Strategy Document

Centre for Management Development

Background of CMD

• Established in 1979 as per GO (Ms) N0. 294/78/ID dt. 31.07.1978 as per recommendations of
the K. T. Chandy Committee

• Autonomous institution sponsored by Government of Kerala as an independent, professional,

registered society

• Provides research, consulting & training support to the Development Agencies, Corporates &
the Governments

• Managed by a 15 member Governing Board consisting of representatives from GoK, industry

(including public sector & entrepreneurs), university and Professional Management
Associations

• Chairman: Shri G. Madhavan Nair

(Former Chairman, Space Commission, Dept. of Space, GoI)

Objectives and Focus during Formation

• Objectives of formation are basically to:

o evaluate existing systems of management

o provide managerial support to officials and employees after evaluating

performance of Government funded projects and

o develop entrepreneurial skills.

• Focus of CMD was to assist large organizations to develop their own management development
programmes and function as a co-ordinating agency to bring together collective efforts of
Government, Public, Joint, Co-operative and Private Enterprises, Universities and Professional
bodies and Associations in the field on Management.

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Present Activities

• Research

o Evaluation of government programmes/projects (Concurrent, Periodic, End)

o Monitoring of government programmes/projects (Concurrent, Process, Outcome)

o Impact assessment of government programmes/projects

o socio economic surveys/studies, etc.

• Consulting

o organisation development/HR including design of organisation structure, manpower

planning & assessment, personnel policies & staff rules, etc

o Developing & finalising revival/restructuring plans to PSUs

o Developing Management Information Systems, examining techno-economic

feasibility and developing/preparing DPRs.

o Recruitment and selection of managerial and supervisory personnel for various PSUs
and government bodies.

o Preparing the Annual publication, ‘ A Review of Public Enterprises in Kerala’ - a

budget document for the state

• Training

o General Management Development Programmes (MDPs), Organisation Based

Programmes (OBPs) as well as programmes on specialised topics/areas

o Entrepreneurship Development Programmes (EDPs) and Micro Enterprise

Development Programmes (MEDPs) for the local governments in the state

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Income & Expenditure for last 10 yrs
Sl. Year Income (Rs. Lakhs) Expenditure
No. (Rs. Lakhs)
Research Training Others GoK Total
& Consultancy Grant

GoI GoK MDP EDP/

MEDP
1 2003-04 93.58 48.35 20.82 26.97 7.04 10.00 206.76 183.82
2 2004-05 83.91 54.18 16.83 29.84 7.00 10.00 201.78 177.15
3 2005-06 112.55 88.06 3.73 23.20 8.31 10.00 245.86 219.62
4 2006-07 37.06 165.71 2.59 49.99 10.49 5.00 270.83 249.41
5 2007-08 12.30 107.86 2.29 119.29 5.59 2.00 249.33 246.11
6 2008-09 51.03 83.93 2.11 117.84 5.71 10.00 270.62 266.82
7 2009-10 42.54 148.15 0.36 103.18 3.49 20.00 317.72 316.36
8 2010-11 8.77 167.08 49.54 88.51 3.64 25.00 342.54 336.53
9 2011-12 38.58 26.42 22.67 97.66 1.85 25.00 212.17 370.62
10 2012-13 0.32 156.21 33.75 24.67 0.48 30.00 245.44 313.11

Income & Expenditure - 10 years

400
350
300
250
Rs. Lakhs

200
150 Total Income
100 Expenditure
50
0
2006-07

2012-13
2003-04

2004-05

2005-06

2007-08

2008-09

2009-10

2010-11

2011-12

1 2 3 4 5 6 7 8 9 10

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Present Financial Position
• Since 2006, expenditure is steadily increasing in comparison with income
– Receipts from various Govt. supported projects remain constant while expenditure on
salaries has gone up due to DA increases, etc.
• Depends on Over Draft from Bank to sustain
– OD limit of Rs. 15 lakhs in 2003-04 had to be increased to Rs. 100 lakhs in 2011-12
– Puts more strain on the finances by way of interest burden
• Experiencing acute financial crisis for the last few years.
• Losses during 2011-12 and 2012-13.
• The last pay revision (due since 2006 for faculty and since 2009 for administrative staff) has
not been implemented and the employees continue to draw salary in the pre-revised scales
• Salary is not paid regularly in the recent months.
• The working capital position has been precarious for the last several months

Current Financial Liability (As on 31.05.2014)

Sl. Item Amount
No. (Rs. lakhs)
1 Dues to Canara Bank (overdraft) 97.65
2 Additional payment due for land acquired – awarded by 50.00
the High Court of Kerala
3 Current liabilities 20.56
4 Retirement benefits – pending 48.00
5 Salary arrears (2005-06) 1.25
6 DA arrears (2007 onwards) 27.30
7 Pay revision arrears 334.08
8 Other benefits to staff (arrears) 12.00
9 Working capital for two months 40.00
Total 630.84

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SWOT Analysis
Strengths
• Autonomy
• Patronage of Government
• Infrastructure
• Image as a professional body
• Unique Experience in the areas of
o Industrial Engineering
o Micro/Small Entrepreneur
Development/Skill Development
o Conducting Large-scale
Recruitment Tests
o Monitoring & Evaluation of
Government Programmes
o Working with LSGIs
• Diverse exposure
• Self-Made
• Flexibility in working
• Networking with other professional
bodies
• Good number of contacts
Centre for Management Development
Weakness
Management/Organisational
• Lack of career development plans
• Lack of core competence for the
organization
• Lack of vision for the organization
• Lack of short term & long term plans for
the organization
• Lack of proper systems and procedures
• Lack of effective management systems
• Lack of project monitoring
• Ineffective teamwork
• Lack of visibility
• Lack of proper Business Development
Financial
• Lack of steady source of income
o Income from projects
o Non-plan support from Govt.
• Lack of proper financial planning
• Significant financial liabilities
• Shortage of working capital
Human Resources
• Shortage of manpower
• Lack of specialization
• Lack of capabilities
• Lack of capacity building plans
• Lack of self confidence
• Lack of unity
• Lack of trust
• Lack of performance targets
• Lack of performance appraisal
5
Opportunity Threats
• Identification of New Clients • Issue of competitive bidding
o GoI • Possible changes in Govt. policy
o GoK o Control of institute
o Other States o Dependence on budgetary
o PSUs (State/Central) support
o Corporates • Absence of regular funding sources
o Other Countries
• Technological advances in
o International Donor Agencies
consulting/research
• Sourcing of more Projects from Existing o Need for constant re-skilling
Clients
• Presence of demotivating
• Business Development System factors/complacency
o Conducting Periodic Seminars/
Image Building Activities
o Developing Marketing Plan
• Providing executive education for
executives/officials
• New areas
o Modernisation of offices
combining Industrial Engineering
and IT
o E-Governance
o Health
o CSR

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Vision, Purpose, Values and Area of Activities

Vision
To be an internationally known organization of repute delivering key advisory and implementation
support to corporates, non-profit organisations and Governments.

Purpose
To deliver Research, Advisory and Training services to the Government, Non-Government
Organisations and Corporates.

Values
Accountability
Caring ACT
Team Work & Transparency

Key Focus areas:

• Business Consulting
• Education/Training
• Evaluation/Monitoring
• MSME Services
• Project Consulting

➢ Business Consulting:
• Industrial Engineering
• HR Support Services
o Recruitment Services
• Financial Services
• Managerial/Technical Support
• Business Design/IT Services

➢ Education/Training:
• Executive Education/Regular Courses
o Including MBA/Course on public Policy for Executives/Officials
• Short Term Training Programmes
o Tie-ups with institutions/Utys
o Organisational tie-ups for trainees

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 • Regular Management Development Programmes
• Induction Training Programmes for PSUs/Corporates

➢ Evaluation/Monitoring:
• GoK Schemes Monitoring & Evaluation
• GoI Schemes Monitoring & Evaluation
• Monitoring & Evaluation for International Donors
• Project Implementation Support

➢ Project Consulting:
• DPRs/Perspective Plans/Feasibility Reports
• Project Implementation Plans
• Tendering & Procurement Services
• Project/Programme Management Services

➢ MSME Services:
• Skill development/capacity building/Managerial Effectiveness Programmes
• Escort & Advisory services
• Opportunity guidance/orientation
• Project proposals/DPR
• Entrepreneurship awareness for College/School Students
• Support for Entrepreneurship Clubs
• EDPs/MEDPs

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Projected Turnover
(Rs. in lakhs)
Area 2014- 2015- 2016- 2017- 2018- 2019- 2020- 2021- 2022- 2023- 2024-
15 16 17 18 19 20 21 22 23 24 25
PC 40.00 50 60 80 100 140 175 220 270 350 460
BC 95.00 110 140 180 230 300 380 490 640 835 1100
E&M 160 196 260 340 450 570 770 1025 1350 1750 2275
E&T(MDPs,etc) 30.00 40 50 60 80 110 140 170 220 290 375
MSME 100.00 120 140 180 220 300 390 510 670 870 1150
Services
Gov. Grant 40.00 44.00 48 53 60 65 71 80 85 95 100
Other Income 0.5
TOTAL 465.5 560 698 893 1140 1485 1926 2495 3235 4190 5460
Yrly Growth 20% 25% 28% 28% 30% 30% 30% 30% 30% 30%
(Approx.)

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Expenditure and Surplus
(Rs. in lakhs)
Item Criteria 2014- 2015- 2016- 2017- 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-
15 16 17 18 25
Project/Programme 40% of Turnover 186.20 224.00 279.36 357.30 456.00 594.00 770.34 998.00 1294.00 1676.00 2184
Exp (Incl. Project
Staff/ Consultant
Exp& Excl. CMD
Employee Cost)
Employee Cost * @ Rs. 18 Lakh/Month & 20% 216.00 259.20 311.04 373.25 466.56 583.20 729.00 911.25 1139.06 1423.83 1779.8
yrly increase in the IInd, IIIrd
& IV th Year & 25% increase
for the Vth Yr
Business 2% of Turnover 9.31 11.20 13.97 17.86 22.80 29.70 38.52 49.90 64.70 83.80 109.2
Development
Faculty Development I, II & III yr - 1% of Turnover 4.66 5.60 6.98 17.86 22.80 29.70 38.52 49.90 64.70 83.80 109.2
and thereafter 2%

Facility Improvement I & II yr - nil and thereafter 6.98 8.93 11.40 14.85 19.26 24.95 32.35 41.90 54.60
2% of Turnover

Misc. Exp 10% of Turnover 46.55 56.00 69.84 89.32 114.00 148.50 192.59 249.50 323.50 419.00 546
Total 462.72 556.00 688.18 864.53 1093.56 1399.95 1788.22 2283.50 2918.31 3728.33 4783
Projected Turnover 465.50 560.00 698.40 893.24 1140.00 1485.00 1925.86 2495.00 3235.00 4190.00 5460
Surplus 2.78 4.00 10.22 28.71 46.44 85.05 137.64 211.50 316.69 461.67 677.21
Surplus (% of Total 0.60 0.71 1.46 3.21 4.07 5.73 7.15 8.48 9.79 11.02 12.40
Turnover)

* on implementation of salary revision of academic & administrative staff

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Strategy and Action plans – Short Term

➢ Reducing Financial Burden

• Assistance from GoK – Chief Minister/Industries Minister
o Enhanced plan support
o Annual Non-plan assistance
o One-time financial assistance
o Designated Agency for M&E, Training
(Target Date: June 30, 2014)

• Loans/Advances from
o Banks/FIs
o PSUs against future services provided

(Target Date: July 15, 2014)

➢ Branding / Image building

• Contemporary website with regular updates on activities/projects
• Brochures
• Regular management talks
• Annual Training/Activity calendar

(Target Date: July 21, 2014)

➢ Robust Internal Systems

• Internal Communication
• Project Management/Monitoring tool
• Performance Appraisal format
o KPIs for faculty/ Projects/Individual targets
• Financial Monitoring/Management
o On-line system with sufficient backup facilities
o Regular MIS reports on identified parameters
• Uniform Policy on
o Capacity Development of employees
o Recruitment of Faculty/Consultant/Project Assistants/Interns

(Target Date: July 31, 2014)

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 ➢ Setting up of a Business Development Division
• Building a team
o One Faculty in charge/ MBAs with 3-4 years relevant experience on
contract basis to begin with
o One intern specifically for BD
o Building on over the years

(Target Date: July 15, 2014)

• Developing systems and practices

(Target Date: July 31, 2014)

• BD Presentation deck/Material for proposals

(Target Date: July 31, 2014)

• Repository of Reports and earlier proposals

(Target Date: July 31, 2014)

• Participation in networking events
(on going)
• Maintaining close contact with existing clients/Govt. Departments
(on going)
• Identifying new clients in existing areas/Building Capability in new areas
(on going)
• Developing non-govt. clients
o HR/Recruitment/Strategy/IE support to large organisations
o MSME support Services
(on going)

➢ Strengthening Manpower
• Faculty/Consultants/Experts on contract/project basis
o Empanelling consultants
o One Expert on contract basis for Project Consulting
o Interns for projects to be placed immediately
(Target Date: July 31, 2014)
• Building up Finance team
o One MBA Finance/ICWA on contract basis
o One intern to assist
(Target Date: July 31, 2014)
➢ Team Building/Motivational Efforts
• Training programmes for faculty
• Group Activities
• Improving facilities at office
(Programmes/Activities to be identified by July 31, 2014)

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Strategy and Action plans – Long Term (4 months and beyond)

➢ Building Core-Competence of the Centre

• Based on the CMD’s strength in doing projects with GoI/GoK/LSGIs/PSUs

o In the areas of

- Industrial Engineering/Strategic HR /Recruitment

- Monitoring & Evaluation

- MSME Support Services including training

• Upgrading skills of Faculty Members

o MDPs/Short Term Programmes of premier institutes

o Adopting to newer technology/techniques in respective areas

• Strengthening Divisions – Manpower/Facilities

• Creating Knowledge Bank on the areas and supplying data to Govt./PSUs when required

• Constant efforts on Business Development/Customer Relationship with existing and

potential clients in the areas

• Providing Value Added Services to Govt. & other clients

• Organising Seminars/talks/Discourses in the subject areas

• Publishing of papers/articles/blogs (in own website/other websites)

• Maintaining close contacts with Industry Associations

➢ Creating steady-source of income

• Regular Courses for Executives/Officials of Govt. Departments (Management, Public Policy,

etc., oriented towards working in Government)

o Long term courses for Masters/PG Diploma

o Short term (1-2 month duration)

• MDPs (based on an Annual Calendar) with long term Institutional tie-ups

• Induction Training of PSUs/Corporates

• Status of approved training centre for selected Govt. Departments

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 • Regular Training on Project Planning and Implementation Strategies for Officials attached to
LSGIs/officials of LSGIs

• Regular/Annual Monitoring & Evaluation of Government Schemes and other services on an

annual fee basis

o Status of preferred Evaluation Agency from Government

• Enhancing MSME Support Services

o Putting the infrastructure to good use – Co-working/Incubation space for start-ups

o Guiding start-ups/new entrepreneurs for finances/creating business plans/project

reports, Promotion of technology, Mentoring and other escort services

• Support Services to Government Agencies (Management/Transactional/Tendering)

• Non-plan support from Government

➢ Level-Playing Field in Competitive Bidding in Government Projects

• Status of preferred Agency

• Non-plan support from Government

➢ Continuous Expansion of Activities

• New clients

• New Areas of operation

• New Offices/Liaison Offices

• Tie-ups with National and International Agencies

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General Action Points
➢ Deciding on persons accountable for each
• Key area of operation
• Strategy

➢ Detailed action plans for each key area/strategy including manpower and financial plans

➢ Set-up goals to be achieved for each of the strategies and timelines to achieve them

➢ Develop indicators for each action plan

➢ Review of implementation on a fortnightly basis

➢ Corrective actions as required

Centre for Management Development 15

 Organisation Structure

Director

Project Business Edn. & Evaln. & MSME

Consulting Consulting Training Montrng. Services

Performance Business PR & Visibility

Mgmt. Development

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