CIPFA FINAL TEST OF PROFESSIONAL COMPETENCE

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CIPFAFINAL TEST OF PROFESSIONAL COMPETENCE

• STRATEGIC BUSINESS MANAGEMENT

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BACKGROUND TO SBM

• Development of SBM within the CIPFA PAQ
• Why is strategy important?
• Why is SBM at FTPC?

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SBM WHAT MAKES THIS MODULE DIFFERENT?

• It requires
• New learning
• Synthesis of prior learning
• Appreciation of the public service environment
• Awareness of current issues
• Application of theory
• The assessment
• Based on pre-seen material
• Based on topical issues
• Application of theory
• Is postgraduate level

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SBM SYLLABUS LEARNING OUTCOMES (1)

• Understand the objectives and nature of strategic
  management, and strategic decision making
• Characteristics of strategy, understanding of
  theoretical models (planned, emergent, cultural),
  levels of strategy (corporate, business,
  operational), stakeholder perspective, competitor
  reaction.
• Understand and apply the principles of strategic
  analysis and diagnosis
• Environmental, market, stakeholder and
  organisational analysis (and capability).
  Selection and application of appropriate
  (strategic management) tools, e.g. PESTLE, SWOT,
  VCA, portfolio analysis, Five forces, Strategy
  Clock, resource audit. Cultural analysis, ethical
  stance and governance framework.

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SBM SYLLABUS LEARNING OUTCOMES (2)

• Understand the rationale and apply techniques to
  generate, evaluate and select strategic options
• Selecting, evaluating, appraising strategic
  options (suitability, acceptability,
  feasibility), e.g. competitive approach,
  creativity, innovation using tools such as,
  Ansoff Matrix, Bowmans strategy clock,
  brainstorming, scenario planning, CBA.
• Understand the process of managing strategic
  change and create plans addressing the
  organisational and environmental implications
• Change management tactics, including
  organisational structures, behaviour and culture.
  Business planning, stakeholder, communication,
  knowledge and marketing management. Performance
  management, including motivation, resource
  allocation, HRM.

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SBM RELEVANT PRIOR LEARNING

• GPP market forces, policy framework,
  formulation and application
• LM motivation, role of the manager,
  structures, culture and cultural analysis,
  communication, change management, ethics.
• AA corporate governance and assurance, ethics,
  control.
• ADM decision making (identifying and setting
  objectives), CBA, resource allocation
• FPR financial environment, resource allocation
  models.

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SBM LEARNING MATERIALS

• OLM (Including Johnson and Scholes (2002)
• Public Finance MUST READ
• Public Policy and Management
• The Economist
• PQ Magazine, Accountancy Age, Pass magazine
  sector specific journals
• www.Doh.gov.uk
• www.Direct.gov.uk
• www.cipfa.org.uk
• www.nao.gov.uk
• www.publicfinance.co.uk

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SBM THE ASSESSMENT

• 60 of marks based on compulsory question
• Pre-seen material
• Covers whole syllabus
• Can take one page of notes to examination
• 40 of marks based on selection (2 from 3
  questions)
• Based on short scenario
• Covers specific syllabus learning outcomes
  (application)
• Pass mark 50
• Last June examination (JUNE 2007)
• 69.9 pass
• Highest script 88
• Lowest script 12

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SBM PRE-SEEN MATERIAL

• Usually two articles
• One academic (high level and hard going will
  need to read several times!!)
• One practical (application based look for
  implications)
• Considerations
• Reading and understanding the themes
• Additional reading
• References (and use in examination)
• Making notes
• Using other resources
• The pre-seen material does not provide the
  answer, but provides a framework for
  understanding the theme of the (compulsory)
  questions

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SBM WHAT THE EXAMINER IS LOOKING FOR

• Understanding
• Do you understand the key issues
• Can you identify implications, impact etc
• Application
• Can you select and apply appropriate tools and
  techniques
• Logic
• Can you work through the implications of a
  strategy and/or strategic decision
• Clarity
• Of thought and analysis
• Argument
• Balanced (depth v breadth), supported (evidence),
  relevance (to question), structured (readable)

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SBM MYTHS AND MISCONCEPTIONS

• Theory, understanding and application not all
  theory, must be balanced
• The examination setting process The questions
  are tested
• The examination marking process (including pass
  rates) Robust, marginal scripts marked FIVE
  times by 3 or 4 examiners
• The examiners are not stupid, so do not assume
  they are
• Answer content (there is no model solution)- can
  be what you wish, but you must justify it and
  state the implications.
• It is not a memory test the examination tests
  understanding and application, not recall

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SBM EXAMINATION - GOOD AND BAD PRACTICE

• Do not
• Write everything you know answer the question
  asked
• Assume the examiner is daft and make up
  references
• Waffle get the point. Make it. Move on. PJI
  (point, justify, implication)
• Do
• Continually check the question asked
• Plan the answer before writing (balance,
  relevance, logic)
• Use examples and reference
• Use page and question numbering
• Try to avoid vague words and statements, e.g. it
  has been said many organisations have
  maybe it is obvious.