Tag Archives: inspirational management

Planning Programming Budgeting System (PPBS)

Guest Post by Ron Sommer

Introduction: reading my post about system thinking and program evaluation, Ron mentioned a close practice that incorporate both budget and planning. I am glad he agreed to write a guest post about the topic, and hope you will find it fascinating too.

Moreover, this is the first blog post for 2018!  and opening the year with such a great topic is a good reason to celebrate (:

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In ancient days, meaning the 1960’s, Planning, Programming, Budgeting Systems (PPBS) was considered an innovation in budgeting. PPBS was first introduced in the Defense Department in the USA in 1961 by Robert McNamara, and in all departments in 1965 until 1975. Though it failed to be widely adopted in government, PPBS is effective is less complex organizations such as NGO’s.

PPBS is an integrated management system that places emphasis on the use of analysis for program decision making. The purpose of PPBS is to provide management with a better analytical basis for making program decisions, and for putting such decisions into operation through an integration of the planning, programming and budget functions. Program decision making is a fundamental function of management. It involves making basic choices as to the direction of an organization’s effort and allocating resources accordingly. This function consists first of defining the objectives of the organization, then deciding on the measures that will be taken in pursuit of those goals, and finally putting the selected courses of action into effect.

 

Planning Programming Budgeting System (PPBS)
Planning Programming Budgeting System (PPBS)

 

An organization can be viewed in a simplified way as carrying out its functions through five basic and sequential phases: (1) planning, (2) programming, (3) budgeting, (4) operations, and (5) evaluation.

  1. Specification of Objectives – The objectives of the programs are to be specified in consistence with the long-term goals in quantitative terms as far as possible.
  2. Systemic Analysis – The possible alternative projects to achieve the program objectives are analyzed in a systematic way with the use of cost-benefit and cost-effectiveness analysis.
  3. Functional Classification – The budget is classified on a functional basis like functions, programs, projects and activities.
  4. Organization – Budget formulation addresses the organizational structure, managerial and administrative procedures of the programs/projects/activities.
  5. Evaluation – The mechanism for evaluation of performance on the basis of financial and physical performances to monitor, and take corrective actions, if necessary.

Each of these phases consists of a distinct but related function in the overall conduct of the organization’s affairs.

  1. Planning is an analytical activity carried out to aid in the selection of the organizations objectives and then to examine courses of action that could be taken in the pursuit of the objectives. Planning, in effect, poses the question of whether some particular course of action would contribute more to the attainment of the organization’s goal than its various alternatives.
  2. Programming is the function that converts plans into a specific action schedule for the organization. Programming consists of developing detailed resource requirements and the actions needed to implement plans.
  3. Budgeting is the activity concerned with the preparation and justification of the organization’s annual budget. The function of budgeting is to secure sufficient funds to put the program into operation.
  4. Operations consists of the actual carrying out of the organization’s programs. Preparing for operations is the object of all the other phases.
  5. Evaluation is the function that evaluates the worth of operating programs. Through program evaluation the worth of programs in attaining goals is measured and appraised. The result of evaluations is used to modify current operations, if indicated, or in planning future programs.

PPBS provides an opportunity for identifying the program alternatives which offer the biggest pay-off in achieving communal objections, or require lower costs, and these can be singled out for priority attention by planning groups.

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3 Nonprofit Issues to Reflect and Ponder on

Nowadays I am involved in some very exciting projects, and would like to share with you some thoughts. By reflecting on the following issues, I have no intentions to convince you to adapt my view, and have no meaning to advocate for any system or line of operation; I rather wish to give you some food for thought. Something to reflect on when you have free time, some topics to discuss with colleagues, co-workers, directors, stakeholders, clients, etc. Ready To Think?! I hope you will also enjoy (:

1. Politics:
Well, this is quite a sensitive issue, but since we all have some sort of relation to politics – I would like to raise the question:
How much time do we invest in politics, and how much time is really required for making good out of it?
By asking this question, think, and ponder on, I am trying to count, quantify, and evaluate the output of the time I invest into the issues such as:
* What belongs to whom, and why?
* Why X obeys to Y?
* Is a specific type of relationship between stakeholders really necessary?
* What structure brings the most powerful results?
* How much does crony capitalism (of any sort…) affect the organization?
The last question I ask myself is – what questions are relevant to my organization, and what is the benefit from discussing it?

Not for profit management

2. Collaboration and collaborative action
This is another sensitive issue, but collaboration is a vital part of every organization, even if you do not realize it at first. You always want to leave doors open, you always want to collaborate, you can always share, and you do not have to always spy for sharks. They are out there, no doubt, but you can always find the benefit for the organization to grow from EVERY collaboration. Quit thinking in ego terms, and forget the matching part. Yes, do not forget if someone shuts the door on your face; BUT if they reopen it – go in and present yourself. Collaborate with similar organizations to learn and absorb; collaborate with complementary organizations to provide a better service to your clients; and collaborate with different organizations to amplify your impact and open your organizations to new directions. Forget, get read of competition terms, and find the benefit in collaborations. Believe me it works BIG time, even if not immediately.
The question is how and why do we invest on this connections, and how do we value them? 

3. The board role
The fact that businessman basically manage the nonprofit world is pretty precise. But given this fact, there is a bunch of benefits and opportunities for every nonprofit organization. You can advocate for your organization and get support, you can learn some business methodologies, you can learn business terminology, you get to understand business way of thinking. Until here I counted what YOU can learn. But there is another side, not less exciting – you can teach new methods, you can advocate for compassion, you may teach some beneficial terminology, you may convince to think in a social profit terms, you can gain more support on your side. Yes you can. Use your board, and make them work for the organization.
I would ask myself, over and over, what can I do more in order to engage relevant individuals in helping the organization out? How can I engage relevant individuals on pursuing some issues? Trust me, when you start interview and engage board members out of the board room, aiming to address a specific need or a topic, you get to discover a treasure of opportunities.

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In summary, I wrote about three issues only, whereas there are hundreds of them. However, my goal is to suggest a different way of reflection and analysis to managerial issues in nonprofits, and I trust my reader to interpret it their own way (:

Thank you again for reading and thinking.

 

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Collaboration is Essential

Last time I wrote about the possibilities collaborations may open your organization to, and I focused on the very fact that there are people who need a boost or encouragement in order to internalize this basic element of organization’s healthy life. I eventually summarized that most of the managers are luckily capable of this, and may collaborate with other organizations, at least for the sake of their own performances.

Today, I would like to focus on another essential fact of collaboration which is the benefit of the society. I would call it Synergy… when your organization collaborates with another organization, you create a new opportunity, which in turn benefits your organization, the other organization, and your and theirs clients.

nonprofit management Ready to think

However, the most important point, in my view, is that you have created a much larger benefit – you have made a new opportunity of positive influence and connection, that can lead the world to be a better place to live in. Think about it, you did not just “do good” to your own performance at work, and so not your collaborative partner, you did not just create a good service for your clients, you have also made the world a positive environment to be in.
So, next time when you are successful in collaborative efforts, bear in mind – you have just did something good for the whole society.

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Collaboration IS Possible!

Are you ready to think?! Let’s start (:
Today’s’ lesson is about a great Executive Director, who I met in networking recces at a professional conference.  The conference happened to be a great place for me to grow the network for an organization I work with, and I planned to do it the best I could.

Just a short background – I work with a nonprofit which provides services to other nonprofits’ clients. Without a large network they cannot make a real impact, so it is essential to grow the network proactively. That ED was contacted in the past but never wanted to really collaborate, although the very fact that both organizations may highly benefit from having their clients satisfied and living decent life…

Ready To Think Management
I have decided to go talk to the ED no matter what the result will be. The conversation started with big No No, “we will not collaborate”. Exact words! You could have feel the energy of saying “No” so sharply… but I have decided something, right?!, so stuck to my point I said: “But you know your organizations’ clients will be incredibly benefited from our services, and you know no other organization in the area has this type of great capacity and operations”. As an answer I got a business card with email address on it… later that night I received a reply “Yes, we will do it”.

And I say GO FOR IT my friends. Once you have a goal to do good – do it and convince others to collaborate with you. It is a universal true – we all want to do good and help others, so if you happen to be in a position that allows you to do good – make an effort and make it happen, and never forget – collaboration is absolutely possible.

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They Are Practically Thinking Futures, And You?!

Future. A single word with crucial meaning. Futures is even more compelling, because its name reveals a secret… a tiny true… there are several futures; not just one, nothing is determined yet. You may plan the future, and if you do it wisely, you can positively change the future, and this is what we all want.

Let’s start with a short introduction, futures thinking is a systematic way to deal with wicked questions, face challenges, and also provide with a set of possible solutions, or suggested routes to take. The method is fascinating and out of ordinary, because it requires to adapt and adjust different practices of dealing with problems. Futures thinking is focusing on four types of futures: possible, probable, preferable, and “wildcards”. I tend to like two types and pursuing my analyses based on them – probable (70% probability that your foresight is correct – you may plan 15 years in advance, i.e. foresee 2030 today), and preferable (the one you create with your team). Whereas the first one does not require you to work in teams, the last will not work without involving a large scale of experts. As a consequence the foresight you do alone is the possible, but still shed light on the unknown; and give you a taste of what preferable futures thinking may result.
The process holds four elements: question, gathering of data, analysis, and interpretation (which leads to another question and so on). At a first glance it seems like any other problem solving process. However, the difference lies in the methodology, and the results are surprising.
In addition, you may want to choose a method to gather and interpret your data. I found the General System Theory as a very useful framework, especially for social issues (so take a look at the link, and learn the materials before you jump to the analysis).

Ready to Think - Futures Thinking

In order to make your life easier I have collected several global trends, that you may use as the basic assumptions for every analysis:

  • According to Strauss and Howe’s generations theory, we are getting into the forth turning, when millennials are the societal focus;
  • The millennials are more connected to friends, less connected to institutions;
  • The millennials are worried of their uncertain future, unlike the boomers;
  • The millennials are highly educated, and hold various credentials, however their chances to get decent employment opportunities are lower;
  • Demography: the world population is getting older. Shrinking young population and more elderly. As a result, less young people are going to bear the burden for many elderly.
  • More migration, more urbanization.
  • Technology will continue to be developed, and influence life. Changes will occur often and rapidly.

When you done setting your basic global trends, you may start the second layer of assumptions – the local and industry specific ones. In order to retrieve these data, you can find the following sources useful: governmental sources, UN, local foundations, local universities, and any other information bodies, that may publish relevant data. Gather the data, and articulate the assumptions.

The third step is to look at the data, try to find connections to your questions, and interpret it WITH CAUTION.

I hope you find this content useful – feel free to contact me for commenting or any other request. If you would like to start a future thinking process in your business or organization – I will be happy to consult you with that.

Warning! this content is a very short introduction for futures thinking, and I suggest to use it as a tool for strategic thinking and planning. I do not suggest you to use it as a formal foresight, because you need an expert to help you in this process.

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Three Types of Great Managers Who Inspire Me

Well, how to phrase it? Got to know several managers, and cannot cease myself from writing about them, and today I focus only on  good and successful managers, who you want to be or at least have them in your team. I think I will call them leaders (-:

* The Smart And Facilitator: this is my favorite type. I know very few managers who are very experienced, very sharp, very smart, and on the same time give credit to others, like professionals to be part of their teams, and promote the ones who are doing, not the ones who are talking.
Want to be this type?
Learn your field and master it, collect a team of outcomes people, not input people, determine your goals and objectives often, let your team express their professional opinion, and lead the organization that way. Get rid of unnecessary.
From my experience, this type is very rare and very rich…

* The Entrepreneur And That’s It: I like these people, I actually love them. Their passion, their enthusiasm, their belief, and above all – their ability to make their dream come true. They have two major advantages: they know to dream and they know to find the right team to bring it to life.
Want to be this type?
I think it is mainly a talent, they got a talent to dream and drive themselves and others to pursue it. However, I hope to encourage you – everyone of us is a little entrepreneur, why am I so sure?! show me one person on this planet who never had a successful idea, just one tiny thing they wanted to do and did.
I never considered myself as entrepreneur but my decision to start a blog got me loyal readership within couple of weeks! I still do not consider myself that type, because I am much more a person of consulting and managing existing bodies than starting-up, but it is nice to know that I can also start-up an idea (-; …

ready to think - management consulting

* The Innovative Out-Of-The-Box And Still Gentle: I have a soft spot in my heart for these people. They think differently than others, and this is why they bring huge organizational advantage with them everywhere they go. They will ever be successful. Those talented human beings are usually aware that the common man/woman will be terrified or at least completely disagree with their opinion, so they generously let everyone in their team a trial and error. The end is pretty clear – they are right, everyone else is wrong… Anyway, I am not trying to say that they know everything, they kinda took also some skills from the smart and facilitator, but their conclusions are somehow unexpected.
Want to be this type?
I think you gotta be born special, if you see a kid who acts weirdly, but somehow ingeniously , that is probably the adult I am talking about. Yet, if you cannot be(at) them – join them – just try to find this type of person to be in your team.

In short: be smart, be cooperative, build your team, and respect knowledge. 

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