81.A strategic approach to plan, control, steer and improve

an organization

StrategicManagement = Function to design the long-term strategy based on the handling of expectation, interests and demands as well as educe the strategic direction from the core competence

Examples: Subervisory Board, Board Member, Executive Directors, Program Directors,Head of Division

OperationsManagement = Function to execute the strategy based on designing sustainable Services for the market, client, prospects, shareholder and employers

Examples: Head of Departement, Process Owner, Product Manager, Process Manager, member of Projects

Steeringmechanism = Function to measure and trigger tasks based on cross-linked and shared knowledge, Service Level Agreements (SLA), Operational Level Agreements (OLA) and Key

Performance Indicators (KPI) for the Strategic and Operations Management:

Examples: Stabstelle, Project Portfolio Manager, Project Steering Member

ImprovementManagement = Function to increase the maturity of the Strategic and Operations Management as well as of the Steering mechanism

Examples: In-house Consultant, Outsourcing Manager, Process Coach

82.Corporate strategy and ways how to manage it.

Corporate strategy is a proprietary set of actions that enables a company to be worth more than just the sum of its parts. The most critical role of the center is to enable its business unit strategies to achieve leadership positions. The center adds differential value to its business units in four areas: providing a compelling corporate vision and appropriate performance objectives, aggressively managing the portfolio, leveraging a repeatable operating model and executing a balanced financial strategy. It must:

Not burden the frontline from delivering results, so "start with nothing, then add back"

Build a compelling vision and set of concrete financial objectives that are embraced by key stakeholders

Focus on creating a portfolio of leadership positions to generate superior returns and move to more attractive markets over time

Determine portfolio priorities (between business units) by assessing competitive position, leadership potential, market attractiveness and economic profit

Use portfolio priorities to drive differential resource allocation and differential targets across business units

Strive for system repeatability, which creates competitive advantage from learning-curve effects gained through repetition, reduced complexity by adapting a known pattern and faster and more reliable decision making on investments

Manage a conservative capital structure to support growth and provide flexibility

83.Zero based budgeting and rollover budgeting

Zero-based budgeting is an approach to planning and decision-making which reverses the working process of traditional budgeting. In traditional incremental budgeting, departmental managers justify only variances versus past years, based on the assumption that the "baseline" is automatically approved. By contrast, in zero-based budgeting, every line item of the budget must be approved, rather than only changes.[1] During the review process, no reference is made to the previous level of expenditure. Zero-based budgeting requires the budget request be re-evaluated thoroughly, starting from the zero-base. This process is independent of whether the total budget or specific line items are increasing or decreasing.

The term "zero-based budgeting" is sometimes used in personal finance to describe "zero-sum budgeting", the practice of budgeting every dollar of income received, and then adjusting some part of the budget downward for every other part that needs to be adjusted upward.

Zero based budgeting also refers to the identification of a task or tasks and then funding resources to complete the task independent of current resourcing.

Advantages

Efficient allocation of resources, as it is based on needs and benefits rather than history.

Drives managers to find cost effective ways to improve operations.

Detects inflated budgets.

Increases staff motivation by providing greater initiative and responsibility in decision-making.

Increases communication and coordination within the organization.

Identifies and eliminates wasteful and obsolete operations.

Identifies opportunities for outsourcing.

Forces cost centers to identify their mission and their relationship to overall goals.

Helps in identifying areas of wasteful expenditure, and if desired, can also be used for suggesting alternative courses of action.

Disadvantages

More time-consuming than incremental budgeting.

Justifying every line item can be problematic for departments with intangible outputs.

Requires specific training, due to increased complexity vs. incremental budgeting.

In a large organization, the amount of information backing up the budgeting process may be overwhelming.

its implement on big scale not on small scale industries

A rollover budget is a budget in which the funds, if not spent in a particular month, roll over into that budget for the following month, adding to the allocation for that particular month.

Benefits

A rollover budget offers many advantages. It prevents you from going into debt because the budget amounts represent what you have really spent. It is easy to spot areas where you have problems spending money, because the category will constantly be in the negative. It also makes it easy to divide your annual expenses and save for them each month. You can have a category for property taxes, and contribute to it each month, and you will be able to pay your taxes when the time comes.

Disadvantages

One disadvantage of rollover budget is that it can be difficult to recover from a bad month. If you overspent for some reason, it can be difficult the next month to come out even because the money is already missing from your budget, and you may continuously roll over negative budget amounts. Another disadvantage is that you may be spending money from the categories with extra money in it without realizing it to cover your negative balances.