

2. Complete

A Requirements Document is complete if it possesses the following qualities:

1. Inclusion of all significant requirements, whether relating to functionality, performance, design

constraints, attributes or

external inter-faces.

3. Verifiable

A Requirements Document is verifiable if and only if every requirement stated therein is verifiable. A

requirement is verifiable if and only if there exists some finite cost-effective process with which a person

or machine can check that the system product meets the requirement

4. Consistent

A Requirements Document is consistent if and only if no set of individual requirements

described in it conflict

5. Modifiable

A Requirements Document is modifiable if its structure and style are such that any necessary changes to

the requirements can be made easily, completely, and consistently

6. Traceable

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A Requirements Document is traceable if the origin of each of its requirements is clear and if it facilitates

the referencing of each requirement in future development or enhancement documentation

7. Usable during the Operation and Maintenance Phase

The Requirements Document must address the needs of the operation and maintenance phase, including

the eventual replacement of the system

8. validity of information is its relevance and appropriateness to your research question and the directness

and strength of its association with the concepts

under scrutiny.

9.Reliability is, literally, the extent to which we can rely on the source of the data and, therefore, the data

itself. Reliable data is dependable, trustworthy, unfailing, sure, authentic, genuine, reputable. Consistency

is the main measure of reliability. So, in literary accounts, the reputation of the source is critical.

The information presented is in line with audience needs.

Respond, provide feedback or report as appropriate

• Decide who needs to hear the information and tailor your report to them (eg. senior management, staff,

peers or transition team).

• Consider the analysis as preliminary and in draft form until you've had the chance to present the material

to stakeholders and obtain their feedback.

Data Evaluation

• Data Evaluation

– Evaluate problems or “pain points”

– Analyse gaps

• Identify mission critical information needs

– Interpret the mapped information flows

– Develop strategies

• What have you got that fits?

• What “solutions” would address needs

Recommendations & Implementation

• Communicating Recommendations

– Written report

– Oral presentation

– Seminars

– Personal feedback to participants

– Corporate intranet/web site or newsletter

• Implementing Recommendations

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– Develop an implementation programme

– Develop an implementation plan

• Strategic, business, marketing

– Develop a communication strategy

Data Documentation

Documenting UEDB data is the responsibility of the Data Stewards. Some or all of the related tasks may

be assigned to Data Experts or Data Managers. Data documentation and definition guidelines are

established by the Information Warehousing and Access (IWA) organisation and include the following:

• Name and Alias Names

• Business Description

• Data Steward Identification

• Usage and Relationships

• Source and Procedure for Data Capture

• Frequency of Update

• Official System-of-Record Location and Format

• Designation as "Limited-access", "University-internal", or "Public"

• For "Limited-access" Data Elements: Descriptions of the restriction and the access procedures

• Description of Validation Criteria and/or Edit Checks

• Description, Meaning, and Location of Allowable Codes

• Archiving Requirements and Procedures

• Data Storage Location of Extracts

• Quality/Reliability Rating

The method of presentation meets the organisational and legislative requirements of timing,

distribution, confidentiality and security.

Confidentiality

Confidentiality is the term used to prevent the disclosure of information to unauthorized individuals or

systems. For example, a credit card transaction on the Internet requires the credit card number to be

transmitted from the buyer to the merchant and from the merchant to a transaction processing network.

The system attempts to enforce confidentiality by encrypting the card number during transmission, by

limiting the places where it might appear (in databases, log files, backups, printed receipts, and so on), and

by restricting access to the places where it is stored. If an unauthorized party obtains the card number in

any way, a breach of confidentiality has occurred. Breaches of confidentiality take many forms. Permitting

someone to look over your shoulder at your computer screen while you have confidential data displayed

on it could be a breach of confidentiality. If a laptop computer containing sensitive information about a

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company's employees is stolen or sold, it could result in a breach of confidentiality. Giving out confidential

information over the telephone is a breach of confidentiality if the caller is not authorized to have the

information. Confidentiality is necessary (but not sufficient) for maintaining the privacy of the people whose

personal information a system holds.

Integrity

In information security, integrity means that data cannot be modified undetectably. This is not the same

thing as referential integrity in databases, although it can be viewed as a special case of Consistency as

understood in the classic ACID model of transaction processing. Integrity is violated when a message is

actively modified in transit. Information security systems typically provide message integrity in addition to

data confidentiality.

Availability

For any information system to serve its purpose, the information must be available when it is needed. This

means that the computing systems used to store and process the information, the security controls used to

protect it, and the communication channels used to access it must be functioning correctly. High

availability systems aim to remain available at all times, preventing service disruptions due to power

outages, hardware failures, and system upgrades. Ensuring availability also involves preventing denial-of-

service attacks.

Authenticity

In computing, e-Business, and information security, it is necessary to ensure that the data, transactions,

communications or documents (electronic or physical) are genuine. It is also important for authenticity to

validate that both parties involved are who they claim they are.

Non-repudiation

In law, non-repudiation implies one's intention to fulfill their obligations to a contract. It also implies that one

party of a transaction cannot deny having received a transaction nor can the other party deny having sent

a transaction.

Electronic commerce uses technology such as digital signatures and public key encryption to establish

authenticity and non-repudiation

The information presented meets the requirements of organisational reports in terms of format,

style, detail and complexity.

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Structural conventions and presentation

General

Care with presentation can make a vast difference to the professionalism and appearance of a report. A

well presented report written in an objective, factual and logical style which is easy to read is more likely to

be accepted than a report which does not meet these standards.

Length

The length of the report should be appropriate to its purpose. A short report should be concise, a long report

should be comprehensive. Whatever the length, the material contained should be relevant. The writer

should be selective in preparing the report since often some material gathered in the process of preparing

the report is not worth including in the finished piece of work.

Headings

Headings should be meaningful so that the reader can interpret them correctly and find information required

quickly. Imprecise headings such as "Other considerations" can be infuriating! The headings should follow

a logical order.

Layout of text

Closely typed long paragraphs should be avoided. The text should be broken up and must present a neat,

well shaped layout with headings, sub-titles and indentations.

Physical Presentation

The report should be in a format that makes it easy for the reader to consult. It must be presented in a

format that has a professional appearance,. For example, the title of the document should be clear; the

print must be legible - ideally produced on a laser or ink-jet printer; A report that fails to meet is unacceptable

for a report Simple plastic envelopes should not be used to submit work. The.

Numbering

In long reports paragraphs are often numbered for easy reference. It is most usual for the decimal

numbering system to be employed (2, 2.4, 2.4.1, 2.4.2 etc.).

Components

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The components of a report normally conform to a standard document, which must be easily consulted for

specific information. The standard pattern of presentation of a report aids the report reader in the same way

that the layout of a recipe book helps someone who is cooking. This inevitably leads to repetition, but this

is desirable (unlike in a novel). For example a conclusion is justified in the main text of the report and then

given again in the Conclusions section.

Conclusions

These should be firm, unqualified statements summarising the findings and inferences of the sections of

the main text. No new ideas should be introduced at this point, but it is acceptable to hint at

recommendations.

Recommendations

Recommendations should be stated with the readership in mind. There is no need to justify them. That

should already have been done.

Acknowledgements

This section may come after the title page. It should give credit for personal help given, stimulating and

influential ideas, permission to quote from unpublished work.

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Learning Unit

UNIT STANDARD NUMBER : 15216

LEVEL ON THE NQF : 5

CREDITS : 4

FIELD : Business, Commerce and Management Studies

SUB FIELD : Office Administration

PURPOSE:

This is a Unit Standard intended for managers in all economic sectors. These managers would typically

be second level managers such as heads of department, section heads or divisional heads, and may

have more than one team reporting to them.

The qualifying learner is capable of:

• Keeping abreast of and analyse innovations or new developments.

• Creating opportunities for innovation.

• Leading projects to meet new, innovative ideas.

• Reviewing new projects/procedures to determine effectiveness

LEARNING ASSUMED TO BE IN PLACE:

Description of required skills:

• Communication at NQF level 4

• Computer Literacy at NQF level 4

• The Unit Standard entitled, "Analyse new developments reported in the media that could impact on a business

sector or industry".

Create opportunities for innovation and lead

projects to meet innovative ideas

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SESSION 1 Keep abreast of and analyse innovations or new developments.

Learning Outcomes

• Latest innovations in the specific business sector are identified from a wide range of media.

• An indication is given of how the innovation or new technology could impact on the business sector

and the department/division in particular

• The pros and cons of new technology or innovations are investigated and summarised in writing.

• A recommendation is made as to whether the innovation should be further investigated with a view

to application in the section/division/department.

• Knowledge of innovations is used to assist with further innovations.

• Trends are identified and used to identify further opportunities.

Innovation is the creation of better or more effective products, processes, services, technologies,

or ideas that are readily available to markets, governments, and society. Innovation differs

from invention in that innovation refers to the use of better and, as a result, novel idea or method,

whereas invention refers more directly to the creation of the idea or method itself. Innovation differs

from improvement in that innovation refers to the notion of doing something different (Lat. innovare: "to

change") rather than doing the same thing better.

Innovation depends on four major elements: resources, infrastructure, culture and process. Innovation

cannot take place if any of these four elements are missing. All four

are equally important. Innovation encompasses three overlapping dimensions, which are –individual/ you,

team/s (that also include you), and the organisation/group. The

individual/you will be the centre of the entire process of innovation, as only an individual will have new

ideas. But taking ideas to market involves team work, for, one person cannot do it on his/her own. One

needs to combine several different types of knowledge, capabilities, skills and resources to convert

invention/idea into innovation. The leader of the team here plays a key role to effectively coordinate this

process to achieve the goal/tasks. The personality of the organisation/group, known commonly as culture,

plays a vital role in innovation. The innovation process generally falls under three major phases that are;

generating ideas, harvesting ideas and developing and implementing these ideas.

An indication is given of how the innovation or new technology could impact on the business sector

and the department/division in particular

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There is a new approach to doing business. Whether you are in the service industry or whether you buy

and sell tangible goods, business innovation is a must. It is the sure way of staying ahead of competition.

There are many advantages to investing in innovations or any projects that will result in creating new

products. The first advantage is the ability to tap into new markets. An organisation can decide to re-

engineer its products so as to meet a new demand in the market. Every big company that has been around

for a while has done a major re-branding at some point in their career history. Re-branding is more than

just acquiring a new logo and a new business name. It is even more than just getting new business

premises. A re-branding exercise will only be complete if new services as well as new goods are brought

on board as well.

Every year, many organisations spend millions of dollars just to encourage the research and development

of new products. Sometimes, consumers simply get tired of a product and start wishing for something new.

Other times, the product needs a new lease of life in order to remain relevant in the dynamic environment.

Competition is one of the main impetuses for change. It makes perfect sense to want to be above your

competitors, not only in client base, but also in technological improvements. Introduction of new products

by your main competitors could ultimately mean that you will lose your clients to them.

Every section with the company should be encouraged to innovate where appropriate. This could be done

through the introduction of incentives. However, incentives alone cannot spur technological advancement.

Political goodwill within the organisational structure is usually the main thing to concentrate on. If

management does not support and initiate progress, then the trickle-down effect will be felt throughout the

organisation in a negative way. It is a social responsibility for each company to ensure that the

developments within the company are geared at making the world a better place.

The beauty of these kinds of developments is that they make life better for the society at large. Innovation

is usually geared at reducing the expenditure for the customers, while at the same time, increasing

efficiency. For instance, if you consider most innovations in technology, it is clear that gadgets have kept

reducing in size for the sake of convenience while inversely increasing in capacity for storage space, speed,

and efficiency.

Business innovation is not a necessary evil. It is a must have for any company and it comes with many

advantages. The company that leads the race in development will most likely also lead as far as profit

margin is concerned. The entire process will, without a doubt, cost management more resources in terms

of money and employee hours. It will require the tapping of many soft skills from the staff. Some people

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think this is a blatant waste of resources. However, the advantages that can be reaped form the process

will far outweigh the costs incurred.

The pros and cons of new technology or innovations are investigated and summarised in writing.

Potential Benefits:

• Increased market share – When successfully achieved, being on the forefront of technology and

continually improving your product offering, there is a strong potential for increased market share. By

becoming the trendsetter, you get to direct the market.

• Accepting innovation as a theme – I see innovation as pushing the boundaries both of what is

currently available and what is currently adopted. By instilling innovation as a theme into the company

blood, it prevents anyone from remaining stagnant. Adopting a culture of change and continuous

improvement fuels the ‘innovation mindset’ of the employees, potentially leading to an increased bank

of ideas.

• Improved products – With a push towards bringing new ideas to the table, and consistently offering

newer products, you have the ability to continually improve upon the prior versions. Incorporating bug

fixes, customer feedback, and improved hardware into each release allows you to become much more

dynamically responsive in the marketplace.

• More functionalities addressed – This point goes somewhat hand in hand with the first bullet: By

addressing more of what the market demands, you have the potential to gain market share and become

the market leader. By increasing the range of functionalities that your products or services address,

successful execution can help drive business.

Potential Drawbacks:

• Less money available – Mismanagement of funds in the R&D area can lead to a huge drain on the

company’s finances. Misdirecting efforts and resources to areas that won’t drive increased share, or

improving the offerings can cause major problems early. Focus areas must be chosen carefully and

with good reason. Available funds come at a premium, and the decision to spend time and effort

innovating must be made cautiously.

• Less of an “insatiable” appetite – In America and in much of the other wealthy nations, there tends

to be an insatiable appetite for the latest and greatest product. Consumers wait in lines the night before

for the newest iPhone release; video games go on wait lists for months; the Chevy Volt has already

sold out their waiting list for cars delivered in November. These are a few examples that typical the

“spend spend spend” attitude that developed nation consumers have had the last 20+ years.

This similar attitude does not translate well…or at all in nations where the population is struggling to survive

on less than $2 a day. Introducing products with the newest offerings must be done carefully, and in

accordance with the cultural tendencies. This is where market research comes in extremely handy. Knowing

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your audience and marketing your products or services appropriately and in a timely manner can help drive

acceptance of your ideas.

• The need for innovation – While the previous point discussed the attitudes of the consumers, it would

also be wise to determine the necessity of the innovation. If your product is the first of its kind in the

market, and the local settings are quite dire, innovation might not be the best option for your company.

If you are beginning to encounter competition along the way and the product or service is becoming

increasingly adopted, innovation might help to secure your place in the market.

How to Keep Abreast of Technology

Business technologies change rapidly, especially those technologies used by companies whose primary

venue is the Web. Keeping pace with that change can be a daunting task because you simultaneously have

to follow developments in your own industry and still get work done. Luckily there are some methods for

keeping up with new e-business technologies without giving up too much time from your busy day.

Instructions

1. Determine the blogs or technology centered websites that you prefer to get information from. Choose

one or two for each type of journalistic focus: technology reviews, business news, security alerts, etc.

Print media usually moves too slow to keep up with the latest changes, although it is good for in-depth

analysis of longer term trends (see Wired magazine, for example).

2. Set up an RSS feed that contains your selected sources. This will give you continuous updates of very

short headlines and/or stories that are a sentence or two long. Sites with a wide focus will often offer a

variety of narrower topic RSS feeds. For example, you could sign up for just the technology news from

the Financial Times or just the business news from CNET. These can be emailed to you in a daily

digest format or you can read them in an RSS program such as Google Reader. It only takes a few

minutes a day to update yourself from these lists.

3. Investigate your competitors. Schedule some time every month to look at your competitors' websites

and see what types of new services they're offering to their customers. Pay special attention to the

trends of the large players in your industry (such as Amazon in the retail space). This will help you see

and anticipate innovations.

4. Network with other people in the e-business field. You can do this in person at industry events or by

joining industry focused email lists. Talk to people and ask interesting questions and make sure to listen

carefully to their responses. You can gain enormous insight.

5 Follow prominent e-business people and organisations on Twitter, Facebook, and other social networking

sites. Be discreet when posting information to the sites: recognize that other people are getting insight from

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you just as you're getting it from them. It's easy to use a Twitter client that runs in the background on your

computer and simply pops up a small box for each breaking news item.

Trends are identified and used to identify further opportunities.

Check the Current Trends

You need to know where things are now before you can know where they are going. Assess current

trends on a large scale. Ask yourself these questions:

1. What changes are occurring in the economy?

2. What changes are occurring in the political landscape?

3. What are current “hot button” issues?

4. What technologies are being developed or are in their infancy stages?

5. What is popular in mainstream culture?

6. What changes are occurring in various industries? As an example, the marketing industry has seen a

new emphasis on product placement. Also, the music industry has been turned upside down by music

downloads.

7. What trends have recently emerged or are emerging?

Need for a Global – Local Approach

Combining indigenous knowledge with scientific knowledge can help create solutions

that are culturally acceptable, economically feasible and environmentally sustainable for the society being

aided (Puffer 1995). The old notion of research & development (R&D), as an isolated process carried out

in a laboratory, concerned with generating new technologies and/or applications that are then transferred

to the passive users, has now changed. Research and development is now widely seen as a learning

process that follows inclusive, participatory, exploratory and experiential approach. Also termed as user-

led approach, wherein the user becomes an integral constituent of the R&D team. It is therefore critical to

create an enabling environment, for seamless fusion of indigenous and scientific knowledge by utilizing

complimentary expertise and experience of people, and the one that is based on mutual respect. This will

help stimulate and foster the culture of indigenous innovations in the country

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SESSION 2

Create opportunities for innovation

Learning Outcomes

• The immediate team/group, the larger group and stakeholders are used in the innovation process.

• Elements of innovation are included in all regular team meetings

• Techniques are used to increase creativity within the group.

• A number of alternate solutions are generated for any given situation

• The problem solving process it used to innovate new ideas

The immediate team/group, the larger group and stakeholders are used in the innovation process.

1. Mix of people/skills. If you’re reviewing technical ideas, should the entire idea review team be

engineers? Likewise, if you’re reviewing financial processes, should everyone be an

accountant? answer is no. Your team should contain a mix of people/skills that are germane to the

types of ideas that you are reviewing. If you’re reviewing lots of technical ideas, then it makes sense

to have a larger number of technical people, however, a healthy balance of other skills, such as legal,

financial, and marketing will provide better results and align with the personality of the organisation

more clearly. Besides, many people who are accountants today may have been engineers yesterday,

in a previous job and/or organisation. It’s not unusual at all to find people with very diverse backgrounds

and experience—and in fact you should seek them out. These types can add depth to your team and

will often see ideas from a completely different (and better) perspective. You may also want to consider

rotating people on/off the team frequently. While you may give up some of the productivity, you’ll gain

by having a consistent group, by rotating more people, you’ll keep the program fresh, and you’ll involve

more of the organisation. For many, this visibility is both an experience and an opportunity to be seen

as a contributor, and can provide future benefits for the organisation. Additionally, it opens your idea

review process up for more people to see how the process works—someone who might feel the process

is unfair, would gain an appreciation for the intricacies and difficulties in making decisions.

2. Reward. For many organisations, reviewing ideas is just another to-do among an already long

list. While many will feel the intrinsic need to be fair and committed, others will lose this feeling

quickly. Some rewards can be easy, like recognizing the team periodically, giving them additional titles,

and (as mentioned earlier) giving them some accountability and control. However, you may want to

consider other rewards, such as team lunches, apparel, or other small tokens.

3. Commitment. Obvious, but easily faked or eroded. Make certain that each member not only has the

mentality for the commitment, but also put in place safeguards to ensure it. For example, get the idea

review team out of the office to a neutral location. I can’t tell you how many times that someone will

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pop their head into an idea review meeting, and ask one of the members, “I’m sorry, but can I talk to

John for just a minute?” Inevitably, the interruption is longer, as John usually must attend to something

urgent. It’s really hard for me to believe that anyone in the company can’t have a few hours without

interruption, even the CEO. Make sure that they have some interest in pushing some of the ideas to

completion—the idea that is first submitted rarely is in the final form and usually requires a bit of help

to move it forward. “Oh, I forgot my laptop,” or “I didn’t have time to … .” This goes hand in hand with

commitment. If they can’t remember the tools that they need, or don’t have the time to prepare for the

meeting, they’re doing not only the review team, but all of the idea submitters an injustice. Make it clear

what needs to be done beforehand.

4. Expectation. While it may seem obvious that the idea review team is supposed to “review ideas,” the

end result may not be so obvious. Will they have the final say or will they have to get their

recommendations approved by some other group? If they must get their approved ideas “approved”

again, you’re taking away some of the respect (and prestige) out of the process. There’s no question

that some ideas require further deliberation before they can be implemented, but if every one of the

ideas must go through an additional step, then you really don’t have a review team. Instead, allow the

review team to approve ideas within certain parameters, such as money, time, or cultural impact. That

way, you’ll keep the review process intact as well as reducing the need for two teams to review every

idea.

Elements of innovation are included in all regular team meetings

The Four Key Elements of Innovation: Collaboration, Ideation, Implementation and Value Creation

Innovation requires collaboration, ideation, implementation and value creation. Community developers actively engaged in innovation illustrated each of these elements during breakout sessions.

Collaboration

Teamwork is essential to getting things done. In today's global and digital 24/7 world, challenges are more

complex; it's becoming increasingly important to bring more, diverse minds to the table and to break down

silos.

Collaboration is one type of group activity familiar to community development. There is no shortage of

initiatives intended to be collaborative. Collaboration has never been easy, mostly because conflict and

competition within and among groups dominates the landscape. As everyone tends to avoid tension, what

we actually may be left with in communities is peaceful (or less than peaceful) coexistence, and not

collaboration. It may be a good time for re-thinking collaboration. Collaborative process is more than

working together. It means the ability to think together and to act on complex projects. The traditional

strategic planning process is not a model for the disciplines required to transform our economies. Rather,

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strategic "doing" offers a framework to achieve results. Thinking together is open innovation. Strategic doing

guides open innovation. Strategic doing means:

Ideation

Fresh, new ideas help your organisation stand out. With intense competition for resources, organisations

must differentiate in order to survive

Implementation

What good are new ideas if they are not put to use? Organisations must engage the best people to

champion their ideas and keep those great ideas moving forward. There is no shortage of conversations

on how technology is changing lives and how technological innovations are being implemented at lightning

speed. In the world of community development, one example is the work being done at Social Compact.

Value Creation

You don't have innovation if your new ideas aren't creating value. Organisations must implement ideas and

programs identified as most effective in delivering value to stakeholders. The failure rate of established

companies has skyrocketed during the past year. However, there are companies still experiencing

monumental success despite the economic downturn. These companies are thriving because they

effectively deliver products valued by consumers. The purpose of innovation is to create business value.

Value can be defined in many ways, such as incremental improvements to existing products, the creation

of entirely new products and services, or reducing cost. Businesses seek to create value because their

survival, growth and ability to compete in a rapidly changing market depend on whether they innovate

effectively.

Techniques are used to increase creativity within the group.

Creativity as an innate talent that allowed individuals to develop something completely and totally new.

How Can Group Members Encourage Creativity?

Groups become more creative when they develop norms that support creativity and innovative thinking.

These are some norms groups can develop that promote creativity:

1. Embrace diversity. Group members should seek diverse perspectives and welcome the opportunity to

listen to different views and approaches to problems. (see also the module on culture and small group

communication)

2. Facilitate a supportive communication climate. Description, problem orientation, spontaneity, empathy,

equality, and provisionalism are the hallmarks of a supportive communication climate.

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3. Reward inventive and innovative creativity. Encourage group members who offer unique ideas and

alternative viewpoints. Be cautious, however, of "stars" and "stage hogs" who promote themselves

rather than address the group's goals.

4. Foster collaboration. In times of conflict, group members find it easier to avoid, accommodate, or

compromise when their goals seem to be at odds. Groups that are committed to collaboration must be

dedicated to discovering conflict solutions that everyone can agree on. Collaboration can be time

consuming and frustrating, but generally results in innovative solutions to complex problems. (see the

Teamwork section in the Pragmatics module)

5. Practice active listening. We can process what others say much faster then they can speak. Typically,

we use that "in-between" time to think about what we want to say. In active listening, we use that time

to ponder, interpret, and contemplate what others have said, before formulating our response.

A Systematic Approach to Creativity

Successful groups incorporate both innovation and routine in their interactions. Too much creativity can

lead to chaos. Constant change leads to lack of direction, confusion, frustration, and reduced productivity.

Too much stability leads to inflexibility, an inability to adapt, and a tendency to follow rules without

questioning them.

Approaching creativity in a systematic way encourages group members to identify the purpose of their

creative endeavors and provides discussion time dedicated to creativity. Thus, groups can integrate a

format such as Standard Agenda with the creativity strategy outlined below.

A Creativity System

1. Determine the purpose of the innovation. The group needs to answer the questions: What do we want

to change? Why does it need to change?

2. Describe the features of the object or process that the group wishes to change. That is, list the object's

materials and design or list the parts and steps necessary to complete the process.

3. Describe the functions of the object or process. Answer the question: What does this object/process

do?

4. Brainstorm for alternative functions. What do we want this object/process to do?

5. Identify features necessary to fulfill alternative functions.

Why Aren't Groups Creative?

The primary roadblocks in group creativity are: pressure to conform to group norms, inability or

unwillingness to collaborate, a defensive communication climate, differences in group members'

communication styles, and cultural norms.

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1. Conforming to group norms. Without some conformity to group norms, groups would not be able to

function. However, a preoccupation with group member conformity stifles creativity and encourages

groupthink. When group members are overly concerned with following rules, innovation becomes

difficult to achieve. Also, when group members prize unanimity instead of encouraging members to

present differing perspectives, new ideas are unlikely to emerge.

2. Lack of collaboration. Competition among group members seldom leads to creative ideas because

group members are more likely to keep information to themselves rather than share it. Competition also

encourages group members to focus on themselves and their own agendas rather than the goals of

the group. Often, group members lack the skills necessary to foster collaboration. By focusing on

cooperation, group members are more likely to bring their ideas together and create something

innovative (see also the section on teamwork in the Pragmatics module).

3. Defensive communication climate. When the characteristics of group communication include

evaluation, control, strategizing (hidden agendas), certainty, and superiority, group members are

interacting defensively. Such defensive communication leaves little room for new ideas. For example,

if group member A says, "Let's try combining ideas B and C," and group member D says, "That will

never work," a potentially useful idea will be lost. In addition, such critical evaluation will reduce the

likelihood that group members will offer their ideas.

4. Differences in group members' communication styles. Some group members are more outspoken,

extroverted, and vocal in their opinions, while other group members are more reserved, introverted,

and hesitant to state their views. The more vocal group members often dominate group meetings, so

only those members' ideas are heard. More reticent group members' may have important information

to add to the discussion, but can be intimidated by aggressive group members.

5. Cultural norms. Creativity and innovation arise when people see the world in unique ways. Cultural

norms, values, and beliefs are so engrained that we find it difficult to do that. People who can see things

from unique angles are typically viewed as non-conformists. Thus, innovators' ideas are often

discredited. To facilitate creativity, we have to balance respect for cultural norms with appreciation for

innovation and freedom of expression.

The problem solving process it used to innovate new ideas

Kick-off meetings

In project planning, we assigned all necessary resources to the project. We continuously reassured that

those resources are still available and ready to take off. Now is the right time to have the project kick-off

meeting. Its main purpose is to present the project planning status to the stakeholders, especially to all our

team members, and to officially start project implementation phase.

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This kick-off meeting at the beginning of implementation phase triggers other meetings and workshops:

• workshop for the handover from the proposal team to the implementation team (in projects with a

customer-contractor relationship)

• contract analysis workshop (in projects with a customer-contractor relationship)

• engineering or design review meetings (for the product that has to be created)

A typical agenda of a project kick-off meeting could look like this:

1. Introduction of participants and agenda

2. Presentation of project goal(s), PBS, and WBS

3. Presentation of planning milestones and over-all project schedule

4. Presentation of project cost structure

5. Assignment of responsibilities

6. Commitment of team members

7. Agreement on minutes of meeting and conclusion

Regular project status meetings

To keep track of the results achieved, we hold regular status meetings throughout project implementation

and closure phases. The frequency of these regular status meetings depends on the project duration, e.g.

every week for a project of 20 to 40 weeks duration, or every 2 weeks for a project of 50 to 80 weeks

duration. A typical agenda could look like this:

1. Introduction of the agenda

2. Status of sub-projects and milestones (MTA)

3. Earned value analysis (EVA)

4. Status of changes

5. Discussion and decisions

6. Agreement on minutes of meeting and conclusion

Special project meetings

Any event or arising problem in project implementation that disturbs the planned and regular work progress

triggers a special project meeting. These special meetings focus only on the event that happened or the

problem that came up. Most of these events or problems should be on our risk list. However, there will still

be some which we do not have on our radar screen but could jeopardize the project or major parts of it,

and hence, need to be discussed. A typical agenda of such a special project meeting could look as follows.

1. Introduction of the agenda

2. Report about the event that triggered the meeting

3. Comparison with risk list (is the event on our risk list?)

4. Consequences if nothing would be done: what is the impact?

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5. Planned action(s) according to earlier risk analysis

6. What other action(s) are required or can be done?

7. Update risk list

8. Discussion and decisions

9. Agreement on minutes of meeting and conclusion

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SESSION 3

Lead projects to meet new, innovative ideas

Learning Outcomes

• The overall framework for the project reflects the innovative nature of the project.

• A new approach to work breakdown structure and task allocation is used in line with the innovative

nature of the project

• Controls are established in line with the innovative nature of the project

• Project planning is approached with inputs from the team

• New ideas that emerge throughout the project are recorded and communicated for use throughout

the project implementation or to initiate new projects

Lead projects to meet new, innovative ideas

This two-part series on innovative leadership looks at what companies can do to promote each innovation

mode, starting with bottom-up innovation.

Fueled by ideas, driven by culture

Bottom-up innovation is fueled by the ideas and initiative of individuals within a company, be they in

marketing, R&D, sales, or management. Someone has an idea, which is then pushed through and

implemented by the staff, with the strong support of management. This process relies on spontaneous,

serendipitous ideas, and therefore cannot be micromanaged or mandated. However, companies can

improve the chances of it occurring by hiring creative entrepreneurs and putting them in an environment

conducive to innovation, spotting and supporting good ideas early on and establishing idea management

and funding mechanisms. Companies can also try to stimulate idea generation through mechanisms such

as:

• Innovation performance measures -- creating targets for innovation through key performance

indicators, like percentage of sales from new products

• "Free time" - giving staff the time to explore new ideas

• Networking -- partnering with universities, idea providers, and other groups

• Customer/consumer sensing -- getting closer to customers to understand their needs

• Reward systems -- recognizing the providers of great ideas

Ultimately, however, bottom-up innovation is driven by a company culture that encourages creativity and

entrepreneurship. And such a culture needs to be built proactively by top management.

A customer-centric culture is essential

A customer-centric (or consumer-centric) culture is a pre-requisite for bottom-up innovation. This does not

mean asking customers what they want, it means understanding them so intimately that you can detect

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unarticulated needs and get a gut feel for the acceptability of new technologies or concepts. Achieving this

requires specific attitudes and practices from all employees:

• Curiosity - visiting and observing customers

• Empathy - sensing the experience behind a purchase or usage

• Rigor - conducting research into customer experience

• Humility - really listening to what customers have to say

Establishing a customer-centric culture may not be easy -especially for large, traditional and/or mature

organisations that are deprived of customer contact for many years. It requires the promotion and rewarding

of the attitudes listed above, and setting strong priorities across all functions.

Other important aspects of company culture

In addition to a customer-centric culture, four constituents of company culture can favor bottom-up

innovation:

• Organisational creativity

Organisational creativity, or the creativity of a team, can be encouraged in four concrete ways:

✓ Ensuring team and staff diversity -- To generate the best ideas, team members need to be as diverse

as possible: in gender, age, education, function, culture and mind-set.

✓ Tolerating mavericks -- Mavericks are lateral thinkers who challenge "group think". Such people are

good for innovation, but need to be managed well. Companies need to accept that by their nature,

mavericks tend to come and go; the important thing is to make sure enough are coming in and that the

company culture supports them.

✓ External contact - Innovative leaders should have strong networks in all areas: R&D, suppliers,

customers and partners.

✓ Promoting broad-bandwidth managers - These managers have a mix of technical depth and

functional breadth. They may not be experts in a particular area, but their diverse interests and ability

to see approaching paradigm shifts will promote innovation.

2. Innovation champions

Bottom-up innovation only occurs because dedicated and committed people make things happen. Three

types of innovation champions are needed: technical champions, business champions, and, most

importantly, executive champions who back up innovation teams.

3. Entrepreneurial culture

A positive attitude toward risk is well accepted in principle, but very rarely implemented in practice. A

company must actively support people who try new things and take risks, and also accept failure, if it wishes

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to encourage bottom-up innovation. Constant learning is another important aspect of an entrepreneurial

culture.

4. "Can-do" climate

To encourage bottom-up innovation, a company's leaders must fire their employees with passion.

Management also needs to ensure that there are no barriers to innovation or anything that stifles innovation,

either in their own attitude and behavior or in the company's processes and policies. Critical climate factors

include:

• Management attitudes that are explicitly interested in innovation, a tolerance of risks and failure, a

reasonably long payback horizon and sharing lessons from failures

• Management policies that reward innovators, systematically track innovation, strongly empower teams

and make innovation resources available

• Management processes such as a clear innovation strategy, a flexible planning style, minimal red tape

and fast and clear decision-making.

Moving forward

Clearly, it will not be possible to change your company's culture overnight to incorporate all the above-

mentioned factors. The best way to start a cultural change that favors bottom-up innovation is to (i) identify

which cultural factors are currently most deficient in your company; (ii) identify which factors will have the

highest impact on innovation in your company; (iii) identify which factors are likely to be addressed most

easily; and then (iv) start by addressing overlapping factors present in all three groups.

Project planning is approached with inputs from the team

Seven steps to successful project planning:

1. Every project needs a roadmap with clearly defined goals that should not change after the first phase of

the project has been completed. All stakeholders benefiting from the outcome of the project should be

named and their needs stated.

2. Develop a list of all deliverables, make sure all project team members are familiar with this list.

3. A document that clearly outlines all project milestones and activities required to complete the project

should be created and maintained. Establish reasonable deadlines, taking into account project team

members’ productivity, availability and efficiency.

4. Create a budget for your project.

5. Ideally, project managers should be able to choose team members who work well together. Identify by

name all individuals and/or organisations involved in the project. For each of them, roles and responsibilities

on the project should be described in detail. Otherwise, miscommunication may occur leading to delays

and situations where team members may have to redo their work.

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6. Set progress reporting guidelines – monthly, weekly or daily reports. Ideally, a collaborative workspace

should be set up for your project online or offline where all parties can monitor the progress.

7. Identify the risks involved in your project and discuss alternatives if new requirements will be added to

your project or members of your team will not meet the deadlines.

New ideas that emerge throughout the project are recorded and communicated for use throughout

the project implementation or to initiate new projects

Communications Plan

Create a document showing who needs to be kept informed about the project and how they will receive the

information. The most common mechanism is a weekly or monthly progress report, describing how the

project is performing, milestones achieved and work planned for the next period.

Project management reports

Further backbones of successful project controlling during project implementation are well structured and

regular project management reports. In most cases, these reports will serve as an excellent basis for the

project meetings and workshops. Good reports also help to keep those meetings and workshops short and

efficient. For projects with virtual team work, they are vital. The project management reports follow the

communications plan.

Records

In project implementation, we need to monitor everything that could jeopardize our project or parts of it. it

is essential to take records of anything that is not in-line with the contract. Only then we are able to follow

the change management process or the claim management process. In case everything runs smoothly,

according to plan, we also keep records of the achieved work progress since only this ensures timely update

of our milestone trend analysis and earned value analysis (if we apply earned value project management,

sometimes simply referred to earned value management). If something is not in line with our project plans,

i.e. an event happens that has serious consequences on our project or parts of it, we need to take all

available records of that event, of its impact, of all possible solutions found in co-operation with the

customer, sub-suppliers, or other stakeholders, and of the decisions made in order to solve the problem

A new approach to work breakdown structure and task allocation is used in line with the innovative

nature of the project

A work breakdown structure (WBS), in project management and systems engineering, is a deliverable

oriented decomposition of a project into smaller components. It defines and groups a project's discrete work

elements in a way that helps organise and define the total work scope of the project

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key benefits to developing a WBS are:

#1 – WBS forces the team to create detailed steps

The WBS forces the project manager, team members, and customers to delineate the steps required to

build and deliver the product or service. The exercise alone encourages a dialogue that will help clarify

ambiguities, bring out assumptions, narrow the scope of the project, and raise critical issues early on.

#2 – WBS lays the groundwork for schedule and budget

It lays the groundwork for developing an effective schedule and good budget plans. A well-defined WBS

enables resources to be allocated to specific tasks, helps in generating a meaningful schedule, and makes

calculating a reliable budget easier.

#3 – WBS creates accountability

The level of detail in a WBS makes it easier to hold people accountable for completing their tasks. With a

defined WBS, people cannot hide under the “cover of broadness.” A well-defined task can be assigned to

a specific individual, who is then responsible for its completion.

#4 – WBS creation breeds commitment

The process of developing and completing a WBS breeds excitement and commitment. Although the project

manager will often develop the high-level WBS, he will seek the participation of his core team to flesh out

the extreme detail of the WBS. This participation will spark involvement in the project.

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SESSION 4

Review new projects/procedures to determine effectiveness.

Learning Outcomes

• New plans adopted and innovated techniques introduced are monitored against team / section /

division / department objectives to determine their effectiveness. .

• A report is written on the effectiveness of the new plan/procedure/technique advising on its

continuation, amendment and/or abandonment

• Amendments are made to new plans/techniques/procedures , if necessary to make them more

efficient / effective

• Alternative plans/procedures/techniques are drawn up if the innovative one is to be abandoned.

New plans adopted and innovated techniques introduced are monitored against team / section /

division / department objectives to determine their effectiveness

Evaluation and monitoring systems can be an effective way to:

Provide constant feedback on the extent to which the projects are achieving their goals.

Identify potential problems at an early stage and propose possible solutions.

Monitor the accessibility of the project to all sectors of the target population.

Monitor the efficiency with which the different components of the project are being implemented and

suggest improvements.

Evaluate the extent to which the project is able to achieve its general objectives.

Provide guidelines for the planning of future projects (Bamberger 4).

Influence sector assistance strategy. Relevant analysis from project and policy evaluation can highlight

the outcomes of previous interventions, and the strengths and weaknesses of their implementation.

Improve project design. Use of project design tools such as the logframe (logical framework) results in

systematic selection of indicators for monitoring project performance. The process of selecting indicators

for monitoring is a test of the soundness of project objectives and can lead to improvements in project

design.

Incorporate views of stakeholders. Awareness is growing that participation by project beneficiaries in

design and implementation brings greater “ownership” of project objectives and encourages the

sustainability of project benefits. Ownership brings accountability. Objectives should be set and indicators

selected in consultation with stakeholders, so that objectives and targets are jointly “owned”. The

emergence of recorded benefits early on helps reinforce ownership, and early warning of emerging

problems allows action to be taken before costs rise.

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Indicators

Input indicators are quantified and time-bound statements of resources to be provided. Information on

these indicators comes largely from accounting and management records. Input indicators are often left out

of discussions of project monitoring, though they are part of the management information system. A good

accounting system is needed to keep track of expenditures and provide cost data for performance analysis

of outputs. Input indicators are used mainly by managers closest to the tasks of implementation, and are

consulted frequently, as often as daily or weekly.

Examples: vehicle operating costs for the crop extension service; levels of financial contributions from the

government or cofinanciers; appointment of staff; provision of buildings; status of enabling legislation.

Process indicators measure what happens during implementation. Often, they are tabulated as a set of

contracted completions or milestone events taken from an activity plan. Examples: Date by which building

site clearance must be completed; latest date for delivery of fertilizer to farm stores; number of health outlets

reporting family planning activity; number of women receiving contraceptive counseling; status of

procurement of school textbooks.

Output indicators show the immediate physical and financial outputs of the project: physical quantities,

organisational strengthening, initial flows of services. They include performance measures based on cost

or operational ratios.

Examples: Kilometers of all-weather highway completed by the end of September; percentage of farmers

attending a crop demonstration site before fertilizer top-dressing; number of teachers trained in textbook

use; cost per kilometer of road construction; crop yield per hectare; ratio of textbooks to pupils; time taken

to process a credit application; number of demonstrations managed per extension worker; steps in the

process of establishing water users' associations.

Alternative plans/procedures/techniques are drawn up if the innovative one is to be abandoned.

Project termination is one of the most serious decisions a project management team and its control board

have to take. It causes frustration for those stakeholders who sincerely believed - and in most cases still

believe – that the project could produce the results they expected – or still expect. The project manager

and his or her team members, very important stakeholders of the project as well, will feel that they

personally failed. They also will be scared of negative consequences for their careers; their motivation and

consequently, productivity will decrease significantly. In contrast to that, we are convinced that conscious

project termination at the right time, based on clear and well communicated criteria, profoundly discussed

with the whole project management team, and finally mutually decided, is one of the boldest actions the

involved or affected members of an organisation can take.

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• A clearly communicated strategy of the organisation

• Clearly communicated reasons why and how the project supports that strategy, and under what

conditions it does not

• Clearly set and communicated project success criteria (in terms of scope, schedule, and budget), if

possible clearly set and communicated termination criteria

• High level management attention, even for smaller projects, and in times when everything seems to be

on track

• Periodical review meetings with the control board

• Open discussions with the control board about problems and possible solutions or alternatives,

including termination

• In case the project has to be terminated, clear commitment of control board and high level management

towards the project management team in order to enable the team to follow the project

closure procedures

• Upon successful termination, similar rewards and incentives for project manager and his or her team

as with regular project closure

Reasons Why Project Termination Becomes Necessary

• Technical reasons

• Requirements or specifications of the project result are not clear or unrealistic

• Requirements or specifications change fundamentally so that the underlying contract cannot be

changed accordingly

• Lack of project planning, especially risk management

• The intended result or product of the project becomes obsolete, is not any longer needed

• Adequate human resources, tools, or material are not available

• The project cost increases profit becomes significantly lower than expected

• The parent organisation does not longer exist

• The parent organisation changes its strategy, and the project does not support the new strategy

• Force majeure (e.g. earthquake, flooding, etc.)

• Necessary conditions disappear

• Lack of management support

• Lack of customer support

Whenever along the life cycle of a project it becomes clear that we have to terminate it, there will be

achievements we need to document. The least achievement is new knowledge and experience about what

does not work. We need to document this so that the organisation does not run into a similar situation again.

Therefore, we emphasize again that it is vital to run the regular project closure procedures for a project we

have to terminate. As such, adequate project termination marks successful project management.

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Amendments are made to new plans/techniques/procedures , if necessary to make them more

efficient / effective

How Monitoring and Evaluation Findings Can Be Fed Back into Decision Making

In projects where operating performance standards are quoted as an objective, or where decentralized

processes call for localized capacity to plan and manage work programs and budgets, designers will need

to describe how and when M&E findings will be used to shape work plans and contribute to program or

policy development. In Mexico, for example, the Second Decentralization and Regional Development

Project plans to incorporate monitoring of implementation into its regular management procedures. Annual

plans are to be prepared for each component, including an element of institutional development, and these

will form the basis of annual monitoring. The analysis of implementation will depend on the functioning of a

central database about sub-projects, created in each state from standardized data sheets. The database

will produce the reports required for the project approval procedures, giving an incentive to field staff to use

the system. Results from the implementation database will be analyzed in order to target field reviews and

a mid-term review. The project has no specific monitoring and evaluation unit. Instead, each management

sub-unit responsible for technical oversight of a component is responsible for ensuring the quality and

timeliness of data collection, and for producing and analyzing reports. These reports will be presented by

project component and be used to help diagnose technical and institutional implementation issues, propose

and conduct studies, and plan institutional development and training.

Feedback

The feedback of team members, the control board, the customer, or other stakeholders has different facets.

One area of interest is how we worked together: soft facts. This will cover aspects of team work and group

dynamics of the core project management team, and aspects of leadership behavior of the project manager

or the control board members. Leading questions for these discussions could be (but are not limited to):

• How did our team develop over time?

• How did we deal with complex situations and problems?

• How did we deal with crisis situations?

• How did we deal with conflict?

• How did we manage difficult negotiations?

• How successful and effective was the facilitation of our meetings?

• How successful was our coaching or mentoring of team members and colleagues?

• How successful was our virtual team work?

• How did we handle the aspects of cross-cultural communication?

We keep all the feedback strictly confidential, only within the group of involved people.

The other area of interest refers to the satisfaction of main stakeholders with the project results and the

project management processes: hard facts.

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• We can ask the customer / end user of the project result for their satisfaction via a customer satisfaction

survey.

• We can ask the control board members for their satisfaction.

• We can ask our core team members and ourselves for our satisfaction.

Feedback covering hard facts, we can formalize e.g. by questionnaires, and use them as additional source

for our lessons learned in project closure.

A report is written on the effectiveness of the new plan/procedure/technique advising on its

continuation, amendment and/or abandonment

Collecting Data and Managing Project Records

The achievement of project objectives normally depends on how project beneficiaries respond to the goods

or services delivered by the project. Evidence of their response and the benefits they derive requires

consultation and data collection that may be outside the scope of management. It is important to identify

how beneficiaries are expected to respond to project services, because managers will need evidence of

that response if they are to modify their activities and strategy. Indications that beneficiaries have access

to, are using, and are satisfied with project services give early indication that the project is offering relevant

services and that direct objectives are likely to be met. Such evidence - market research - may be available

sooner and more easily than statistics of impact such as changes in health status or improvements in

income. Market research information is an example of a leading indicator of beneficiary perceptions that

can act as a proxy for later, substantive impact. Other leading indicators can be identified to give early

warning about key assumptions that affect impact. Examples would include price levels used for economic

analysis, passenger load factors in transport projects, and adoption of healthcare practices. When planning

the information needs of a project there is a difference between the detail needed for day-to-day

management by the implementing agency or, later, for impact evaluation, and the limited number of key

indicators needed to summarize overall progress in reports to higher management levels.

Report on Activities

Using the planning schedule in the project write up or the work plan, report on the

following:

• Activities undertaken so far

• Targets, achievements, indicators, limiting factors (indicate these when you have

• used a log frame or a planning spreadsheet)

• Deviations from the plan, if any, briefly indicating reasons for such.

• (The emphasis is on concise, factual and mainly quantitative reporting.)

2. Narrative on your monitoring of Income and Expenditures

Using the agreed upon full sequence of your budget:

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• explain over- and under-expenditures and other deviation from the financial

• planning, giving the reasons for such. Include income planning and reasons for

deviation as well.

• convey other observations from the financial report, providing background information, analysis and

implications or follow-up steps.

3. Report on Specific Objectives

Review one by one your project objectives in the approved project write-up and make a mainly qualitative

assessment of the following:

• Are your objectives in the process of being achieved?

• What intermediate results, if any, can already be observed?

• Are you on the right track to achieve the goal of the project ? Give clear

• indications.

(To do this qualitative assessment well the objectives had (or have) to be SMART, i.e., Specific,

Measurable, Attainable, Relevant and Time bound.) If they are not, still make them SMART. It’s never too

late to become SMART

4.Report on Methodology and/or Strategies

Assess whether the method used for this project is the most effective one to achieve the

stated objectives. If so, how? If not, why not? (Example for analysis of methodology:

• Specific objective: “to empower women and develop leadership skills”

• Method used: “hold two workshops per year” Analyze whether this activity has been the most effective

means to fully achieve that specific objective