BPK Strategic Planning: Briefing for Denpasar Regional Office Leadership Team Craig Anderson Ahmed Fajarprana August 11-12, 2005

Today’s Agenda • Recent Reforms at BPK • Strategic Plan 2006-2010 • Implementation Plan • Role of Regional Offices • Next Steps

Recent Reform Efforts • World Bank Institutional Development Plan (1999) • Work Bank Project Impact Assessment (2004) • Asian Development Bank Assessment (2004) • New Zealand Peer Review (2004)

What is Different this Time?

• BPK Leadership sets vision and direction • BPK Staff at all levels trained and involved with process • Comprehensive self-assessment based on international framework • Technical review of BPK operations • Integrated with ADB’s STAR Project

Project Activities to Date • Conducted Focus Groups • Established Category Teams • Gained Consensus on Direction • Conducted Category Assessments • Developed Strategic Objectives • Developed Action Plans

Strategic Plan 2006-2010 • Developed with direct involvement of BPK staff from all levels of organization • Based in international best practice framework and criteria • Approved by Chairman and Board • Includes strategic objectives, detailed action plans and key performance indicators

BPK Strategic Objectives 1. Establish BPK as an independent and professional state audit institution 2. Meet the needs and expectations of stakeholders 3. Establish BPK as the primary regulator in the field of state financial audit 4. Improve state financial management and accountability

BPK Core Values • Independence • Integrity • Professionalism

BPK Scope of Work • Financial Audits • Performance Audits • Special Purpose Audits

Keys to Success • Focus on Implementation • Directed by Senior Leadership • Internally Driven by BPK • Aligned with ADB’s STAR-SDP • Baldrige Integrated Management System • Measurable Results

Criteria for Performance Excellence

Systematic Excellence

2005

Japan Quality Award… Based on the Baldrige Award “The Japan Quality Program is modeled after the self-assessment methods of the Malcolm Baldrige Award, which is a globally recognized de facto standard for management innovation practiced in over 60 countries in Asia, Europe, and other regions. It is one of the most advanced management innovation programs incorporating management theories with proven results worldwide.” Japan Quality Award Assessment Criteria, 2004 Edition, p. 3

India’s Leading IT Provider Standardizes on Baldrige “The Malcolm Baldrige framework covers all aspects of the functioning of an organization. This framework provides a composite picture of the entire company and helps us compare our practices with world-class organizations. Importantly, it helps us align all improvement initiatives in the company.” Infosys Corporate Website, www.infosys.com

Alignment and Integration

Baldrige Framework: Performance Categories • Setting the Aim – Leadership – Strategic Planning – Stakeholder Focus • Achieving Results – Measurement, Analysis, and Knowledge Management – Human Resource Focus – Process Focus

Baldrige Framework: Assessment Guidelines • Approach • Deployment • Learning • Integration

Key Objectives: Leadership • Ensure alignment between vision and organizational capability • Establish leadership responsibilities for measuring and improving performance • Promote an organizational culture of performance excellence

Key Objectives: Strategic Planning • Design and deploy systematic strategic planning process • Collect and integrate inputs from employees and stakeholders • Benchmark BPK’s performance against international standards

Key Objectives: Stakeholder Focus • Instill client service culture in BPK • Deliver products and services tailored to targeted client and stakeholder groups • Develop ability to respond to changes in customer and stakeholder needs • Collect, measure, and analyze client and stakeholder satisfaction data

Key Objectives: Measurement, Analysis, & Knowledge Management • Align IT infrastructure and resources with organizational needs and directions • Use performance feedback data to support decision making and innovation • Share knowledge and best practices across the organization

Key Objectives: Human Resource Focus • Optimize work performance of all staff • Become an employer of choice • Provide a safe, secure, and productive work environment for all staff • Achieve a transparent human resource management system

Key Objectives: Process Management • Conduct core audit functions ethically, effectively, and efficiently • Focus discretionary resources on areas of greatest concern and risk • Design and deploy improved audit tools and methodologies • Improve report formats and content

Next Steps: Implementation • Define implementation steps for each Category to achieve Strategic Objectives • Define ownership and accountability • Engage staff in dialogue around vision, mission, goals, and objectives • Communicate with customers, stakeholders, and public