CERIS – PAC Research Training Project

Knowledge For Action – Action for Knowledge

HOW TO DEVELOP A
MANAGEMENT INFORMATION
SYSTEM

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HOW TO DEVELOP A MANAGEMENT

INFORMATION SYSTEM

The workshop discusses the strategy and approach to developing

management information systems in community oriented projects and
programs. Participants will discuss their approaches and experiences in
researching information needs, designing performance measurement
frameworks, developing indicators, evolving work plans and reporting results.

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GOAL

• Contribute to a better understanding of organizations, communities and clients

OBJECTIVES

• To stress the importance of Management Information Systems in keeping records of

services provided by Community based organizations

Purpose

• Understand the basics of management information system (MIS) familiarize with the
stages of development of a simple MIS and its applications.

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- WORKSHOP BACKGROUND FOR CERIS -

WORKSHOP LENGTH

Three hours

TRAINING METHODS

• Adult education

• Participatory

• Experiential learning

• Use of visual aids

• Small group work: discussion, exercises

TEACHING AIDS AND EQUIPMENT REQUIRED

• Transparencies

• Flipchart, markers and masking tape

• Overhead projector and screen

• Notepads

• Nametags

• Pens

FACILITATION MEDIUM

• English

ASSUMPTION

• Community based agencies benefit from developing a management information system.

This is an introductory program for frontline workers, practitioners and coordinators
without background in MIS.

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FACILITATOR: REQUIRED KNOWLEDGE AND SKILLS

• Familiarity with CERIS-PAC Project

• Knowledge of immigrant and refugee serving agencies in Greater Toronto Area

• Sound understanding of management information system

• Good skills and knowledge of adult education methods

• Experience with development of MIS in non-profit sector

NOTES TO THE TRAINER

Trainer needs to arrange copies of overheads in order of the modules. On the left side
pouch in the folder insert draft agenda, a notepad and the evaluation form. The goal and
purpose statements and the workshop objective could be written on flipcharts and taped
on the wall before the workshop commencement.

Round table(s) would be ideal for effective participation. Overhead projector, screen and
flipcharts will be needed. Find out the facility for coffee, tea and drinking water at the
venue and the location of wash rooms for men and women. While choosing a venue,
prefer one with handicap accessibility. Effective use of participants as volunteers will be
useful in conducting discussion sessions and in displaying flipcharts.

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- AGENDA -
Welcome

Introduction

Review of agenda and objectives

Current Practices in MIS – Experience sharing

Importance of Management Information System

Concepts of Information, Information Systems and Management

Dos and Don’ts in developing MIS

Steps in developing MIS

Evaluation

Closure

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- CURRICULUM -

1. Welcome (5 minutes)

The representative of the agency hosting the workshop venue (agency whose facility is
hired for the workshop) or the facilitator introduce themselves could welcome the
participants and introduce the facilitator. Further, the representative could walk through
the physical facilities such as the arrangements for coffee/tea, washrooms and telephone
facility.

2. Introduction (Discussion, 5 minutes)

The facilitator may choose to introduce herself/himself briefly in terms of directly related
work experience and academic background. Then, explain the purpose of CERIS-PAC
Project on Knowledge for Action and Action for Knowledge and how the present
workshop is related to it. The participants could be invited to introduce themselves by
name, job title and their organizational affiliation.

3. Review of agenda and objectives (Flipchart, discussion, 10 minutes)

The facilitator could explain the agenda for the workshop including the break time and end
time. S (he) could elucidate the goal and purpose of the workshop. S (he) could also
explain the context and background expected of the participants. The facilitator could ask
each participant to describe his or her expectations and learning objectives. Then the
facilitator may consider amending the agenda to build in participant requirements.

4. Role and significance of Management Information System (Overheads,

discussion, 25 minutes)

The facilitator sets the tone for a participatory atmosphere for the workshop by asking
participants what do they think of MIS. This could generate a good discussion and
contribute to unfreezing.

Why MIS?

The facilitator introduces the overhead on `Why are we focusing attention on developing
MIS’. An important concept emerging in non-profit sector is `competitiveness’ of agencies
and how to become competitive in an environment of funds crunch. The facilitator could
discuss the dependence and interrelationships among different units such as finance,
program development, outreach, etc within an agency.

Canada’s workforce largely consists of ‘knowledge-workers’. The facilitator stimulates

discussion in reviewing the impact of globalization, funding cuts, need for increased
productivity and demands from funders to demonstrate results. Underline the fact that
about 80 per cent of a frontline worker’s time is devoted to receiving, processing and

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sharing information in community agencies. Two significant resources of a modern

organization are people and information and success depends on how these are managed.

The facilitator needs to explain that developing a MIS has costs as well. These relate to
equipment, hiring of personnel, orientation and training and staff time adjustment. The
decision to develop a MIS is an important one and has to be ratified by the Board based
on a recommendation from agency management. Introduction of MIS calls for newer skills
among the staff to cope with the changes.

Management functions and MIS

The facilitator shows the overhead on management functions. Information is gathered

around critical functions of management such as planning, organizing, staffing, controlling
and communicating. Among these functions, MIS is closer to the controlling function as it
provides feed back on organizational performance and helps in monitoring.

Types of management information

Executive decisions are made using a variety of information. The facilitator introduces the
overhead on types of management information and enables the participants to distinguish
various types and uses of management information. It is vital for the organization to
survive and grow by accessing and processing not only internal information but also
external information. The facilitator could use the examples to elucidate the messages.
External information could include socio-economic situation of clients, public policies,
amendments in social legislation of importance to an agency, funding programs introduced
or planned by federal or provincial governments, grants from foundations and the work of
other agencies.

Role of Information

The facilitator highlights the role and uses of information and introduces the overhead on
why management information system. The facilitator promotes discussion by clarifying the
differences between ‘data’ and ‘information’. Discuss the attributes of information,
particularly the issues of authenticity, timeliness and confidentiality. These factors
underline the significance of information as a resource.

Types of Information Systems

In continuation of the discussion on role of information in community agencies, the

facilitator draws the attention of participants to four types of commonly used information
systems. Introduce the overhead on types of information systems and explain with
examples each type. For example, office information system exists in each agency as most
of them have telephone and fax and undertakes correspondence. The decision support
system is a way by which the Board uses the information provided by agency management
to determine policy or other decisions.

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5. Steps in developing MIS (Overheads, flipchart, and discussion 40 minutes)

After facilitating an understanding of basic concepts and elements of MIS, the facilitator
initiates the discussion on what are the steps involved in creating a MIS. The set of two
overheads on steps in MIS development is to be introduced while discussing the different
stages. These steps are more appropriate for a computer based MIS.

Preliminary Investigation

In this phase, the agency needs to critically assess its current system in order to justify the
cost and time involved before deciding on having a new MIS. The facilitator needs to
clarify the MIS need not always involve computers. However, if there are computers the
work gets accelerated.

Requirements Analysis

The facilitator discusses the methods and means of ascertaining the information needs to
be addressed by MIS. Further, the mechanisms for gathering information from primary and
secondary sources are to be determined by agencies. A critical factor is ascertaining MIS
needs of primary and secondary users.

System Design

The facilitator explains basics of a MIS system elucidating the inputs, the processing and
the outputs. While inputs include information provided by front-line workers, the outputs
could be various types of reports, including those sent periodically to funders . The
procedures define how and in what format the information will be inputted and by whom
and at what intervals. The storage could be manual or electronic or both. Design specifies
the operational parameters at a drawing board stage. One of the inputs for MIS could be
information from a client database.

Other stages

The facilitator systematically discusses the different steps in MIS development in a

universalized perspective. In other words, it needs to be specified that these steps need to
be tailored to one’s own situation. In the acquisition stage, hardware is procured after
appraisals and cost analysis. Draw attention to the need to ensure compatibility between
what is being acquired and what is already available within the agency.

The implementation step is a crucial one consuming considerable amount of time in MIS
development. Here the application development is done customized to the agency’s needs.
The procedure and user manuals are developed and personnel are oriented in using MIS.
The software is installed once it is tested and debugged.

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6. Operationalizing MIS: Role descriptions (overheads, flipchart, discussion, 30

minutes)

In operationalizing MIS, who needs to do what needs specification. Two key roles in MIS
development are those of a MIS coordinator and MIS application developer/programmer.
An application developer may not be needed where the level of programming effort is
minimal.

Role of MIS Coordinator

The facilitator illustrates the role and responsibilities of a MIS coordinator by introducing
the overhead on role of MIS coordinator in developing a MIS. It needs to be clarified that
a MIS coordinator could be anyone in the agency with enthusiasm and basic knowledge of
MIS concepts with computer literacy. This is important, as most of the agencies do not
have resources for a full-time MIS coordinator.

The coordinator acts as a linking pin among staff finding out needs, enabling design of
forms, plotting information flow, preparing reports and motivating everyone.

Role of an application developer

The facilitator will show the overhead on role of application developer in MIS. In the
introductory remarks, the facilitator could mention that depending upon the complexity of
MIS design, an application developer might be needed. In some cases the MIS coordinator
could also undertake application development by writing programs. Often a ready-made
package from the market may eliminate the need for application development.

Developing MIS – Dos and Don’ts

The facilitator initiates a discussion on dos and don’ts to be observed while creating a
MIS. Introduce the overhead on developing MIS – dos and don’ts. This could stimulate
an interesting discussion on participant experiences and perceptions. Record on flip charts
the observations and suggestions of participants. Then reflect on the outcome of the
discussion.

7. What components could form part of MIS? (overhead, flipchart, discussion, 25

minutes)

The facilitator reflects on the materials shared on developing MIS. The overhead on what
components could form part of a MIS in a not-for-profit organization is presented. The
facilitator discusses each component presented in the overhead. Then the facilitator could
organize a brainstorming session to enlist ideas of the participants and post it on flipcharts.

Alternatively, the facilitator could stick flipcharts and invite the participants to add to
those areas identified in the overhead.

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8. Closure (5 minutes)

The facilitator provides in about five minutes a quick recap of the major events in the
workshop. Thank the participants for their participation and for their active participation
in the discussions. Encourage the participants to explore the need for MIS in their
agencies.

9. Evaluation (10 minutes)

Hand out the evaluation form with a request to fill it. Collect the filled-in forms.

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Overhead sheet - 1
WHY ARE WE FOCUSING ATTENTION ON
DEVELOPING MIS?

• The information explosion – growing base of knowledge

workers(70% Canadian work force)

• The rapid pace of change(globalization, rapid social changes,

legislative changes, downloading, funding cuts, job losses, tax
reforms and so on)

• The increasing complexity of Management (demands on

quality, competitiveness, timely delivery, etc.)

• The interdependence of organization units (finance, family

welfare, fund-raising, personnel, etc.)

• The improvement of productivity (better outreach, more clients,

more programs, better accuracy, etc.)

• The availability of computers for End-users(easy access, hand-

on service, wide literacy and interest)

• The recognition of information as a resource

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Overhead sheet- 2
WHY MANAGEMENT INFORMATION SYSTEM?

A majority of workers today are knowledge workers – they spend

time creating, distributing, or using information. Example:
bankers, coordinators, caseworkers, counselors, community
organizers, programmers, etc

• About 80% of an executive’s time are devoted to information

receiving, communicating, and using it.

• Information is the basis for virtually all activities performed in

an organization

• Best use of two key ingredients in organizations – people and

information

• Effective utilization of information systems in management.

• Productive use of information

• nformation is a resource to increase efficiency, effectiveness

and competitiveness of an enterprise

Some Examples of MIS

• Airline reservations (seat, booking, payment, schedules,

boarding list, special needs, etc.)

• Train reservation

• Bank operations (deposit, transfer, withdrawal)

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Overhead sheet - 3
WHAT IS INFORMATION?

Information is data presented in a form that is meaningful to the

recipient. It adds to knowledge and is relevant for the situation.
Two types of information are accounting information and
management information.

Data becomes information when they are transformed to

communicate meaning or knowledge, ideas or conclusions. By
itself data is meaningless.

The attributes of an item of information are: accuracy, form,

frequency, breadth (scope), origin, time. horizon. Attributes of a
set of information are relevance, completeness and timeliness.

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Overhead sheet - 4

TYPES OF INFORMATION SYSTEM

Information system aims at processing data: to capture details of

transactions, to enable people to make decisions, and/or to
communicate between people and locations.

1. Transaction processing system

Reasons for TP are recording, classification, sorting, calculation,

summarization, storage and display of results

2. Management Information System

(Management reporting system)

Provide information for decision support where information

requirements that can be identified in advance
Decisions supported by this frequently occur.

3. Decision Support System

Assist with unique and non-recurring decisions, which are

relatively unstructured
Mainly what factors to consider and what information are needed.

4. Office Information system

Combines word processing, telecommunications and data

processing to automate office information. Draws on stored data as
a result of data processing. Includes handling of correspondence,
reports and documents.

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Overhead sheet - 5
MANAGEMENT FUNCTIONS

Management is the act or skill of transforming resources (land,

labor, capital and information) onto output to accomplish a desired
result or objective.

Planning – establishing goals and developing policies,

procedures, and programs to achieve them

Organizing – grouping activities and establishing organizational

structures and procedures to ensure that the activities are
performed

Staffing – obtaining and training personnel to work in the

organization in order to achieve goals and objectives

Controlling – measuring performance against goals and

objectives and developing procedures for adjusting goals,
procedures, or activities.

Communicating – transferring information on goals, objectives,

and performance to personnel throughout the organization and the
environment

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Overhead sheet – 6

TYPES OF MANAGEMENT INFORMATION

Seven types of information are necessary for top-level managers.

1. Comfort information: informs about current situation or
achievement levels that are tuned to expectations. (Clients
served, target achieved, patients treated, operations conducted,
etc.)

2. Status information or progress information: keeps abreast of

current problem and crises and changes.(progress on office
construction, status of research study, labor negotiation, grant
application)

3. Warning information: signals that change for good or worse are

occurring (stock price, turn over, client complaints, etc.)

4. Planning information: descriptions of projects/programs due in

future, knowledge of anticipated developments(future of
funding, future of federal/provincial support )

5. Internal operations information: indicators on how organization/

program is performing.

6. External intelligence: information, gossip, and opinions about

activities in the environment of the agency. Competition,
funding policies, political changes, emerging social policies,
etc.

7. Externally distributed information: annual report before release,

quarterly progress report for donors, press releases about the
agency, publicity material before printing, etc.

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Among these, the first five are internal to the organization. Two
are external to the organization:

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Overhead sheet - 7
STEPS IN MIS DEVELOPMENT

Preliminary Investigation

• The problem

• Magnitude and scope

• Alternatives

• Viability and cost effectiveness

Requirements Analysis

• Knowing the primary and secondary users

• Ascertaining user needs

• Primary and secondary sources of information

• Design, development and implementation needs

Systems design

• Inputs

• Processing

• Outputs

• Storage

• Procedures

• Human resources

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Acquisition/procurement

• Compatibility

• Cost effectiveness

• Performance standards

• After sales service

• Configuration

• Portability

Implementation/installation

• Application development

• Testing

• Debugging – logical and syntactical

• Procedure and user manual preparation

• Orientation and training

Maintenance and upgradation

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Overhead sheet - 8
WHAT COULD BE THE ROLE OF MIS COORDINATOR
IN DEVELOPING A MIS?

• Interact with user groups

• Identify the needs of users of MIS

• Designing of reporting formats

• Identify systems of information flow

• Ensure smooth flow of information within and outside the

organization

• Time management – tracking inputs/reports

• Act as interface among sections and management tiers

• Identify training needs of staff in MIS jointly with application

developer

• Organize monthly/periodic meetings to assess performance,

maintain minutes and follow-up on the decisions

• Interface with the various divisions/units in the organization for

information sharing

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Overhead sheet - 9
WHAT COULD BE THE ROLE OF COMPUTER
PROGRAMMER/APPLICATION DEVELOPER

• Participate in assessing users’ information needs

• Develop computer based applications

• Undertake initial testing and debugging applications

• Operationalize the applications

• Staff training

• Extend on-going support to users in handling the applications

• Focus on customizing inexpensive market software for agency

needs

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Overhead sheet - 10

DEVELOPING MIS – DOS AND DON’TS

DO’s DON’Ts
• Have simpler and • Be ambitious
manageable system
• Be unrealistic in developing
• Develop common action plan
understanding between
consultant and the • Delay decisions on hiring
organization application developer/s

• Involve programmer in needs • Depend heavily on the

assessment Consultant

• Customize off-the-shelf • Invest heavily in in-house

software application development

• Have simple software for • Let vendors determine

users to handle hardware needs for LAN

• Extensively involve users in • Go for large applications

MIS development

• Adopt modular approach for

s/w development

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Overhead sheet - 11

STEPS IN MIS DEVELOPMENT

Preliminary Investigation

• The problem

• Magnitude and scope

• Alternatives

• Viability and cost effectiveness

Requirements Analysis

• Knowing the primary and secondary users

• Ascertaining user needs

• Primary and secondary sources of information

• Design, development and implementation needs

Systems design

• Inputs

• Processing

• Outputs

• Storage

• Procedures

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• Human resources

Acquisition/procurement

• Compatibility

• Cost effectiveness

• Performance standards

• After sales service

• Configuration

• Portability

Implementation/installation

• Application development

• Testing

• Debugging – logical and syntactical

• Procedure and user manual preparation

• Orientation and training

Maintenance and upgradation

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Overhead sheet -12

WHAT COMPONENTS COULD FORM PART OF A MIS IN A NOT-
FOR-PROFIT ORGANIZATION?

Here are the applications selected by an NGO wishing to develop

MIS.

1. A database to record transactions of the different units within

the NGO with their client system (local groups, CBOs, etc.) to
record all interactions in key functions of the organization.

2. A work plan application to enable people to plan/schedule their

activities

3. A performance measurement application to ascertain and report

the progress of the activities in a results based management
framework

4. Financial information system to query, view and modify

activity related information and finances

5. Documentation and information resource system

6. Personnel information system

These need to be compatible and build on the existing systems to

minimize costs and time of the staff. This is an indicative list. You
need to decide what you want.

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Overhead Sheet – 13

WHAT DOES THE CASE STUDY RECOMMEND ON SOFTWARE?

To reduce costs it could be cheaper to buy software off the shelf in

the market for:

• File management system

• Documentation and information resource system

• Routine/repetitive operation programming (leave, attendance,

travel, etc.)

• Financial information system

• Personnel information system

These need to be compatible and build on the existing systems to

minimize costs and time of the staff.

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Handout – case study

HOW TO DEVELOP A MANAGEMENT INFORMATION SYSTEM?

A CASE ILLUSTRATION

Here the experiences of a not-for-profit organization in developing a management

information system are presented. This is a typical case as it lucidly brings out the pros and
cons of going in for developing a MIS. This experience is recent as it pertains to 1997-98.
However the organization is yet to complete the installation of its MIS. The actual name
of the organization is not mentioned for the purpose of confidentiality.

Task Force

A task force was established to examine the idea of having a MIS in the organization.
Once it was decided to go in for a MIS, the Task Force was enlarged with the hiring of an
external consultant. The consultant’s role was to help the staff in design of the MIS plan
of action and assist in technical areas of application development, testing and
implementation of the Project. Besides the consultant, an Application Developer was hired
to join the MIS development team. A few representatives of the staff constituted the users
representatives on the team.

Orientation for staff

Initially a two-day orientation session was held for all staff by the consultant on the
concept and uses of MIS.

Need Investigation and Identification

Considerable time was spent with user groups in the organization to identify their needs.
Based on the needs a system was designed. The needs included:

• A database to record transactions of the different units within the NGO with their
client system (local groups, CBOs, etc.) to record all interactions in key functions of
the organization.

• A work plan application to enable people to plan/schedule their activities

• A performance measurement application to ascertain and report the progress of the

activities in a results based management framework

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• An executive/financial information system to query, view and modify activity related

information and finances.

Why delays?

Target achievement in developing MIS was behind the schedule due to:

• Overambitious plan of action of the consultant

• Expanded scope of work and complexity of MIS.
• Unrealistic action plan.
• Delays in hiring computer programmer
• Delay in selection of what hardware and software to acquire for MIS
• Non-involvement of computer programmer in needs assessment and initial design
process
• Increased dependency on the consultant
• Absence of common understanding between the consultant, programmer and the
management

Based on the delays and problems in launching MIS in Phase – I, the Project was revised
and the Phase-II was started with modest operational goals.

Lessons from the case

• Concurrently develop capabilities in-house

• Have a technically simple system
• MIS needs to address basic needs of agency and user groups
• Use a modular approach linking modules gradually(do not develop a large application)
• Buy software as much as possible from market off the shelf and customize

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