stratplanv5

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Running head: STRATEGIC PLANNING PROPOSAL FOR THE FINANCE OFFICE

Strategic Planning Proposal

for the

Finance Office

Office of the President-Proper

Prepared by: Checked by:

Rimel D. Evaristo Elizabeth G. Tejano

Presidential Staff Assistant Division Chief

Planning and Management Division

Approved by:

Gloria M. Bundoc

Director IVFinance Office

Presented to:

Hon. Nora C. OliverosDeputy Executive Secretary

for Finance and Administration

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Why Strategic Planning in the Finance Office

Since the early 1970’s, government leaders have become increasingly interested in the

strategic planning as a result of the wrenching changes that have beset the public sector (Eadie

1983).1 These changes have significantly affected the style of administration of laws and

policies of governmental bodies.

Initially, the Finance Office of the Office of the President-Proper will pilot the strategic planning process. As an integral part of the Common Staff Support System of the Office of the

President, the Finance Office is tasked to render auxiliary and support services for the internal

administration of the OP-Proper. 2As a forefront in the highest office in the country, the Finance

Office provides fiscal management and other related services for the attainment of the

organizational goals of the Office – this being the reason why strategic planning process ishighly advisable to be implemented first in this office.

The implementation of strategic planning in the Finance Office will further streamline thefunctions of each division thru the careful study and analysis of the strategic planning team

which is aimed to result to a more accurate and efficient performance of a completed staff work.

Background of the Office3

The Finance Office – constituted by the Accounting Division, the Budget & Fiscal

Division, the Cashiering Division, the Payroll & Voucher Division and the Planning &

Management Division – is responsible for the proper and timely allocation of funds to supportapproved programs, projects and activities and the appropriate management control and

accounting of funds of the various offices of the OP-Proper. It administers its custodianship

function through the efficient and effective budgetary and fiscal control.

The Finance Office also gathers and provides relevant data and assists top management inthe formulation and consequently, implementation of the OP’s financial policy program.

It is likewise responsible for the monitoring of proper and efficient utilization of funds inrelation to the attainment of performance targets of the various OP offices.

The Finance Office is guided by the following principles:

• Accountability and Transparency

• Commitment

• Service Excellence

• Culture of Professionalism

1 John M. Bryson and William D. Roering, “Initiation of Strategic Planning by Governments,” Public

Administration Review, Vol. 48, No. 6 (Nov. - Dec., 1988), pp. 995.2 Sec 28(4), Chapter 9, Book III, Executive Order No. 292 dated July 2, 1987 otherwise known as “The Revised

Administrative Code of 1987”.3 “Office of the President of the Philippines – Finance Office Service Manual” pp. 4-5.

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Vision

The Finance Office envisions itself to be an effective and efficient instrument of

the Management as a common staff support for the internal administration of the Office

of the President towards achieving a high degree of good governance.

Mission

The Finance Office upholds the state policy of promoting a high standard of

ethics in public service. Grounded on the principle that public office is a public trust, itseeks to achieve its organizational goals by promoting a culture of service delivery

excellence through professional competence, ethical and moral

Objectives

The Finance Office, as part of its objectives, pledges commitment of the following:

1. Uphold the principles of integrity, competency and observe ethical standards provided in the Code of Conduct and Ethical Standards for Public Officials and

Employees (RA 6713);

2. Ensure that compliance with OP policies and procedures, budgeting, accounting

and auditing rules and regulations particularly on the regularity, propriety andcompleteness of documents are adhered to on all financial transaction of the

Office of the President;

3. Observe prudent and judicious implementation of program of expenditures in

accordance with budgetary allocations through monitoring and control of

financial transactions of offices under the Office of the President as well aslocally-funded projects in line with the fiscal policy of the government;

4. Ensure that due professional care is exercised in the evaluation of budget

proposals, preparation of the comprehensive budget estimates of the Office of the

President and its locally-funded projects as well as for the effective

implementation and accountability of the budget execution;

5. Maintain effective communication and coordination pertaining to fiscal concernsto all offices with financial transactions with the Office of the President;

6. Ensure that systems, methods and procedures of the office are improved and

updated through continuous review to efficiently and effectively perform itsfunctions;

7. Cooperate and support government programs vigorously especially in its energy

conservation thrust.

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The Proposed Process

There has been a relative difference when it comes to strategic planning between the

private and public sectors. In the private sector, many measures of success relate to the

profitability of the company and all the comparisons have a common basis - the two factors that

make success relatively easy to identify. However, measuring performance in governmentorganizations can often be difficult. Government managers can seldom measure success of

strategic objectives in monetary terms; instead, they must frequently measure success in terms of

the percentage increases and decreases in some external effect (Blackerby,1994b).

There is no single approach to strategic planning, and different institutions plan indifferent ways. This process shall be presented to the Office of the Deputy Executive Secretary

for Finance and Administration for review. Changes and modifications will be done accordingly

to tailor fit the strategic needs of the Finance Office and will be subject to implementation uponapproval.

The figure below presents the proposed Strategic Planning Process.

A Strategic Plan Team (StratPlan Team) must be organized who will be the brain of the

process. This team must be composed of the Division Chiefs as they are the ones who are better familiar with the processes involved in the everyday business of the Finance Office. The

StratPlan Team shall be led by the Head of Office.

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Although planning will be undertaken by the Director and Division Chiefs, rank and file

employees will need to make themselves familiar with this strategic planning process, and the

associated monitoring and resource allocation arrangements.

Based on the Service Manual of the Finance Office, there already exist a Mission, Vision

and Objectives which is observed and followed by the entity. The next thing to do is align thesewith the targets/goals to be defined by the StratPlan Team.

A demographic census of the employees in the Finance Office must be first conducted

including the qualifications background taken into consideration and the table below to be filled-

up.

Number of Employees

Male Female Total

Not yet graduated

(including those currently taking up college or specialcourses)

Graduate of special courses(courses less than 4-years including short-term

courses)

Undergraduate(those who finished any 4-year degree course)

Graduate(PhD and Masteral degree holders including those who

are currently taking up further studies)

Professionals

(CPA, Lawyer, Engineer etc.)

Company culture and employee personality also play vital roles in identifying thestrengths and weaknesses of an organization. Through this, a more definite and concrete stepscan be figured out to carry out a successful strategic planning process. This being said,

Organizational Climate and Employee Personality surveys must be conducted.

These surveys will be series of questionnaires intended to identify where the employees

are now in terms of academic readiness and their tendencies when subjected to change. TheOrganizational Climate Survey examines employee opinions about thequality of their organization's work climate and can be used to identifyopportunities for workplace improvements. Through this survey, thefollowing information can be collected:

a. Role-Clarity: Employees clearly understand their job duties and their role within

the organization

b. Employee/Management Relations: Employee relationships with management are

based on trust, cooperation, open communication, and employees believe

management is effective

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c. Respect: Employees value and feel values by their co-workers and the

organization

d. Communication: Important information is communicated effectively, and

employees believe they have a voice in the organization

e. Performance/Reward Systems: Employees performance is fairly evaluated, andthey are adequately rewarded for their contributions

f. Career Development: Employees are provided with adequate

training/development opportunities to improve their professional skills

g. Decision-Making/Coordination: Decision-making, delegation, and coordination

are effective

h. Innovation: Work methods are innovative and employees are encouraged to be

creative and express new ideas

i. Relationships: Employee and customer needs are valued by the organization

j. Teamwork/Support: Employees are encouraged to be team players and are provided the support needed to perform effectively

k. Quality of Service: Employees are proud of the quality of service provided bytheir work team and the organization

l. Conflict Management: Conflicts are handled openly and fairly and innovativeways of preventing conflicts are used throughout the organization

m. Morale: Employees are motivated to perform well and morale is high

n. Direction/Strategy: Employees understand the direction the organization is headed

and the organization's vision and goals

Employee Personality Survey on the other hand is a standardized measure to reveal

aspects of an individual's character or psychological makeup. Though personal bias of the testtaker through “respondent faking” can be a possible hindrance in the actual scoring and

interpretation of test scores, personality tests are still considered a powerful tool in evaluating an

employee and how he compares with his peers with attitude and work performance combined.

The widely used employee personality surveys are:

1. Myers-Briggs Type Indicator (MBTI) is a psychometric questionnaire designed tomeasure psychological preferences in how people perceive the world and makedecisions. This 16-type indicator test is based on Carl Jung's Psychological Types,

developed during World War II by Isabel Myers and Katherine Briggs

2. The 16PF Questionnaire (16PF) was developed by Raymond Cattell and his

colleagues in the 1940s and 1950s in a search to try to discover the basic traits of

human personality using scientific methodology. The test was first published in 1949,

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and is now in its 5th edition, published in 1994. It is used in a wide variety of settings

for individual and marital counseling, career counseling and employee development,

in educational settings, and for basic research.

3. The Revised NEO Personality Inventory, or NEO PI-R, is a psychological

personality inventory; a 240-item measure of the Five Factor Model: Extraversion,Agreeableness, Conscientiousness, Neuroticism, and Openness to Experience.

Additionally, the test measures six subordinate dimensions (known as 'facets') of each

of the "FFM" personality factors.

Any or combination of these personality tests can help in measuring the employee’scharacter make-up.

The First Phases of the StratPlan

The five (5) Division Chiefs of the Finance Office shall convene on a designated dateagreed upon by all. A Strategic Planning Workshop shall be scheduled to be attended by all

Division Chiefs to be able to meet the following objectives:

1. Ensure each participant understands the components of the strategic planning

process

2. Ensure each participant is provided with the tools to facilitate the process

3. Ensure each participant has the opportunity to clarify the organization’s lines of

business and mandate

4. Ensure each participant understands their client base

5. Provide participants with the information needed to support the identification of

strategic issues

6. Provide the opportunity to write goals for a specified time frame.

The strategic planning workshop will mark the first two phases of the strategic planning

process.

The purpose of planning is to improve the chances of reaching desirable possible

outcomes. The benefits of planning enable an organization to:

a. prepare for contingencies that could prevent it from attaining its goals

b. prepare a framework for the organization’s orderly growth and progress, and

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c. have a strategy for the allocation of resources in a manner that will allow the

organization to meet its goals4

Review of the Mission and Vision will help in the articulation of the actual and desired physical, social, or economic outcome of the Finance Office.

During the workshop, each division shall present their own mission and vision and suchshall be checked to see if it is parallel with the existing Mission and Vision of the Finance

Office. This is to see if there are amendments needed to the existing one.

Environmental Scan

The review of environments of an entity includes the review of both the external and

internal components that affects the operation of the office as a whole.

Review of external environment includes review of:

a. Forces and trends (political, economic, social and technological)

b. External clients

Review of internal environment includes review of:

a. Resources (employee competencies, current technology in use)

b. Present strategy (overall strategy, per division strategy, current set-up)

c. Performance (employee rating)

The internal analysis can identify the firm’s strengths and weaknesses while the external

analysis will reveal the opportunities and possible risks which maybe threat to the organization’ssuccess.

Analyzing Strategic Issues

Given the information in the environmental scan, the office should match its strengths to

opportunities identified while addressing its weaknesses and risks.

In analyzing the strategic issues to be faced by the Finance Office the following should be given importance:

a. Priority issues of each division

b. Goals of each division and eventually the overall goals of the office

4 California State Department of Finance ,“Strategic Planning Guideliness” (1998), p. 7

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c. Technology needed to help reach the goal

d. Performance indicators to measure the success of the strategies set

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Strategy Formulation

After the careful analysis of the SWOT and using the same to analyze the strategic issuesto be faced by the Finance Office, the members of the StratPlan Team may now interpret the data

to be able to formulize strategies.

These strategies are to be implemented by means of programs, budgets and procedures.

A careful analysis of the resources of the Finance Office is critical in this segment of the process

as implementation will involve the organization’s entire resources including the employees andto motivate the staff to achieve the desired outcomes.

Implement the Strategy

The manner in which the strategy is to be implemented is also crucial in the success of

this initiative. It can have a significant impact in the each employee does his/her work. TheDivision Chiefs must be clear and careful in communicating to the staff each strategy and the

reason behind it. Otherwise, the implementation itself may be a risk factor for the success of the

entire objective of this Strategic Planning Process.

Results and Review

Careful gathering of data based on the results in also critical in analyzing success of the

entire planning and implementation of the process. As there will be adjustments to be made asneeded, each result must be taken note of and must be monitored based on the performance

indicators set forth in the middle of the process.

Evaluation and control may consist of the following:

1. Define parameters to be measured

2. Define target values for these parameters

3. Perform measurements based on performance indicators

4. Compare measured results to pre-defined standards

5. Make necessary changes

6. If needed, review the entire Strategic Planning Process

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Appendices

Sample Forms and Guides, Questionnaire

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