G+4 MULTI-PURPOSE BUSINESS

CENTER DEVELOPMENT
PROJECT PROPOSAL

OWNER:- Mrs. SIMRET DEMISSIE

W/HANNA

DEC, 2024
DIRE DAWA
 TABLE OF CONTENTS

CONTENTS PAGE

1. EXECUTIVE SUMMARY------------------------------------2

2. INTRODUCTION ------------------------------------------4

3. ANALYSIS OF PROJECT AREA --------------------------5

4. BACK GROUND OF PROMOTER ------------------------6

5. PROJECT RATIONALE AND OBJECTIVES---------------6

6. MARKET ENVIRONMENTS ------------------------------7

7. ORGANAZATION AND MANAGEMENT----------------10

8. PROJECT LOCATION AND LAND REQUIREMENT----------10

9. PROJECT COST ESTIMATION -------------------------10

10. BEGINNING BALANCE SHEET --------------------------11

11. DEPRECIATION ------------------------------------------14

12. ESTIMATE PROJECT REVENUE-------------------------15

13. PROFIT LOSS STATEMENT ----------------------------15

14. ENVIRONMENTAL AND SOCIAL ASPECT------------16

Page 2
 1. EXECUTIVE SUMMARY

In light of the current enabling policy environment formulated by FDRE for private sector
development both at national and regional level, create a favorable condition for many foreign
and domestic investors to invest their capital in various sectors of the economy.

Thus, by realizing the current enabling investment climate in Ethiopia in general and the
investment opportunities in service sector in Dire Dawa Administration in particular, the
promoter of this project Mrs.Simrat Demissie W/Hanna has planned to be engaged in
establishment of G+4 Multi-purpose business center project.

The total investment capital of the project is estimated to be Birr 15,000,000 of which Birr
14,000,000 is allotted for fixed investment while the remaining Birr 1,000,000 will be used as
initial working capital. Concerning to its financial source, Br. 4,500,000 i.e. (30%) will be
covered by the promoter and the remaining Br. 11,500,000 i.e. (70%) is covered from bank
loan.

The specific area proposed for the establishment of this project in Dire Dawa keble 04 locally
named as GendeQore. The promoter of this investment project to be forwarded to the dire
dawa administration to acquire the required 550m2 of land for this project which is under the
ownership of the promoter.

In general with the implementation of this project varies advantages like employment public
revenue generation and capital accumulation for further investment venture can be promoted.

Page 3
 2. INTRODUCTION

A good investment climate fosters productive private investment. Investment is the engine for
growth and poverty reduction. It creates opportunities and jobs for people. It expands the variety
of goods and services available and reduces their cost to the benefit of consumers. It supports a
sustainable source of tax revenues to fund other important social goals. Moreover, many features
of a good investment climate including efficient infrastructure, courts, and finance markets
improve the lives of people directly, whether they work or engage in entrepreneurial activities or
not. Improving the investment climate, the opportunities and incentives for firms to invest
productively, create jobs, and expand is the key to sustainable progress in attacking poverty and
improving living standards (World Bank, 2005).

Despite the fact that, the significant role the private sector would play in promoting national
and regional development in the past few decades in Ethiopia, the prevailed policy environment
that has highly discouraged the participation of private investors both foreign and domestic was
made the potential to be far from relaxation. This has resulted in hindering national and regional
socio-economic progress in almost all sectors of the economy revealing the existing low
productive capacity of the economy and significant socio economic losses in various dimensions.

Recognizing the extent to which the past policy environment has highly impeded the
development of the national economy and the necessity to promote private sector participation
in various of investment ventures that are believed to be ,more rewarding and compatible with
me current national and regional development objects and priorities the new investment policy
in the country has open the wider opportunity for private sector participation.

Based on this, at present the private sector has started to mobilize and invest their knowledge
and financial resources in various investment activities, which they assumed to be beneficial for
them and to the country.

Page 4
 3. ANALYSIS OF PROJECT AREA

3.1 Back Ground

Geographically, Dire Dawa administration lies within 9 0 27' and 49 0N latitude and and 41 0
38' and 21 0 19'E longitude. The city of Dire Dawa is found at a distance of 501 kms far from
Addis Ababa to the East and 306 kms far from Djibouti to south directions by road. The
proximity to Djibouti made Dire Dawa an outlet for export and inlet to import for the eastern
part of the country. Neighboring regions of Dire Dawa are the Somali region in the North and
West, and Oromyia region in the East and South directions.

Dire Dawa City Administration is one of the two urban dominated chartered administrations in
Ethiopia. It has its own Charter established by Proclamation No. 416/2004. The city is divided
into 9 Kebeles that are the lowest administrative units. The Administration is executing and
implementing its municipal and state functions though its formally established institutions.
Therefore, it is facilitating, supporting and enabling the investment and development initiative
of the administration through its institutions and related legal and organizational instruments.

Regarding the social situation and characteristics of the population, Dire Dawa serves as a home
for people from nearly all parts of the country. According to the Population Census Report of
2007 prepared by CSA, the population of the city consists of people from nearly all ethnic groups
of the country. Of these groups, the Oromo, Somali, Amhara and Southern Nations and
Nationalities, Peoples constitute the larger composition in their population size.

The general demographic situation of Dire Dawa City shows that there is a fast population
increase both from natural and migration causes. The prospect for the speeding-up of the
momentum of the population growth of the city in the future is also higher as the size of the
young age population at present dominates its population structure. The total population of Dire
Dawa Administration, as of July 2011, was projected to be 377.000. From this, the population
of the urban was projected to be 256,774, in the same year.

Page 5
 3.2 Infrastructure and Land Availability
The availability of well developed infrastructure and fair priced land are among the conductive
climate of investment opportunities in the city. Telephone, road, power and waste disposal
systems are major infrastructural provision of the city. The city also has land resource which
can be accessed for investment activities in the inner parts and expansion zones of the city.

A) Land availability and management: According to the DDA structural plan (FUPI
2004) appropriate sizes of land has been allotted for service activities. The study depicts that
efforts have been done to reserve sufficient areas in both the existing built-up and the expansion
areas that will lead to the provision of balanced service at all levels of the city. Accordingly, the
total area allocated for service is about 311ha. Considerable size of this land has been allotted
for commercial services like rea estate development. The lease period for commercial activities
has been set as 70 years. The arrangement of the lease payment is based on advance payment
of lease 20%.

B) Physical Infrastructure and Facility

Road: Dire Dawa Administration has about a total road length of 346.24 km with different
hierarchy and types and extended to different parts of the city. From this 249.9 km is gravel,
56.94 km coble stone and 39.40 km asphalt road of different standards. Other than this, the
city is connected to surrounding regions, other parts of the country and neighboring countries
with gravel and asphalt roads. Therefore, the area is internally and externally accessible and
has proper links.

Telephone: According to Dire Dawa Administration Statistical Abstract, dire Dawa, (2011),
the current users of telephone service exceeds 113000. The GSM prepaid and post paid users
are 110539 while the fixed telephone users are about 12300. Dial up internet users are 393.
Both private and business users have the larger number of the constituents. The existing
service providing capacity is also higher to accommodate diversified Telecom users. Therefore,
Telecom service is accessible to fulfill the project requirement to the standard.

Page 6
Electricity: The major source of Dire Dawa city electricity supply is the connected lines of the
national grid system. According to According to Dire Dawa Administration Statistical
Abstract (2011), there are 25066 private, 259 industrial, 338 government and 3613
commercial customers of electric from Dire Dawa substation. Based on the 200m2 transformer
coverage assumption, the total coverage of electricity in the built up area of the city is estimated
53.3 %. The inner part of the city has more access than the expansion areas. As this project
will be established in the vicinity of city, power access will be better, from connected line.

3.3 SERVICE FACILITIES

The major services required by the project includes, transport, training, financial, and market
aspects. The city is highly benefiting from road, rail way and airline transport services. Both
freight and passenger transport services rendered to different parts of the country and to the
neighboring counties.

There is TVT School administered by the government. Besides, there is one big public
university. Different private colleges and training center are found in the area. Therefore,
necessary man power capacity building supports can be availed at the spot. Regarding the
financial institutions there are 20 banks and insurances found in the city. Therefore, loan and
risk transfer supports can be found within the project area.

LABOR FORCE POTENTIAL

Labor is an important element of the project requirements. The unemployment situation of

Dire Dawa city is higher compared to the situation of the major towns of the country and the
overall country total. Currently the unemployment rate of Dire Dawa City is estimated at 22.9
%. This includes educated unemployed too. Therefore, the job seeker has significant number.
On the other hand there are numerous public and private training centers engaged in offering
different short and medium term technical trainings.

Page 7
 4. BACK GROUND OF THE PROMOTER

The promoter, Mrs. Simret Demissie W/Hanna is a dynamic business man engaged in
various business lines here in Dire dawa. The promoter has very good entrepreneur skills and
long year of experience in generating, managing and running various business lines.

The promoter is planning to engage in investment activities that benefit the nation and the
city, Dire Dawa. The promoter in its part believes that to participate in G+4 Multi-purpose
business center in Dire Dawa city and hence there is strong self-interest by the promoter in
fostering prosperity in this country in general and in Dire dawa Administration in particular.

5. PROJECT RATIONALE AND OBJECTIVES

5.1 PROJECT RATIONALE

It is to be noted that the insufficient number of business centers in the town and concentration
of the existing in the center of the town fail to address the service to the new developed part of
the town.

It is then evident that there is a considerable shortage of business centers that can provide
better and standard room services for different business activities. Thus, a need arise to intervene
in this activity to meet the demand of the population in the town and for the absorption of the
existing and future potential market in this respect.

This project is initiated by the promoter aiming at constructing G+4 buildings whose ground
and first floor will be provided on rent for different business purposes while rooms on second
floors will be used for rental offices, training centers others services as required.

Page 8
 5.2 PROJECT OBJECTIVES
The general objective of the project is to develop G+4 multipurpose building will be used as
super market, bar &restaurant, modern shopping center, cafeteria, internet café, guest house,
men and women beauty salon and other related services and to earn reasonable income to the
promoter of the project, the following goals are expected to be achieved. These goals are:
➢ To alleviate the existing service shortage of supermarket, bar restaurant, modern
shopping center, cafeteria, internet café, guest house, men and women beauty salon
and other related services in Dire Dawa City;
➢ To exist profit to the owner
➢ Creating jobs and thereby reducing the rate of unemployment
➢ Contributing to the growth of the regional economy in general and to growth of
government revenue in terms of taxes and the like,
➢ Demonstrating the importance of investing in developmental sector.

6. MARKETING ENVIRONMENTS

Dire Dawa is the second largest city of the country where there is sufficient infrastructural
facilities such as an organized transportation (rail way, air and bus transport) and
communication ranging from automatic telephone to internet service, modern postal service
and the like. The conducive urbanized atmosphere, disregarding the natural increasing rate of
population could attract the immigration of population to the town, there by demanding
additional social and economic service provision among which the most important is Business
center which is required to get most of the important needs at one shop stop.

Compared to the growth of business activity and escalation of the size of the town, it can be
concluded that the new settlement areas lack this type of services more over the central part of
the town also did not get sufficient modern one shop stop business center.

Generally, the center of town is occupied by old buildings and residential houses that doesn’t
fit to the standard of the town.

Page 9
 7. PROJECT TECHNICAL STUDY

7.1. The project Description

Commercial center is a component of industrial sector and an essential element of strong

indstrial economy building process. Modern commercial center development is a process

addition in capital stock, adding value on the hand and important instrument for attaining

long term sustained development which is crucial pave avenues for building strong industrial

economy.

7.2. PROJECT LOCATION AND LAND REQUIREMENT

The specific area proposed for the establishment of this project in Dire Dawa keble 04 locally
named as Gende Qore. The promoter of this investment project to be forwarded to the dire
dawa administration to acquire the required 550m2 of land for this project.

7.3 Raw Materials And Inputs

Raw Materials

The principal raw materials required for the construction of proposed Real estate development

are cement, sand, Hollow blocks selected material, gravel, bricks, reinforced structural steels,

PVC pipes, Timber, Gypsum, play wood, corrugated sheet metal, EGA sheets, Nail, window

glass, sheet metal, door and window frames (profiles), paints, Galvanized pipe, angle iron,

pipes and fitting for kitchen batch room and toilet, kitchen wares, bath room wares and toilet

wares, etc.

Page 10
 UTILITIES

Among the major utilities required by the project electricity, water and telephone are the
important one. Through undertaking necessary dealing with authorized suppliers, it is aimed
at installing the utility lines at the earlier period of the project.
Electric as a major source of energy for the project will be obtained from EPCO connected
electric source. However, the project will have its own power generator as standby power source.
The average annual electric consumption of the project is expected to be up to 200KWH.

Diesel fuel also will be used as a complimentary energy supply for stand by generator and its
transport logistics. It will be deposited in normal time for supplementary energy generation
activities. The major water supply of the project will own source from DDWFA. The expected
annual water consumption of the project is estimated at 400m3. The project will use telephone
service for managerial, technical and administrative purposes.

MANPOWER REQUIREMENTS

No Description unit Qty

1 manager No 2
2 Accountant No 3
3 Cashier No 1
4 Typist No 1
5 Janitor No 4
6 Guards No 2
7 Others No 15
Total 28

Page 11
 7.4 Building Constructions

The construction of buildings consists of the following sequential activities.

- Grading and site preparation

- Foundation construction

- Framing

- Installation of Windows & doors

- Roofing

- Siding

- Rough electrical

- Rough plumbing

- Insulation

- Trim

- Painting

- Finish electrical

- Bathroom & kitchen counters & cabinets

- Finish plumbing

- Flooring

- Hook up to sewer or installing of a septic system.

Page 12
 8. ORGANIZATION AND MANAGEMENT

Organization is a means by which the operational function and activities are structured and
assigned to organizational units represented by managerial staff, supervisors and work force with
the objective of coordinating the performance of enterprise and the achievements of business targets.

The project has defined organizational frame work to maintain coordinated and integrated
performance throughout its life time. The owner of the project has the overall ruling power
and organizational policy design role.

The day to day internal operation of the project will be administered, coordinated, and managed
by the firm administrator who will be appointed by the owner. This manager will be engaged
in planning, financing. Staffing of the project employees and managing its logistic and
technical operation of the project. There is also residence engineer who is in charge of the
construction management and coordination works.

The project is nearly followed more or less flat type of organizational structure to effectively
coordinate its performance accordingly. However, necessary tasks categorized with respect to
its nature and technical relationships.

According to the requirement of proposed project, the organizational structure of the project is
designed on the basis of the number, size, and types of activities to be undertaken by the project.
The organizational structure of the project will comprise general management and other
technical staff.

Page 13
 9. PROJECT COST ESTIMATES

The total investment capital of the project is estimated to be Birr 15,000,000 of which Birr 14,000,000 is
allotted for fixed investment while the remaining Birr 1,000,000 will be used as initial working capital.
Concerning to its financial source, Br. 4,500,000 i.e. (30%) will be covered by the promoter and the
remaining Br. 11,500,000 i.e. (70%) is covered from bank loan.

9.1 Fixed Investment Cost

Fixed investment cost of the project under consideration includes building and civil works, furniture,
and others fixed investment costs. These are:-

A. Land lease.

Based on the currently operational lease regulation of the region, the payment of land lease cost is birr
200,000 of which 10% (Birr 2,000,000) will be paid at the beginning while the remaining Birr will be
distributed over 30 years.

B. Construction and civil work Cost

The compound includes the constriction of buildings such as Building, parking and other related
rooms. Based on present day cost of construction material & labor, the estimated total cost of these civil
works (consultancy), is around Birr 13,000,000

C. Office furniture: -The estimated cost of office furniture and equipments required by the proposed
project is nearly Birr 700,000

D. Installation expense

To make the project runs at its optimum the basic infrastructure as electric power supply, telephone
services, potable water pipe line, etc have to be installed. Hence, the estimated cost of installation is Birr
300,000.

Page 14
 9.2 Operational Expense

A. Employee salary and wages

The total cost of employ salary is estimated Birr 400,000.

B. Utilities Expenses

No Description Total cost

1 Electricity 200,000

2 Telephone 200,000

3 Water expense 200,000

4 Total 600,000

C. Other operational cost

No Description Cost in Birr

1 Employee fringe benefit 70,000

2 Miscellaneous expense 50,000

3 Office consumable 80,000

4 Repair and maintenance 80,000

5 raw materials 6,700,000

Total 8,000,000

Page 15
 PROJECT COST SUMMARY

No Description Cost in Birr

1 INITIAL INVESTMENT COST

Land Lease, Construction And Civil Works Cost 13,000,000

Office furniture and fixture cost 700,000

Installation Expense 300,000

Total 14,000,000

2 OPERATIONAL COST

Employee salary and wages 400,000

Utilities expenses 600,000

Other operational cost 8,000,000

Total 9,000,000

3 Working capital 1,000,000

PROJECT TOTAL COST 15,000,000

Page 16
10. BEGINNING BALANCE SHEET

1. Asset

Current Asset ------------------------------------------ 6,000,000

Fixed Asset --------------------------------------------- 14,000,000

Total Asset --------------------------------------------------15,000,000

2. Liability

Current Liability---------------------------------------

Long term liability ------------------------------------- 11,500,000

3. Capital

Owner’s Equity ----------------------------------------- 4,500,000

Total capital --------------------------------------------------------- 15,000,000

Page 17
 11. PROJECT REVENUE ESTIMATES

Annual revenue estimates in Birr is describe as follows:-

Description Project year

Source of revenue 1 2 3-10

Multipurpose real estate rooms to

be rented for different purpose 5,160,000 5,160,000 5,160,000

Total revenue 5,160,000 5,160,000 5,252,000

12. DEPRECIATION

NO Description Original Method Annual Total

value depreciation depreciation
1 Building 2,900,00 Straight line 599,215 599,215

2 Office furniture 300,000 Straight line 33,538 33,538

and equipment

Total 632,753

Page 18
 13. PROFIT AND LOSS ESTIMATES OF PROJECT

Descripti Project year

on 1 2 3 4 5 6 7 8 9 10

Fixed cost 19,350,041

Total
revenue
----- ---- 2,160,000 2,160,000 2,160,000 2,160,00 2,160,00 2,520,00 2,520,000 2,520,000

0 0 0

Total 1,686,35 1,686,35 1,686,35

operating
1,686,354 1,686,354 1,686,354 1,686,354 1,686,354 4 4 4 1,686,354 1,686,354
cost
Gross 1,686,354 1,686,354 473,646 473,646 473,646 473,646 473,646 833,646 833,646 833,646

Profit (loss)
Income tax -- -- 165,776.10 165,776.10 165,776.1 165,776. 165,776. 291,776. 291,776.1 291,776.1

35%
0 1 1 1

Net -- -- 307,869.90 307,869.90 307,869.9 307,869. 307,869. 541,869. 541,869.9 541,869.9

Income 0 9 9 9

14. ENVIRONMENTAL AND SOCIAL ASPECT OF THE PROJECT

The proposed project has no environmental impact rather this type of investment project could help to
mitigate the environment in general and climate of the project area in particular. Thus, this is an
environmental friendly project that will contribute much for the improvement of the environmental
through using modern technology. The project location is also ideal for the disposal and treatment of
wastes and the promoter is prepared to be a minimum polluter and environmental friend through
providing incentive to local people to grow seedling and manage accordingly. On the other hand the

Page 19
 positive social impact of the project on the society is significant. The project creates employment
opportunities for 26 peoples.
15. PROJECT IMPLEMENTATION STRATEGY
15.1 Project Formulation and Establishment
A. exchange of views and creating shared understanding
The project proposal and strategic planning management document shall be distributed to all potential
stakeholders such as concerned members of the family, government institutions and to selected financer with
a view of creating satisfactory exchange of views and promote shared understanding in advance.
B. Determination of establishment phase target activities
During the project formulation and establishment phase, the following major tasks are required to be
successfully accomplished.
Registration, licensing and acquisitions of operations commencement authorization
Acquisitions of construction permits
Preparation of every legally required document
Appointment of strong and capable implementation team
C. Promotion and Fund Raising
To prepare promotional strategic planning mgt guidelines
To prepare promotional ideas, materials, logistics and facilities
To conduct promotional tasks and build strong constituency of support
To evaluate the process of promotion and progress
To prepare fund raising strategic planning guideline
To assess and identify major project donors
To assess and identify the interests, rules, regulations and conditions of targeted and prioritized financers
To prepare all necessary requirements of financers and apply for fund
To undertake follow ups and secure fund
D. Organizational Builds up
Establishing and organizing project office
Preparing project working and administrative systems and procedural guidelines
Commissioning construction

Page 20
 Purchase of all on and off site durable and consumer goods
Staff recruitment, orientation and employment
To conduct pre operational trial runs, checking the validity of all activities

15.2 Budgeting Implementation strategy

A. Budgeting concept Definition
The realization of any strategic decision needs proper identification and understanding of project objectives,
and necessary activities. Moreover, determination of time phase out process and resources to the completion
of each task which calls for budget making process and existence of effective strategic budgeting is a key
implementation strategy for the success of project objectives. In consideration to the significance of sound
budgeting system and procedures, it has been selected and proposed as one of the best implementation
strategy.
There is no doubt that the internal and external activities, resources, process and output of any organization
should be managed effectively and efficiently. To attain short and long term objectives of the project the
management must chart the entire tasks in advance in a comprehensive and coordinated manner. A budget
is a comprehensive and coordinated plan expressed in financial term for the operation and resources of a
project for some specific period in the futures. A budget is the plan of project’s expectation in clear & formal
terms to avoid confusion and to facilitate their attainability. Thus the roles and significances of budgeting
are;
• To state the project’s expectation in clear and formal terms, to avoid confusion and to facilitate their
attainability
• To communicate expectation to all concerned
• To provide a detailed plan of action for reducing uncertain and proper direction of institutional group and
individual efforts
• To provide a means of measuring and controlling performance
• To coordinate all institutional, group and individual efforts towards the success of project objectives.

Thus, it is inconsideration to the above roles and significance of budgets and budgeting that we select it as
the best implementation strategy.
B kinds/types of budgets & budget setting process
Page 21
Although, there are various kinds/types of budget items, to simplify it, the types of major budgets have been
categorized in to four.
Sales budget
Operations budget
Financial budget
Capital budget
Statement of Smart objectives and goals is probably the starting point and pace maker for all other types of
budgets. The sources of sound project objectives/goals are again the internal and external environments.
Analysis of the patterns of project internal and external environments, pinpointing project opportunities
and challenges with a focus on the demand for the project services, existence of external opportunities and
internal capabilities, it is pertinent to define project objectives and goals in clear and formal terms at the
outset.
The objectives and goals of any project emanate the operations, financial and capital budget needs. The project
corporate level objectives and goals, operations and capital budgets are required to be further apportioned for
all core process which together form corporate budget.
The process of setting sound budget is a complex and complicated process, because of the involvement of
various factors in it. However, budget setting process starts with the determination of limiting factors at the
outset. The most important project limiting factors are,
The demand for the project services
The economic life of the project
Existence of factor and non factor inputs
External opportunities supporting the project ideas and internal capabilities to establish, operate, manage
and control etc are some among others. Based on the above limiting factors, the first step of budget setting
process starts with definitions and establishment of project basic objectives and goals
Second step: at this stage, it is necessary to identify and describe all on and off site activities necessary to
successful achievement of stated objectives and goals, determination of logical sequence of activity execution
process, time phase out to complete each task in clear and unambiguous terms. Third step: at this stage, it is
very important to assess identify and define the resource needs of all activities, measure, quantify and state
in clear and formal terms.

Page 22
 Fourth step
Group all activities according to their similarities
Establish major budget centers
Allocate the resources required to major and sub budget centers
Prepare objectives/goals, operations, financial and capital budgets at corporate, core process and sub process
and assign centre of responsibilities
B. ESSENTIALS OF BUDGET MGT
To make the objectives and purposes of budgets productive and positive impact generating we propose the
following budget administration. It should be well recognized that corporate and functional levels budgets
are prepared by line executives while the organization and implementation of budgeting is a staff function.
Joint efforts of all line execution and a staff function in the preparation, administration organization and
implementation of budgeting should be done in a coordinated manner. To this effect there should exist the
following systems of budget administration.
The budget committee consists of all members of the management committee which bring together all
activities of different project functional unites.
The primary function, of the budget committee is to decide on the general policies of the project and directs
all project functional unites to prepare their respective budgets.
Budget director/officer

The budget officer shall have the following tasks;

▪ To draw a detailed time table for the preparation of budgets.
▪ To calculate and consolidate individual budgets into the project master budget.
▪ To design and develop necessary budgeting systems and procedures.
▪ To design and develop budgeting formats.
▪ To generate accumulate and transfer budgeting parameters information data and indicrs.
▪ To undertake satisfactory exchanges among all project concerned stakeholders on budgets and budgeting
▪ To educate all concerned on budget and budgeting
▪ To undertake monitoring evaluation and control activities
▪ To prepare periodic or extra ordinary budgeting reports
▪ To disseminate the feedbacks of budgetary monitoring and evaluation to all concerned stakeholders

Page 23
▪ To suggest sound and workable recommendations for immediate corrective measures
Budget manual

The budget manual is a written set of instruction which serves as a rule book and reference for the
implementation of a budget.

Budget management principles

o Existence of top management support
o Specific measurable achievable realistic and time bound goals.
o Existence of clearly defined assign ment of authority and responsibility
o Creation of canters of responsibility
o Existence of appropriate accounting system
o Budget education and effective communication
o Flexibility

15.3 PERFORMANCE MGT AND CONTROL

A. monitoring, Evaluation and control strategy

The success/ failure of any planned objectives should be known with certain degree of accuracy. To this effect
all activities, resources process and output should be monitored evaluated and controlled timely and
regularly. To undertake monitoring, evaluation and controlling activities timely and regularly there should
exist.
Clearly identified and defined description of planned objectives, outcomes output and inputs.
Existence of, sound, and appropriate, indicators, which show, the success/ failure, of the planned objective
outcome, output and inputs used.
Appropriate source and means of verifying that the planned, objective outcome, output and inputs were in
accordance with/ deviated from the planned
Clearly stated important assumption with/without which the planned objective would/would not be
successful.
The role and significance of monitoring evaluation and control are briefly described as follows.

Page 24
• Monitoring

Monitoring is a continuous and process oriented information gathering, and data mining on what has
happened, who did it, when, how much, for whom etc. aimed at measuring the magnitude, time quality and
impact of the initiative. Monitoring helps to compare the input human, material financial etc output
product/service result and the outcome (achievement against the planned tasks. Effective monitoring must
be completely integrated into all tasks. Existence of sound monitoring system, enable organization to make
appropriate and timely decision making and ensures transparency and accountability.
• Evaluation

Evaluation is the process of analyzing information and data gathered during monitoring process. The
evaluation system helps to think critically and search into ways of achieving desirable results. It is a periodic
process of reviewing monitoring data and drawing sound conclusion from it. Good evaluation system enables
organization to analyze the pre and post patterns of existing and future plans and search into ways of achieving
desirable results.
• Control

Control is a managerial process of detecting errors of principles system, procedures etc aimed at avoiding
resource miss allocating unemployment, fraud, wastage and all other misfortunes which hinder the success
of planned objectives. Control enables organization to continue their production of goods/ products without
jeopardizing internal and external resources for better future. Thus, an integrated monitoring and evaluation
system in a single whole enables organizations optimally benefit from available resources through satisfaction
of existing and potential customers in their best interests.
The monitoring evaluation and control system should be designed to serve both the strategic and operational
phases. The monitoring evaluation and control system designed for both strategic and operational phases are
described as follows.
This is a continuous and systematic monitoring evaluation and control of the validity of basic assumption
under which it operates. Thus, a regular and continuous proactive check against the validity of planned
strategy aimed at changing or improving the condition of vital assumption.
Performance management and control is a managerial process of designing and developing sound indicators
parameters means and sources of verifications necessary to measure activities resources, process and output

Page 25
 of individuals, groups and institutions against the targeted standards and come up with logical results
which would help to make sound decisions. Although there are numerous areas whose performance are needed
to be well managed and control, the most important areas and performance management indicators used in
laundry and dry cleaning business are briefly identified and described as under.
Operational control strategy is designed to guide monitor and evaluate the progress of all planned activities
against their respective planned objectives as in meeting targets representing the planning horizon.
Accordingly, all planned activities shall have the following basic system to be used as a monitoring evaluation
and control mechanisms.
Components of narrative description
➢ Objectives
➢ Outcome
➢ Output
➢ Input
Indicators that show
➢ Objectives have been achieved
➢ Planned outcome has been attained
➢ Desired output has been obtained
➢ Input are properly allocated and employed in all terms

Source and means of verification

Relevant means and source of verification shall be clearly identified and employed accordingly;
➢ Strategic planning documents
➢ Audit report
➢ Field visit and on site survey
➢ Past data etc shall be used

15.4 CHANGE MANAGEMENT IMPLEMENTATION STRATEGY

Page 26
 In connection with the application of the project strategic plan, certain changes are inevitable and these
changes may take place in a continuous/discontinuous process. The fact that all types of changes must result
in supportive, adverse or neutral effects, necessitate management needs to identify and understand the types
and impacts of each planned changes, to be able to benefit from change offers and deal with the challenges of
changes.
In general, transformational, transactional, transitional and Incremental changes in the project workflow
process organizational culture and behavior are expected to occur both at strategic and operational dimension
of this proposal. The impact of all of these changes should be managed in favor of the project at large
The following major implementation strategies are proposed to manage these changes.
Work flow process

This is a targeted economy of scale process intervention, aimed at attaining cost minimization, profit
maximization, efficient service delivery and customer satisfaction. To do this it is pertinent to understand
the dynamics of project realities in the changing world. To change the workflow process to desirable small
scale the following implementation strategy are proposed.
❖ To undertake a detailed task analysis and determine the condition, process and time phase out for each task.
❖ To determine the resource requirements availability quality magnitude and cost
❖ Determination of technology and system requirements
❖ Determination of skill, profession and experience requirement
❖ To design and develop strategic fit and incorporating human resources into system integration
❖ Acquisition of top management support.
Organizational culture change implementation strategy

Change in organizational culture refers to change in project belief, values, strategy, purpose and
expectations. Conductive conditions to cultural changes proposed are
➢ To create appropriate environment for team work, process focus, action oriented and low level decision
making
➢ Outstanding and effective trial of many alternative tools and techniques and selecting the most appropriate
➢ Building the skills and competence of management and staff
➢ Setting standards to measure performance

Page 27
➢ Analysis and initiating corrective measures
Behavioral change implementation strategy

Organizational behavior refers to employee individual and collective behaviors. The most challenging task is
to manage employees’ behavior towards the success of desired changes.
The following strategies are proposed for project organizational behavioral change implementation and
management
✓ Involving employees in planning and decision making process
✓ Promotion of rewarding and incentive system
✓ Promotion of employee career and skill development operational plan
✓ Avoiding under/over employment
✓ Promotion of transparent, accountable and non discriminatory data based decision making practices
✓ Provision of clearly defined job description, evaluation, lines of authority and responsibilities as well as lines
of communication and information flows.
✓ Provision of management and leadership support and guidelines.

Staff motivation strategy

Experiences has demonstrated that the most difficult and resistance to organizational transformation and
improvement process is the behavior of employee, unless employees are properly managed motivated and
participated in the process the efforts of achieving planned objectives would carry meaningless. Moreover,
the fact that there are various knowledge skill, experience dedication commitment sense of ownership
belongingness moral ethics honesty, reliability etc. among employees there exist differences in their effort
contributing and performance results. Employers contributing extra efforts and time require recognition
need reward and development. Because recognition, reward and development.

Page 28