Analyzing Chiavenato (2012), the administrative process of any company involves various phases: Planning, organization, Direction and Control (all coordinated).
Planning or planning is a rational process of making decisions in advance, which includes the selection of the courses of action that a company and each unit of the same must follow to achieve certain objectives in the most efficient way. The Organization includes the establishment of a global, formalized, permanent structure and roles for the people who make up the company. Management is the administrative function that tries to influence the people of the organization, so that, voluntarily and with interest, they contribute to the achievement of their functional unit and the objectives of the company. The controlIt is the follow-up activity aimed at correcting any deviations that may arise from the objectives. The control is exercised with reference to the plans, by means of the regular and systematic comparison of the forecasts made with respect to the objectives.
The typical approach of the school of scientific management is the emphasis on tasks. The name scientific management is due to the attempt to apply the methods of science to management problems, in order to achieve high industrial efficiency. The main scientific methods applicable to management problems are observation and measurement. The school of scientific management was started at the beginning of this century by the American mechanical engineer Frederick W. Taylor, considered the founder of the modern TGA. The industrial panorama at the beginning of this century had all the characteristics and elements to inspire a science of administration: an immense variety of companies, with highly differentiated sizes, problems of low performance of the machinery used,waste, general dissatisfaction among operators, intense competition but with poorly defined trends, high volume of losses when decisions were poorly taken, etc. Initially, the classical authors tried to develop a science of administration whose principles, replacing scientific laws, could be applied to solve the problems of the organization.
Frederick Wilson Taylor (1856-1915), founder of scientific management, was born in Philadelphia, United States. He came from a family of rigid principles and was brought up with a mindset of discipline, devotion to work and savings. At that time the system of payment by piece or by task was fashionable. This led Taylor to study the problem of production in its smallest details, because, thanks to his progress in the company, he did not want to disappoint his employers, or disappoint his co-workers, who in the then shop manager wanted not to be tough on them in the piecework approach. Taylor began the experiences that would make him famous, where he tried to apply his conclusions, overcoming great resistance to his ideas. In Taylor's First Stage,one has the experiences and studies from the work of the worker, and later, he generalized his conclusions for the administration. 1895; "A note on belting". "A piece Rate system". 1903: "Shop Management". It is concerned with the techniques of rationalization of the worker's work, through the study of times and movements (Motion-Time-Study).
In this publication Taylor expresses: High wages and low unit costs of production; Apply scientific methods to the global problem, in order to formulate principles and establish standardized processes; Employees must be scientifically arranged in services or jobs where materials and working conditions are selected with scientific criteria, so that the standards are met; Employees must be scientifically trained to hone their skills; A cordial atmosphere of cooperation between management and workers must be cultivated. In the Second Stage of Taylor 1911 we have the: "Principles of Scientific Management".
GENERAL THEORY OF BENCHMARKING:
Playing Enriquez (2013); Benchmarking is a management technique or tool that consists of taking aspects of our competence as a reference and adapting them to our business. To make use of benchmarking, we must first study our competitors (especially the principals or leaders), collect all relevant information about them, analyze it, and identify or highlight the aspects or strategies that they are using or applying and which best results. are giving them. Next step, we proceed to take such aspects or strategies as a reference, and adapt them to our business, adding our improvements and our creativity. For example, we can take as references your products, your services, your work processes, your policies, your business strategies, your advertising channels, your points of sale,your promotions, your sales methods, etc. Normally, this administration technique is conceivable when our competition in a certain way is unattainable or difficult to compete with, it is not being conformist but reality makes it difficult for us and therefore we find ourselves in need of adapting to a similar system to our competition.
FIRST STAGE: APPROACH TO THE BENCHMARKING PROJECT:
Some people believe that it is nothing more than applying common sense to a rigorous sequence of events. In large part, they are right. However, the sequence of events in the planning stage is introspective, and therefore requires a great deal of effort to achieve objectivity. The consequence of these events is what allows a company to assess a direction for subsequent orientation abroad.
SECOND STAGE: COLLECTION OF THE NECESSARY DATA
The sequence in the data collection phase is more outward-oriented. The development of a preliminary questionnaire provides a bridge to this second stage in the benchmarking process. This questionnaire serves as a tool that organizes the team's criteria about the data search. This is accomplished by targeting survey participants' responses to specific topics, using a common reference. Thus, this tool provides a comparison basis for selection between different companies.
The second stage of the benchmarking model that focuses on data collection includes three phases:
The first and third phases are almost identical. They consist of answering the questions: "How do we do it?" and "How do they do it"? The same degree of detail of the process must be gathered from the processes themselves as from those of the associated company, using the same criteria and parameters in data collection.
Secondary research begins in the second phase of the data collection stage. It consists of looking for information about a particular topic, using indirect sources. This avoids repetitions and saves effort for the team, which can concentrate direct interactions in those areas where the information is recent and has not been publicly disclosed. This can provide background information on the company's process and public disclosures, while establishing an external view of the "process excellence" of potential benchmarking partners. It also provides historical insights to the benchmarking study, and helps develop an independent standard for comparing the partner's potential progress in improving the process over time.
Secondary research follows a basic criterion and requires computer proficiency on the part of the researcher, or access to a research library (perhaps from a local college or university). The process begins with the determination of the “key terms” - topics that relate to the objective of the benchmarking study or to the characterization of the process to be studied. For example, key terms to begin secondary research on "decision support computing tools" include: software engineering, structured analysis, quality function deployment, software productivity, programming, and the specific names of the chosen companies. The key terms are used to obtain the basic data, through dialogue,an information service that advises on what companies are doing in these areas. The "key terms" are not always specific in their interpretation, so an iterative criterion is always necessary. In this regard, it can be extremely beneficial to use the services of a professional who is familiar with the keyword dictionaries from various databases.
Once the data has been gathered from a number of sources, it is classified by common themes and categories. In general, it is the task of the benchmarking team specialists to make sense of the information obtained. They do this by comparing the information with the parameters and data of the process studied itself.
Secondary research is a key element in a professional approach to benchmarking. Complemented with the use of questionnaires, secondary research represents the “element of perspiration” in the benchmarking process. Making progress takes time and requires dedication, but it usually pays off big. Some benchmarking studies have been completed only through secondary research, as the necessary information was available in publications.
The other three means of conducting research and data collection have been mentioned earlier: telephone questionnaires, mail surveys, and personal interviews. Telephone questionnaires are used to research and screen potential partners and determine their interest in the topic. Mail surveys are used to obtain more detailed information on specific process measures and data used by other companies. Personal interviews are used as a means of clarifying and verifying previously obtained information. A final way to collect data is through a site visit. This will provide a direct appreciation of the measures related to the process and will offer the opportunity to observe the behaviors that lead to a certain performance of the process.These observations are generally documented in a report by the visiting team.
STAGE THREE: ANALYSIS OF THE DATA ON THE GAPS AND THE “FACILITATORS” OF THE PERFORMANCE:
The analysis stage in the benchmarking process consists of five phases: data analysis, data presentation, root cause analysis, results projection and identification of “enablers”. The goal of this stage is to identify adaptable process facilitators who are candidates for implementation.
FOURTH STAGE: IMPROVEMENT THROUGH THE ADAPTATION OF THE PROCESS FACILITATORS:
The final stage in the benchmarking process provides the course of action that defines benchmarking as a strategic change management process. The purpose of this stage is to introduce selected improvements within the organization, applying the knowledge learned during the benchmarking study.
In this final stage of the benchmarking model, the research effort becomes “action for the improvement of the business process”. Neglecting action will render study useless, except as a purely academic exercise. Only through the proper selection of goals and the implementation of what is necessary to achieve the set goals can a company be motivated for change. Goals help guide the implementation of improvement activities. However, there is another aspect that should be taken into account at the end of the project: the need to reward the contribution of individuals and the team with adequate recognition. By acknowledging them for their efforts in completing the study, management is endorsing the benchmarking process as a viable activity,while encouraging employees to participate in other studies in the future.
APPLICATION OF BENCHMARKING
Many organizations use Benchmarking techniques when they want to implement a radical change in a certain process highly linked to the achievement of quality standards and best practices estimated on a global scale. This, added to the rhythm of innovations and permanent improvements in technological and service processes, conditions that Benchmarking becomes a practice of permanent evolution and unfinished scope.
Benchmarking makes sense if it is aimed at identifying, learning, adapting and incorporating the best available practices. Therefore, we can deduce that the use of the Benchmarking technique is appropriate when it comes to the following situations:
- When we have the need to improve the satisfaction of our customers through the improvement of certain key processes, whether technical production or customer service. When we want or need to compete at a much higher level of quality and / or demand. service When our level of organizational maturity, process standardization and perceived technical quality of our services forces us to compete on an international scale When the development of our strategic planning forces us to establish service and quality standards much higher than the market average.When we seek to establish best practices in certain key processes that allow us to achieve superior productivity and profitability.When we need to be permanently informed about the global competitive level in terms of a certain process or practice in our industrial sector When we require a high competitive value that breaks the usual standard of our industrial sector When we need to obtain information of high strategic value from other competitors of the global market to move quickly in a process of improvement and / or obtaining results When we need to incorporate a new emerging technological development that adds high value to the technical quality of our products and / or services When the management of the organization is oriented towards change and is committed to the development of a strategy oriented towards excellence.When the organization is already immersed in innovation and implementation of adjustments to its production or service processes When the dynamics of the industry (sector) is changing at an accelerated rate and these changes affect the productivity and results of the organization. When a major change is required in key processes, products or services to meet and exceed consumer expectations.
BENCHMARKING ADVANTAGES
- Identify opportunities for innovation through the discovery of new technologies, already applied in their own sector or different. Identify those processes in which there are significant differences with respect to the best in the sector ”, using it as a stimulus for change and as an instrument for monitoring better produced Know the relative position vis-à-vis companies in your own sector or those of others, avoiding stagnation and offering different alternatives Knowing new trends and strategic directions well in advance and, based on these, adequately managing change Detecting changes and trends in the markets. Follow-up of relationships and development of collaboration plans.
THEORETICAL BASES SPECIALIZED ON THE TOPIC
STRATEGIC PLANNING:
For Johnson & Scholes (2013), strategic planning is an action program that consists of clarifying what we intend to achieve and how we intend to achieve it. This schedule is reflected in a consensus document where we specify the major decisions that will guide our march towards excellent management. The objective of the strategic plan is to draw a map of the organization, which shows us the steps to achieve our vision; turn projects into actions (trends, goals, objectives, rules, verification and results). The strategic plan is carried out to promote links between the decision-making bodies and the different working groups; to discover the best of the organization: The objective is to involve people in valuing the things we do best,helping us to identify problems and opportunities and clarify future ideas: Many times, everyday issues, the day to day of our company, absorb us so much that they do not let us see beyond tomorrow. This process will "force" us to make a "necessary pause" so that we examine ourselves as an organization and if we truly have a future to build.
Strategic planning is a tool that consists of the search for one or more competitive advantages of the organization and the formulation and implementation of strategies allowing the creation or preservation of its advantages, all this based on the Mission and its objectives, the environment environment and its pressures and available resources. Its purpose is to produce profound changes in the organization's markets and internal culture. It is based on institutional efficiency and integrates the long-term vision (management philosophy), medium term (strategic action plans) and short term (operational plans). Strategic planning is a participatory process, which gives coherence, unity and integrity to the decisions of organizations and institutions. Can't resolve all uncertainties,but it allows to draw a line of purposes to act in dynamic and changing environments, allowing to take the necessary measures and corrections to achieve the objectives that the organization has set. The conviction that the desired future is possible allows the construction of a community of interests among all those involved in the change process, which turns out to be a basic requirement to achieve the proposed goals. The planning process understood in this way must involve the majority of the members of an organization, since its legitimacy and the degree of adherence that it attracts in the group of actors will depend to a great extent on the level of participation with which it is implemented.allowing to take the necessary measures and corrections to achieve the objectives that the organization has set. The conviction that the desired future is possible allows the construction of a community of interests among all those involved in the change process, which turns out to be a basic requirement to achieve the proposed goals. The planning process understood in this way must involve the majority of the members of an organization, since its legitimacy and the degree of adherence that it attracts in the group of actors will depend to a great extent on the level of participation with which it is implemented.allowing to take the necessary measures and corrections to achieve the objectives that the organization has set. The conviction that the desired future is possible allows the construction of a community of interests among all those involved in the change process, which turns out to be a basic requirement to achieve the proposed goals. The planning process understood in this way must involve the majority of the members of an organization, since its legitimacy and the degree of adherence that it attracts in the group of actors will depend to a great extent on the level of participation with which it is implemented.which turns out to be a basic requirement to achieve the proposed goals. The planning process understood in this way must involve the majority of the members of an organization, since its legitimacy and the degree of adherence that it attracts in the group of actors will depend to a great extent on the level of participation with which it is implemented.which turns out to be a basic requirement to achieve the proposed goals. The planning process understood in this way must involve the majority of the members of an organization, since its legitimacy and the degree of adherence that it attracts in the group of actors will depend to a great extent on the level of participation with which it is implemented.
For Koontz & O'Donnell (2013), strategic planning is an interactive process from top to bottom and bottom up in the organization; The general management sets general goals for the company (supported by market information safely received from the lower units) and establishes priorities; lower units determine plans and budgets for the following period; these budgets are consolidated and corrected by the superior units, which send them back down, where they are retouched again, etc. As a consequence, the establishment of a formal strategic planning system lowers strategic concern at all levels of the organization.
Strategic planning, as a process, consists of defining the long-term orientation of a company, establishing certain performance objectives, developing strategies to achieve them, in light of all relevant external and internal circumstances, and executing the objectives. chosen action programs. Consequently, we can point out that strategic planning is an organizational, defined and disciplined effort that seeks for organizations to define as clearly as possible their mission and the vision they have of it in the medium and long term, becoming a powerful tool that enables the organization to adapt to complex, demanding, changing and dynamic environments, achieving maximum efficiency, effectiveness and quality in the provision of its products and services.Through Strategic Planning, the capacity of organizations and institutions to observe and anticipate the challenges and opportunities that are generated, both from the external conditions of the organization, and from its internal reality, is developed and sharpened. As both sources of change are dynamic, this process is also dynamic.
Strategic planning is not an enumeration of detailed actions and programs in costs and times, but rather involves the ability to determine an objective, associate resources and actions destined to approach it and examine the results and consequences of those decisions, taking as a reference achieving predefined goals. In no case is it a recipe book, nor does it constitute the solution to all the problems or concerns of an organization or institution. However, it allows the development of a shared vision of the path that the organization must follow to achieve the goals that it has set itself and this makes it possible to concentrate the efforts and creativity of the members of the organization in achieving those goals. In principle, this vision of the future must consider two aspects:Describe what the organization should be like in the future, usually within the next 2 to 3 years. This implies identifying the mission, the ideal type of administration, the necessary resources, etc.; Determine how the organization will achieve that desired future.
According to Steiner (2013), strategic planning becomes, in this way, a navigation chart on the course that is considered most appropriate for the organization. One of the instrumental functions of strategic planning is to make a balance between three types of forces, which in turn respond to different questions: The mission of the organization: What is the meaning of the entity or company? The opportunities and threats that the organization faces and that come from the external environment: What will be the demands that the environment will pose to us? What kinds of difficulties and obstacles can hinder our ability to respond? The strengths and weaknesses of the internal environment of the organization:What are we capable of doing? What elements of our internal structure could be inadequate when it comes to increasing production demands? If there is not enough coincidence between the mission of the organization, its capabilities and the demands of the environment, then we will be facing an organization that does not know its real usefulness. On the contrary, a clear sense of what the mission is allows to guide decisions about which opportunities and threats to consider, and which to discard. An effective strategic plan helps to balance these three forces, to recognize potentialities and limitations, to take advantage of challenges and to face risks. Strategic planning deals with fundamental issues. Strategic planning answers questions such as the following:What business are we in and what business should we be in? Who are our clients and who should they be? It offers a framework for more detailed planning and ordinary decisions. The manager when facing such decisions will ask himself: What options will be the most appropriate with our strategies? The development of a strategic plan produces benefits related to the ability to carry out more efficient management, freeing up human and material resources, which results in productive efficiency and a better quality of life and work for the members of the organization. We can say that in general the Strategic Planning: Improves the performance of the organization; It allows to face the main problems of organizations; Introduces a modern way of managing organizations.
According to Villajuana (2014), strategic planning generates forces for change that prevent, on the contrary, organizations and institutions from being carried away by changes. There is no doubt that there are pressures on products and services, which in many cases causes them to act automatically without having room for reflection. Strategic planning helps organizations to take control over themselves and not only to react to external rules and stimuli. Other reasons can be identified for undertaking a strategic planning process within an organization: Strategic planning allows an organization to respond to a transcendental need of the same, to extend its viability and social contribution over time;Strategic planning is also a process that allows the people who work in an organization to awaken and mobilize the passions, emotions and desires of commitment to a cause; The strategic planning process also allows to focus or prioritize the main strategic issues or objectives that an organization wishes to achieve, discarding the subsidiary or less important; Strategic planning also facilitates the identification or clarification of the purpose, purpose, rationale and fundamental mandates that an organization must fulfill in order to satisfy its shareholders or priority clients and develop activities to fulfill them, which in turn contributes to ensuring survival. of the organization;A strategic plan is also a great way to motivate and unite the staff of an organization around a consensus strategy; A strategic plan also facilitates understanding between the people of an organization, by clarifying objectives, priorities and courses of action, as well as specifying areas of results and performance indicators; Finally, having a strategic plan allows communication between the members of an organization to be more fluid and effective, precisely because the wills are oriented to well-defined objectives and results. The process facilitates the establishment of spaces to develop “deep and sustained conversations” on topics of strategic interest to the organization.A strategic plan also facilitates understanding between the people of an organization, by clarifying objectives, priorities and courses of action, as well as specifying areas of results and performance indicators; Finally, having a strategic plan allows communication between the members of an organization to be more fluid and effective, precisely because the wills are oriented to well-defined objectives and results. The process facilitates the establishment of spaces to develop “deep and sustained conversations” on topics of strategic interest to the organization.A strategic plan also facilitates understanding between the people of an organization, by clarifying objectives, priorities and courses of action, as well as specifying areas of results and performance indicators; Finally, having a strategic plan allows communication between the members of an organization to be more fluid and effective, precisely because the wills are oriented to well-defined objectives and results. The process facilitates the establishment of spaces to develop “deep and sustained conversations” on topics of strategic interest to the organization.Having a strategic plan allows communication between the members of an organization to be more fluid and effective, precisely because the wills are oriented to well-defined objectives and results. The process facilitates the establishment of spaces to develop “deep and sustained conversations” on topics of strategic interest to the organization.Having a strategic plan allows communication between the members of an organization to be more fluid and effective, precisely because the wills are oriented to well-defined objectives and results. The process facilitates the establishment of spaces to develop “deep and sustained conversations” on topics of strategic interest to the organization.
Robbins & Coulter (2014), considers that the strategic planning process comprises the sequential development of the following phases: The Philosophical Phase: expressed in its statement of strategic values, vision and mission. The Analytical Phase: which consists of the analysis of the general environment and the industrial sector, called the external environment in which the organization operates, in order to identify opportunities and threats; and the analysis of the internal reality of the organization, whose purpose is to determine the strengths and weaknesses, including the diagnosis of the resources, capacities and central aptitudes of the organization. The Operational Phase: which consists of the determination of the strategic objectives and the determination of the strategies and courses of action based on the strengths of the organization and that, at the same time,neutralize their weaknesses, in order to take advantage of opportunities and counteract threats. The Action, Development and Evaluation Phase: which basically consists of the implementation of the plan, its monitoring and evaluation system, which includes the selection of result and impact indicators for measuring the organization's performance, the specification of the values to be achieved for each indicator and the estimate of the essential financial resources. These four phases interact statically and dynamically. Thus, the analysis of strengths and weaknesses is carried out with respect to external opportunities and threats, and both components of the analytical phase make sense only in relation to the mission and vision of the organization.If there is not enough coincidence between the mission of the organization, its capabilities and the demands of the environment, then we will be facing an organization that does not know its real usefulness. On the contrary, a clear sense of what the mission is allows to guide decisions about which opportunities and threats to consider, and which to discard. An effective strategic plan helps to balance these three forces, to recognize potentialities and limitations, to take advantage of challenges and to face risks. The objectives are linked to the strategies, policies and organizational structures necessary for their achievement and must be permanently evaluated to extend or shorten their validity or simply replace them with other objectives, which in the long run could lead to a new formulation of the philosophy of the organization.its capabilities and the demands of the environment, then we will be facing an organization that does not know its real utility. On the contrary, a clear sense of what the mission is allows to guide decisions about which opportunities and threats to consider, and which to discard. An effective strategic plan helps to balance these three forces, to recognize potentialities and limitations, to take advantage of challenges and to face risks. The objectives are linked to the strategies, policies and organizational structures necessary for their achievement and must be permanently evaluated to extend or shorten their validity or simply replace them with other objectives, which in the long run could lead to a new formulation of the philosophy of the organization.its capabilities and the demands of the environment, then we will be facing an organization that does not know its real utility. On the contrary, a clear sense of what the mission is allows to guide decisions about which opportunities and threats to consider, and which to discard. An effective strategic plan helps to balance these three forces, to recognize potentialities and limitations, to take advantage of challenges and to face risks. The objectives are linked to the strategies, policies and organizational structures necessary for their achievement and must be permanently evaluated to extend or shorten their validity or simply replace them with other objectives, which in the long run could lead to a new formulation of the philosophy of the organization.then we will be in front of an organization that does not know its real utility. On the contrary, a clear sense of what the mission is allows to guide decisions about which opportunities and threats to consider, and which to discard. An effective strategic plan helps to balance these three forces, to recognize potentialities and limitations, to take advantage of challenges and to face risks. The objectives are linked to the strategies, policies and organizational structures necessary for their achievement and must be permanently evaluated to extend or shorten their validity or simply replace them with other objectives, which in the long run could lead to a new formulation of the philosophy of the organization.then we will be in front of an organization that does not know its real utility. On the contrary, a clear sense of what the mission is allows to guide decisions about which opportunities and threats to consider, and which to discard. An effective strategic plan helps to balance these three forces, to recognize potentialities and limitations, to take advantage of challenges and to face risks. The objectives are linked to the strategies, policies and organizational structures necessary for their achievement and must be permanently evaluated to extend or shorten their validity or simply replace them with other objectives, which in the long run could lead to a new formulation of the philosophy of the organization.On the contrary, a clear sense of what the mission is allows to guide decisions about which opportunities and threats to consider, and which to discard. An effective strategic plan helps to balance these three forces, to recognize potentialities and limitations, to take advantage of challenges and to face risks. The objectives are linked to the strategies, policies and organizational structures necessary for their achievement and must be permanently evaluated to extend or shorten their validity or simply replace them with other objectives, which in the long run could lead to a new formulation of the philosophy of the organization.On the contrary, a clear sense of what the mission is allows to guide decisions about which opportunities and threats to consider, and which to discard. An effective strategic plan helps to balance these three forces, to recognize potentialities and limitations, to take advantage of challenges and to face risks. The objectives are linked to the strategies, policies and organizational structures necessary for their achievement and must be permanently evaluated to extend or shorten their validity or simply replace them with other objectives, which in the long run could lead to a new formulation of the philosophy of the organization.The objectives are linked to the strategies, policies and organizational structures necessary for their achievement and must be permanently evaluated to extend or shorten their validity or simply replace them with other objectives, which in the long run could lead to a new formulation of the philosophy of the organization.The objectives are linked to the strategies, policies and organizational structures necessary for their achievement and must be permanently evaluated to extend or shorten their validity or simply replace them with other objectives, which in the long run could lead to a new formulation of the philosophy of the organization.
According to Terry (2000), strategic planning improves the performance of the Organization. Many studies have consistently shown that setting a vision, defining the mission, planning, and setting objectives positively influences the performance of an organization. History and great leaders have taught us that an attractive vision of the future can have a very exhilarating effect on people. Some evidence has also been collected that organizations that have developed a strategic plan, be they large or small, perform better than those that have not. Strategic planning allows us to think about the future, visualize new opportunities and threats, focus the mission and effectively guide the direction of an organization, facilitating an innovative action of direction and leadership.It allows to face the main problems of organizations. Organizations and institutions face a variety of problems that are difficult to solve separately. Among others, they are generally subject to financial restrictions, which implies making decisions to privilege some lines of action over others, seek forms of annex financing, reduce expenses, reorder processes, and others. Strategic planning is an intentional and coordinated way of facing most of these critical problems, trying to solve them as a whole and providing a useful framework to face decisions, anticipating and identifying new demands. Introduces a modern way of managing organizations. Good planning requires knowing more about the organization,improve communication and coordination between the different levels and programs, improve administration skills, among others. Nowadays, it is easy to see that in developed countries, and also in Peru, many organizations and public service institutions tend to normally develop strategic plans, which little by little becomes the usual way of identifying the desired future, take action, monitor progress, and take action based on changing conditions.what little by little becomes the usual way to identify the desired future, take action, monitor progress and take action based on changing conditions.what little by little becomes the usual way to identify the desired future, take action, monitor progress and take action based on changing conditions.
For Toso (2014), Institutional strategic plans (PEI) are strategic plans similar to multi-year sector strategic plans (PESEM), they differ from these because they have an institutional scope at the level of each budget statement. The sum of the PEI will reflect in greater detail the strategic objectives contemplated in the PESEM and respond to the way in which the budget sheet contributes to achieving the goals set by the sector to which it belongs. The preparation of the PEI is led by the person in charge of the Planning and Budget Office, or Programming, or the one that takes its place and involves the executing units that make up the budget specifications. To prepare the PEI, work meetings of the Specifications must be convened with their Executing Units that, due to the work they carry out,They are fundamental actors in the performance of the Institution, all those summoned being obliged to participate in said meetings. The preparation of the PEIs and their multi-year public investment programs (PMIP) includes the definition of objectives and guidelines, in accordance with the attributions and responsibilities of the Budget Specifications and Executing Units that comprise it in order, according to their institutional Mission, to achieve the Vision that It is proposed to achieve as a member Institution of a certain Sector. At this stage, the Budget Specifications and their Executing Units quantify their objectives and actions in physical and monetary terms and the strategy and courses of action that they will adopt to achieve them. It is necessary to establish an order of priority between each one of the objectives and actions that each Specifications set.
The PEI will by definition be a prioritized relationship (from highest to lowest) of quantified objectives and actions. The PEI formulation phase will be carried out in close coordination with the General Directorate for Multi-year Programming of the Public Sector (DGPMSP), using the formats that have been prepared in order to facilitate the PEI registration process. Each Institutional Representative and the holder of the Specifications are responsible for the formulation of the PEI within the terms provided in this directive. The PEIs are the result of the strategic reflection process and provide the Institutions with a series of objectives and advantages such as identifying problems and risks that, in the short, medium and long term, can have a great impact on it. Likewise,They help in the search and systematic detection of new development strategies, promoting the participation of the set of Executing Units that make up the Budget Specifications. The Institutional Strategic Plans will have the following structure: 1. Diagnosis; 2. Medium and Long-Term Perspectives.
According to the Law of the National System of Strategic Planning and the National Center for Strategic Planning (CEPLAN); The National System for Strategic Planning and the National Center for Strategic Planning (CEPLAN) are created to conduct and develop concerted planning as a technical instrument for government and public management, as a guide and organizer of actions necessary to achieve the strategic objective of integrated development from the country. It regulates the purpose, nature, scope, relationships, organization and functions of the bodies that comprise it within the framework of the Political Constitution of Peru and the law. For the purposes of this regulation, the National Strategic Planning System will be understood as the set of structured and functionally integrated bodies, intended to conduct and develop concerted planning as a technical instrument of government,guide and organizer of actions necessary to achieve the integral development of the country. It is governed by the standards, methods and procedures established by the National Center for Strategic Planning.
The National System of Strategic Planning decentralized aims goal lead and organize the participation of the various agencies of the public sector, so that together with the private sector is formulated and perform monitoring plans and objectives strategic development at national, regional and local.
The National System of Strategic Planning within a fundamentally decentralized perspective has as objectives: a) Propose the strategic objectives of the sustainable and decentralized development of the country, as well as the priorities of spending, public and private investment and international cooperation, so that the capacity of future generations to meet the needs is not compromised current. b) Define a shared national vision of the future. c) Articulate and integrate coherently and in concert the strategic development plans and the institutional development plans of the three levels of government. d) Provide the orientations, methods, instruments and training necessary for strategic planning.e) Carry out the follow-up and evaluation of results-based strategic management to ensure the modernization of government management so that it contributes to achieving the established objectives and informing the country about the progress of their fulfillment. f) Promote cooperation and agreement between the public and private sectors for the formulation of strategy and program execution. g) Formulate prospective strategic plans and carry out their periodic evaluation. The National System of Strategic Planning comprises: a) The bodies of the Executive Power, Regional Governments and Local Governments with responsibility and competence in strategic planning, safeguarding their autonomy.b) The planning bodies of the Regulatory Bodies and those of the State companies owned by the National Government, the Regional or Local Governments; and that of EsSalud, safeguarding their autonomies. The private sector participates in the strategic planning process through the National Agreement Forum, the Directing Council of the National Center for Strategic Planning (CEPLAN), the Sectorial Consultative Councils, Regional Coordination Councils and Local Provincial and District Coordination Councils, at the corresponding levels. Political parties and movements participate in the strategic planning process through the National Agreement Forum and the Board of Directors of the National Center for Strategic Planning (CEPLAN). The processes of strategic planning of the Legislative Power,The organs of the Judicial Power, Constitutionally Autonomous Organizations and the Electoral System are in harmony with the strategic objectives of national development, safeguarding their constitutional autonomies. To this end, the National Center for Strategic Planning (CEPLAN) provides the methods, coordinates and supports its strategic planning processes. The bodies that are members of the National Strategic Planning System are: a) The National Center for Strategic Planning (CEPLAN); b) The dependencies referred to in paragraphs a) and b) of article 4 of the Law. The National Center for Strategic Planning is the governing body of the National System of Strategic Planning.The bodies of the System maintain a technical and functional relationship with the National Center for Strategic Planning in matters within their competence and are obliged to comply with the objectives, guidelines and directives that it issues. The technical-functional relationship does not give rise to a hierarchical or administrative relationship between the bodies of the National System of Strategic Planning and the National Center for Strategic Planning.
The National Center for Strategic Planning has the following functions: General Functions: a) To conduct the process of building a shared and concerted vision of the future of the country, in a unitary and decentralized framework; b) Formulate the Strategic National Development Plan coordinating and agreeing with the other levels of government that make up the System; c) Provide assistance and advice to the President of the Republic, the President of the Council of Ministers, the Presidents of the Regional Governments and the Mayors in the formulation, management, monitoring and evaluation of the strategic plans of national, regional, provincial and district, respectively. d) Conduct the strategic planning process in a concerted manner and issue directives for the formulation of concerted multisectoral, sectoral, regional and municipal strategic plans,ensuring that they respond to the strategic objectives of national development; as well as develop, disseminate and train in the use of related methods and instruments; e) Develop instruments to ensure the consistency of policies: economic, financial, social, spatial, environmental and institutional for a sustainable, harmonious, equitable and balanced development, in order to contribute to the democratic governance of the country; f) Participate in the preparation of the multi-year macroeconomic framework under the responsibility of the Ministry of Economy and Finance; g) Promote and guide, as appropriate, the formation and training of human resources for the formulation of public policies, prospective strategic planning, and results-based strategic monitoring and evaluation, at all levels of government;h) Submit for approval by the Council of Ministers the Strategic Plan for National Development that contains the objectives, policy guidelines, priorities, and strategic measures of the country's development policy; and, i) Promote the generation of synergies between private and public activity.
Specific functions: In prospecting: j) Guide and develop strategic studies, identify international trends, risks, contingencies, opportunities and propose strategic options to coordinate the development of the country, as well as participate in the formulation of international economic integration policies of the country; and, k) Identify future strategic scenarios on the basis of prospective studies and carry out a comprehensive analysis of the reality of the country and its surroundings, which contribute to a better diagnosis, knowledge and understanding of national problems, summoning research capacities and proposal from national academic and research centers. In coordination: l) Promote and agree on the proposed Strategic National Development Plan with the various powers of the State, levels of government,civil society, political parties and movements; m) Channel the initiatives of the private sector and articulate their requirements for state support in coherence with the lines of strategic development; n) Coordinate the formulation of multisectoral, sectorial and territorial plans; ñ) Provide technical studies to the National Agreement and promote the development of concerted planning mechanisms and participatory budgeting at the sectoral, regional and local level; o) Support the elaboration of multisectoral policies and their harmonization with the Strategic Plan for National Development; and, p) Coordinate with the National Security Council the national security objectives, which are related to national development. In Monitoring and Evaluation:q) Conduct the Subsystem for Monitoring and Evaluation of the strategic management of the State that is part of the National System of Strategic Planning in relation to the plans, objectives, measures, programs and priority development projects, in coordination with the sectors of the Executive Power, decentralized levels of government, private sector, political parties and regional movements, and report to the President of the Republic, the Council of Ministers and the Congress of the Republic through the corresponding Commission, on their progress and compliance; r) Inform and report periodically to the President of the Republic, the Council of Ministers and the Congress of the Republic through its corresponding Commission, on the economic, social, environmental and institutional situation;s) Prepare the Semiannual Report on Development Management for the President of the Council of Ministers, which makes public the progress in the fulfillment of the objectives, measures, programs and strategic development projects; and, t) The others that the law assigns. The National Center for Strategic Planning (CEPLAN) is a Public Organization
Decentralized attached to the Presidency of the Council of Ministers that reports to the President of the Republic. The Board of Directors is the highest decision-making body of the National Center for Strategic Planning (CEPLAN). It is made up of personnel with ample moral solvency, outstanding and recognized professional trajectory and accredited experience in strategic planning. It is made up of: a) The President of CEPLAN, who chairs it; b) A representative of the President of the Council of Ministers; c) A representative of the Minister of Economy and Finance; d) The President of the National Decentralization Council - CND, or his representative; e) Two technical representatives of the Regional Governments; f) A technical representative of the Provincial Municipalities; g) A technical representative of the District Municipalities;h) A technical representative of the Professional Associations; i) A technical representative from the productive and business sectors; j) A representative of the Technical Secretary of the National Agreement; k) A technical representative of each political party with duly accredited professional capacity provided that he has at least more than five percent (5%) of valid votes in the last general elections.
According to the Directive for the Formulation of Institutional Strategic Plans 20022006. This directive establishes the general work guidelines for each of the budget specifications that make up the 26 institutional sectors of public administration. The objectives of this regulation are the following: i) To be a methodological guide for the elaboration of the Institutional Strategic Plans (PEI), ensuring their appropriate articulation with each other and with the Multi-year Sector Strategic Plans (PESEM). ii) Harmonize the Sectorial Strategic Objectives identified in the PESEM with the Institutional Strategic Objectives identified in the PEI. iii) Ensure that the correct identification in the PEI of the Institutional Strategic Objectives,allow its adequate fulfillment through the prioritization of its Permanent and Temporary Actions and the resources they require for their implementation. The purpose is to establish the methodological guidelines, the operational guidelines and the functional responsibilities required for the preparation of the 2002-2006 PEIs that are derived from the PESEM, and that each budget statement must send to the General Directorate of Multi-year Programming of the Sector Public (DGPMSP) of the Ministry of Economy and Finance for its review and evaluation consistent with the Multiannual Macroeconomic Framework and the Prudence and Transparency Law. This norm indicates that according to article 55 of Law N ° 27209, State Budget Management Law,the Institutional Budgets of the Budget Specifications are articulated with the Sectorial Strategic Programming that corresponds to them from a medium and long-term perspective. Likewise, according to what is established in Article 10 of Law No. 27293, Law of the National Public Investment System, the Multi-Year Public Investment Programs (PMIP) are developed in accordance with the PESEM.
Analyzing Toso (2014); Multiannual Strategic Programming is a tool to guide the execution of resources to fulfill the essential functions. It is based on the capacity of observation, anticipation and adaptation of an entity, in the face of the challenges and opportunities that both the external environment and its internal reality generate, ensuring the best performance of its functions. It is a process that involves the ability to determine objectives, associate resources, define courses of action that allow them to meet those objectives, monitor progress and examine the results and consequences of those decisions, taking as a reference the pre-established goals. Multiannual Strategic Programming is a way to face and solve critical problems of public sector entities,and is reflected in the formulation and execution of the PESEM, PMIP and PEI, they are formulated in terms of objectives, measurable, verifiable, quantified in terms of costs and expected results, and that are integrated into a National Strategic Plan, in accordance with the global availability of resources established in the forecast macroeconomic scenario. Each entity of the Public Sector, within its sphere of competence, implements its Multi-year Strategic Programming through operational plans and their corresponding annual institutional budgets. The PEIs are Strategic Plans similar to the PESEM, they differ from these because they have an institutional scope at the level of each Budget Statement.The sum of the PEI will reflect in greater detail the strategic objectives contemplated in the PESEM and respond to the way in which the budget sheet contributes to achieving the goals set by the sector to which it belongs. The preparation of the PEI is led by the person in charge of the Planning and Budget Office, or Programming, or the one that takes its place and involves the Executing Units that make up the budget specifications. For the preparation of the PEI, work meetings of the Specifications must be convened with its Executing Units which, due to the work they carry out, are fundamental actors in the performance of the Institution, and all those summoned are obliged to participate in said meetings. The elaboration of the PEI and its PMIP includes the definition of objectives and guidelines,in accordance with the attributions and responsibilities of the Budgetary Document and Executing Units that comprise it in order, according to its institutional Mission, to achieve the Vision that it is proposed to achieve as an Institution that is part of a certain Sector. At this stage, the Budget Specifications and their
Executing Units quantify their objectives and actions in physical and monetary terms and the strategy and courses of action that they will adopt to achieve them. It is necessary to establish an order of priority between each one of the objectives and actions that each Specifications set. The PEI will by definition be a prioritized relationship (from highest to lowest) of quantified objectives and actions.
The PEI formulation phase will be carried out in close coordination with the DGPMSP, using the formats that have been prepared in order to facilitate the PEI registration process. Each Institutional Representative and the holder of the Specifications are responsible for the formulation of the PEI within the terms provided in this directive. The Multiannual Public Investment Programming is a process by which each Budget Document determines the set of Public Investment Projects that are in the pre-investment and investment stage, to be evaluated or executed, within the framework of policies and priorities. established by the Sector to which it belongs and which are expressed in the PESEM. The Programming and Investment Offices (OPI) or those who take their place,prepare PMIPs as an integral part of PEIs. It should be remembered that the Public Investment Project is any intervention limited in time that implies the application of public resources in order to expand, improve and modernize the capacity to produce goods or provide services, whose benefits are independent of those of other projects; and that the Office of Programming and Investments, or whoever takes its place, has the responsibility of preparing the Multi-Year Investment Program and ensuring compliance with the National Public Investment System. The PMIP that are considered in the formulation of the PEI, must additionally include the following: i) It must cover the period for which the PEI is made, regardless of the execution period of the investment projects.ii) It should consider not only investment projects that are in the execution or pre-investment stage, but also those investment projects at the profile level with an estimate of the necessary resources. The PEIs are the result of the strategic reflection process and provide the Institutions with a series of objectives and advantages such as identifying problems and risks that, in the short, medium and long term, can have a great impact on it. Likewise, they help in the search and systematic detection of new development strategies, promoting the participation of the set of Executing Units that make up the Budget Specifications. The Institutional Strategic Plans will have the following structure: 1. Diagnosis; 2. Medium and Long-Term Outlook; 3. Multi-year programming.
The Multi-Year Strategic Plan determines the direction that a Budget Statement must follow to achieve its medium and long-term objectives, within a framework of rationality, transparency and efficiency of spending, and must include all the Institutions and actors involved.
The PEI is led by the Holder of the Statement or by whom he delegates, being jointly responsible for the design, execution and implementation of the PEI. The Strategic Analysis: It is made up of the formulation of the Vision, the Mission, the Diagnosis, the policy guidelines and the determination of the Strategic Objectives.
The Strategic Implementation: It takes the Strategic Objectives as a starting point and progresses to understand policies, organizational design and monitoring and evaluation system. They are the guidelines that allow to orient the development of temporary or permanent actions to be developed in the short, medium and long term. They are the concrete measures that are proposed to be carried out to fulfill the objectives, following the pre-established general policy guidelines. Priorities: These are the objectives to be addressed in the first place, which must be consistent with the institutional criteria and priorities.
CONCEPTS RELATED TO STRATEGIC PLANNING
INSTITUTIONAL DIAGNOSIS:
For Villajuana (2014)Fundamentally, the institutional diagnosis is a tool for analyzing the context in which the public organization foresees that there are conditions that play for and against the implementation of the institutional vision and mission. Hence, the diagnosis can be made before the mission and vision and its validity checked after that moment.
It is also valid - even recommended - to make the diagnosis after the formulation of the most important strategic categories as it facilitates the analysis of the viability of the institutional vision. In this line, it is advisable to ask oneself about the feasibility of achieving the formulated purpose, with the established quality standards and in the defined period of time. For methodological purposes, it is now recognized that it is of great importance to outline the institutional diagnosis in two moments: 1. The macrocontextual analysis or external analysis; and, 2. The microcontextual analysis or institutional analysis itself. Both types of analysis will allow the entity to have a clear and specific panorama to formulate the strategies in each of the perspectives and determine clear needs to adjust to the strategic framework.
Contextual or External Macro Analysis,It is known as the PEST-LM analysis based on the variables it uses: Political, Economic, Social, Technological, Legal and Environmental. Depending on the characteristics of the entity's mandates, it is usually necessary to do all the analysis or exclude some category. For example, an entity with a more regulatory character will probably exclude the environmental variable (unless that is its mandate), while a territorial entity, such as a Municipal Government, will necessarily require an analysis of all the categories. The external analysis is of particular importance in the configuration of the institutional strategy as a scenario in which the entity recognizes with greater clarity the points in which it affects or is affected by the environment and also the way in which it can affect in a greater grade that environment.The basis of the analysis is usually oriented to the general environment of the entity, considering that like any system, there are relationships between the environments that involve the entity and interactions that configure lines of action. The general environment is broad in terms of targeting and has medium and long-term implications for the strategies to be designed. These implications are usually understood to go beyond the direct influence of the organization - for example, the role of the central government and legislation on local economic development. The general environment is divided into sub-categories or segments that allow focusing the main aspects of the general environment in the institutional diagnosis. The categories are not mutually exclusive - the lines between the categories are fluid - therefore,Key factors, actors, and issues can span several of the elements at the same time. Organizations, in general, do not operate in a vacuum, and the key to successful and effective strategic management lies in making decisions that enable actions, which correspond positively to the context in which, ultimately, such decisions will generate effects. concrete.
In general terms, political context is understood to be political institutions, ideology, specific political actors, etc. The economic context refers to key macro and microeconomic variables, the economic situation of the country, the region, the municipality, the inflation rate, etc. While the social context refers to variables related to social behavior, the need for participation, the incidence of social movements, cultural patterns, etc. The legal context refers to the legal mandate that is related to the entity. Finally, the environmental context is related to preservation, quality of the ecological environment and also environmental regulation. The variables can be extended based on the limits that have been defined.
Institutional Analysis or Diagnosis: The external analysis analyzes the general environment, while the institutional diagnosis focuses on the operational and internal environment. Notwithstanding the advances already made in terms of opportunities and threats, the operating environment takes into account those advances that are in the global context, the context of the country. The operational context also creates opportunities and threats. The difference is that it is in the environment closest to the entity: other entities of the same level, extra-institutional actors in the same framework in which the entity acts, etc. In the operating context, the entity has some capacity to influence, of course, greater than in the general environment. The internal environment determines the strengths and opportunities and is mostly controllable by the entity. By definition,a fortress is one that allows capturing opportunities in the operating and general environment or defending the entity from threats in those environments. A weakness is one that prevents the entity from capturing opportunities in the indicated environments and also does not defend the entity from threats. The institutional diagnosis is a critical reading of the environment of an entity based on the perceptions that its members have and which, if possible, should be corroborated by going to sources of verifiable information. The institutional diagnosis deals with establishing the basic position of the entity in relation to its management and results, this moment is characterized by “the need that the social actor (subject and / or object of planning) has to perceive, in a global or panoramic, what is happening,from his self-referential perspective. It is at the same time, the moment to perceive, who or who is behind the problem that is faced, since their interventions on reality, including their own, partly explain how the situation got there "
When the institutional diagnosis uses systemic variables, it is translated into a systemic diagnosis.
In practice, the construction of the Institutional Diagnosis must comply with the following steps:
Analyze the operating environment and identify opportunities and threats. All public institutions have two types of environments in which they operate and are also significantly influenced.
The first environment called general involves all entities without exception. The events that take place here are beyond the control of the entity. The sociocultural, political, economic and technological changes that occur in the world are examples. All public and private entities have the same general environment.
The second environment It is called operational, in which the institution develops its activities. It directly influences the entity and although the events in this environment continue to be much greater than the actual work possibilities of the institution itself, it has a great opportunity to exercise control over some of its events and, from here on, of some events in the general environment. Each public or private entity is influenced by a different operational environment. Although some elements, events and forces are shared with the general environment, both environments will never be identical. The combination of elements (forces, events and / or actors) of the general and operational environment configure the present and future activities of the institution, generating a relevant external environment.This environment is made up of many actors / stakeholders / partners: present and potential users, strategic allies and opponents.
In this case, the main opportunities (O) and threats (A) that arise in the environment of direct and indirect influence must be identified. Many of the O's and O's refer to trends that are perceived in terms of the economic, social, technological, and institutional realms. The use of the brainstorming technique is recommended, from which a space of maximum 10 elements is expected to be generated so that the diagnosis is manageable.
To facilitate this analysis, a set of data must first be collected and shared in the workshop where the diagnosis is made.
INSTITUTIONAL PERSPECTIVES:
For Villajuana (2014), the institutional perspectives are those desires that the institutions seek to achieve in order to be accredited and achieve competitiveness. In this context, several are established, such as the following:
Vision: The Vision is a representation of what should be in the future within the framework of the theme that corresponds to the Budget Statement. In general, the vision includes both the changes we want to achieve within the target population and in the target image of the institution itself. For its definition, it is recommended to answer the following questions:
- i) How it contributes to the national welfare; ii) What is the desired future situation for our users or beneficiaries, iii) What we want to be in the future and, iv) How this future can be achieved.
Mission: The Mission is equivalent to explicitly stating the reason for the existence of the Budget Statement, it must reflect what it is, making direct reference to the general and specific function that it fulfills as a management entity. The mission statement should answer the following questions: i) Who we are, ii) What we are looking for, iii) Why we do it and iv) For whom we work.
General Strategic Objectives: The objectives are the essential purposes or ends that an entity intends to achieve in order to achieve the mission that has been proposed within the framework of its strategy. A General Strategic Objective constitutes a purpose in general terms that is mainly associated with a Program within the current functional classification. The General Strategic Objectives are, by definition, long-term objectives that will contribute to the achievement of the Sector's Vision. Therefore, these objectives must respond to what we want to change from the internal and external reality in which we operate, and must be expressed in qualitative terms and be capable of being measured through objectively verifiable Result Indicators.
Specific Strategic Objectives: These are purposes in specific terms into which a general objective is divided, they are mainly associated with a Subprogram within the current functional classification and comprise a set of permanent and temporary actions. The Specific Strategic Objectives are, by definition, medium-term objectives that will contribute to the achievement of the General Strategic Objective and must be expressed in qualitative terms and be capable of being measured through objectively verifiable Result Indicators.
Permanent or Temporary Actions: These are basic categories on which the strategic implementation of the plan is centered, constituting the fundamental units of resource allocation in order to achieve Specific Strategic Objectives.
Permanent Actions: Are those that concur in the operation and maintenance of the existing services. They represent the production of goods and services that the entity carries out according to its functions. They are permanent and continuous in time. They respond to objectives that can be measured qualitatively or quantitatively, through Product Indicators and necessary resources.
Temporary Actions: They represent the creation, expansion and / or modernization of the production of goods and services. They respond to objectives that can be measured qualitatively or quantitatively, through Product Indicators and necessary resources. They are limited in time and after their completion they are integrated or give rise to a permanent action. It should be remembered that given the nature of the plans to be formulated, only the main permanent and temporary actions should be recorded, which are associated with the functional programmatic category of activity or project respectively, and that in the case of the latter, it constitutes a project of public investment (PIP) or, failing that, a conglomerate that consolidates a set of smaller PIPs,which must necessarily follow the project cycle established in the General Directive of the National Public Investment System. The rest of temporary and permanent actions will be considered in a generic category calledOthers, in which the estimated amount of necessary resources will be consigned only, not being necessary to determine indicators.
Performance measurement indicators: They are qualitative and quantitative parameters that detail the extent to which a certain objective has been achieved. As they are instruments for measuring the main variables associated with the achievement of objectives, they constitute a quantitative expression of what is intended to be achieved and through which it establishes and measures its own criteria of success, and provides the basis for monitoring its performance. In general, to measure a strategic chain represented by Policy Guidelines - General Objectives - Specific Objectives - Permanent and Temporary Actions, Impact, Result and Product indicators are used, which together allow to measure the evolution of the entity's performance.
Impact Indicators: They are associated with the Policy Guidelines and measure the changes that are expected to be achieved in the medium and long term. It shows the effects (direct or indirect) produced as a consequence of the results and achievements of the actions on a certain vision.
STRATEGIC ADMINISTRATIVE PROCESS:
Analyzing Terry (2012), the administration of the services companies of Metropolitan Lima is being challenged by the results that are obtained. With neutral or negative results, the administration fails. On the other hand, with positive and high results, the administration has specified the efforts, the productivity of the resources and has completed the mission entrusted. In this way, the management of companies is threatened by forces that are developed by a changing, challenging, aggressively competitive environment. Important factors among these forces are the generation of enormous amounts of knowledge, the development of almost incredible technology, the vast alterations in the general environment in which management operates, and the deluge of changing human values. The four stages of business administration are:planning, organization, execution and control. The phases of the process are detailed below:
- The planning, applies to utilities of Lima to clarify, expand and determine the objectives and courses of action to be taken; for forecasting; establish conditions and assumptions under which the work must be done; select and indicate the areas for achieving the objectives; establish a plan of achievement; establish achievement policies, procedures, standards and methods; anticipate possible future problems; modify plans in light of the control results; the organizationIt is applied in the service companies of Metropolitan Lima to distribute the work among the group and to establish and recognize the necessary relationships and authority; subdivide work into operational tasks; arrange group operational tasks in operational positions; gather operational positions between related and administrable units; define the requirements of the job; select and place the human element in a suitable position; delegate due authority to each member of corporate management; provide facilities and other resources to staff; review the organization in light of the control results; the executionIt is carried out in the service companies of Metropolitan Lima with the practical, active and dynamic participation of all those involved by the decision or the managerial act; lead and challenge others to do the best they can; guides subordinates to comply with operating rules; developing subordinates to perform full potentials; highlight creativity to discover new or better ways to manage and perform work; praise and repress with justice; rewarding work well done with recognition and payment; review the implementation in the light of the results of control; The control of the service companies of Metropolitan Lima, it is applied to compare the results with the plans in general; evaluate results against institutional planning and execution regulations; devise effective means for measuring operations; make the means of measurement known; transfer detailed data in a form that shows comparisons and variations; suggest corrective actions, if necessary; inform responsible members of the interpretations; adjust the plan in light of the control results.
In business management practice, these stages of the process are intertwined and interrelated; the execution of a function does not stop entirely before the next one starts. The sequence must be tailored to the specific objective or the particular project. Typically a manager or command or director is committed to many objectives and may meet each one at different stages of the process.
The relevance of an administrative process has its importance framework in the way in which the scope of the established achievements is raised, for this a set of methods must be presented in which all working together - this is what is called a process. The administrative process then obeys two phases or stages that represent the premises for the administrative process to be carried out; This is broken down according to the case, a hierarchical chain or priorities in which each body fulfills, functions, operations and activities that are totally coherent and coordinated with each other to carry an order or a specific direction of what is wanted. The Second Stage: It is nothing more than the implementation of all the organs in chronological order but in turn automatically,generating what in administrative terms would be an action plan and represent the crystallized purpose of the first stage, thus fulfilling an administrative process.
Basically, the administrative process that is part of all the micro, small and medium-sized companies of Metropolitan Lima consists of the different tasks that have to be carried out for Order and Growth, also carrying out a sectorization of the work in different Specialized Areas, and achieving that each one of them does not function as autonomous entities, but rather that Joint Actions are carried out in order to achieve the realization of an Administrative Objective, which is proposed precisely by the administration itself. The person in charge of each area is precisely the Sector Administrator of the firm, being not only the one who coordinates the actions of said area, but also acts as a control mechanism, supervising the different activities carried out by the employees,and promoting the different Collective Tasks that are carried out in the institutions.
ADMINISTRATION BY STRATEGIC OBJECTIVES:
For Romero (2013), Management by Objectives (APO), is an administrative approach based on what is to be achieved, that is, on the results that the institutions want to achieve, being able to be based on goals, objectives and even the institutional mission that after all is the main result you want to achieve. In the entities, it will be based on the goals of newcomers, enrolled, who complete their studies, high school graduates, graduates, graduates and even inserted in the labor market. Management by results seeks to improve the effectiveness and impact of policies through greater accountability of officials for the results of their management in the entities.
Management by objectives is characterized by the flexible adaptation of resources, management systems and structure of responsibilities, to a set of precise strategic results, defined and made known in advance, possible to fulfill in a set period of time. Through the implementation of this form of administration, it tends to provide the entities with a set of methodologies and techniques, to achieve consistency and coherence between the government's strategic objectives and the plans of each of the entities.
While traditional administration fundamentally seeks to adapt to existing resources, functions and standards, results-based administration emphasizes the strategic actions to be developed to achieve previously committed results, based on which the necessary products and resources will be determined.
The strategic administration has the following objectives: i) To gradually establish criteria for the allocation of budgetary resources based on the effective achievement of results; ii) Make transparent and improve the correspondence between the resources invested and the results achieved; iii) Install in the public sphere, an information system on the state of affairs of companies, in terms of their business capacities and substantive production. Management by objectives proposes companies that: i) clearly direct their actions, structures, resources and internal responsibilities towards pre-established short, medium and long term results. That they define their results through a permanent process of strategic planning,support them in consolidated operating plans and align them with needs and demands; ii) operate with a high level of efficiency in managing their resources; iii) calculate the resources to be allocated in the budget based on the committed results and the products required to achieve them.
For Chiavenato (2012), Administration by objectives (APO) constitutes an administrative model identified with the pragmatic and democratic spirit of neoclassical theory. His appearance dates from 1954 with Peter F. Drucker, considered the creator of the APO. Management by results emerged as a method of evaluation and control over the performance of rapidly growing areas and organizations. The ideas of decentralization and management by results began to emerge. APO is a technique for managing efforts through planning and administrative control based on the principle that, in order to achieve results, the organization first needs to define in which business it is operating and where it intends to go. APO is a process by which managers, principal and subordinate, of an organization identify common objectives,They define the areas of responsibility of each one in terms of expected results and use these objectives as guides for the operation of the company. The manager has to know and understand what, in terms of performance, is expected of him based on the goals of the company, and his superior must know what contribution he can demand and expect from him, judging him accordingly. In reality, the APR is a dynamic system that integrates the need of the company to achieve its profit and growth objectives, with the need of the manager to contribute to their own development. It is a demanding and balanced style of business administration.in terms of performance, he is expected based on the company's goals, and his superior must know what contribution he can demand and expect from him, judging him accordingly. In reality, the APR is a dynamic system that integrates the need of the company to achieve its profit and growth objectives, with the need of the manager to contribute to their own development. It is a demanding and balanced style of business administration.in terms of performance, he is expected based on the company's goals, and his superior must know what contribution he can demand and expect from him, judging him accordingly. In reality, the APR is a dynamic system that integrates the need of the company to achieve its profit and growth objectives, with the need of the manager to contribute to their own development. It is a demanding and balanced style of business administration.It is a demanding and balanced style of business administration.It is a demanding and balanced style of business administration.
The APO has the following main characteristics: 1. Joint goal setting between the executive and his superior: Most APO systems use joint goal setting; both the executive and his superior participate in the process of setting and setting objectives. Executive participation can vary, from simply being present during meetings, where they can be heard, to the possibility of initiating the work restructuring proposal, with relative autonomy in the development of the plan. 2. Establishment of objectives for each department or position: Basically the APO is based on the establishment of objectives by management levels. Objectives, at a high level, can be called objectives, goals, purposes or purposes; However,The basic idea is the same: define the results that a manager, in a certain position, must achieve. 3. Interrelation of the objectives of the departments: There is always some way to correlate the objectives of various units or managers, although not all objectives are based on the same basic principles. 4. Preparation of tactical plans and operational plans, with emphasis on measurement and control: Based on the objectives set by each department, the executive and his superior draw up the appropriate tactical plans to achieve them in the best way. In this way, such plans become the instruments to achieve the objectives of each department. In all plans the APO emphasizes quantification, measurement and control.It is necessary to measure the results achieved and compare them with the planned results. 5. Permanent evaluation, review and recycling of the plans.
Practically all APO systems have some form of evaluation and regular review of the progress made, through the objectives already achieved and those to be achieved, thus allowing taking into account some forecasts, and setting new objectives for the following period.. 6. Active involvement of management: Most APO systems involve the superior more than the subordinate. The superior sets goals, sells them, measures them, and evaluates progress. This process, frequently used, is much more a control by objectives than a management by objectives. 7. Constant support from the staff during the early stages.
DEFINITION OF TERMS
Exercise. Set of tasks or steps that must be taken to achieve the intended objective. Every activity must include a specific product. Each one of the actions with which the development of a project is specified is also called activity.
Strategic areas or sectors. They are those that are considered significant for the achievement of the general objectives that have been proposed. The determination of which are the strategic areas or sectors within a plan or program depends on factors.
Benchmarking. It is the continuous process of evaluating the results or products, services and practices, in the case of an educational institution, against those of the strongest or recognized institutions in the middle. It can also be conceived as a program that is based on the idea that there is no point in reinventing something that someone is already doing.
Context. It is the set of circumstances, factors or actions that surround and may affect the operation of an institution or organization, its programs or services.
Coordination. Planned collaboration of different individuals, departments and / or organizations interested in reaching a common goal.
Evaluation criteria. A dimension of what is considered valid or meritorious action applicable to an object of evaluation. Each criterion fits into a domain that is framed by the evaluation system and is defined by the elements, indicators or descriptors. The levels of satisfaction on the criteria are specified by the standards.
Diagnosis. Initial stage of the planning process that consists of a critical analysis of the entity or agency and its environment from the collection, classification and analysis of the elements that make them up, with the aim of identifying their achievements, needs and problems. For the environment, these are usually interpreted as threats or opportunities, and for the entity or dependency as strengths or weaknesses.
Efficiency. It is the relationship between the inputs or resources used and the results or products achieved.
Effectiveness. It is the degree and the term in which the effects and expected results are achieved.
Environment. Portion of reality that can affect the system or be affected by it. It is also called environment.
Stage. Succession of described scenes characterized by a set of values of the relevant variables of the system and its environment.
Evaluation standard. It is a principle highly accepted by experts on a specific field, subject or topic, to measure the value or quality of an object of evaluation.
Strategy. It is the way in which an organization or institution approaches its mission and objectives, seeking to maximize its advantages and minimize its competitive disadvantages.
Organizational structure. It refers to the way in which an institution organizes its human resources into functional, relatively independent units to carry out its substantive functions or its educational programs and services.
Evaluation. It refers to the process of determining the merit, value, quality or benefit of a product or result of something.
Evaluating or object of evaluation. The generic term is applied to things or objects that are being evaluated (object of evaluation) - for example, programs, products, policies, personnel, performances.
Program evaluation. It is the evaluation designed and used for the purpose of verifying and monitoring the results of a program, based on its objectives.
Project evaluation. Evaluation designed and used to assess compliance with the activities required to carry out a given task, result or product, in a defined or limited time.
Formative evaluation. It is the evaluation designed and used with the explicit purpose of improving an evaluation object (program, project, curriculum, personnel, among others).
Summative evaluation. It is the evaluation designed to present conclusions about the merit or value of an object of evaluation and recommendations on whether to maintain, modify or eliminate said object of evaluation.
Evaluation and control. It is the process of verifying and monitoring the results of a plan or its constituent programs, which allows to compare the actual performance against the desired one. The information generated by this process allows taking corrective actions and solving problems.
Exploring the environment. It is the process of inquiry, monitoring and evaluation of the factors or forces of the environment that affect an organization or institution.
Critical factors of success. They are those elements or variables that an institution considers as determining factors for the success of its programs, without which they would not have the probability of success in achieving the expected results. These factors emphasize a distinctive institutional competence that ensures a competitive advantage, which may vary from one educational institution to another.
Environment uncertainty. It is the degree of complexity of the forces that affect, plus the degree of change that exists in, the external environment of an organization or institution.
Indicators of performance. Indicators are ratios or ratios, percentages, or other quantitative values that allow an institution to compare its position in key strategic areas; according to criteria of own or external specialists, past performance, its established institutional goals.
Supplies. They are the ingredients or starting conditions used by an organization or institution to achieve its mission objectives.
Instrumentation of a strategy. It is the process through which the strategies and policies of an organization or institution are implemented, through the development of programs, budgets and procedures. This process may involve changes in the overall culture of the organization, in its structure and / or in its administration and direction.
Line of action. Guideline or guiding criterion that is of the greatest relative importance, by indicating the essential actions to be carried out to achieve specific goals and objectives. In the mandatory aspect, the priority line of action directs the fundamental actions of the projects.
Goal. Quantitative expression of an objective, states the magnitude or degree of achievement of an objective in a given time.
Mission. It is the purpose or reason for the existence of an organization or institution, it describes what it does at present.
Need. It is the gap between the current and desired results of an organization or institution. Diagnosis of needs is the process of identifying the gaps between present and desirable results, and their ordering by priority based on which it is decided which ones to reinforce, reduce or eliminate.
Objective. Intentional statement about the results that are intended to be achieved with the performance of certain actions and that includes: (a) the expected results, (b) who (s) will make it possible, (c) under what conditions said results will be verified, and (d) what criteria will be used to verify the achievement of the results.
Mission objective. Global intentional statement of what an organization or institution undertakes to offer to its recipients.
Paradigm. The limits of a system and the set of operating rules that are used to operate within it.
Planning In a broad sense, it is something we do before taking action; that is, it is an anticipated decision making. It is a process of deciding what is to be done and how it is to be done before actions are executed.
Strategic planning. Strategic planning is defined as the process of developing and maintaining a permanent fit between the organization and the changing opportunities in its environment. Generally, strategic planning is long-term (five to ten years) and encompasses an entire system or organization seeking long-range results.
Tactical planning. Tactical planning, also known as operational planning, deals with the selection of the means and resources by which specific short-term objectives have to be achieved, for example one year.
Policies. Policies are understood to be the general philosophical, doctrinal, axiological and practical orientations that guide actions towards the achievement of the established purposes. In other words, policies are a way of conducting actions to achieve the proposed purposes. They are guidelines and directives that constitute a framework within which efforts and actions should be deployed to achieve the ends, objectives and goals of the planning process. Policies guide and define desirable options and, taking into account the order of priorities established, can guide how resources will be used to achieve these goals.
Briefcase. It is a classified collection of documents related to the performance of an agent, educational or academic in this case, responsible or manager of a program. For example, a portfolio for evaluating a plan would be a classified collection of documents or evidence on the performance of each of the programs that make up a plan.
Budget. It is the set of monetary resources available by the institution or organization, distributed by programs. A budget lists the detailed cost of each program.
Priority. It is the fact of granting a greater amount of resources to attend to the resolution of a problem or the satisfaction of a need, or assigning more importance to a certain sector and / or territory due to its relationship with the objectives set in planning.
Procedures Also known as Standard Operating Procedures, they constitute a series of sequential steps, or techniques, that describe in detail how a particular task will be performed. Typically, procedures detail the various activities that must be conducted in order to achieve the objective (s) of a program.
Processes They are the methods, activities and programs; that is to say, the “how” the inputs will be used to produce the results.
Products. The results produced by the organization based on the use of inputs and the processes to generate them.
Program. It is a statement of the activities or steps necessary for the realization of an objective (s) of a plan. Generally, the programs are guided by a strategic objective and may involve the restructuring of the organization or institution as a whole or functional units thereof.
Action program. Set of activities articulated through the following phases or moments: Formulation of goals and objectives to be achieved within a specified period; Determination of the means to achieve the established goals and objectives.
Prospective. Planning approach in which the objectives that guide the planning action are based on projections of long-term demand and supply, from which the medium and short-term goals are defined.
Draft. A set of concrete, interrelated and coordinated activities that are carried out in order to produce certain goods and services capable of satisfying needs or solving problems.
Budget project. Annual estimate or forecast of the income and expenses that will be necessary for the development of the functions of an institution, entity or agency.
Accountability. It is the responsibility of communicating to the society or authorized audiences about the justification of the decisions taken and the results and consequences produced, based on the use of the resources allocated to an institution or organization for the fulfillment of its mission.
Outcome. It is the concrete effect that is achieved by carrying out a project. It can be of two levels: effect and impact. The term effects indicates the results of the use of the project products (provision of services, satisfaction of needs, problem solving). While the expression impacts refers to the changes produced in a situation as a result of the effects of a project.
Tracing. Mechanism to regularly evaluate the situation of the program, observing if the activities were carried out, how they were planned and if they gave the expected results.
System. It is a set of two or more interrelated elements of any kind; for example, concepts (such as the number system), objects (such as the banking system, the nervous system), people (such as the social system).
Open system. Bertalanffy (1968), maintaining his physicalist determinism, considered organisms as open systems oriented by ends. His theoretical contribution allowed an advance in the conception of adaptation as a function of the transactions between the organism and the environment. However, what he did not consider is that there is a great difference between the human species and the rest of living organisms, the propositional capacity of human beings. Thus, the explanatory power of Bertalanffy's concept of open systems was insufficient to account for open systems that are also purposeful, as is the case of human beings and the organizations and institutions created by them.
System closed. The concept of closed systems was derived from the physical sciences and was based on the idea of equilibrium. However, when biologists began to study the behavior of organisms, the concept of a closed system could not explain their findings. Organisms functioned as open systems, they had to exchange energy and matter with their environments to survive.
View. It is a statement that describes what an organization or institution would like to become in a future horizon.
Comfort zone. The areas in which one feels safe, without threats; the routine, the familiar ground for our perceptual approach.
REFERENCES
- Chiavenato, Idalberto (2012) General Theory of Administration. Santa Fe de Bogotá-Colombia. Mc. Graw Hill Interamericana SA. Enríquez Caro Ricardo (2013) Modern theory of administration: Benchmarking. Mexico. Editorial Continental. Johnson Gerry and Scholes, Kevan. (2013) Strategic Direction. Madrid: Prentice May International Ltd. Koontz Harold & Ciryl O'Donnell (2013) Modern Administration. Mexico. Litográfica Ingramex SA Steiner George (2013) Strategic Planning. Mexico. Compañía Editorial Continental SA. From CV. Villajuana, Pedro (2014) Strategic administration. Mexico: Compañía Editorial Continental SA. Robbins Stephen & Coulter Mary (2014). Administration. Mexico. Prentice Hall Hispanoamericana, SA. Terry, George R. (2000) Principles of Management. Mexico: Compañía Editorial Continental SA. Toso, Kelo (2014).Strategic planning. Lime. Editora Bussines. LAW No. 28522- Law of the National System of Strategic Planning and the National Center for Strategic Planning (CEPLAN); issued in CONCORDANCIAS with Supreme Decree No. 001-2006-ED (National Plan of Science, Technology and Innovation for competitiveness and Human Development 20062021 approved). The Directive for the formulation of Institutional Strategic Plans 2002-2006, approved by Ministerial Resolution No. 399-2001-EF / 10. This rule is the one that formally begins strategic planning in the public sector. This Directive was formulated based on Supreme Decree No. 187-2001-EF Published on 07.28.2001: it approves the elements for the 2002-2006 National Strategic Plan. Toso, Kelo (2014) Strategic planning. Lime. Editora Bussines. Villajuana, Pedro (2014) Strategic administration.Mexico: Compañía Editorial Continental SA. Villajuana, Pedro (2014) Strategic administration. Mexico: Compañía Editorial Continental SA. Terry, George R. (2012) Management by results. Mexico: Compañía Editorial Continental SA. Romero, Antonina (2013) Management by results. Bogotá. Editorial Norma. Chiavenato, Idalberto (2012) General Theory of Administration. Santa Fe de Bogotá-Colombia. Mc. Graw Hill Interamericana SA.Graw Hill Interamericana SA.Graw Hill Interamericana SA.
