Stakeholder Buy-in

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Formerly known as the Organization of African Unity (OAU) and founded in 1963 in Addis Ababa during the reign of Emperor Haile Selassie of Ethiopia, OAU changed name in 2002 to become the African Union (AU). Still headquartered in Addis Ababa, Ethiopia, the African Union is an organization founded on the principles of advancing the nations that constitute the African continent. The only country in the African continent that is not a member of the AU is the Kingdom of Morocco (Hanson, 2009). Deliberations on important administrative and political issues that touch on member states is usually the prerogative of the Assembly of the AU whose consultative members are drawn from heads of states that hold semi-annual meetings. In the case of the AU, member states are the major stakeholders as they strive to come to terms with the issues that can make the organization self-reliant politically, socially, and economically. The AU has a 265-member Pan-Africa Parliament whose current head is Idriss Ndele Moussa of Chad who was elected in May 29, 2009. This system of power sharing among member-states is pluralistic in context as opposed to elitism where power is concentrated in the hands of an influential few.

According to Brugha and Varvasovszky (2000), actors or stakeholders have been garnering increasing role in influencing organizational decision-making and policy formulations in the last few years. The general objectives of AU member-states is to promote the political and socio-economic cooperation of the continent, protect issues of interest to member states, safeguard peace and security among member-states, and enhance democratic governance and human rights (Hanson, 2009). The current chairman of the AU is Teodoro Obiang Nguema Mbasogo of Equatorial Guinea who took over in January 2011 and has led his country since 1979 after ousting his uncle Francisco Macías Nguema in a bloody coup. The use of effective communication is the driving factor that brings together member-states with varying political and social ideals. According to Dewhurst and Fitzpatrick (2005), getting buy-in from senior level management and having the confidence and endorsement of the right people among internal circles can help alleviate future inconsistencies among stakeholders.

Organizations have a better chance of succeeding in their business pursuits when they give credence to stakeholder participation in a win-win style. Gousseau (2008) is of the opinion that stakeholders are those people in institutions and organizations that are visible in school boards, municipalities, and district hospitals. Stakeholders are an integral part of organizational businesses and therefore deserve to be treated with care to ensure strategic planning processes go according to plan. Stakeholders play a great role in the running and rejuvenation of business transactions. However, stakeholder identification and prioritization should be the prerogative of top level management in businesses (Parent and Deephouse, 2007).

Two important strategies that could be used to enhance better buy-in within the AU are a structured approach and mapping out advocacy. Since the AU is an organization that exists to be of service to a massive continent with over 50 member-states, laying the foundations for advocacy groups that will relay vital communiqués and other organizational decrees will help streamline the mapping of intended actions and procedures. Mapping out advocacy entails ensuring identified stakeholders that are at ease and in good terms with proposed strategy or activity. Having a structured approach will help affect a strategy that is conducive to the environment and major stakeholders.

References

Hanson, S. (2009). Backgrounder: The African Union. Retrieved from http://www.cfr.org/africa/african-union/p11616

Gousseau, K. (2008, July 22). Seniors key concern in strategic planning: Stakeholder meeting in city Thursday. Alaska Highway News, A.1.

Parent, M. M., & Deephouse, D. L. (2007). A case study of stakeholder identification and prioritization by managers. Journal of Business Ethics, 75(1), 1–23.

Dewhurst, S., & Fitzpatrick, L. (2005). Turning stakeholders into advocates. Strategic Communication Management, 9(6), 6–7.

Brugha, R., & Varvasovszky, Z. (2000). Stakeholder analysis: A review. Health Policy and Planning, 15(3): 239–246.

Strategic Planning and Internal Factors

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The African Union (AU), formerly the Organization of African Unity (OAU) was founded on 25 May, 1963 with the aim of improving the political, economic, and cultural aspects of the continent. OAU changed name in 2002 to become the AU. It’s headquartered in Addis Ababa, Ethiopia (Hanson, 2009). The AU is made up of political and administrative bodies. Heads of States meet yearly to deliberate on important topics that are exclusive to the continent. The Kingdom of Morocco is not a member of the AU because it disputes the membership of Western Sahara, also called the Sahrawi Arab Democratic Republic. The Union’s internal environment is populated by member representatives heading various departmental positions.

Internal factors that often cause friction and dissent among member states include disagreeing on specific volatile issues like voting on matters that may be of particular importance to a certain state but detested by another. Member representatives may disagree on how money donated by donor nations is dispensed. The governing style espoused by a chairman may not be acceptable to others. For example, the current chairman of the AU is Teodoro Obiang Nguema Mbasogo, the president of Equatorial Guinea who came to power by the barrel of the gun. A corrupt and ruthless dictator, President Obiang heads an oil rich state whose citizens live in abject poverty. The Union is struggling with ambitious internal reforms that include security, trade liberalization, sustainable use of natural resources and energy, food security, and climate change and immigration (Laporte and Mackie, 2010).

The main actors of the AU have been drawn from nations that were at one time or the other colonized by colonial powers Britain, France, Italy, and Portugal respectively. To the north are the mainly Arabic speaking states of Egypt, Tunisia, Algeria, and Mauritania. Cultural differences among leaders often lead to misunderstandings and confusion.

References

Laporte, G. and Mackie, G. (2010).Towards a strong African Union: what are the next steps and what role can the EU play? Retrieved from www.ecdpm.org/pmr18

Hanson, S. (2009). Backgrounder: The African Union. Retrieved from http://www.cfr.org/africa/african-union/p11616

Impact of Internal Factors on Strategic planning

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Formerly known as the Organization of African Unity (OAU), the African Union (AU), the subject of my final paper, was founded in 963 in Addis Ababa, Ethiopia. It changed name in 2002 to its current name. It was founded on the basis of spearheading pan-Africanism though lately it has transformed itself into a behemoth organization that stands for continental unity, sustainable development, and economic equilibrium in an expansive sphere of the globe beset by a cornucopia of human and natural disasters (Adogamhe, 2008,). The African Union is representative of people of various nationalities and diverse cultures that include black tribal communities, a minority White race, and a sizable number of societies belonging to the Arab race. It represents various social groups speaking hundreds of vernaculars and colonial languages that include Portuguese, English, Spanish, English, and French respectively.

To date, there are eighteen strategic objectives that drive the Union’s pursuit of its desired goals. In its executive summary, the Union’s comprehensive strategic objectives include programs that highlight the importance of peace and security, development, integration, cooperation, shared values, and program for institutional and capacity building (Ping, 2009). A breakdown of the Union’s SWOT analysis specifies many negative and positive aspects. Some of its strengths include the integration of the fifty-three union members, having the mandate to make arrangements for existing institutions, having distinguished recognition in the international community of nations, a leadership that strives to implement changes, shared values that rest on the philosophy of pan-Africanism, and the capacity to call all members to a projected venue whenever required. The weaknesses that plagues the Union include challenges in administration and management, lack of funds and resources, missing rigid infrastructure, shortage of professionals, lack of commitment, missing teamwork, uncertified or weak information technology resulting from weak processes. Some opportunities that are of advantage to the Union's smooth running and operation include empowering women, gesture of goodwill and benevolence by mindful partners, expectations in the restructuring of its financial structure, and the need to speak in one voice. Threats include uncontrollable pandemics, limited resources, marginalization and gender inequality, sporadic outbreak of conflicts and unpredictable internecine warfare, stagnated economy, and scarcity or lack of commodities.

Directing an organization to the right course without having a systematic management plan can be a daunting task. According to Sherman (2007), the use of strategic management in organizations has been in place for over a century. In modern times, the proliferation of literature exclusive to strategic management and planning coupled with the presence of educational institutions of higher learning have set the stage for drastic revolutionary changes in a world brimming with technological advancement and knowledge. Besides spearheading strategic management, organizations need to endorse strategic management by highlighting the importance of strategic planning, performance measurement, integrated business planning, management reporting, and organizational culture reward systems (Aguilar, 2003).

The Union's internal organizational environment is populated by member states having differing leadership styles and poor governing approaches that is the cause of the appalling human development statistics. Undemocratic governing practices, abuse of office and widespread corruption, absence of accountability, state repression, appalling human rights records, financial instability, and missing regulatory frameworks remain an impediment in many African governments. Each and every African state has a representation at the Union headquarters in Addis Ababa and at the pan-African legislative assembly in Midrand, South Africa. A rotating chairmanship allows every African head of state to hold the helm at the approach of term. Within the Union there are those leaders that harbor suspicion and betrayal by not conforming to the Union’s code of ethics. Despite a handful of states espousing democracy as the preferred system of governance, on the other hand, there are those whose governing ideals rest on the advancement of feudalism, theocracy, and dictatorship which is cause for the derailment of many contentious issues.

Most African states evolved from the ashes of Anglo-Franco colonialism that dissipated when many African leaders who pioneered their nations’ right to self-determination stepped into the shoes of their former colonial masters. The newly emerged African leaders that took over the helm did little to transform the political, social, and economic sectors that required resuscitation. Instead, they embarked on the suppression of civil society leaving destruction in their wake. The divisions left behind by the colonial masters created a new social order deficient of political, social, and economic willpower. Thus, the vestiges of colonialism left a lot to be desired. Even to this day, African heads of states remain inclined to their former colonial powers militarily and economically. The schisms that exist within the AU’s inner circles deserve rectification before any leap forward can be attempted.

References

Adogamhe, P.G. (2008). Pan-Africanism revisited: Vision and Reality of African unity and development. African Review of Integration, Vol. 2 No. 2, July 2008.

Aguilar, O. (2003). How strategic performance is helping companies create business value. Strategic Finance, 84(7), 44-49.

Ping, J. (2009). African Union Commission: Strategic plan 2009-202. Retrieved from http://www.au.int/en/sites/default/files/Strategic_Plan2009-2012.pdf

Sherman, H., Rowley, D.J., & Armandi, B.R. (2007). Developing a strategic profile: The pre-planning of strategic management. Business Strategy Series, 8(3), 162-171.

S.W.O.T Analysis

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The Kansas City Missouri School District was founded in 1876 with the intention of providing education to the children of the residents of Kansas City. Initially, the school district started with 2,150 students. Prior to the current prevailing conditions, the school district employed 2,300 teachers who were responsible for the education of a staggering 17,400 students from all walks of life (KCMSD, 2011). Currently, the school district is without accreditation and that its fate remains in the hands of the state. Power jostling, self-interest, greed, and infighting among the leaders of the school district resulted in KCMSD losing its accreditation (Clark, 2011). Poor strategic planning and unregulated learning strategies, and dismal performances by the students in general education are some other factors that plunged the school district in to its current legal quagmire.

The term S.W.O.T is an abbreviation for Strengths, Weaknesses, Opportunities, and Threats and is an important tool in determining how an organization functions. As for strength, KCMSD lacks financial capability, philosophy and value, and accreditation and qualification features; it is short of the required cultural, attitudinal, and behavioral aspects because of the prevalence of power jostling, self-interest, and greed within the governing board. Dr. Covington, an African-American and former superintendent of the school district, resigned hurriedly and unexpectedly in 2010 (Resmovits, 2011). He was replaced by Dr. Steven Green (Seward, 2011), also an African-American who is faced with the heavy task of reestablishing himself in an atmosphere of opposition and suspicion. There is visible weakness in how the school district is administered-weaknesses that emanate from gaps in capabilities coupled with poor morale, commitment, and leadership. Incompetency on the part of the school district leadership and pressure from parents and the state result in general vulnerabilities.

Some of the opportunities that could enhance the smooth operations of the KCMSD include making use of existing technology and other existing innovative ideas. Relevant threats that need to be curtailed include political, legislative, and environmental effects. The school district is expected to make drastic changes and make complete overhaul to the factors that led to its loss of accreditation in a two-year period. Failure to do so will result in the intervention of the state and the court system. The school district has the potential to succeed by effectively utilizing money given by the state, making comprehensive annual reports, abiding by the fundamental principles of finance, avoiding misappropriation of funds, and regularly abiding by existing mandates.

References

Clark, M. (Sept. 20, 2011). Missouri Department of Elementary Education. State board reclassifies KCMSD to unaccredited. News releases Vol. 45, No. 79. Retrieved from http://dese.mo.gov/news/2011/kcmsdaccreditation.htm

Kansas City, Missouri Schools District (2011). About KCMSD. Retrieved from http://www2.kcmsd.net/Pages/AboutKCMSD.aspx

Resmovits, Joy (August 26, 2011). John Covington, Kansas City Superintendent, Resigns Suddenly Amid School Board Drama. http://www.huffingtonpost.com/2011/08/25/john-covington-resigns-kansas-city_n_937241.html

Seward, L. (August 31, 2011). Dr. Steve Green is Kansas City Missouri School District's new interim superintendent. http://www.nbcactionnews.com/dpp/news/education/dr-steve-green-is-named-kansas-city-missouri-school-district-interim-superintendent

Comprehensive Financial Annual Report (CAFR)

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Formed in the sprawling suburbs of Addis Ababa, Ethiopia, in 1963 under the tutelage of the renowned Statesman Haile Selassie, the Organization of Africa Unity changed named in 2002 to become the African Union (AU). The AU was formed exclusively to spearhead social, economic, and cultural values in the African continent that is populated by diverse communities speaking various vernaculars and divided along colonial powers Italy, Britain, Portugal, and France respectively.

A Comprehensive Financial Annual Report (CAFR) is a large document that is produced by organizations to provide vital information to officials, citizens, auditors, and investors (Mikesell, 2011, pp. 77). It is a report that is available to the general public and generally documents how funds are dispensed and accounts utilized. The AU's CAFR is one collected from a broad range of willing donors that include the United States, the European Union, and member states whose economies show signs of stability. The money collected in the form of aid is then used to serve the various departments that are part of the Union. Some of the aid coming from donor nations is used to fight pandemics and keep peace in volatile regions of the world such as in Somalia, Darfur, and other conflict prone areas of the mighty continent. Poor tax collection, bleak transparency index, misuse of resources, widespread corruption, and mismanagement are some factors that make the Union financial to operate below average and show signs of decline.

The report is geared towards giving donors vital information on how finances are utilized and how transparency and poverty reduction is being tackled. A $200 million budget was released in 2010 to finance various developmental projects. 30% of that money was earmarked for restoration of peace in afflicted areas, 77% for development, and 10% for fighting corruption (Tekle, Sudan Tribune, January 31, 2010). Citing Schick (1998), Sophia (2002) explains that the budget composition of poor countries within the continent is by far different from those of developed countries. An aspect know as the common pool problem where officials involved in the budget decision-making process fight over public resources hamper efforts to distribute or dispense finances equally (Sophia, 2002). The African Union budgetary processes suffers unrealistic budgeting where the budget is commonly accepted as a farce, hidden budgeting where the budget is known to a select few, and escapist budgeting where expenditure is authorized while knowing it will never materialize. Unpredictable governments hinder stakeholders’ prospects of comprehending its aims, objectives, and outcomes.

References

Mikesell, J.L. (2011). Fiscal Administration: Analysis and applications for the public sector (8th ed.). Boston, MA: Wordsworth Cengage Learning.

Sophia, G. (2002). Budget Institutions and Fiscal Performance in Africa. Center for Research in Economic Development and International Trade, University of Nottingham. Retrieved from http://www.nottingham.ac.uk/credit/documents/papers/10-02.pdf

Schick, A. (1998) A Contemporary Approach to Public Expenditure Management: World Bank Institute.

Tekle, T.A. (Sudan Tribune, January 31, 2010). USD 200 million agreed for 2010 Africa Union Budget. Retrieved from http://www.sudantribune.com/USD-200-million-agreed-for-2010,33967

Balancing Budget

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The best way to overcome budget deficits is through spending cuts or raising taxes (Yaya, 2010). Citing Buchanan and Wagner (1978), Yaya (2010) contends that an increase in taxes could be a remedy for deficits. There is agreement among economists that balancing the budget would allow interest rates to fall, savings and investment to go up, trade deficit to contract and the economy to grow more rapidly over a longer period of time. However, that is not the case for congressional leaders who have made budget balancing a subject of furious debate every time the issue is raised up for discussion. Budget balancing may not be good for every American. A good number of Americans, especially those of lower income who disproportionately rely on government assistance could be affected if the budget is balanced. Balancing the budget may have ramifications at times. Results may vary from year to year for different households and things could go distorted.

Whenever a budget is balanced, there always emerge winners and losers. Beneficiaries include those who benefit from tax breaks, families with young children who benefit through income tax breaks, college students aided by tuition tax credits and higher scholarship grants, and investors who gain from selling stocks and bonds. Balancing the budget is a very difficult issue to deal with. The recent stand-off between President Barack Obama and Speaker Boehner shows how American leaders often times fail to reach consensus on budgetary issues despite seeing the explosive rise in national debt.

References

Yaya, K. (2010). Budget balance through revenue or spending adjustments? An economic analysis of the Ivorian budgetary process, 1960-2005. Journal of Economics and International Finance Vol. 2(1) pp. 001-011.

Buchanan, J.M. and Wagner, R.W. (1978). Dialogues concerning fiscal religion., J. Mon. Econ., 4: 627-636.

The African Union Stakeholder Analysis

Formerly the Organization of African Union (OAU) and founded in 1963 under the auspices of the former emperor of Ethiopia Haile Selassie, OAU changed named in 2002 to become the African Union (AU). With headquarters in Addis Ababa, the capital of Ethiopia, AU constitutes over fifty states excluding the Maghreb kingdom of Morocco. Stakeholder analysis can be used as a tool to determine the purpose and information to be used and help focus on more or various dimensions that will help set the stage for analyzing past, present, near or distant events (Brugha and Varvasovszky, 2000). Since the AU is an amalgamation of third world nations and that it cannot sustain its commitments to the continent by itself, there are economically powerful nations such as those in the western hemisphere that make it operational by providing the necessary financial resources and military gear.

Making stakeholders out of advocates requires a structured approach, mapping out advocacy, and finally closing the gap (Dewhurst and Fitzpatrick, 2005). Of the various organs of the AU, the most important stakeholders that make the organization effective include the Assembly, the Executive Council, and the Pan-African Parliament. However, it is the Assembly that holds the banner for the AU as it is thus far the most important stakeholder in policy implementations. The Assembly is the gathering of Heads of States who converge at a certain venue once every year to deliberate on the issues affecting the continent. The Assembly has the power to expel any rebel state from the Union for a certain period of time. The Executive Council gets directives from the Assembly on matters pertaining to war and restoration of peace by supplying peacekeeping troops where applicable especially in conflict-prone areas. Also, it is the prerogative of the Assembly to appoint the African Court of Justice Members and the Chairman of the Commission. As for the Executive Council, ministers are drawn from member states and they deliberate on certain areas that include foreign trade, social security implementations, agriculture and food subsidies and communication.

The three stakeholders described above work in concert to create a common ground for spearheading the interests of member states. They generally constitute an assemblage with common interests that include a governing body, a union, and interest groups. They are bound by a charter which is inviolable and commensurate with union legislation. However, some countries may have leverage over others for providing the financial means necessary for driving the activities. An example of a country that enjoyed greater influence in the Union was the North African state of Libya whose previous leader, Muammar Gaddafi, shone above every other leader because he spent a lot of money either for a just cause or through using manipulative means to drive a particular agenda to his advantage. Muammar Gaddafi’s economic clout enabled the Union to have a sponsor to give it legitimacy.

By striving and working collectively the AU has developed an initial agreement which is to advance the political, economic, and cultural values of the nations that constitute the broader union. This system has materialized since the founding of the Union in 1963. Finding the right people has been made possible by the various branch members that come together at certain times of the year to choose the right people for the right functions. So far, the Union has had tangible process-oriented outcomes in its determination to succeed. The Union has a process guideline which is separation of powers as in a democratic institution where every level of government strives to reach required expectations while keeping in touch now and then to sort out differences. The level of support given by the sponsor and the joint workings of the three branches is what is giving the Union legitimacy while at the same time driving it to the right course. The participation of stakeholders in the Union increases the chances of buy-in and commitment. Co-optation is another aspect that makes the Union to succeed in its endeavours.

References

Brugha, R & Varvasovszky, Z. (2000). Stakeholder analysis: A review. Health policy and planning, 15(3): 239-246.

Dewhurst, S. & Fitzpatrick, L. (2005). Turning stakeholders into advocates. Strategic communication management, 9(6), 6-7.

Stakeholder

Stakeholders are a group of people united by a common objective especially when working together to accomplish a common goal. The smooth running of any organization depends on how stakeholders effectively utilize available management tools and any success they usher in will affect many people who will be attracted to the organization’s keen interpretation of its existing vision and mission statements. Stakeholder analysis helps identify the right stakeholders for the right positions. There are benefits to using the stakeholder-based approach which is using the opinions of stakeholders in shaping the destiny of an organization at an early stage. Likewise, getting the help of influential and experienced stakeholders will assist in gathering resources and also will in the end make all project implementations successful. The most important action to take is to communicate with stakeholders at an early stage so that they can comprehend the nature of your project and give support where and when necessary. It is necessary to have a plan for your project so that people can understand where you are headed to. According to Bryson (2004), having a false impression of one’s stakeholders can cause a dilemma for an organization. Some unique characteristics of shareholders include having an understanding of the required context and understanding the nature of the people involved.

Stakeholders in a project may be your boss, co-workers, and customers; they can be shareholders, analysts, lenders, or suppliers; they could be trade associations, the public, the community, or interest groups (Rachel, 2011). To better understand and monitor stakeholder interest in your project, it is best to utilize Power/Interest Grid for prioritization. They can be classified as such: low power and high power and low interest and high interest. In high power, these are the interest group that you will need to monitor. You will need to satisfy and engage the high power group as much as you can. The high power-less interested group deserve to be engaged but not pushed too hard or else they feel uninterested in the message you are trying to convey. The low power-interested group needs to be sufficiently informed of the project by constantly making them aware of the ongoing processes. The low power-less interested group deserve monitoring without being bored with excessive communication.


References

Bryson, J. M. (2004). Strategic planning for public and nonprofit organizations: A guide to strengthening and sustaining organizational achievement (3rd ed.). San Francisco: Jossey-Bass.

Rachel, T. (2011). Stakeholder analysis: Winning support for your projects. Retrieved from http://www.mindtools.com/pages/article/newPPM_07.htm

Managing Money

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Nations, regardless of system of governance or financial capability, have to be prepared for disasters whose catastrophic impacts are hard to prognosticate. Almost every year, the world experiences disasters of various magnitudes that include devastating tsunamis, earthquakes of different dimensions, hurricanes that inundate vast stretches of lands, contagious diseases that spread beyond borders, civil wars that kill and displace undisclosed number of people, and volcano eruptions that spread beyond control with geothermal implications.

The Federal Emergency Management Agency (FEMA) is a U.S. Government public organization that provides emergency assistance to state, local, and non-profit organizations. Former president Jimmy Carter created FEMA by executive order on March 30, 1979 (Woolley, 2005). FEMA is part of the Department of Homeland Security headed by Janet Napolitano. It was founded for the sake of averting disasters or triumphing over natural or human-made disasters (Adamski, Kline, & Tyrell, 2006). In its fiscal year 2011 budget, the Department of Homeland Security allocated 15% of its budget of $56,335,737,000 (a 2% increase over 2010 FY) for use by FEMA boosted by a further 7% grants (DHS, 2011). However, due to increased natural disasters, FEMA at times finds itself suffering austere measures that lead to budget deficits. Usually, it is Congress that passes appropriation bills thereafter to be signed by the president so that it becomes a law. Conversely, the president has the power to veto a bill or sign it in its entirety (Mikesell, 2011). Before appropriations are made for a FY, federal agencies may continue functioning through continuing resolution.

In order to succeed in its commitment to the public it serves, FEMA has to have the necessary tools and financial resources required to accomplish its goals and expectations. Since FEMA is a public not-for-profit organization that solely relies on the U.S. Government for its budgetary and other financial needs to combat disasters, it is prudent that accountability be considered with utmost importance to safeguard dwindling resources in case of economic meltdowns. Because the money provided by the government to FEMA is generated from businesses and the public through taxation, it is equally important for FEMA to ensure public services is distributed in the most applicable manner without hindrances of any sorts. According to Mikesell (2011), a budget is a valuable document that is fundamental in the way an organization is managed. Budgets apply differently to public and private organizations. Besides government, FEMA generates its budgetary needs from well-wishers and donors especially when catastrophes strike.

References

Adamski, T., Kline, B., & Tyrell, T. (2006). FEMA Reorganization and the Response to Hurricane Disaster Relief. Perspectives in Public Affairs. Vol. 3, Spring 2006.

DHS (2011). FY 2011 budget-in-brief. Retrieved from http://www.dhs.gov/xlibrary/assets/budget_bib_fy2011.pdf

Mikesell, J. (2011). Fiscal administration: Analysis and applications for the public sector (8th Ed.). Boston, MA: Wadsworth Cengage Learning.

Woolley, L. (2005). FEMA-Disaster of an emergency. Retrieved from http://archive.newsmax.com/archives/articles/2005/9/12/102827.shtml

Leadership, Ethics, and Money Matters

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Every year, many organizations suffer misappropriation of funds and white collar crimes of various dimensions that are either prosecuted in courts of law or neglected altogether due to laxity of organizational rules and regulations. Such improper behaviors resulting from poor book keeping and distorted accounting procedures ultimately result in the loss of millions of dollars. According to Franklin and Raadschelders (2004), bureaucracy can cause hardships on a state's economy. Political and self-interests are some factors that can impede budgetary operations of a state like in Oklahoma where disproportional distribution of services, kickbacks, unethical behaviors, and corruption have been the norm for some time. Budgetary wranglings is not limited to the state of Oklahoma only. In essence, it is a widespread practice that can be found in both private and governmental organizations. Bureaucrats or office-bearers driven by the desire to get-rich-quick have caused bankruptcies to many financially stable organizations. Failure to uphold constitutional values, conflicting ideologies, disregard for budgetary control and mismanagement are some of the causes that lead to budgetary breakdowns. According to DeThomas, Oliver, and Seereiter (1987), organizational success can be achieved by laying down an impressive financial planning that will serve as a guiding force.

Corporate financial scandal has become a global problem and that it is not limited to the U.S. alone. The latest financial scandal that shook Australasia happened in Victoria, a region of Australia. Located in the city of Melbourne, Sonray Capital Markets Pty Ltd. is a marketing company that deals in investments, derivatives, futures, and international and domestic equities. Former CEO of Sonray, Scott Murray, started a two-year jail-term without the prospect of parole for deliberately shuffling client money from one account to another leading to the subsequent collapse of Sonray in June of 2010. In total, Sonray lost a staggering $46.7 million (Wood, 2011). According to court documents, Murray, working surreptitiously in cahoot with his boss Russell Johnson, dragged money belonging to clients to Sonray's operating budget. This was done to rectify the financial afflictions faced by Sonray and also to fulfill the directives of his immediate boss who, in a separate court proceeding, was also charged with twenty-four counts including conspiracy to commit theft and making false accounting.

In order to resolve past financial follies, Sonray Capital Markets Pty Ltd. has hired a new external administrator who is tasked with overseeing its day to day activities until such a time when it can be determined if it can continue with its normal operations or go into liquidation. The new administrator has set up a line of communication that include telephone numbers, a postal address number, and a web site with e-mail addresses exclusively for people intending to lodge grievances. This is a commendable action as it will help Sonray deal with shareholders, creditors, and employees in an amicable manner without resorting to grueling court proceedings that could result in challenging financial settlements.

References

DeThomas, A., Oliver, J., & Seereiter, D. (1987). Designing the strategic financial planning system. American Business Review, 5(2), 23–31.

Franklin, A. L., & Raadschelders, J. C. (2004). Ethics in local government budgeting: Is there a gap between theory and practice? Public Administration Quarterly, 27(4), 456–490.

Woods, L (2010). CEO jailed for Sonray theft. Retrieved from http://www.theage.com.au/business/ceo-jailed-for-sonray-theft-20111014-1lp77.html

Comparing and Contrasting Levels of Government

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Budgets for the three levels of government often perform the same regardless of the scope of government though there could be variations in the size of earmarked budgetary allocations according to demand and population. According to Mikesell (2011), it all depends on how the entity pays particular attention to the demands and foundations of the institution to be funded. Budget allocation is the prerogative of select government appropriation officials who often debate on subjects related to what to spend, where to spend, when to spend, and how to spend. At the federal level, it is Congress that debates on government budgetary needs before sending their final bill to the president for approval. In the end, the president may approve it by signing it into law or veto it out-rightly. In the U.S., there are financing committees known as the Senate Finance and House and Ways Means committees that have leverage over federal tax and revenue measures (Mikesell, 2011). In essence, as a measure of easing work, the appropriation committee gets help from subcommittees that assist in making the necessary budget for federal operations. In the U.S., the two largest federal budget entitlements are Social Security and Medicare that are primarily for the elderly. Medicaid, a program that has been established to serve the needy receives 12.5 percent mandatory spending and is the third largest entitlement. Most government spending comes from tax cuts (Mikesell, 2011).

At the state and local governments, expenditures are geared towards general public needs and that is the delivery of health and sanitary needs, educational enrichment, and welfare and public safety measures. Unlike the national government that has a broader reach in international affairs related to dispute resolution, state governments put greater consideration to the attainment of fiscal stability by tending to the needs of local governments. The largest recipient of local government expenditure goes to primary and secondary education (Mikesell, 2011). Public welfare programs receive the largest share of state budgets. Governments-federal, state, and local-generate their expenditures from taxes levied from income taxes, payroll taxes, capital gains taxes, wealth taxes, property taxes, corporate taxes, and estate and excise taxes (Taxes and Government Spending, 2011). A state may use innovative ideas of dispensing its money without causing harm to the rest of the national economy.

At the local level, departmental heads prepare Christmas lists that are devoid of executive guidance and at times unreliable in context. Some important features that make local governments perform well in their fiscal policies when executed efficiently include choices and responsiveness, citizen participation in decision-making, accountability, improved revenue mobilization, and easier monitoring of results (Shah, 2007).

References

Mikesell, J. (2011). Fiscal administration: Analysis and applications for the public sector (8th Ed.). Boston, MA: Wadsworth Cengage Learning.

Taxes and government spending (2011). Retrieved from http://www.libraryindex.com/pages/1309/Taxes-Government-Spending-OVERVIEW.html

Shah, A. (Ed., 2007). Public sector governance and accountability series: Local budgeting. The International Bank for Reconstruction and Development. World Bank. Washington, DC

Strategic Planning

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Strategy is defined as a policy or stratagem while planning connotes to mean preparation, scheduling, or arrangement. Thus, strategic planning, entails having a complete approach that is capable of producing realistic and positive results when applied to an organization. Strategic planning that has been prearranged before application is a crucial tool that helps alleviate future misconceptions and organizational breakdowns. According to Bryson (2004), strategic planning involves carrying out elemental decisions for safeguarding implementations necessary for running an organization or entity for the present and for posterity. Strategic planning that lacks preparation, dexterity, group support, and group effort may not hold long and end up in failure. Strategic planning is best applicable when focus is given to present and future organizational expectations having success and productivity in mind.

The Kansas City, Kansas Public Library’s mission statement is one geared towards connecting communities by coming up with the required tools, resources, and creating the factors that help enrich the lives of the inhabitants of Wyandotte County (KCKPL, 2010). Its vision calls for striving to become the frontrunner in the dissemination of information and knowledge in the State of Kansas. KCPLS’s desire is to disseminate knowledge and create a healthy, educated society. The use of intelligence and profound marketing strategies can be useful when implementing strategic planning (Weier, 2008). KCKPL’s strategic planning is a flexible one that is susceptible to change depending on the needs of its patrons, stakeholders, and employees.

KCPL is struggling to shine in an atmosphere of competition where libraries abound. Levy increases will be deliberated by a board before implementation. Some of the new strategies to be included in the library’s strategic plans include library charges for the purchase of new products, self-registration features for patrons, new informational brochures, and the crossing out of old bills as a gesture of goodwill for library patrons confounded by financial hardships. The library is determined to introduce PlayStation, Wii, Kindle, and Gameboy after assessing patron needs.

References

Bryson, J. M. (2004). Strategic planning for public and nonprofit organizations: A guide to strengthening and sustaining organizational achievement (3rd ed.). San Francisco: Jossey-Bass.

KCKPL (2010). Strategic plan 2010-2012. Retrieved from http://www.kckpl.lib.ks.us/documents/2010_2012_approved_strategic_plan.pdf


Weier, M. H. (2008). Collaboration and the new product imperative. InformationWeek, 1195, 26–30, 32.

Motivational Factors in Leadership

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The success of any organization, whether public or private, depends on the effective use of strategic planning. According to McNamara (2010), there are various organizational strategic planning models. Charting a strategic plan depends on the purpose, plan of action, culture of organization, and existing environmental conditions. Since organizations exist to serve their clients, there has to be a comprehensive, broad-based, and long-term strategy to serve as navigational aid. Almost all organizations have vision and mission statements.

McNamara (2010) argues that models one and two are vital to smaller businesses while model three is ideal for organizations looking toward implementing solid foundations and planning to expand their working strategies. Often, newly-founded non-profit organizations lack the expertise to look forward to new changes and challenges and that they simply stick to their initial plans at the time the organization was founded. Vision entails having the prudence to see further afield and make new additions that are deemed necessary. On the other hand, goals are list of items that have to be accomplished in a certain period of time despite projected handicaps. In model three, whatever is causing organizational stoppages will have to be lubricated and fine-tuned to enable freedom of movement and operation of personnel and machinery. What is known as scenario planning or model four may be incorporated with other models for successful strategic planning.

The nature of leadership style that exists in an organization should be taken into context when implementing strategic planning. Leadership styles will have to be adjusted to be acceptable to the planning process. Leadership styles come in various styles: transformational, transactional, and situational. One non-profit organization that I was involved with overseas had a transformational leader. One vital motivational factor in any organization is seeing there is continuous, sustained developmental growth. As long as the organization is on the right path in its firm commitment to production, internal and external forces will be assured that the future is bright. Growth and production are interrelated and will have to be watched carefully.

A second motivational factor is caring for the customers that make the organization’s operations possible. Targeting customers in the most applicable manner and giving them appealing products leads to satisfaction and trust. The third motivational factor is the management that is responsible for running the organization. Management will have to undergo training so they understand the operational procedures of the organization and how best to leap further from the current stagnation. According to Bryson (2004), vision, goals, and issues require developing objectives in various ways and places.

References

McNamara, C. (2010). Basic overview of various strategic planning models. Free Management Library. Retrieved from http://managementhelp.org/strategicplanning/models.htm

Bryson, J. (2004). Strategic planning for public and nonprofit organizations: A guide to
strengthening and sustaining organizational achievement (3rd ed.). San Francisco: Jossey-Bass.

Collaboration, Coordination, and Cooperation

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In modern times, collaboration, coordination, and cooperation are three leadership concepts widely used in organizational management. If used effectively, these three concepts increase productivity, augment better communication procedures, and enhance better working atmosphere. According to Stein (1982), coordination allows different actors to converge at equal equilibriums. Thus, coordination is an arbitrary convention where no actor wishes to lose in case of market competition. Often, actors adapt contextual rules where for example, like in an intersection, drivers avoid head-on collision. In this case, both coordinate a plan that allow one driver to proceed while the other yields. Coordination enables leaders having strategic plans to bring together various sectors of an organization under one umbrella without harming the autonomous working principles of each and every segment.

Collaboration is an important working feature that embodies teamwork, partnership, alliance or group effort in ensuring the success of any organization. The exclusion of one group in a collaborative network is cause for failure and a deviation or departure from traditional working relationships (Thompson, Perry & Miller, 2009). According to Sharma and Kearins (2010), collaboration among members develops an enhanced understanding of the economic, social, and environmental factors that may be affecting an organization. However, according to Prins (2010), moving away from competition to collaboration may lead to drifting from initial objectives and multi-stakeholder approach attributable to apprehension of an embryonic process. This can happen when parties are driven by self-interest and not organizational goals and expectations. Sincerity has to flourish among stakeholders when instituting collaborative endeavors or else there will be nothing to salvage if disingenuousness prevails.

Cooperation entails working together in an atmosphere of compliance while having organizational goals and expectations at heart. Cooperation is a synchronous movement practiced among groups with identical agenda. Armies move in marching order as a mark of discipline; churches have choirs that sing in harmonious synchrony; and corporations work in concert to achieve positive outcomes (Wiltermuth & Heath, 2008). Cooperation has been so effective in the last few decades mainly as a result of increased human interaction, improved communication, and the rise of globalization. We often hear phrases like departmental cooperation, international cooperation, social cooperation, cross-border cooperation, religious cooperation, military cooperation, and organizational-level cooperation to refer to humans joining hands to break a barrier and reach success. When collaboration, coordination, and cooperation become tripartite working impressions in organizations, increased harmonious relationships and enhanced productivity will prevail.

References

Prins, L. (2010). From competition to collaboration: Critical challenges and dynamics in multiparty collaboration. The Journal of Applied Behavioral Science. Vol. 46, 3: pp. 281-312

Stein, A.A. (1982). Coordination and collaboration: Regimes in an anarchic world. International Organization. Vol. 36, No. 2pp. 299-324.

Thompson, A.M., Perry, J.L., & Miller, T.K. (2009). Conceptualizing and measuring collaboration. Journal of public administration research theory. Volume 19, Issue1, Pp. 23-56.

Sharma, A. & Kearins, K. (2010). Interorganizational collaboration for regional sustainability: What happens when organizational representatives come together? Journal of Applied Behavioral Science. Vol. 47 no. 2 168-203.

Wiltermuth, S.S., & Heath C. (2008). Research report: Synchrony and cooperation.
Department of Organizational Behavior, Stanford University. Volume 20—Number 1. Retrieved from http://personal.stevens.edu/~ysakamot/175/paper/synchrony.pdf

When Leaders Resist Change

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Today’s leadership is confounded by a plethora of problems that need to be addressed if genuine organizational change is to be affected. One major obstacle to organizational change is the constant resistance to change that has become a daily occurrence and an enigma to all sorts of development. Most often, leaders, management, and lower level employees may resist organizational changes simply because of fear of being exposed to something new that they deem unnecessary or infringing on their previous working styles. A new environment that comes with alterations may not be welcoming to some individuals in a workplace.

Any leader whose goal is to effect new changes to an organization will need to be armed with some valuable philosophical resources to overcome perceptions harbored by some employees in the workplace. Since leadership is a personal characteristic that calls for persuasion and having an embodiment of vision and reflection, in the pre-launch phase, undergoing thorough self-examination could be an added advantage (Burke, 2011). Because undergoing organizational change can be messy and at times chaotic, having self-control, understanding employee behavioral changes, and inculcating tolerance could be vital tools for the pre-launch execution phase.

In the pre-launch phase, understanding the external environment of the organization is a means to improving relations with all people that have dealings with the organization. Coming up with priorities to institute change and providing vision and direction is a means to laying a platform for catapulting to the next phase. Effective leaders who have the trust of their followers have the best chance of succeeding when equipped with appealing behaviors and theoretically reflective foundations that serve as beacons for navigational purposes.

In the launch phase, the best equipment to stretch out immaculately in the launch pad will be effective communication tools. After all is ready for launching, there will be a need for further implementation and inspection of all available facilities to avoid last minute malfunction. In this phase, it should be noted that there will be extreme anxiety or excitement that can only be overcome with the application of scrupulous decision making. What comes after the launch phase will be the post-launch phase that will require collective perseverance and consistent scrutiny.

References

Burke, W. W. (2011). Organization change: Theory and practice (3rd ed.). Thousand Oaks, CA: SAGE Publications.

Corporate Responsibility

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Leadership of the yesteryears is quite different from today’s modern leadership styles that are mainly driven by the volumes of advanced literary writings that are widely available in electronic and in print form and the technological innovation we see sweeping across the globe. Modern academia has played a great role in shaping the various leadership styles currently in use in the running of organizations driven by massive globalization. As the nature of leadership changes by day, one trend that needs to be addressed thoroughly is the great imbalance between majority and minority groups in the running of government institutions, corporations, and international organizations.

For a long time, minority groups have suffered the effects of stratification and marginalization imposed on them by majority groups wielding considerable power and influence in government and in the private sector. There is a tendency for plurality groups to feel threatened when they are excluded from power yet they don’t allow minority groups a share of power (Fearon, Kasara & Laitin, 2006).

Organizations have a responsibility to the societies that make their existence possible. Corporate social responsibility has been accelerated by changing trends in global business and the arrival of globalization. While society plays a great role in the proliferation of corporations worldwide, likewise, corporations have a responsibility to elevate the living conditions of society through the provision of education, healthcare services, environmental protection, infrastructure development, and delivery of clean water and other humanitarian services.

References

Fearon, J., Kasara, K., & Laitin, D. (2006). Ethnic minority rule and civil war onset. Stanford University. Retrieved from www.stanford.edu/~jfearon/papers/fearonkasaralaitin3.doc

Hopkins, M. (2004). Policy integration department world commission on the social dimension of globalization. International Labor Office, Geneva. Retrieved from http://www.ilo.org/legacy/english/integration/download/publicat/4_3_285_wcsdg-wp-27.pdf

Social Responsibility

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In modern times, social change has become a vital tool for use in advancing the needs of society. Generally, social changes exist in various forms and can have positive or negative consequences. Social change, depending on impact, is a term implying changes in social, economic, religious, or political conditions. An example of social change is what is known as corporate social responsibility. This is when corporations engaged in philanthropy give back to society for the sake of maintaining societal health and foster close cooperation. Firestone, the great American tire manufacturer, in its pursuit of the precious rubber used in the manufacture of the durable tires we use in our cars, has been castigated for the tremendous environmental destruction it has wrought on the West African nation of Liberia (Makina, 2011). Rather than giving back something precious in return, Firestone has imposed on the land and the people of Liberia an environmental hazard that will take years to remedy. Firestone’s irresponsible actions have led to the destruction of vast tracts of land and the creation of other ecological hazards.

Social change can only materialize when those in authority partake in the training, educating, and transforming of communities. Social change is associated with fairness in dealings, accountability, changing attitudes, overcoming biases, organizing change, and determining solutions to problems. Leadership and social responsibility are inseparable. Hickman (1998) believes that corporations and business entities have to give back to communities and be thankful for the role society plays in their successes.

References

Hickman, G.R. (1998). Leading organizations: Perspectives for s new era. Thousand Oaks, CA: SAGE Publications, Inc.

Makina, A. (2011). The impact of globalization on Liberia’s ecosystem. Retrieved from http://wardheernews.com/Articles_2011/May/05_The%20Impac%20of%20globalization_makina.pdf

The Role of Organizations in Social Change

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When used effectively, public policy can be a powerful tool to effect social change. Changing how society lives requires thorough thought and reflection. Implementing social change also requires commitment to the cause, living up to expectations, getting the approval of society through communication, and monitoring the effects it will have on society. Because of the many failures associated with policymaking, policymakers have a responsibility to remain focused on how the policies they legislate impact society. Millions of dollars may be spent on a certain public policy yet fail to materialize in the end.

Currently, the American society is watching with keen interest the contentious tax policy issues being debated by the line-up of party presidential hopefuls competing to win the race to the White House. While taxation is a way of generating the financial resources required to run a government, public resentment can at times lead to tax evasions that drain the national economy. With fair taxation, government can be assured that business owners will not flee with their money for safe keeping in foreign countries. It is a social responsibility when lawmakers ensure business owners feel at home.

Organizations that conduct business in foreign lands have a responsibility to protect the indigenous or local people they encounter. Exploiting the environment and then leaving it depleted is a big plunder that can have catastrophic effects on entire humanity. Overworking or underpaying the locals that do the hard work is against the foundations of public policy.

Having a reliable public policy in place means that the living conditions of society will be sustained, their level of education elevated, and their health needs put to the fore. Seeing policy networks become internationally accepted norms means that governments have now more responsibilities than ever before when it comes to meeting the demands of society. Policy networks are state-interest relations (Thatcher, 1998) and inter-organizational with informal approaches.

References

Thatcher, M. (1998). The development of policy network analyses: From modest origins to overarching frameworks. Journal of Theoretical Politics, 10(4), 389–416.

Role of Libraries in Governance

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Since the discovery of the computer, internet connectivity in libraries has been enormously felt in every part of the world especially in countries with advanced democratic governance (Elsevier, 2004). Formerly, internet technology was restricted to the military and the government only. The drastic use and rise of the internet has been made possible by the increase of telecommunication corporations that enjoy monopoly over other businesses in the management of the internet. In the United States, almost every library is equipped with state-of-the-art computers that have internet connections. It has now become a common practice for many library patrons to serve the internet with ease thanks to the presence of libraries in every locality. Nowadays, major libraries allow their clients access to important university libraries known as virtual libraries. Government use of libraries has become intense especially during election processes as electorates can cast their votes in simpler fashions.

Internet use in libraries is vital for education and other sources of information as well. Underprivileged citizens that cannot afford to have computers and internet connectivity at home can now sit in libraries with ease and enjoy the good that come with the internet. However, restrictions apply to sensitive web sites that are regulated by government. Internet use in libraries allows citizens to correspond with their elected representatives with ease, stay informed of prevailing global political, social, and economic conditions, and as well pursue education of choice.

Reference

Elsevier, A. (2004). The impact of technology on information literacy education in libraries. The journal of Academic Librarianship. Vol. 30, no2, pp. 151-156

Policy Networks

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Policy networks, as seen in modern democracies, play great roles in democratic processes especially when it comes to fighting for what is right for society and for the nation as a whole. Some policy networks may be restricted to a given area like a constituency while others may cover a larger area. There are international policy networks such as in banking, airlines, and even terrorist organizations that have leverage over large areas of the world. According to Peterson (2003, p. 1). “Public policies, by definition, are the responsibility of public authorities and aim to satisfy some vision of the public good”. On the other hand, according to Mendizabal (2006), quoting Perkin and Court (2005:3), “networks are broadly defined as ‘formal or informal structures that link actors (individuals or organizations) who share a common interest on a specific issue or who share a general set of values”.

In this essay, the policy network I have chosen to highlight is the African Women’s Economic Policy Network (AWEPON), a faith-based, non-Governmental Organization (NGO) based in Uganda and founded in 1994 during the United Nation’s NGO regional preparatory conference held in Dakar, Senegal. AWEPON was founded on the basis of influencing women in economic policy and achieving economic justice for women. The purpose of AWEPON is to ensure women receive representation at the national, regional and global levels. With headquarters in Uganda, AWEPON has representations in many African countries.

Main Actors

AWEPON has brought together people with knowledge in international policy networks drawn mainly from nations that have advanced in democratic governance such that AWEPON was recognized by the Betty Plewes Fund (AWEPON, 2007), a Canadian international donor agency that gives priority to global women development. In the international arena, AWEPON has been recognized by the European Union and other international actors committed to governance.

Democratic Influence and Governance

By working with international organizations, AWEPON has been able to influence and exploit various sectors of society including youth activities, people afflicted with HIV/AIDS, and water privatization in various districts of Uganda. Working in concert with the Gender Entrepreneurships Markets (GEM) and the Department of International Finance Corporation (IFC)-a World Bank Group-AWEPON has been able to impact women groups regarding the legal and administrative barriers faced by women entrepreneurs in Uganda.

Democratic Governance and Policy Networks

The creation of the Millennium Development Goals (MDGs), a global initiative to halve extreme poverty, halt the spread of HIV/AIDS, and the provision of universal primary education by 2015 galvanized AWEPON’s commitment to improving the living standards of women in Uganda. On the other hand, AWEPON has been partnering with neighboring countries in training women entrepreneurs in business skills, transforming socio-economic conditions of women, providing innovative technology like solar cookers, economic literacy and market competitiveness and many other fields that are meant to elevate women in countries like Kenya and Tanzania. The activities of AWEPON is not only limited to the borders of Uganda. In the past AWEPON conducted poverty and socio-economic assessments in HIV/AIDS among households in as far as Cameroon in West Africa, Swaziland in southern Africa, and in neighboring Tanzania.

References

AWEPON (2007). Betty Plewes Fund Award. Retrieved from http://www.awepon.net/index.php?option=com_content&view=category&layout=blog&id=37&Itemid=12

Mendizabal, E. (2006). Understanding Networks: The Functions of Research Policy Network, Working Paper 271, Overseas Development Institute, 111 Westminster Bridge Road, London, SE1 7JD, UK.

Perkin, E. and J. Court (2005) Networks and Policy Processes in International Development: A Literature Review, Working Paper 252, London, ODI

Peterson, J. (2003). Policy Networks. Department of Political Science, Institute for Advanced Studies (IHS), Political Science Series 8.