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BSBMGT517 – Manage Operational Plan The Pitch The business idea is as follows: · You want to start up a tour business that caters for MAMILs · The idea is that, for a fee, you will arrange a cycling tours in desirable (bucket list) locations, e.g. · Tour of Tasmania in warmer months · In the more temperate months offer tours of wine regions such as Barossa and Clair Valleys in SA, or Margaret River Region in WA or Hunter Valley and surrounds in NSW · Tropical tours in the colder months e.g. the Daintree and Port Douglas region, etc. · The tours will accommodate approximately 20-30 cyclist at a time and will be fully supported by your team of tour coordinators and tour support teams. · You will market to MAMILs in your own capital city (for example in Hobart). · You will equip a 6-Metre (20ft) shipping container to safely and securely transport their bicycles and equipment to the starting point for each tour and return everything to a central point back in their capital city at the end of the tour. · It is the responsibility of each MAMIL to drop off and pick up their gear at the central point in your capital city. · The duration of the tours will range from 7-14 days · Preliminary research on your part indicates that MAMILs would be prepared to pay in the range of $3-5k each for a tour. · The model that your tours will follow is: · The MAMILs pay their own travel costs to get to the start point of the tour and their return home at the completion of the tour. · Your tour team will provide a support vehicle to travel with the herd each day of the tour. · The tours will range from budget tours where they will stay overnight in camping and caravan parks along the way, through to more up-market tours where they will stay in hotel and or B&B style accommodation. · For the budget tours, you propose that your vehicle provides a BBQ breakfast and evening meal at the camps. The way you want to set up this new business is to develop a single but successful operation that services MAMILs in your Capital City. When you have the model running successfully, you plan to franchise operations national and potentially internationally. Your goal is that in five years’ you will be managing a group of franchises and have both a good income as well as a good work/life balance. In the report, you have to: 1. Conduct a SWOT analysis on this proposal. 2. Following the SWOT analysis, make a determination on the viability of the proposed business. Consideration for your risk management and decide a “Go’ or “No-go” for developing this business. 3. Assuming a “Go”, you need to use “KALIPOT” as your business name 4. Now make a Mission Statement for your business. 5. Make a Vision Statement and also make a Values Statement. 6. Now consider the operations and develop a preliminary Organisational Chart, indicating the functional units of your business (You need to make an Organisational Chart here) This is only a sample of Organinsational Chart. Please make your own accordi ...

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BSBMGT517 – Manage Operational Plan The Pitch The business idea is as follows: · You want to start up a tour business that caters for MAMILs · The idea is that, for a fee, you will arrange a cycling tours in desirable (bucket list) locations, e.g. · Tour of Tasmania in warmer months · In the more temperate months offer tours of wine regions such as Barossa and Clair Valleys in SA, or Margaret River Region in WA or Hunter Valley and surrounds in NSW · Tropical tours in the colder months e.g. the Daintree and Port Douglas region, etc. · The tours will accommodate approximately 20-30 cyclist at a time and will be fully supported by your team of tour coordinators and tour support teams. · You will market to MAMILs in your own capital city (for example in Hobart). · You will equip a 6-Metre (20ft) shipping container to safely and securely transport their bicycles and equipment to the starting point for each tour and return everything to a central point back in their capital city at the end of the tour. · It is the responsibility of each MAMIL to drop off and pick up their gear at the central point in your capital city. · The duration of the tours will range from 7-14 days · Preliminary research on your part indicates that MAMILs would be prepared to pay in the range of $3-5k each for a tour. · The model that your tours will follow is: · The MAMILs pay their own travel costs to get to the start point of the tour and their return home at the completion of the tour. · Your tour team will provide a support vehicle to travel with the herd each day of the tour. · The tours will range from budget tours where they will stay
overnight in camping and caravan parks along the way, through to more up-market tours where they will stay in hotel and or B&B style accommodation. · For the budget tours, you propose that your vehicle provides a BBQ breakfast and evening meal at the camps. The way you want to set up this new business is to develop a single but successful operation that services MAMILs in your Capital City. When you have the model running successfully, you plan to franchise operations national and potentially internationally. Your goal is that in five years’ you will be managing a group of franchises and have both a good income as well as a good work/life balance. In the report, you have to: 1. Conduct a SWOT analysis on this proposal. 2. Following the SWOT analysis, make a determination on the viability of the proposed business. Consideration for your risk management and decide a “Go’ or “No-go” for developing this business. 3. Assuming a “Go”, you need to use “KALIPOT” as your business name 4. Now make a Mission Statement for your business. 5. Make a Vision Statement and also make a Values Statement. 6. Now consider the operations and develop a preliminary Organisational Chart, indicating the functional units of your business (You need to make an Organisational Chart here) This is only a sample of Organinsational Chart. Please make your own according to the requirements. Please put a functional unit (the people who operate the cycling tour business. Example: manager, mechanic, first-aider, accountant, WHS specialist, etc.) It is up to you to research! 7. Select one functional unit and develop a draft Management Plan that describes how the Unit will be managed. 8. List 2 Key Result Areas (KRAs) for the Unit/Team 9. Develop a draft Operational Plan that will achieve these 2
KRAs. Do not try and develop Operational procedures at this time because it is a very big job, however, make a list of operations within the Unit that could require clear operating procedures. 10. List resources that you will require the implementation of your Operational Plan including human resources. 11. Identify any resources that you do not currently have but will be needed to achieve your goal. (Goals for example are Finances, Customer satisfaction, logistics, safety, time. But it’s really up to you.) 12. Outline a strategy for obtaining any identified additional resources including approvals. 13. Identify and make a key milestones in the implementation of your Operational Plan. ( Please make a Gantt chart!) This is only a sample of Gantt Chart. Please make your own according to the requirements. Above image is only an example. 14. Make a checklist for monitoring the progress and effectiveness of your Operational Plan. Consider some monitoring factors such as; a. Progress b. Performance c. Budget
This is ONLY a sample checklist. Please make your own according to the requirements Above image is only an example format. 15. Outline the features you could effectively monitor and review the implementation of your Operational Plan. 16. Develop a list of contingency plans for the operation. 17. Develop a plan to protect intellectual property. Format: Font: Times New Roman Size: 12 12 APA Style reference and In-text citation Minimum of 2250 words (References are not included in the 2250 words, but only the content of the written report) Assessment Task 1: WRITTEN REPORT For this assessment, you will need to write a report on the following tasks. These tasks will need to be completed and submitted in a professional, word-processed format in no less than 2250 words. ASSESSMENT 1: WRITTEN REPORTFirst page only is for Executive Summary:EXECUTIVE SUMMARY You need to explain in brief about the whole report in here. Don’t explain more than 250 words Must include Topic, Objectives, Methodology (Qualitative), Findings, Conclusion.INTRODUCTION Explain in brief about the background of the organisation
REPORT ANALYSIS / BODY Give overall review of the report which you are going to discuss in here. CONCLUSION Explain conclusion here. REFERENCE LIST Give minimum 12 references (must be in APA Style referencing format) and In-text citations. LEARNER GUIDE BSBMGT517 Manage operational plan This learner guide is copyright protected and belongs to:
1 TABLE OF CONTENTS TABLE OF CONTENTS............................................................................ ....................................................1 COURSE INTRODUCTION ............................................................................................... ......................... 4 ABOUT THIS GUIDE ............................................................................................... ....................................................................... 4 ABOUT THIS RESOURCE ............................................................................................... ...................................................... 4 ABOUT ASSESSMENT ............................................................................................... ............................................................. 5 ELEMENTS AND PERFORMANCE CRITERIA ...................................................................................... 7 EVIDENCE REQUIREMENTS ............................................................................................... .................... 9
KNOWLEDGE EVIDENCE ............................................................................................... ............................................................ 9 PERFORMANCE EVIDENCE ............................................................................................... ......................................................... 9 ASSESSMENT CONDITIONS ............................................................................................... ..................... 11 PRE-REQUISITES ............................................................................................... ........................................ 11 TOPIC 1 – DEVELOP OPERATIONAL PLAN .......................................................................................... 12 RESEARCH, ANALYSE AND DOCUMENT RESOURCE REQUIREMENTS AND DEVELOP AN OPERATIONAL PLAN IN CONSULTATION WITH RELEVANT PERSONNEL, COLLEAGUES AND SPECIALIST RESOURCE MANAGERS ........................................................................................... 12 MODELS AND METHODS FOR OPERATIONAL PLANS ............................................................................................... ............ 12 ALLOCATING RESOURCES ............................................................................................... .......................................................... 13 Physical Resources
............................................................................................... ....................................................................... 13 Human Resources ............................................................................................... ....................................................................... 14 HOW MUCH CAPITAL? .................................................................................... ........... ............................................................... 14 DEVELOP AND/OR IMPLEMENT CONSULTATION PROCESSES AS AN INTEGRAL PART OF THE OPERATIONAL PLANNING PROCESS ......................................................................................... 17 CONSULTATION PROCESS ............................................................................................... .......................................................... 17 ENSURE THE OPERATIONAL PLAN INCLUDES KEY PERFORMANCE INDICATORS TO MEASURE ORGANISATIONAL PERFORMANCE ................................................................................. 18 ALTERNATIVE APPROACHES TO DEVELOPING KPI’S ............................................................................................... .......... 19 DEVELOP AND IMPLEMENT CONTINGENCY PLANS FOR THE OPERATIONAL PLAN ........... 21 WHAT IS A CONTINGENCY PLAN? ............................................................................................... ............................................ 21
RISK MANAGEMENT...................................................................... ............................................................................................. 21 CHANGES IN FUNDING ............................................................................................... .............................................................. 21 DISASTER RECOVERY............................................................................ ..................................................................................... 22 CONTINGENCY PLANNING CHALLENGES ............................................................................................... ............................. 22 DEVELOPING THE PLAN ............................................................................................... ............................................................ 23 MAINTAINING THE PLAN ............................................................................... ................ .......................................................... 24 ENSURE THE DEVELOPMENT AND PRESENTATION OF PROPOSALS FOR RESOURCE REQUIREMENTS IS SUPPORTED BY A VARIETY OF INFORMATION SOURCES AND SEEK SPECIALIST ADVICE AS REQUIRED ............................................................................................... ...... 24 OBTAIN APPROVAL FOR THE PLAN FROM RELEVANT PARTIES AND EXPLAIN THE PLAN TO RELEVANT WORK TEAMS ............................................................................................... ................. 26
TOPIC 2 - PLAN AND MANAGE RESOURCE ACQUISITION ............................................................. 28 2 DEVELOP AND IMPLEMENT STRATEGIES TO ENSURE THAT EMPLOYEES ARE RECRUITED AND/OR INDUCTED WITHIN THE ORGANISATION’S HUMAN RESOURCES MANAGEMENT POLICIES, PRACTICES AND PROCEDURES ........................................................................................ 28 RECRUITMENT STRATEGIES ............................................................................................... ...................................................... 28 JOB DESCRIPTION ............................................................................................... ........................................................................ 29 WAGE OR SALARY ............................................................................................... ....................................................................... 29 ANALYSIS OF REQUIREMENTS ............................................................................................... ................................................... 29 RESEARCHING SOURCES ............................................................................. .................. ............................................................ 30 ACQUISITION AND IMPLEMENTATION ............................................................................................... .................................... 30
INTERVIEW AND INDUCTION ............................................................................................... .................................................... 31 Interview ............................................................................................... ..................................................................................... 31 INDUCTION ............................................................................................... ................................................................................... 32 DEVELOP AND IMPLEMENT STRATEGIES TO ENSURE THAT PHYSICAL RESOURCES AND SERVICES ARE ACQUIRED IN ACCORDANCE WITH THE ORGANISATION’S POLICIES, PRACTICES AND PROCEDURES AND RECOGNISE AND INCORPORATE REQUIREMENTS FOR INTELLECTUAL PROPERTY RIGHTS AND RESPONSIBILITIES IN RECRUITMENT AND ACQUISITION OF RESOURCES AND SERVICES ................................................................................. 33 PHYSICAL RESOURCES ............................................................................................... ................................................................ 33 FINANCIAL RESOURCES ............................................................................................... .............................................................. 33 TIME ............................................................................................... .............................................................................................. 34
POWER/ENERGY RESOURCES ............................................................................................... ................................................... 34 INFORMATION RESOURCES.......................................................................... ............................................................................. 34 INTELLECTUAL PROPERTY ............................................................................................... ......................................................... 35 GOODWILL ............................................................................................... ................................................................................... 35 RESEARCHING SOURCES ............................................................................................... ............................................................ 35 ACQUISITION AND IMPLEMENTATION ........................................................................................ ....... .................................... 36 TOPIC 3 - MONITOR AND REVIEW OPERATIONAL PERFORMANCE ........................................... 39 DEVELOP, MONITOR AND REVIEW PERFORMANCE SYSTEMS AND PROCESSES TO ASSESS PROGRESS IN ACHIEVING PROFIT AND PRODUCTIVITY PLANS AND TARGETS .................... 39 TRIPLE BOTTOM LINE REPORTING ............................................................................................... .......................................... 39 MONITORING AND REPORTING ............................................................................................... ............................................... 40 MONITORING EMPLOYEES ......................................................................................... ......
........................................................ 40 PERFORMANCE APPRAISAL ............................................................................................... ........................................................ 41 ANALYSE AND INTERPRET BUDGET AND ACTUAL FINANCIAL INFORMATION TO MONITOR AND REVIEW PROFIT AND PRODUCTIVITY PERFORMANCE .................................. 42 PREPARATION OF BUDGETS ............................................................................................... ...................................................... 42 WHY ARE BUDGETS PREPARED? ............................................................................................... ............................................... 43 FINANCIAL ANALYSIS ............................................................................................... ................................................................. 43 IDENTIFY AREAS OF UNDER-PERFORMANCE, RECOMMEND SOLUTIONS AND TAKE PROMPT ACTION TO RECTIFY THE SITUATION ............................................................................. 45 IDENTIFICATION OF PROBLEMS ............................................................................................... ............................................... 45 DISCIPLINARY ACTION ............................................................................................... ............................................................... 46 Termination of employment ...............................................................................................
......................................................... 47 ACHIEVING RESOLUTION - DECISION-MAKING ............................................................................... ................ .................... 47 PLAN AND IMPLEMENT SYSTEMS TO ENSURE THAT MENTORING AND COACHING ARE PROVIDED TO SUPPORT INDIVIDUALS AND TEAMS TO EFFECTIVELY, ECONOMICALLY AND SAFELY USE RESOURCES ............................................................................................... ............... 49 OTHER SOURCES OF HELP ............................................................................................... ......................................................... 50 The relevant Commonwealth, State, Territory and local government ............................................................................................ 50 Accountants ........................................................................................ ....... ................................................................................ 50 Solicitors ............................................................................................... ..................................................................................... 51 Recruitment consultants ............................................................................................... ............................................................... 51 Banks ............................................................................................... ......................................................................................... 51
3 Books, magazines and newspapers ............................................................................................... .............................................. 51 Universities, TAFEs and other educational organisations ............................................................................................... ........... 52 Computer hardware and software organisations ............................................................................................... ........................... 52 Business Enterprise Centres ............................................................................................... ........................................................ 52 UNDERSTANDING ADVICE AND TAKING ACTION ............................................................................................... ................ 52 NEGOTIATE RECOMMENDATIONS FOR VARIATIONS TO OPERATIONAL PLANS AND GAIN APPROVAL FROM DESIGNATED PERSONS/GROUPS ....................................................................... 54 VARIATIONS TO OPERATIONAL PLANS ............................................................................................... .................................... 54 DEVELOP AND IMPLEMENT SYSTEMS TO ENSURE THAT PROCEDURES AND RECORDS ASSOCIATED WITH DOCUMENTING PERFORMANCE ARE MANAGED IN ACCORDANCE
WITH ORGANISATIONAL REQUIREMENTS ...................................................................................... 55 SYSTEMS TO DOCUMENT PERFORMANCE ............................................................................................... ............................... 55 THE CONTROL ENVIRONMENT ............................................................................................... ................................................. 56 THE MANAGEMENT INFORMATION SYSTEM ............................................................................................... .......................... 57 THE CONTROL PROCEDURES ............................................................................................... .................................................... 57 SUMMARY ............................................................................................... .................................................... 59 REFERENCES ............................................................................................... ............................................. 60
4 COURSE INTRODUCTION ABOUT THIS GUIDE This resource covers the unit BSBMGT517 - Manage operational plan. This unit describes the skills and knowledge required to develop and monitor implementation of the operational plan to provide efficient and effective workplace practices within the organisation’s productivity and profitability plans. Management at a strategic level requires systems and procedures to be developed and implemented to facilitate the organisation’s operational plan. This unit applies to individuals who manage the work of others
and operate within the parameters of a broader strategic and/or business plan. No licensing, legislative or certification requirements apply to this unit at the time of publication. ABOUT THIS RESOURCE This resource brings together information to develop your knowledge about this unit. The information is designed to reflect the requirements of the unit and uses headings to makes it easier to follow. Read through this resource to develop your knowledge in preparation for your assessment. You will be required to complete the assessment tools that are included in your program. At the back of the resource are a list of references you may find useful to review. As a student it is important to extend your learning and to search out text books, internet sites, talk to people at work and read newspaper articles and journals which can provide additional
learning material. Your trainer may include additional information and provide activities, slide presentations, and assessments in class to support your learning. 5 ABOUT ASSESSMENT Throughout your training we are committed to your learning by providing a training and assessment framework that ensures the knowledge gained through training is translated into practical on the job improvements. You are going to be assessed for: written and observation activities that apply to your workplace.
these on the job. You will receive an overall result of Competent or Not Yet Competent for the assessment of this unit. The assessment is a competency based assessment, which has no pass or fail. You are either competent or not yet competent. Not Yet Competent means that you still are in the process of understanding and acquiring the skills and knowledge required to be marked competent. The assessment process is made up of a number of assessment methods. You are required to achieve a satisfactory result in each of these to be deemed competent overall. All of your assessment and training is provided as a positive learning tool. Your assessor will guide your learning and provide feedback on your responses to the assessment. For valid and reliable assessment of this unit, a range of assessment methods will be used to assess practical skills and knowledge. Your assessment may be conducted through a combination of the following methods:
The assessment tool for this unit should be completed within the specified time period following the delivery of the unit. If you feel you are not yet ready for assessment, discuss this with your trainer and assessor. 6 To be successful in this unit you will need to relate your learning to your workplace. You may be required to demonstrate your skills and be observed by your assessor in your workplace environment. Some units provide for a simulated work environment and your trainer and
assessor will outline the requirements in these instances. 7 ELEMENTS AND PERFORMANCE CRITERIA 1. Develop operational plan 1.1 Research, analyse and document resource requirements and develop an operational plan in consultation with relevant personnel, colleagues and specialist resource managers 1.2 Develop and/or implement consultation processes as an integral part of the operational planning process 1.3 Ensure the operational plan includes key performance indicators to measure organisational performance 1.4 Develop and implement contingency plans for the operational plan 1.5 Ensure the development and presentation of proposals for resource requirements is supported by a variety of information
sources and seek specialist advice as required 1.6 Obtain approval for the plan from relevant parties and explain the plan to relevant work teams 2. Plan and manage resource acquisition 2.1 Develop and implement strategies to ensure that employees are recruited and/or inducted within the organisation’s human resources management policies, practices and procedures 2.2 Develop and implement strategies to ensure that physical resources and services are acquired in accordance with the organisation’s policies, practices and procedures 2.3 Recognise and incorporate requirements for intellectual property rights and responsibilities in recruitment and acquisition of resources and services 3. Monitor and review operational performance 3.1 Develop, monitor and review performance systems and processes to assess progress in achieving profit and
productivity plans and targets 3.2 Analyse and interpret budget and actual financial information to monitor and review profit and productivity performance 3.3 Identify areas of under-performance, recommend solutions and take prompt action to rectify the situation 3.4 Plan and implement systems to ensure that mentoring and coaching are provided to support individuals and teams to effectively, economically and safely use resources 8 3.5 Negotiate recommendations for variations to operational plans and gain approval from designated persons/groups 3.6 Develop and implement systems to ensure that procedures and records associated with documenting performance are managed in accordance with organisational requirements
9 EVIDENCE REQUIREMENT S This describes the essential requirements and their level required for this unit. KNOWLEDGE EVIDENCE To complete the unit requirements safely and effectively, the individual must: scribe models and methods for operational plans organisation’s objectives indicators to meet business objectives operational plan of the organisation that directly relate to the operational plan.
PERFORMANCE EVIDENCE Evidence of the ability to: information sources and consultation (including using specialist advice if required) which includes: o resource requirements o key performance indicators o monitoring processes o contingency plans explain the plan and supporting information, seek approvals, negotiate variations and engage work teams eve the operational plan within the organisation’s policies, practices and procedures including: o recruiting, inducting and developing personnel o acquiring physical resources and services o protecting intellectual property
10 o making variations to the plan o monitoring and documenting performance. Note: If a specific volume or frequency is not stated, then evidence must be provided at least once. 11 ASSESSMENT CONDITION S Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the management and leadership field of work and include access to:
Assessors must satisfy NVR/AQTF assessor requirements. PRE-REQUISITES This unit must be assessed after the following pre-requisite unit: There are no pre-requisites for this unit. 12 TOPIC 1 – DEVELOP OPERATIONAL PLAN RESEARCH, ANALYSE AND DOCUMENT RESOURCE REQUIREMENTS AND DEVELOP AN OPERATIONAL PLAN IN CONSULTATION WITH RELEVANT PERSONNEL,
COLLEAGUES AND SPECIALIST RESOURCE MANAGERS An Operational Plan is used to provide a clear picture of how a team, section or department of a business will contribute to the achievement of their organisation's strategic goals. This plan will be clearly set out as to how these teams, sections or departments will perform. The Operational Plan should align with the strategic plan of the organisation and should correlate with the overall objectives of the organisation. This alignment can be achieved by ensuring that the team, section or department’s purpose aligns with the objectives of the Strategic Plan, as well as the Operating Plan of the team, section or department. Operational plans are used to identify: t resources are required to meet the goals MODELS AND METHODS FOR OPERATIONAL PLANS
The Operational Plan can be subdivided into two basic forms which include the single-use plan and the standing plans. A single-use plan is developed to carry out a course of action that is not likely to be repeated in the future. These plans are used once to achieve unique objectives for the business. An example of this is when a business has a particular one off event coming up, they may have a single-use plan to cover everything in relation to this event. In addition, the standing plan is developed for activities that occur repeatedly over a period of time in order for the business to help solve repetitive problems. An example of this would be a large business that has activities repeating all the and need to be structured in a way so that everyone knows what’s going on all the time. Example of a type of chart used to develop operational plans - Gantt charts 13 A Gantt chart, commonly used in project management, is one of
the most popular and useful ways of showing activities (tasks or events) displayed against time. On the left of the chart is a list of the activities and along the top is a suitable time scale. Each activity is represented by a bar; the position and length of the bar reflects the start date, duration and end date of the activity. This allows you to see at a glance: heduled to last much To summarize, a Gantt chart shows you what has to be done (the activities) and when (the schedule).1 Although there are no strict rules that relate to the format of an Operational Plan they will normally contain the following information:
quired ALLOCATING RESOURCES Resources are what your business uses to produce goods or perform services for your customers. There are many types of resources that a business will use and they will be categorised into two groups as 'physical' and 'human' resources. PHYSICAL RESOURCES 1 http://www.gantt.com/ 2 https://www.dlsweb.rmit.edu.au/toolbox/leadership/toolbox/op/o p_c03.html https://www.dlsweb.rmit.edu.au/toolbox/leadership/toolbox/op/o p_c03.html
14 Premises Rent; rates; service costs (heating, lighting, cleaning, security) and structural alterations Equipment Costs of purchase, hire or lease; insurance, running costs (service, repair) Vehicles Costs of purchase, hire or lease; insurance, road tax; running costs (service, repair) Raw Materials Purchase cost (investigate discount for bulk orders), cost of storage (any special requirements for refrigeration or hazardous substances)
HUMAN RESOURCES Human resources are your staff. They are the gears that drive the business and keep it running. And just like with gears they need to be oiled and maintained, which, in this case, means a wage. The majority of your expenditure for staffing will be wages and workplace insurance contributions. When working out your resource requirements for the operational plan, you will need to consider the costs of all your resources, including your staff. There are also other costs relating to staff that you will need to consider including: HOW MUCH CAPITAL? You can work out how much capital you will need to finance the operational plan by finding out your physical and human resource requirements, as discussed
above. Capital is broken down into 2 categories: – 'One-off' payments to purchase physical resources like vehicles, equipment, office furniture, computers and telephone systems; items that will last for a long time and rarely need replacing. 15 – These are the expenses that your business will incur whilst attempting to make a profit. These are used for things such as wages, bills, etc. This projection should be performed on a month-by-month basis. You will also need to take into account that some costs will be the same each month while others will vary. For example: the heating bill in the business should be much higher in the winter than in the summer and you may only incur training costs once every few months, but wages will be consistent throughout the
period. The success of your business depends above all on your ability to juggle your resources effectively, so it's essential to get this right. The following are just some of the typical questions which may arise and need resolving in the process of planning and implementing operational plans: how can we get a replacement? ed?
In answering the above questions, it may be necessary to prepare and/or review such things as: 16
ial instructions 17 DEVELOP AND/OR IMPLEMENT CONSULTATION PROCESSES AS AN INTEGRAL PART OF THE OPERATIONAL PLANNING PROCESS CONSULTATION PROCESS The consultation process is an extremely important concept in the context of managing an organisation. Consultation is the process by which the management of an organisation aim to better understand the needs, wants and expectations of its stakeholders. Consultation with the organisation and its stakeholders can be conducted through management opening communication channels between the two parties.
These can be formal or informal. These formal and informal communication channels might include: - stakeholders are invited to attend one or more open meetings – management can request a survey (paper or online type) to be completed –similar to open meetings, however, the number of participants is smaller - stakeholders are invited to submit comments in writing on a proposal or plan - organisation management might mingle with people at an event and canvass certain ideas and see what response they get The purpose of consultation is three-fold: information on the wants, needs and expectations of the stakeholders created by organisation
management that directly affect them about not taking account of, or not listening to the needs of stakeholders in developing strategic and operational plans Generally speaking, if a plan is conceived without proper consultation with stakeholders then it has far less chance of successful implementation. 18 ENSURE THE OPERATIONAL PLAN INCLUDES KEY PERFORMANCE INDICATORS TO MEASURE ORGANISATIONAL PERFORMANCE Key Performance Indicators (KPI), or Key Success Indicators (KSI), are designed to assist an organisation define and measure its progress toward organisational goals.
The organisation will need a way to measure its progress towards the goals. This can be done by using KPIs. Implementing these Key Performance Indicators will occur after the organisation has analysed and identified its mission, stakeholders and goals. KPIs are significant measurements that reflect and establish the critical success factors of an organisation. They will vary from one organisation to another and should be determined quite early in a company’s lifespan. They will also need to be reviewed as the potential goals of the business may change over time. For example, A business may have one of its KPIs as the total percentage of its income that it procures from return customers. Key Performance Indicators allow you to ensure that you are reaching your overall business goals and objectives. There are eight areas of a business organisation in which performance and results should be set
and reported they are: tanding measured against the potential market, competitor results and new market products and service objectives improvements to existing products and improvement in all aspects of the business 19 Each of these broad areas would have a number of key performance indicators which would be designed to ensure the organisation meets its objectives and that day to day operations are conducted to achieve this aim.
ALTERNATIVE APPROACHES TO DEVELOPING KPI ’S There are a number of approaches to developing KPIs and some suggestions appear below. You are encouraged to identify approaches that are most relevant to their unique business outcomes and activities. - It may be appropriate to focus selection of KPIs on statutory and regulatory requirements and obligations. - KPIs may be developed using the record lifecycle. KPIs would be developed for each life cycle stage. -based - The risk based approach identifies those specific services, functions or activities that may have a negative or detrimental impact on the organisation. In general terms, there are a number of methods for identifying risk and these normally have two parameters: o Likelihood/probability of a risk occurring, and o The impact of a risk occurring5.
progress towards mitigating the risk. - A suggested approach is to examine specific areas of concern using the cause and effect technique. The cause and effect technique might assist with identification of KPIs to address the fundamental or underlying cause of ineffective or inefficient services, functions or activities. The approach analyses the cause(s) and identifies KPIs that address the effect. By addressing the effect, improvements can generally be achieved. - It is also suggested that the agency base KPIs on two levels as follows: o Strategic KPIs; and o Operational KPIs. 20 might be relevant and
appropriate to both strategic and operational levels. 21 DEVELOP AND IMPLEMENT CONTINGENCY PLANS FOR THE OPERATIONAL PLAN WHAT IS A CONTINGENCY PLAN? A contingency plan is a plan devised for an outcome other than in the usual, expected plan. The management of operational plans is partly dependent upon how an organisation identifies, assesses and takes action on the potential risks that can occur within the business. RISK MANAGEMENT Risk management is concerned with how each organisation deals with its risks. Some organisations do not have sufficient formal processes in
place to deal with risks, but simply take reactionary measures when these situations arise. An organisation which has formal risk management approaches would incorporate them into its strategic and operational plans. Such an approach may include the following: organisation documentation to include: o Major risks o Measurement of each risk o How each risk is currently managed? o Plan to deal with risks not properly controlled/managed o Incorporation of risk management plans into strategic and operational plans CHANGES IN FUNDING The management of the organisation’s operational plans can be affected by funding changes including:
them back party) 22 Contingency plans will need to be developed to help the organisation deal with changes in funding. DISASTER RECOVERY Businesses may suffer disruptions to operations following some form of disaster, natural or otherwise, as well as other problems such as power failures.
Organisations should plan to cope with these sorts of incidents and have disaster recovery procedures in place to minimise the disruption. These procedures may include: recovery site y to acquire these at short notice of any changes that have occurred in regards to normal operation unavailable; e.g. main supplier goes bankrupt CONTINGENCY PLANNING CHALLENGES There are two common obstacles that you should be aware as you begin your contingency
planning process. These are: it succeed, with their Plan A, many people will be reluctant to develop a strong Plan B 23 lly occurring many people will procrastinate when it comes to contingency planning and push it to the bottom of task lists. This could mean that it never gets completed and leave the organisation at risk should the worst happen DEVELOPING THE PLAN Here are some general guidelines to follow that will assist you when you are preparing your organisation’s contingency plan: – Look closely at what you need to do to deliver a minimum level of service and
functionality – What must be done during the first hour of the plan being implemented? The first day? The first week? If you look at the plan in this way, you're less likely to leave out important details the trigger – What, specifically, will cause you to implement the contingency plan? Decide which actions you'll take, and when. Determine who is in charge at each stage and what type of reporting process they must follow – You don't know who will read and implement the plan when it's needed, so use clear, plain language so anyone can understand the plan easily – Will your organisation be able to function the same way if you have to implement Plan B, or will Plan B necessarily reduce capabilities? – Have people throughout the
company identify what they must have, at a minimum, to continue operations – What will you need to do to return to 'business as usual'? – Make sure you provide initial training on the plan and keep everyone up-to- date on changes – Look for opportunities to reduce risk, wherever possible. This may help you reduce or even eliminate, the need for full contingency plans in certain areas – Provide a standard to document your planning process, and find opportunities for performance improvement 24 MAINTAINING THE PLAN
As your business grows and changes, you'll need to review and update your contingency plans accordingly. You will need to keep the document updated and relevant, you don’t want to just create it and file it away to be forgotten about. Here are some key steps in the contingency plan maintenance process: plan ining for people to fulfil these roles and responsibilities necessary changes relevant technological, operational, and personnel changes sure that old plans are discarded -site, and in a place where they
can be accessed quickly when needed dit the plan periodically: o Reassess the risks to the business o Analyse efforts to control risk by comparing actual performance with the performance levels described in the contingency plan o Recommend and make changes, if necessary ENSURE THE DEVELOPMENT AND PRESENTATION OF PROPOSALS FOR RESOURCE REQUIREMENTS IS SUPPORTED BY A VARIETY OF INFORMATION SOURCES AND SEEK SPECIALIST ADVICE AS REQUIRED You may need to consult with relevant personnel, colleagues and specialist resource managers to identify the needs of the work environment that you are concerned with. To identify the resources required, you might:
25 You might involve the following people to help them identify resources: etc. rs or supervisors affected by the proposal In any case, you will need to develop and present proposals that are professional and comprehensive in order to meet the resource requirements of the business. 26
OBTAIN APPROVAL FOR THE PLAN FROM RELEVANT PARTIES AND EXPLAIN THE PLAN TO RELEVANT WORK TEAMS You will need to have your plan approved by the appropriate person/people. Relevant parties involved in obtaining approval for an operational plan can be as followed: Stakeholders Once you have drawn up an operational plan the approval process may follow a similar structure as shown below:
27 This operational plan review process is a basic outline of the process involved in implementing an operational plan. You must first obtain the approval of your team or the team members involved in implementing and executing the operational plan. This is a vital step as without their input and approval the operational plan may have a higher chance of failure. You should review any and all suggestions from all parties involved in the implementation of the plan before applying for approval from executive management. The personnel who are responsible for the formulation of a plan must consult with all persons/stakeholders who will be affected by said plan. For example, a budget for any area of the
organisation’s operation should not be created or setup without consultation with people who work in those areas. Creating and implementing an Operational Plan without consulting the relevant parties can disadvantage the organisation because: knowledge and expertise makes people feel left out and creates negativity toward the emerging plan 28 TOPIC 2 - PLAN AND MANAGE RESOURCE ACQUISITION DEVELOP AND IMPLEMENT STRATEGIES TO ENSURE THAT EMPLOYEES ARE RECRUITED AND/OR INDUCTED
WITHIN THE ORGANISATION’S HUMAN RESOURCES MANAGEMENT POLICIES, PRACTICES AND PROCEDURES RECRUITMENT STRATEGIES Recruiting and selecting the right staff to perform the activities within your operational plan is crucial to the successful implementation of the operational plan. You will need to check your workplace policies and procedures to identify whether there are specific procedures and policies that you are required to follow. Your organisation will have developed policies and procedures that are designed to ensure that the best candidate is selected and that relevant legislation, such as Anti-discrimination, is complied with. It is unlawful to discriminate against an individual on the grounds of:
ty, race, colour, ethnic background The first step in the recruitment process is to gain approval for the new position. Approval may need to be sought from your senior manager or the Human Resources Manager. You will need to complete an appropriate form such as a "Request to recruit" form. 29 JOB DESCRIPTION You will need to refer to the Job Description for the position that you are recruiting for and assess whether it accurately describes the role, responsibility and authority of the position. You
will need to liaise with the Human Resources Manager if changes need to be made to the job description. A well-written job description should include the following information: measurable key performance indicators. WAGE OR SALARY The Human Resources team will usually have responsibility for placing an advertisement to attract candidates. It is essential that the advertisement is designed to attract suitable candidates and is free from any discriminatory language. The advertisement will typically require candidates to forward a job application which describes their:
You may be asked for your ideas regarding where to place the advertisement. Increasingly, job advertisements are posted online. If the position is a specialist or technical position, it may be effective to advertise in the related professional journal. Vacancies may also be advertised in national or local newspapers or through one of the many internet career websites. ANALYSIS OF REQUIREMENTS Human resource requirements need to be analysed to determine what is required in the way of quality, quantity, time when needed and cost. Analysis of human resource requirements, for example, would need to consider:
30 g staff RESEARCHING SOURCES Each resource also needs to be researched to find the best source. Human resource sources may include: -hunters Universities/colleges
ACQUISITION AND IMPLEMENTATION This aspect of managing operational plans is concerned with processes to acquire resources, e.g. recruitment of staff, negotiating loans and purchase of materials. Operational staff often have the responsibility for appointing staff. This may entail determining the work to be performed, the wage rate and other conditions. Aspects include: Advertising 31
INTERVIEW AND INDUCTION INTERVIEW The Human Resources team may have developed a bank of questions and pre- screening processes that you may be able to use. Many organisations now conduct telephone interviews to cull applicants and then only invite a short-list of candidates to attend a face-to-face interview. You will also need to comply with your organisation's requirements in terms of the format of the job interview. Small organisations may have only one person conducting the interview. Medium to large firms, including Government organisations, will usually convene an interview panel comprised of at least three people. This format helps to ensure that the interview is free of bias and discrimination and brings a greater experience to bear on the process of selecting the successful candidate.
You will need to confer with members of the panel to prepare questions and specimen answers so that each panel member can openly judge the applicant's responses and attributes for the position. These questions must: Various styles of questions may be used. Unless you specifically want the candidate to answer yes or no make sure you ask open ended questions. For example: "Have you ever worked in a customer service team?" - could be answered yes or no. "Can you give me an example of how you effectively resolved a customer complaint?" - will provide an opportunity for the candidate to reflect on their experience and knowledge and give you a greater insight into the qualities they could bring to the position.
32 INDUCTION Induction training may last for a number of days but a typical checklist for the first day of work might include the following: to other staff pment
33 DEVELOP AND IMPLEMENT STRATEGIES TO ENSURE THAT PHYSICAL RESOURCES AND SERVICES ARE ACQUIRED IN ACCORDANCE WITH THE ORGANISATION’S POLICIES, PRACTICES AND PROCEDURES AND RECOGNISE AND INCORPORATE REQUIREMENTS FOR INTELLECTUAL PROPERTY RIGHTS AND RESPONSIBILITIES IN RECRUITMENT AND ACQUISITION OF RESOURCES AND SERVICES Organisations use resources to achieve their objectives. There
are many types of resources and not all organisations use all of them, e.g. a small travel shop may be owned and operated by one person who is quite satisfied with the size of the business therefore having no need for resources such as staff or finance for expansion, but uses mostly physical resources in their shop. There are 7 other types of resources to utilise, as follows: PHYSICAL RESOURCES Land, buildings, equipment and stock comprise the physical resources of a business which need to be used properly in the management of operational plans, e.g. stock is vital to a manufacturing business which buys raw material and converts this into finished goods for sale to customers. Stock to the manufacturer comprises raw materials, work in progress being the part complete production and finished goods awaiting sale. Stock control necessitates having the correct levels of raw material on hand so that production is not interrupted but not having too much so that money is being tied up unnecessarily and where
wastage may arise due to damage, loss or other problem. Production processes should ensure as little wastage as possible. FINANCIAL RESOURCES Financial resources need to be planned carefully and managed on a day to day basis. Paying too much for other resources such as raw materials, stock and equipment or wasting resources, e.g. electricity/telephone will cause a drain on existing financial resources and other sources of finance may not be available. Some organisations may also lose money by extending credit to customers without carrying out adequate credit checks on the customer say through credit checking businesses such as Baycorp, Australian Business Research or Dun & Bradstreet. Policies such as obtaining personal or director guarantees may also need to be implemented and the debt recovery process should work including the use of debt collection agents or solicitors if necessary.
34 TIME Time is a form of the resource; there is a saying 'time is money'. Doing things late or at the wrong time may be a total waste for an organisation. The following aspects may have a detrimental impact on the use of time if not handled correctly: o follow-up procedures
POWER/ENERGY RESOURCES Power/energy is another important type of resource particularly for example manufacturing organisations which are dependent upon such things as electricity, water and gas to operate factories and machines. INFORMATION RESOURCES Information is a resource which needs to be planned and managed by organisations. Too little, too much, wrong interpretation and failure to notify events to relevant people within and outside an organisation are some of the problems which may arise with this resource.
35 INTELLECTUAL PROPERTY Intellectual property represents ideas of the mind or intellect including inventions and designs. Trade secrets, patents, trademarks and copyright are some of the main types of intellectual property which need to be planned and managed. GOODWILL Goodwill is a resource which arises from past actions but which may be wiped out if an organisation does not maintain appropriate and relevant operating standards on a day to day basis. Each resource type needs to be analysed to determine what is required in the way of such things as quality, quantity, a time when needed and cost. An analysis of requirements in regard to land, buildings and equipment would need to take into account things such as:
RESEARCHING SOURCES Each resource also needs to be researched to find the best source. Researching sources of land, buildings and equipment could include:
36 ACQUISITION AND IMPLEMENTATION Finance is a key resource for all organisations and it often falls to operational staff to negotiate new finance facilities or drawdown against existing loan arrangements. Sources of finance facilities include: or bill line Other private investors
Negotiating a loan is a skilful exercise which may commit the organisation to mortgaging assets and repayment of significant interest. There may be other traps for the unwary such as onerous reporting requirements and restriction on the ability to borrow further funds. Accordingly a solicitor or financial advisor should be consulted to review loan documentation and the arrangement generally before finalising the transaction. A drawdown on an existing facility is where an overall loan facility of say $1 million is used by the organisation as and when needed by `drawing down' part of the total facility, e.g. the facility may be established in January for the construction of a new building: $100,000 may be drawn down in February and $50,000 in March as work on the building proceeds leaving $850,000 still to be drawn down as at 1 April. Land buildings and equipment may need to be acquired, such as:
37 Operational staff members are often involved in these acquisitions which may be for normal operating levels or for seasonal peaks. Guidelines to assist staff in these acquisitions include: 'Materials' comprises such things as:
nished stock for sale to customers Acquisitions of materials may be made by a central purchasing department for delivery to operating sites or locally by each site. Either way the organisation should have a purchasing policy to be followed, which should include the following: Power/energy in the form of electricity, gas, oil and water is needed to operate factories, offices and store operations. Supplies are obtained from relevant authorities most of which are now run by private enterprises. It is important to ensure that supplies are
obtained from the most economical tariff, e.g. electricity may be cheaper during the night, and: 38 in case of interruption to supply Information systems need to be installed to provide the relevant facts and figures to operational staff when needed. Information systems may be internal or external, e.g. the internet. It is important that the information system can provide the correct quantity and quality of information to help operational management plan and control day to day activities. Intellectual property can be acquired and implemented in regard
to the main types as follows: o Includes methods of processing or manufacture and the ingredients used as well as things such as customer lists o Protection is via confidentiality agreements stopping others from revealing or using the information and/or not starting up a similar business within a certain area o Protects inventions and processes. Protection is obtained by registering a patent with the Patents Office through IP Australia or in relevant overseas countries o Protects letters, numbers, phrases, symbols, sounds, logos or pictures or a combination of these. Protection is obtained by applying to IP Australia's Trade Marks Office
o Books, articles, films, computer programs and promotional material. Protection through relevant laws and agreements Operational staff may be involved in the acquisition and implementation of this resource but should seek the advice and assistance of experts such as solicitors and patent attorneys. Goodwill is an intangible asset which may be acquired: such things as product reliability, service, price and personal relationships 39 TOPIC 3 - MONITOR AND REVIEW OPERATIONAL PERFORMA NCE DEVELOP, MONITOR AND REVIEW PERFORMANCE SYSTEMS AND PROCESSES TO ASSESS PROGRESS IN ACHIEVING PROFIT AND PRODUCTIVITY PLANS AND TARGETS
TRIPLE BOTTOM LINE REPORTING Triple bottom line is a process which means organisations have objectives and monitoring/reporting systems dealing with the following matters: These three matters are constantly changing due to political, economic and public pressure but they are also interrelated, i.e. society depends upon the economy, which depends on the global ecosystem. Many organisations report on environmental performance through such things as impacts and initiatives. Social reporting is a developing area and Westpac Banking Corporation recently produced a social impact report covering such things as: management remuneration, female/male salary comparison
country profiles practices employed The `balanced scorecard' is a performance reporting system which complements the traditional financial measures of past performance with measures of the drivers of future performance in relation to: - performance measures relating to things such as market share, customer acquisition, retention, satisfaction and profitability -things which the organisation must do well if it is to achieve its objectives and retention. 40 MONITORING AND REPORTING
We live in an ever-changing world with customer demands/tastes, a new technology, product developments, staff skills and improved equipment being some examples of things which impact on results/performance. Organisations need to monitor these things and make appropriate changes to designs, resources or processes to ensure survival. Variance analysis is a financial control system whereby planned figures in budgets and standard costs of production are compared with actual figures incurred to give differences known as variances. These variances may be favourable, i.e. where actual sales are higher than the budget plan or actual costs are lower than that budgeted. Unfavourable variances are where the reverse situation arises. Variance analysis also includes determining the reasons for the differences and taking corrective action. Usually, the accounting system is structured so that variances can be reported to those responsible. A typical budget report for the month of February and year to date (from the start of the
financial year, being 1 July) could be as follows: February YTD Budget $ Actual $ Variance$ Budget $ Actual $ Variance$ Sales 1000 1100 100 (F) 7500 7200 300 (U) Costs 650 660 10 (U) 1500 1450 50(F) YTD = Year to date (F) = Favourable (U) = Unfavourable MONITORING EMPLOYEES Herzberg has suggested that hygiene and motivator factors affect employee behaviour. Hygiene factors prevent dissatisfaction and include working conditions, wage levels, rules and regulations and relationship with colleagues. Motivating factors can include achievement, recognition, and nature of the work, responsibility and opportunities for growth. These are the factors which
motivate employees. In addition employee, rewards need to be performance related, e.g. profit sharing, employee share plans and team based incentive schemes. 41 Monitoring employees includes an understanding of the above mentioned and such things as: on process PERFORMANCE APPRAISAL Performance appraisal includes completing a confidential questionnaire relating to the job/employee, assessing whether objectives previously agreed have been met, having the questionnaire signed by the employee and supervisor, carrying
out an interview with the employee and agreeing development objectives for the next period. As well as determining if objectives have been achieved, the process should also assess things such as: -operation
42 ANALYSE AND INTERPRET BUDGET AND ACTUAL FINANCIAL INFORMATION TO MONITOR AND REVIEW PROFIT AND PRODUCTIVITY PERFORMANCE Budgeting is the process of planning an organisation's sales, production, expenses, cash flow, assets and liabilities for a specified future time period. Financial analysis involves consideration of the profitability, solvency and liquidity of the organisation and may compare results/figures with those applying to competitors and/or in the industry or as trends. PREPARATION OF BUDGETS Most organisations prepare budgets. Some larger organisations spend many months each year in considering finalising and issuing agreed budgets to the relevant sections/areas responsible for their implementation and operation. Some smaller organisations have far less sophisticated methods and in some cases the budget may be something which
the owner/operator has in mind but does not commit to paper. A budget is a plan of an organisation's proposed future operations for a specified period of time, e.g. one year and summarised in financial terms such as sales, expenses and cash flow. A budget is usually broken down to individuals responsible for various activities. The sales budget may be broken down by geographical area if that is how the organisation is structured, e.g. there may be a Queensland sales manager and a Victorian sales manager who would be responsible for separate sales budgets in their respective states. Budgets may be prepared for a 12-month period broken up into calendar months or 13 four- weekly periods. These periods may be dissected even further into weeks or even days. Much thought needs to go into their preparation, e.g. forecasting sales may be very difficult and needs to take into consideration factors such as:
43 WHY ARE BUDGETS PREPARED? Budgets are prepared for a number of reasons including: and production budgets need to be integrated. Otherwise, shortages or over-stocking may occur ating future profit and cash flow
figures can be checked against actual figures achieved and appropriate bonuses and/or other incentives given for high performance as finance for capital expenditure and people to be employed in say the production area Budgets may be imposed on operational management in some organisations with little or no input allowed. This may create a problem as people may not feel committed to achieving the targets and/or may feel the targets are unrealistic. FINANCIAL ANALYSIS Analysing the financial well-being of an organisation is an often neglected aspect of an organisation's operational plan. Often business owners and/or managers do not understand accounting principles or other issues involved in financial analysis.
Financial analysis involves seeking answers to questions such as the following: scount policy appropriate? services? 44 credit terms to our customers? have too much cash earning low or little interest?
An organisation can employ a variety of approaches to obtain answers to these questions including: records, i.e. Clearly understood and accurate Timely with no errors gures with budgets and analysing these variances to determine the reason for the difference customers for the activity ng ratios comparing figures, e.g. Assets employed compared to profit The financial analysis may also be undertaken by using figures from competitors or appropriate
industry standards. It is important that you practice analysing and interpreting budgets and actual financial information. You should arrange to access this information in your workplace and prepare a report that analyses profit and productivity performance. If you are not currently employed, you may use the Internet to access the Annual Report of an organisation that interests you and practice analysing and interpreting the information presented. 45 IDENTIFY AREAS OF UNDER-PERFORMANCE, RECOMMEND SOLUTIONS AND TAKE PROMPT ACTION TO RECTIFY THE SITUATION A variety of problems can arise in the management of operational plans. These problems need to
be identified as soon as possible and resolution achieved. Problems in the day to day operation of a business can arise from a number of sources including: IDENTIFICATION OF PROBLEMS It is obviously better to identify problems as soon as possible and certainly well before they reach crisis point. Problems may be identified through a variety of means including:
Audits uncovering weaknesses in financial and other controls in costs weaknesses air pollution 46 g. Factories, shops employees
Each of these problem areas needs a different approach to being resolved, some of which are self-evident, e.g. vehicle faults need to be repaired and/or vehicles replaced with drivers instructed to drive more carefully if this contributed to the fault. In regard to customer feedback, it is usually well worth a business putting the following in place: dissatisfied handling system have the authority to resolve problems DISCIPLINARY ACTION Disciplinary action may be needed for unsatisfactory performance by an employee. Unsatisfactory work performance or conduct may include:
Absenteeism -compliance with safety standards Formal discussions and warnings including written communication should be followed. If performance does not improve then, the termination process may need to be commenced. 47 TERMINATION OF EMPLOYMENT An employer may terminate services where there is a valid reason, e.g. employee's capacity or conduct or operational requirement of the organisation. However, great care should be taken to avoid unfair dismissal claims.
It is illegal to terminate employment for reasons such as: witness involving alleged violation of laws or regulations ns including race, colour, sex, age, physical or mental disability, marital status, family responsibilities, pregnancy, religion, political opinion or nationality An employee's employment can usually be terminated without notice or payment in lieu for misconduct including: ACHIEVING RESOLUTION - DECISION-MAKING
Achieving a resolution to problems involves decision-making techniques and may need to consider such things as: 48 Good decision-making technique is often an important aspect of resolving problems. There are five distinct stages in any decision-making process:
Each of these stages has several steps and includes identifying the real problem and not just the symptoms, getting all the necessary facts and working to appropriate timeframes. 49 PLAN AND IMPLEMENT SYSTEMS TO ENSURE THAT MENTORING AND COACHING ARE PROVIDED TO SUPPORT INDIVIDUALS AND TEAMS TO EFFECTIVELY, ECONOMICALLY AND SAFELY USE RESOURCES Coaching, mentoring and other forms of help may be used in managing operational plans. Operational managers need to:
may be beneficial understand the advice and information obtained to improve the business Coaching and mentoring are activities used by some organisations to ensure that business owners and/or employees receive expert guidance for managing the workplace. There is an old saying `two heads are better than one'. Mentoring may usually be on a one on one basis whereas coaching can be individual or to a group/team. Coaching in business is the process of using an external source of expertise to help in the running of the business, either of a particular aspect or the entire business. Business coaching may help to:
Make a website work results orientated climate effective in how they work. A good business coach: 50 upports The advice may be tendered in some cases through telephone discussions and written communication without the coach having to visit the business premises.
The Small Business Development Corporation in each state has teams of experienced professional advisors who can assist in the development of new or existing businesses. The Corporation provides a one on one mentoring service through the start-up, growth and survival phase of a business's lifespan. OTHER SOURCES OF HELP The following are some of the main sources of help/information available in the day to day management of operational plans: THE RELEVANT COMMONWEALTH, STATE, TERRITORY AND LOCAL GOVERNMENT The relevant Commonwealth, State, Territory and local government department and agencies include the following: and training
and payroll tax stralian Competition and Consumer Commission (ACCC) for trade practices exporting for company law tralia) covering patents and trademarks and running businesses. ACCOUNTANTS Accountants can provide help and information on a number of the issues involved in the day to day management of operational plans particularly: 51
manuals SOLICITORS Solicitors can assist in things such as the following: termination of employees Defending actions against the business RECRUITMENT CONSULTANTS Provide services in regard to the appointment of employees for the business. BANKS Banks provide services such as assisting in preparing business plans and as a source of finance
some of which are suitable for the day to day management of operational plans, e.g. overdraft facilities. BOOKS, MAGAZINES AND NEWSPAPERS Books, magazines and newspapers can provide valuable advice and assistance in managing operational plans. The various governments have bookshops while newsagents and bookshops stock books and magazines on a variety of business topics including customer service, computers and accounting. 52 UNIVERSITIES, TAFES AND OTHER EDUCATIONAL ORGANISATIONS Assistance from Universities, TAFEs and other educational organisations includes:
-up phase, e.g. Premises at cheap rental COMPUTER HARDWARE AND SOFTWARE ORGANISATIONS Computer hardware and software organisations can provide assistance in designing, installing, operating and maintaining computer systems. BUSINESS ENTERPRISE CENTRES Business Enterprise Centres are located in city and country areas throughout Australia and provide free assistance and support through their network of contacts. The help includes:
planning UNDERSTANDING ADVICE AND TAKING ACTION 53 It is necessary to determine which source of help and information is likely to be beneficial and to be careful about the following types of issues: issue ully researched/incomplete
Misinterpreting advice may lead to inappropriate decisions, e.g. if market research does not use a sufficient sample to predict overall view. Failing to take appropriate action is also an issue, e.g. studies may show that a possible business location is a poor site because of the lack of parking but this may be ignored instead of trying to solve the matter. 54 NEGOTIATE RECOMMENDATIONS FOR VARIATIONS TO OPERATIONAL PLANS AND GAIN APPROVAL FROM DESIGNATED PERSONS/GROUPS
VARIATIONS TO OPERATIONAL PLANS The nature of planning and business guarantees that you will have to make changes to any reasonably long term plan over the course of its implementation. Variance is the term that is used to describe what happens when performance results differ from the performance that was expected. Variances can be either favourable or unfavourable. If you are responsible for identifying a deviation in the budget, then you will need to investigate and report on why it has occurred. In those cases where the variances are negative, you may be asked to take corrective action to address the variance. There is a range of issues that can impact on resource costs and can have an effect your work areas' ability to stick to the budget. These issues may include: ff during skills shortage
materials It is essential that stakeholders, in particular your senior manager and any teams, departments, organisations or individuals affected by any variation in your plan, need to be advised as soon as possible of any variance that is to be implemented. 55 DEVELOP AND IMPLEMENT SYSTEMS TO ENSURE THAT PROCEDURES AND RECORDS ASSOCIATED WITH DOCUMENTING PERFORMANCE ARE MANAGED IN ACCORDANCE WITH ORGANISATIONAL REQUIREMENTS SYSTEMS TO DOCUMENT PERFORMANCE
Policies and procedures are documents that detail the overall processes, rules, and guidelines that an organisation follows which show how it performs its operations and the laws that it must follow. Policies show what the organisational objectives and the recommended actions when operating in various areas are, as well as the general industry guidelines that must be followed by the organisation. Some rules in regard to policies include: nto real practices Procedures are effectively the guides for the organisation of the methods that are used to
perform the daily, routine tasks and jobs. They can also be used as a training guide for new employees as they detail how to perform the basic tasks. Policies deal with what is to be done while procedures indicate how it is to be done. An organisation may have policies and procedures for a multitude of aspects such as: 56 rces
Each of these policies and procedures areas can then be broken down further. Written policies and procedures can be kept in bound manuals with appropriate reference titles and numbers. By doing this, it will assist you in the management of operational plans by: treat particular issues organisation ctice tool to show that the organisation is complying with legislation and other requirements The following are the matters which could be included in a procedure manual for a business.
Internal control is an aspect which greatly impacts on how operational plans are managed and implemented within an organisation. Internal control comprises of several elements including: THE CONTROL ENVIRONMENT The control environment will include things like: 57 committee
THE MANAGEMENT INFORMATION SYSTEM The management information system is concerned with: and data as required g, summarising and reporting information on a timely basis to all relevant parties THE CONTROL PROCEDURES management of day to day operational plans and may include: rising, recording, and custody aspects to different employees eliminate unauthorised use, removal or destruction of them
All organisations are dependent on a variety of systems which will assist in the day to day operations, so it is important that the appropriate systems for the particular business are implemented. These systems may include: 58 nd watering systems
59 SUMMARY Now that you have completed this unit you should have the skills and knowledge required to develop and monitor implementation of the operational plan to provide efficient and effective workplace practices within the organisation's productivity and profitability plans. If you have any questions about this resource, please contact your trainer. They will be only too happy to assist you when required. 60 REFERENCES Books
Malouf, Doug 2001, How to sell stacks and stacks of anything, Business + Publishing, Warriewood, NSW. Petty, John Douglass 2000, The Australian Business Toolkit: Practical Tools, Tips & Solution s on How to Start, Run & Grow Your Own Business, CCH Australia, North Ryde, N.S.W. Stanley, Philip 2000, How To Read And Understand Balance Sheets And Financial Reports In The New Millennium, [New] ed., Information Australia, Melbourne. Wrice, M. 1998, First Steps in Retail Management, Macmillan, South Melbourne. Stanley, John 1999, Just about Everything a Retail Manager Needs to Know, Plum Press,
Toowong. https://www.dlsweb.rmit.edu.au/toolbox/leadership/toolbox/op/o p_c03.html https://www.dlsweb.rmit.edu.au/toolbox/leadership/toolbox/op/o p_c03.html

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BSBMGT517 – Manage Operational PlanThe PitchThe business ide.docx

  • 1. BSBMGT517 – Manage Operational Plan The Pitch The business idea is as follows: · You want to start up a tour business that caters for MAMILs · The idea is that, for a fee, you will arrange a cycling tours in desirable (bucket list) locations, e.g. · Tour of Tasmania in warmer months · In the more temperate months offer tours of wine regions such as Barossa and Clair Valleys in SA, or Margaret River Region in WA or Hunter Valley and surrounds in NSW · Tropical tours in the colder months e.g. the Daintree and Port Douglas region, etc. · The tours will accommodate approximately 20-30 cyclist at a time and will be fully supported by your team of tour coordinators and tour support teams. · You will market to MAMILs in your own capital city (for example in Hobart). · You will equip a 6-Metre (20ft) shipping container to safely and securely transport their bicycles and equipment to the starting point for each tour and return everything to a central point back in their capital city at the end of the tour. · It is the responsibility of each MAMIL to drop off and pick up their gear at the central point in your capital city. · The duration of the tours will range from 7-14 days · Preliminary research on your part indicates that MAMILs would be prepared to pay in the range of $3-5k each for a tour. · The model that your tours will follow is: · The MAMILs pay their own travel costs to get to the start point of the tour and their return home at the completion of the tour. · Your tour team will provide a support vehicle to travel with the herd each day of the tour. · The tours will range from budget tours where they will stay
  • 2. overnight in camping and caravan parks along the way, through to more up-market tours where they will stay in hotel and or B&B style accommodation. · For the budget tours, you propose that your vehicle provides a BBQ breakfast and evening meal at the camps. The way you want to set up this new business is to develop a single but successful operation that services MAMILs in your Capital City. When you have the model running successfully, you plan to franchise operations national and potentially internationally. Your goal is that in five years’ you will be managing a group of franchises and have both a good income as well as a good work/life balance. In the report, you have to: 1. Conduct a SWOT analysis on this proposal. 2. Following the SWOT analysis, make a determination on the viability of the proposed business. Consideration for your risk management and decide a “Go’ or “No-go” for developing this business. 3. Assuming a “Go”, you need to use “KALIPOT” as your business name 4. Now make a Mission Statement for your business. 5. Make a Vision Statement and also make a Values Statement. 6. Now consider the operations and develop a preliminary Organisational Chart, indicating the functional units of your business (You need to make an Organisational Chart here) This is only a sample of Organinsational Chart. Please make your own according to the requirements. Please put a functional unit (the people who operate the cycling tour business. Example: manager, mechanic, first-aider, accountant, WHS specialist, etc.) It is up to you to research! 7. Select one functional unit and develop a draft Management Plan that describes how the Unit will be managed. 8. List 2 Key Result Areas (KRAs) for the Unit/Team 9. Develop a draft Operational Plan that will achieve these 2
  • 3. KRAs. Do not try and develop Operational procedures at this time because it is a very big job, however, make a list of operations within the Unit that could require clear operating procedures. 10. List resources that you will require the implementation of your Operational Plan including human resources. 11. Identify any resources that you do not currently have but will be needed to achieve your goal. (Goals for example are Finances, Customer satisfaction, logistics, safety, time. But it’s really up to you.) 12. Outline a strategy for obtaining any identified additional resources including approvals. 13. Identify and make a key milestones in the implementation of your Operational Plan. ( Please make a Gantt chart!) This is only a sample of Gantt Chart. Please make your own according to the requirements. Above image is only an example. 14. Make a checklist for monitoring the progress and effectiveness of your Operational Plan. Consider some monitoring factors such as; a. Progress b. Performance c. Budget
  • 4. This is ONLY a sample checklist. Please make your own according to the requirements Above image is only an example format. 15. Outline the features you could effectively monitor and review the implementation of your Operational Plan. 16. Develop a list of contingency plans for the operation. 17. Develop a plan to protect intellectual property. Format: Font: Times New Roman Size: 12 12 APA Style reference and In-text citation Minimum of 2250 words (References are not included in the 2250 words, but only the content of the written report) Assessment Task 1: WRITTEN REPORT For this assessment, you will need to write a report on the following tasks. These tasks will need to be completed and submitted in a professional, word-processed format in no less than 2250 words. ASSESSMENT 1: WRITTEN REPORTFirst page only is for Executive Summary:EXECUTIVE SUMMARY You need to explain in brief about the whole report in here. Don’t explain more than 250 words Must include Topic, Objectives, Methodology (Qualitative), Findings, Conclusion.INTRODUCTION Explain in brief about the background of the organisation
  • 5. REPORT ANALYSIS / BODY Give overall review of the report which you are going to discuss in here. CONCLUSION Explain conclusion here. REFERENCE LIST Give minimum 12 references (must be in APA Style referencing format) and In-text citations. LEARNER GUIDE BSBMGT517 Manage operational plan This learner guide is copyright protected and belongs to:
  • 6. 1 TABLE OF CONTENTS TABLE OF CONTENTS............................................................................ ....................................................1 COURSE INTRODUCTION ............................................................................................... ......................... 4 ABOUT THIS GUIDE ............................................................................................... ....................................................................... 4 ABOUT THIS RESOURCE ............................................................................................... ...................................................... 4 ABOUT ASSESSMENT ............................................................................................... ............................................................. 5 ELEMENTS AND PERFORMANCE CRITERIA ...................................................................................... 7 EVIDENCE REQUIREMENTS ............................................................................................... .................... 9
  • 7. KNOWLEDGE EVIDENCE ............................................................................................... ............................................................ 9 PERFORMANCE EVIDENCE ............................................................................................... ......................................................... 9 ASSESSMENT CONDITIONS ............................................................................................... ..................... 11 PRE-REQUISITES ............................................................................................... ........................................ 11 TOPIC 1 – DEVELOP OPERATIONAL PLAN .......................................................................................... 12 RESEARCH, ANALYSE AND DOCUMENT RESOURCE REQUIREMENTS AND DEVELOP AN OPERATIONAL PLAN IN CONSULTATION WITH RELEVANT PERSONNEL, COLLEAGUES AND SPECIALIST RESOURCE MANAGERS ........................................................................................... 12 MODELS AND METHODS FOR OPERATIONAL PLANS ............................................................................................... ............ 12 ALLOCATING RESOURCES ............................................................................................... .......................................................... 13 Physical Resources
  • 8. ............................................................................................... ....................................................................... 13 Human Resources ............................................................................................... ....................................................................... 14 HOW MUCH CAPITAL? .................................................................................... ........... ............................................................... 14 DEVELOP AND/OR IMPLEMENT CONSULTATION PROCESSES AS AN INTEGRAL PART OF THE OPERATIONAL PLANNING PROCESS ......................................................................................... 17 CONSULTATION PROCESS ............................................................................................... .......................................................... 17 ENSURE THE OPERATIONAL PLAN INCLUDES KEY PERFORMANCE INDICATORS TO MEASURE ORGANISATIONAL PERFORMANCE ................................................................................. 18 ALTERNATIVE APPROACHES TO DEVELOPING KPI’S ............................................................................................... .......... 19 DEVELOP AND IMPLEMENT CONTINGENCY PLANS FOR THE OPERATIONAL PLAN ........... 21 WHAT IS A CONTINGENCY PLAN? ............................................................................................... ............................................ 21
  • 9. RISK MANAGEMENT...................................................................... ............................................................................................. 21 CHANGES IN FUNDING ............................................................................................... .............................................................. 21 DISASTER RECOVERY............................................................................ ..................................................................................... 22 CONTINGENCY PLANNING CHALLENGES ............................................................................................... ............................. 22 DEVELOPING THE PLAN ............................................................................................... ............................................................ 23 MAINTAINING THE PLAN ............................................................................... ................ .......................................................... 24 ENSURE THE DEVELOPMENT AND PRESENTATION OF PROPOSALS FOR RESOURCE REQUIREMENTS IS SUPPORTED BY A VARIETY OF INFORMATION SOURCES AND SEEK SPECIALIST ADVICE AS REQUIRED ............................................................................................... ...... 24 OBTAIN APPROVAL FOR THE PLAN FROM RELEVANT PARTIES AND EXPLAIN THE PLAN TO RELEVANT WORK TEAMS ............................................................................................... ................. 26
  • 10. TOPIC 2 - PLAN AND MANAGE RESOURCE ACQUISITION ............................................................. 28 2 DEVELOP AND IMPLEMENT STRATEGIES TO ENSURE THAT EMPLOYEES ARE RECRUITED AND/OR INDUCTED WITHIN THE ORGANISATION’S HUMAN RESOURCES MANAGEMENT POLICIES, PRACTICES AND PROCEDURES ........................................................................................ 28 RECRUITMENT STRATEGIES ............................................................................................... ...................................................... 28 JOB DESCRIPTION ............................................................................................... ........................................................................ 29 WAGE OR SALARY ............................................................................................... ....................................................................... 29 ANALYSIS OF REQUIREMENTS ............................................................................................... ................................................... 29 RESEARCHING SOURCES ............................................................................. .................. ............................................................ 30 ACQUISITION AND IMPLEMENTATION ............................................................................................... .................................... 30
  • 11. INTERVIEW AND INDUCTION ............................................................................................... .................................................... 31 Interview ............................................................................................... ..................................................................................... 31 INDUCTION ............................................................................................... ................................................................................... 32 DEVELOP AND IMPLEMENT STRATEGIES TO ENSURE THAT PHYSICAL RESOURCES AND SERVICES ARE ACQUIRED IN ACCORDANCE WITH THE ORGANISATION’S POLICIES, PRACTICES AND PROCEDURES AND RECOGNISE AND INCORPORATE REQUIREMENTS FOR INTELLECTUAL PROPERTY RIGHTS AND RESPONSIBILITIES IN RECRUITMENT AND ACQUISITION OF RESOURCES AND SERVICES ................................................................................. 33 PHYSICAL RESOURCES ............................................................................................... ................................................................ 33 FINANCIAL RESOURCES ............................................................................................... .............................................................. 33 TIME ............................................................................................... .............................................................................................. 34
  • 12. POWER/ENERGY RESOURCES ............................................................................................... ................................................... 34 INFORMATION RESOURCES.......................................................................... ............................................................................. 34 INTELLECTUAL PROPERTY ............................................................................................... ......................................................... 35 GOODWILL ............................................................................................... ................................................................................... 35 RESEARCHING SOURCES ............................................................................................... ............................................................ 35 ACQUISITION AND IMPLEMENTATION ........................................................................................ ....... .................................... 36 TOPIC 3 - MONITOR AND REVIEW OPERATIONAL PERFORMANCE ........................................... 39 DEVELOP, MONITOR AND REVIEW PERFORMANCE SYSTEMS AND PROCESSES TO ASSESS PROGRESS IN ACHIEVING PROFIT AND PRODUCTIVITY PLANS AND TARGETS .................... 39 TRIPLE BOTTOM LINE REPORTING ............................................................................................... .......................................... 39 MONITORING AND REPORTING ............................................................................................... ............................................... 40 MONITORING EMPLOYEES ......................................................................................... ......
  • 13. ........................................................ 40 PERFORMANCE APPRAISAL ............................................................................................... ........................................................ 41 ANALYSE AND INTERPRET BUDGET AND ACTUAL FINANCIAL INFORMATION TO MONITOR AND REVIEW PROFIT AND PRODUCTIVITY PERFORMANCE .................................. 42 PREPARATION OF BUDGETS ............................................................................................... ...................................................... 42 WHY ARE BUDGETS PREPARED? ............................................................................................... ............................................... 43 FINANCIAL ANALYSIS ............................................................................................... ................................................................. 43 IDENTIFY AREAS OF UNDER-PERFORMANCE, RECOMMEND SOLUTIONS AND TAKE PROMPT ACTION TO RECTIFY THE SITUATION ............................................................................. 45 IDENTIFICATION OF PROBLEMS ............................................................................................... ............................................... 45 DISCIPLINARY ACTION ............................................................................................... ............................................................... 46 Termination of employment ...............................................................................................
  • 14. ......................................................... 47 ACHIEVING RESOLUTION - DECISION-MAKING ............................................................................... ................ .................... 47 PLAN AND IMPLEMENT SYSTEMS TO ENSURE THAT MENTORING AND COACHING ARE PROVIDED TO SUPPORT INDIVIDUALS AND TEAMS TO EFFECTIVELY, ECONOMICALLY AND SAFELY USE RESOURCES ............................................................................................... ............... 49 OTHER SOURCES OF HELP ............................................................................................... ......................................................... 50 The relevant Commonwealth, State, Territory and local government ............................................................................................ 50 Accountants ........................................................................................ ....... ................................................................................ 50 Solicitors ............................................................................................... ..................................................................................... 51 Recruitment consultants ............................................................................................... ............................................................... 51 Banks ............................................................................................... ......................................................................................... 51
  • 15. 3 Books, magazines and newspapers ............................................................................................... .............................................. 51 Universities, TAFEs and other educational organisations ............................................................................................... ........... 52 Computer hardware and software organisations ............................................................................................... ........................... 52 Business Enterprise Centres ............................................................................................... ........................................................ 52 UNDERSTANDING ADVICE AND TAKING ACTION ............................................................................................... ................ 52 NEGOTIATE RECOMMENDATIONS FOR VARIATIONS TO OPERATIONAL PLANS AND GAIN APPROVAL FROM DESIGNATED PERSONS/GROUPS ....................................................................... 54 VARIATIONS TO OPERATIONAL PLANS ............................................................................................... .................................... 54 DEVELOP AND IMPLEMENT SYSTEMS TO ENSURE THAT PROCEDURES AND RECORDS ASSOCIATED WITH DOCUMENTING PERFORMANCE ARE MANAGED IN ACCORDANCE
  • 16. WITH ORGANISATIONAL REQUIREMENTS ...................................................................................... 55 SYSTEMS TO DOCUMENT PERFORMANCE ............................................................................................... ............................... 55 THE CONTROL ENVIRONMENT ............................................................................................... ................................................. 56 THE MANAGEMENT INFORMATION SYSTEM ............................................................................................... .......................... 57 THE CONTROL PROCEDURES ............................................................................................... .................................................... 57 SUMMARY ............................................................................................... .................................................... 59 REFERENCES ............................................................................................... ............................................. 60
  • 17. 4 COURSE INTRODUCTION ABOUT THIS GUIDE This resource covers the unit BSBMGT517 - Manage operational plan. This unit describes the skills and knowledge required to develop and monitor implementation of the operational plan to provide efficient and effective workplace practices within the organisation’s productivity and profitability plans. Management at a strategic level requires systems and procedures to be developed and implemented to facilitate the organisation’s operational plan. This unit applies to individuals who manage the work of others
  • 18. and operate within the parameters of a broader strategic and/or business plan. No licensing, legislative or certification requirements apply to this unit at the time of publication. ABOUT THIS RESOURCE This resource brings together information to develop your knowledge about this unit. The information is designed to reflect the requirements of the unit and uses headings to makes it easier to follow. Read through this resource to develop your knowledge in preparation for your assessment. You will be required to complete the assessment tools that are included in your program. At the back of the resource are a list of references you may find useful to review. As a student it is important to extend your learning and to search out text books, internet sites, talk to people at work and read newspaper articles and journals which can provide additional
  • 19. learning material. Your trainer may include additional information and provide activities, slide presentations, and assessments in class to support your learning. 5 ABOUT ASSESSMENT Throughout your training we are committed to your learning by providing a training and assessment framework that ensures the knowledge gained through training is translated into practical on the job improvements. You are going to be assessed for: written and observation activities that apply to your workplace.
  • 20. these on the job. You will receive an overall result of Competent or Not Yet Competent for the assessment of this unit. The assessment is a competency based assessment, which has no pass or fail. You are either competent or not yet competent. Not Yet Competent means that you still are in the process of understanding and acquiring the skills and knowledge required to be marked competent. The assessment process is made up of a number of assessment methods. You are required to achieve a satisfactory result in each of these to be deemed competent overall. All of your assessment and training is provided as a positive learning tool. Your assessor will guide your learning and provide feedback on your responses to the assessment. For valid and reliable assessment of this unit, a range of assessment methods will be used to assess practical skills and knowledge. Your assessment may be conducted through a combination of the following methods:
  • 21. The assessment tool for this unit should be completed within the specified time period following the delivery of the unit. If you feel you are not yet ready for assessment, discuss this with your trainer and assessor. 6 To be successful in this unit you will need to relate your learning to your workplace. You may be required to demonstrate your skills and be observed by your assessor in your workplace environment. Some units provide for a simulated work environment and your trainer and
  • 22. assessor will outline the requirements in these instances. 7 ELEMENTS AND PERFORMANCE CRITERIA 1. Develop operational plan 1.1 Research, analyse and document resource requirements and develop an operational plan in consultation with relevant personnel, colleagues and specialist resource managers 1.2 Develop and/or implement consultation processes as an integral part of the operational planning process 1.3 Ensure the operational plan includes key performance indicators to measure organisational performance 1.4 Develop and implement contingency plans for the operational plan 1.5 Ensure the development and presentation of proposals for resource requirements is supported by a variety of information
  • 23. sources and seek specialist advice as required 1.6 Obtain approval for the plan from relevant parties and explain the plan to relevant work teams 2. Plan and manage resource acquisition 2.1 Develop and implement strategies to ensure that employees are recruited and/or inducted within the organisation’s human resources management policies, practices and procedures 2.2 Develop and implement strategies to ensure that physical resources and services are acquired in accordance with the organisation’s policies, practices and procedures 2.3 Recognise and incorporate requirements for intellectual property rights and responsibilities in recruitment and acquisition of resources and services 3. Monitor and review operational performance 3.1 Develop, monitor and review performance systems and processes to assess progress in achieving profit and
  • 24. productivity plans and targets 3.2 Analyse and interpret budget and actual financial information to monitor and review profit and productivity performance 3.3 Identify areas of under-performance, recommend solutions and take prompt action to rectify the situation 3.4 Plan and implement systems to ensure that mentoring and coaching are provided to support individuals and teams to effectively, economically and safely use resources 8 3.5 Negotiate recommendations for variations to operational plans and gain approval from designated persons/groups 3.6 Develop and implement systems to ensure that procedures and records associated with documenting performance are managed in accordance with organisational requirements
  • 25. 9 EVIDENCE REQUIREMENT S This describes the essential requirements and their level required for this unit. KNOWLEDGE EVIDENCE To complete the unit requirements safely and effectively, the individual must: scribe models and methods for operational plans organisation’s objectives indicators to meet business objectives operational plan of the organisation that directly relate to the operational plan.
  • 26. PERFORMANCE EVIDENCE Evidence of the ability to: information sources and consultation (including using specialist advice if required) which includes: o resource requirements o key performance indicators o monitoring processes o contingency plans explain the plan and supporting information, seek approvals, negotiate variations and engage work teams eve the operational plan within the organisation’s policies, practices and procedures including: o recruiting, inducting and developing personnel o acquiring physical resources and services o protecting intellectual property
  • 27. 10 o making variations to the plan o monitoring and documenting performance. Note: If a specific volume or frequency is not stated, then evidence must be provided at least once. 11 ASSESSMENT CONDITION S Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the management and leadership field of work and include access to:
  • 28. Assessors must satisfy NVR/AQTF assessor requirements. PRE-REQUISITES This unit must be assessed after the following pre-requisite unit: There are no pre-requisites for this unit. 12 TOPIC 1 – DEVELOP OPERATIONAL PLAN RESEARCH, ANALYSE AND DOCUMENT RESOURCE REQUIREMENTS AND DEVELOP AN OPERATIONAL PLAN IN CONSULTATION WITH RELEVANT PERSONNEL,
  • 29. COLLEAGUES AND SPECIALIST RESOURCE MANAGERS An Operational Plan is used to provide a clear picture of how a team, section or department of a business will contribute to the achievement of their organisation's strategic goals. This plan will be clearly set out as to how these teams, sections or departments will perform. The Operational Plan should align with the strategic plan of the organisation and should correlate with the overall objectives of the organisation. This alignment can be achieved by ensuring that the team, section or department’s purpose aligns with the objectives of the Strategic Plan, as well as the Operating Plan of the team, section or department. Operational plans are used to identify: t resources are required to meet the goals MODELS AND METHODS FOR OPERATIONAL PLANS
  • 30. The Operational Plan can be subdivided into two basic forms which include the single-use plan and the standing plans. A single-use plan is developed to carry out a course of action that is not likely to be repeated in the future. These plans are used once to achieve unique objectives for the business. An example of this is when a business has a particular one off event coming up, they may have a single-use plan to cover everything in relation to this event. In addition, the standing plan is developed for activities that occur repeatedly over a period of time in order for the business to help solve repetitive problems. An example of this would be a large business that has activities repeating all the and need to be structured in a way so that everyone knows what’s going on all the time. Example of a type of chart used to develop operational plans - Gantt charts 13 A Gantt chart, commonly used in project management, is one of
  • 31. the most popular and useful ways of showing activities (tasks or events) displayed against time. On the left of the chart is a list of the activities and along the top is a suitable time scale. Each activity is represented by a bar; the position and length of the bar reflects the start date, duration and end date of the activity. This allows you to see at a glance: heduled to last much To summarize, a Gantt chart shows you what has to be done (the activities) and when (the schedule).1 Although there are no strict rules that relate to the format of an Operational Plan they will normally contain the following information:
  • 32. quired ALLOCATING RESOURCES Resources are what your business uses to produce goods or perform services for your customers. There are many types of resources that a business will use and they will be categorised into two groups as 'physical' and 'human' resources. PHYSICAL RESOURCES 1 http://www.gantt.com/ 2 https://www.dlsweb.rmit.edu.au/toolbox/leadership/toolbox/op/o p_c03.html https://www.dlsweb.rmit.edu.au/toolbox/leadership/toolbox/op/o p_c03.html
  • 33. 14 Premises Rent; rates; service costs (heating, lighting, cleaning, security) and structural alterations Equipment Costs of purchase, hire or lease; insurance, running costs (service, repair) Vehicles Costs of purchase, hire or lease; insurance, road tax; running costs (service, repair) Raw Materials Purchase cost (investigate discount for bulk orders), cost of storage (any special requirements for refrigeration or hazardous substances)
  • 34. HUMAN RESOURCES Human resources are your staff. They are the gears that drive the business and keep it running. And just like with gears they need to be oiled and maintained, which, in this case, means a wage. The majority of your expenditure for staffing will be wages and workplace insurance contributions. When working out your resource requirements for the operational plan, you will need to consider the costs of all your resources, including your staff. There are also other costs relating to staff that you will need to consider including: HOW MUCH CAPITAL? You can work out how much capital you will need to finance the operational plan by finding out your physical and human resource requirements, as discussed
  • 35. above. Capital is broken down into 2 categories: – 'One-off' payments to purchase physical resources like vehicles, equipment, office furniture, computers and telephone systems; items that will last for a long time and rarely need replacing. 15 – These are the expenses that your business will incur whilst attempting to make a profit. These are used for things such as wages, bills, etc. This projection should be performed on a month-by-month basis. You will also need to take into account that some costs will be the same each month while others will vary. For example: the heating bill in the business should be much higher in the winter than in the summer and you may only incur training costs once every few months, but wages will be consistent throughout the
  • 36. period. The success of your business depends above all on your ability to juggle your resources effectively, so it's essential to get this right. The following are just some of the typical questions which may arise and need resolving in the process of planning and implementing operational plans: how can we get a replacement? ed?
  • 37. In answering the above questions, it may be necessary to prepare and/or review such things as: 16
  • 38. ial instructions 17 DEVELOP AND/OR IMPLEMENT CONSULTATION PROCESSES AS AN INTEGRAL PART OF THE OPERATIONAL PLANNING PROCESS CONSULTATION PROCESS The consultation process is an extremely important concept in the context of managing an organisation. Consultation is the process by which the management of an organisation aim to better understand the needs, wants and expectations of its stakeholders. Consultation with the organisation and its stakeholders can be conducted through management opening communication channels between the two parties.
  • 39. These can be formal or informal. These formal and informal communication channels might include: - stakeholders are invited to attend one or more open meetings – management can request a survey (paper or online type) to be completed –similar to open meetings, however, the number of participants is smaller - stakeholders are invited to submit comments in writing on a proposal or plan - organisation management might mingle with people at an event and canvass certain ideas and see what response they get The purpose of consultation is three-fold: information on the wants, needs and expectations of the stakeholders created by organisation
  • 40. management that directly affect them about not taking account of, or not listening to the needs of stakeholders in developing strategic and operational plans Generally speaking, if a plan is conceived without proper consultation with stakeholders then it has far less chance of successful implementation. 18 ENSURE THE OPERATIONAL PLAN INCLUDES KEY PERFORMANCE INDICATORS TO MEASURE ORGANISATIONAL PERFORMANCE Key Performance Indicators (KPI), or Key Success Indicators (KSI), are designed to assist an organisation define and measure its progress toward organisational goals.
  • 41. The organisation will need a way to measure its progress towards the goals. This can be done by using KPIs. Implementing these Key Performance Indicators will occur after the organisation has analysed and identified its mission, stakeholders and goals. KPIs are significant measurements that reflect and establish the critical success factors of an organisation. They will vary from one organisation to another and should be determined quite early in a company’s lifespan. They will also need to be reviewed as the potential goals of the business may change over time. For example, A business may have one of its KPIs as the total percentage of its income that it procures from return customers. Key Performance Indicators allow you to ensure that you are reaching your overall business goals and objectives. There are eight areas of a business organisation in which performance and results should be set
  • 42. and reported they are: tanding measured against the potential market, competitor results and new market products and service objectives improvements to existing products and improvement in all aspects of the business 19 Each of these broad areas would have a number of key performance indicators which would be designed to ensure the organisation meets its objectives and that day to day operations are conducted to achieve this aim.
  • 43. ALTERNATIVE APPROACHES TO DEVELOPING KPI ’S There are a number of approaches to developing KPIs and some suggestions appear below. You are encouraged to identify approaches that are most relevant to their unique business outcomes and activities. - It may be appropriate to focus selection of KPIs on statutory and regulatory requirements and obligations. - KPIs may be developed using the record lifecycle. KPIs would be developed for each life cycle stage. -based - The risk based approach identifies those specific services, functions or activities that may have a negative or detrimental impact on the organisation. In general terms, there are a number of methods for identifying risk and these normally have two parameters: o Likelihood/probability of a risk occurring, and o The impact of a risk occurring5.
  • 44. progress towards mitigating the risk. - A suggested approach is to examine specific areas of concern using the cause and effect technique. The cause and effect technique might assist with identification of KPIs to address the fundamental or underlying cause of ineffective or inefficient services, functions or activities. The approach analyses the cause(s) and identifies KPIs that address the effect. By addressing the effect, improvements can generally be achieved. - It is also suggested that the agency base KPIs on two levels as follows: o Strategic KPIs; and o Operational KPIs. 20 might be relevant and
  • 45. appropriate to both strategic and operational levels. 21 DEVELOP AND IMPLEMENT CONTINGENCY PLANS FOR THE OPERATIONAL PLAN WHAT IS A CONTINGENCY PLAN? A contingency plan is a plan devised for an outcome other than in the usual, expected plan. The management of operational plans is partly dependent upon how an organisation identifies, assesses and takes action on the potential risks that can occur within the business. RISK MANAGEMENT Risk management is concerned with how each organisation deals with its risks. Some organisations do not have sufficient formal processes in
  • 46. place to deal with risks, but simply take reactionary measures when these situations arise. An organisation which has formal risk management approaches would incorporate them into its strategic and operational plans. Such an approach may include the following: organisation documentation to include: o Major risks o Measurement of each risk o How each risk is currently managed? o Plan to deal with risks not properly controlled/managed o Incorporation of risk management plans into strategic and operational plans CHANGES IN FUNDING The management of the organisation’s operational plans can be affected by funding changes including:
  • 47. them back party) 22 Contingency plans will need to be developed to help the organisation deal with changes in funding. DISASTER RECOVERY Businesses may suffer disruptions to operations following some form of disaster, natural or otherwise, as well as other problems such as power failures.
  • 48. Organisations should plan to cope with these sorts of incidents and have disaster recovery procedures in place to minimise the disruption. These procedures may include: recovery site y to acquire these at short notice of any changes that have occurred in regards to normal operation unavailable; e.g. main supplier goes bankrupt CONTINGENCY PLANNING CHALLENGES There are two common obstacles that you should be aware as you begin your contingency
  • 49. planning process. These are: it succeed, with their Plan A, many people will be reluctant to develop a strong Plan B 23 lly occurring many people will procrastinate when it comes to contingency planning and push it to the bottom of task lists. This could mean that it never gets completed and leave the organisation at risk should the worst happen DEVELOPING THE PLAN Here are some general guidelines to follow that will assist you when you are preparing your organisation’s contingency plan: – Look closely at what you need to do to deliver a minimum level of service and
  • 50. functionality – What must be done during the first hour of the plan being implemented? The first day? The first week? If you look at the plan in this way, you're less likely to leave out important details the trigger – What, specifically, will cause you to implement the contingency plan? Decide which actions you'll take, and when. Determine who is in charge at each stage and what type of reporting process they must follow – You don't know who will read and implement the plan when it's needed, so use clear, plain language so anyone can understand the plan easily – Will your organisation be able to function the same way if you have to implement Plan B, or will Plan B necessarily reduce capabilities? – Have people throughout the
  • 51. company identify what they must have, at a minimum, to continue operations – What will you need to do to return to 'business as usual'? – Make sure you provide initial training on the plan and keep everyone up-to- date on changes – Look for opportunities to reduce risk, wherever possible. This may help you reduce or even eliminate, the need for full contingency plans in certain areas – Provide a standard to document your planning process, and find opportunities for performance improvement 24 MAINTAINING THE PLAN
  • 52. As your business grows and changes, you'll need to review and update your contingency plans accordingly. You will need to keep the document updated and relevant, you don’t want to just create it and file it away to be forgotten about. Here are some key steps in the contingency plan maintenance process: plan ining for people to fulfil these roles and responsibilities necessary changes relevant technological, operational, and personnel changes sure that old plans are discarded -site, and in a place where they
  • 53. can be accessed quickly when needed dit the plan periodically: o Reassess the risks to the business o Analyse efforts to control risk by comparing actual performance with the performance levels described in the contingency plan o Recommend and make changes, if necessary ENSURE THE DEVELOPMENT AND PRESENTATION OF PROPOSALS FOR RESOURCE REQUIREMENTS IS SUPPORTED BY A VARIETY OF INFORMATION SOURCES AND SEEK SPECIALIST ADVICE AS REQUIRED You may need to consult with relevant personnel, colleagues and specialist resource managers to identify the needs of the work environment that you are concerned with. To identify the resources required, you might:
  • 54. 25 You might involve the following people to help them identify resources: etc. rs or supervisors affected by the proposal In any case, you will need to develop and present proposals that are professional and comprehensive in order to meet the resource requirements of the business. 26
  • 55. OBTAIN APPROVAL FOR THE PLAN FROM RELEVANT PARTIES AND EXPLAIN THE PLAN TO RELEVANT WORK TEAMS You will need to have your plan approved by the appropriate person/people. Relevant parties involved in obtaining approval for an operational plan can be as followed: Stakeholders Once you have drawn up an operational plan the approval process may follow a similar structure as shown below:
  • 56. 27 This operational plan review process is a basic outline of the process involved in implementing an operational plan. You must first obtain the approval of your team or the team members involved in implementing and executing the operational plan. This is a vital step as without their input and approval the operational plan may have a higher chance of failure. You should review any and all suggestions from all parties involved in the implementation of the plan before applying for approval from executive management. The personnel who are responsible for the formulation of a plan must consult with all persons/stakeholders who will be affected by said plan. For example, a budget for any area of the
  • 57. organisation’s operation should not be created or setup without consultation with people who work in those areas. Creating and implementing an Operational Plan without consulting the relevant parties can disadvantage the organisation because: knowledge and expertise makes people feel left out and creates negativity toward the emerging plan 28 TOPIC 2 - PLAN AND MANAGE RESOURCE ACQUISITION DEVELOP AND IMPLEMENT STRATEGIES TO ENSURE THAT EMPLOYEES ARE RECRUITED AND/OR INDUCTED
  • 58. WITHIN THE ORGANISATION’S HUMAN RESOURCES MANAGEMENT POLICIES, PRACTICES AND PROCEDURES RECRUITMENT STRATEGIES Recruiting and selecting the right staff to perform the activities within your operational plan is crucial to the successful implementation of the operational plan. You will need to check your workplace policies and procedures to identify whether there are specific procedures and policies that you are required to follow. Your organisation will have developed policies and procedures that are designed to ensure that the best candidate is selected and that relevant legislation, such as Anti-discrimination, is complied with. It is unlawful to discriminate against an individual on the grounds of:
  • 59. ty, race, colour, ethnic background The first step in the recruitment process is to gain approval for the new position. Approval may need to be sought from your senior manager or the Human Resources Manager. You will need to complete an appropriate form such as a "Request to recruit" form. 29 JOB DESCRIPTION You will need to refer to the Job Description for the position that you are recruiting for and assess whether it accurately describes the role, responsibility and authority of the position. You
  • 60. will need to liaise with the Human Resources Manager if changes need to be made to the job description. A well-written job description should include the following information: measurable key performance indicators. WAGE OR SALARY The Human Resources team will usually have responsibility for placing an advertisement to attract candidates. It is essential that the advertisement is designed to attract suitable candidates and is free from any discriminatory language. The advertisement will typically require candidates to forward a job application which describes their:
  • 61. You may be asked for your ideas regarding where to place the advertisement. Increasingly, job advertisements are posted online. If the position is a specialist or technical position, it may be effective to advertise in the related professional journal. Vacancies may also be advertised in national or local newspapers or through one of the many internet career websites. ANALYSIS OF REQUIREMENTS Human resource requirements need to be analysed to determine what is required in the way of quality, quantity, time when needed and cost. Analysis of human resource requirements, for example, would need to consider:
  • 62. 30 g staff RESEARCHING SOURCES Each resource also needs to be researched to find the best source. Human resource sources may include: -hunters Universities/colleges
  • 63. ACQUISITION AND IMPLEMENTATION This aspect of managing operational plans is concerned with processes to acquire resources, e.g. recruitment of staff, negotiating loans and purchase of materials. Operational staff often have the responsibility for appointing staff. This may entail determining the work to be performed, the wage rate and other conditions. Aspects include: Advertising 31
  • 64. INTERVIEW AND INDUCTION INTERVIEW The Human Resources team may have developed a bank of questions and pre- screening processes that you may be able to use. Many organisations now conduct telephone interviews to cull applicants and then only invite a short-list of candidates to attend a face-to-face interview. You will also need to comply with your organisation's requirements in terms of the format of the job interview. Small organisations may have only one person conducting the interview. Medium to large firms, including Government organisations, will usually convene an interview panel comprised of at least three people. This format helps to ensure that the interview is free of bias and discrimination and brings a greater experience to bear on the process of selecting the successful candidate.
  • 65. You will need to confer with members of the panel to prepare questions and specimen answers so that each panel member can openly judge the applicant's responses and attributes for the position. These questions must: Various styles of questions may be used. Unless you specifically want the candidate to answer yes or no make sure you ask open ended questions. For example: "Have you ever worked in a customer service team?" - could be answered yes or no. "Can you give me an example of how you effectively resolved a customer complaint?" - will provide an opportunity for the candidate to reflect on their experience and knowledge and give you a greater insight into the qualities they could bring to the position.
  • 66. 32 INDUCTION Induction training may last for a number of days but a typical checklist for the first day of work might include the following: to other staff pment
  • 67. 33 DEVELOP AND IMPLEMENT STRATEGIES TO ENSURE THAT PHYSICAL RESOURCES AND SERVICES ARE ACQUIRED IN ACCORDANCE WITH THE ORGANISATION’S POLICIES, PRACTICES AND PROCEDURES AND RECOGNISE AND INCORPORATE REQUIREMENTS FOR INTELLECTUAL PROPERTY RIGHTS AND RESPONSIBILITIES IN RECRUITMENT AND ACQUISITION OF RESOURCES AND SERVICES Organisations use resources to achieve their objectives. There
  • 68. are many types of resources and not all organisations use all of them, e.g. a small travel shop may be owned and operated by one person who is quite satisfied with the size of the business therefore having no need for resources such as staff or finance for expansion, but uses mostly physical resources in their shop. There are 7 other types of resources to utilise, as follows: PHYSICAL RESOURCES Land, buildings, equipment and stock comprise the physical resources of a business which need to be used properly in the management of operational plans, e.g. stock is vital to a manufacturing business which buys raw material and converts this into finished goods for sale to customers. Stock to the manufacturer comprises raw materials, work in progress being the part complete production and finished goods awaiting sale. Stock control necessitates having the correct levels of raw material on hand so that production is not interrupted but not having too much so that money is being tied up unnecessarily and where
  • 69. wastage may arise due to damage, loss or other problem. Production processes should ensure as little wastage as possible. FINANCIAL RESOURCES Financial resources need to be planned carefully and managed on a day to day basis. Paying too much for other resources such as raw materials, stock and equipment or wasting resources, e.g. electricity/telephone will cause a drain on existing financial resources and other sources of finance may not be available. Some organisations may also lose money by extending credit to customers without carrying out adequate credit checks on the customer say through credit checking businesses such as Baycorp, Australian Business Research or Dun & Bradstreet. Policies such as obtaining personal or director guarantees may also need to be implemented and the debt recovery process should work including the use of debt collection agents or solicitors if necessary.
  • 70. 34 TIME Time is a form of the resource; there is a saying 'time is money'. Doing things late or at the wrong time may be a total waste for an organisation. The following aspects may have a detrimental impact on the use of time if not handled correctly: o follow-up procedures
  • 71. POWER/ENERGY RESOURCES Power/energy is another important type of resource particularly for example manufacturing organisations which are dependent upon such things as electricity, water and gas to operate factories and machines. INFORMATION RESOURCES Information is a resource which needs to be planned and managed by organisations. Too little, too much, wrong interpretation and failure to notify events to relevant people within and outside an organisation are some of the problems which may arise with this resource.
  • 72. 35 INTELLECTUAL PROPERTY Intellectual property represents ideas of the mind or intellect including inventions and designs. Trade secrets, patents, trademarks and copyright are some of the main types of intellectual property which need to be planned and managed. GOODWILL Goodwill is a resource which arises from past actions but which may be wiped out if an organisation does not maintain appropriate and relevant operating standards on a day to day basis. Each resource type needs to be analysed to determine what is required in the way of such things as quality, quantity, a time when needed and cost. An analysis of requirements in regard to land, buildings and equipment would need to take into account things such as:
  • 73. RESEARCHING SOURCES Each resource also needs to be researched to find the best source. Researching sources of land, buildings and equipment could include:
  • 74. 36 ACQUISITION AND IMPLEMENTATION Finance is a key resource for all organisations and it often falls to operational staff to negotiate new finance facilities or drawdown against existing loan arrangements. Sources of finance facilities include: or bill line Other private investors
  • 75. Negotiating a loan is a skilful exercise which may commit the organisation to mortgaging assets and repayment of significant interest. There may be other traps for the unwary such as onerous reporting requirements and restriction on the ability to borrow further funds. Accordingly a solicitor or financial advisor should be consulted to review loan documentation and the arrangement generally before finalising the transaction. A drawdown on an existing facility is where an overall loan facility of say $1 million is used by the organisation as and when needed by `drawing down' part of the total facility, e.g. the facility may be established in January for the construction of a new building: $100,000 may be drawn down in February and $50,000 in March as work on the building proceeds leaving $850,000 still to be drawn down as at 1 April. Land buildings and equipment may need to be acquired, such as:
  • 76. 37 Operational staff members are often involved in these acquisitions which may be for normal operating levels or for seasonal peaks. Guidelines to assist staff in these acquisitions include: 'Materials' comprises such things as:
  • 77. nished stock for sale to customers Acquisitions of materials may be made by a central purchasing department for delivery to operating sites or locally by each site. Either way the organisation should have a purchasing policy to be followed, which should include the following: Power/energy in the form of electricity, gas, oil and water is needed to operate factories, offices and store operations. Supplies are obtained from relevant authorities most of which are now run by private enterprises. It is important to ensure that supplies are
  • 78. obtained from the most economical tariff, e.g. electricity may be cheaper during the night, and: 38 in case of interruption to supply Information systems need to be installed to provide the relevant facts and figures to operational staff when needed. Information systems may be internal or external, e.g. the internet. It is important that the information system can provide the correct quantity and quality of information to help operational management plan and control day to day activities. Intellectual property can be acquired and implemented in regard
  • 79. to the main types as follows: o Includes methods of processing or manufacture and the ingredients used as well as things such as customer lists o Protection is via confidentiality agreements stopping others from revealing or using the information and/or not starting up a similar business within a certain area o Protects inventions and processes. Protection is obtained by registering a patent with the Patents Office through IP Australia or in relevant overseas countries o Protects letters, numbers, phrases, symbols, sounds, logos or pictures or a combination of these. Protection is obtained by applying to IP Australia's Trade Marks Office
  • 80. o Books, articles, films, computer programs and promotional material. Protection through relevant laws and agreements Operational staff may be involved in the acquisition and implementation of this resource but should seek the advice and assistance of experts such as solicitors and patent attorneys. Goodwill is an intangible asset which may be acquired: such things as product reliability, service, price and personal relationships 39 TOPIC 3 - MONITOR AND REVIEW OPERATIONAL PERFORMA NCE DEVELOP, MONITOR AND REVIEW PERFORMANCE SYSTEMS AND PROCESSES TO ASSESS PROGRESS IN ACHIEVING PROFIT AND PRODUCTIVITY PLANS AND TARGETS
  • 81. TRIPLE BOTTOM LINE REPORTING Triple bottom line is a process which means organisations have objectives and monitoring/reporting systems dealing with the following matters: These three matters are constantly changing due to political, economic and public pressure but they are also interrelated, i.e. society depends upon the economy, which depends on the global ecosystem. Many organisations report on environmental performance through such things as impacts and initiatives. Social reporting is a developing area and Westpac Banking Corporation recently produced a social impact report covering such things as: management remuneration, female/male salary comparison
  • 82. country profiles practices employed The `balanced scorecard' is a performance reporting system which complements the traditional financial measures of past performance with measures of the drivers of future performance in relation to: - performance measures relating to things such as market share, customer acquisition, retention, satisfaction and profitability -things which the organisation must do well if it is to achieve its objectives and retention. 40 MONITORING AND REPORTING
  • 83. We live in an ever-changing world with customer demands/tastes, a new technology, product developments, staff skills and improved equipment being some examples of things which impact on results/performance. Organisations need to monitor these things and make appropriate changes to designs, resources or processes to ensure survival. Variance analysis is a financial control system whereby planned figures in budgets and standard costs of production are compared with actual figures incurred to give differences known as variances. These variances may be favourable, i.e. where actual sales are higher than the budget plan or actual costs are lower than that budgeted. Unfavourable variances are where the reverse situation arises. Variance analysis also includes determining the reasons for the differences and taking corrective action. Usually, the accounting system is structured so that variances can be reported to those responsible. A typical budget report for the month of February and year to date (from the start of the
  • 84. financial year, being 1 July) could be as follows: February YTD Budget $ Actual $ Variance$ Budget $ Actual $ Variance$ Sales 1000 1100 100 (F) 7500 7200 300 (U) Costs 650 660 10 (U) 1500 1450 50(F) YTD = Year to date (F) = Favourable (U) = Unfavourable MONITORING EMPLOYEES Herzberg has suggested that hygiene and motivator factors affect employee behaviour. Hygiene factors prevent dissatisfaction and include working conditions, wage levels, rules and regulations and relationship with colleagues. Motivating factors can include achievement, recognition, and nature of the work, responsibility and opportunities for growth. These are the factors which
  • 85. motivate employees. In addition employee, rewards need to be performance related, e.g. profit sharing, employee share plans and team based incentive schemes. 41 Monitoring employees includes an understanding of the above mentioned and such things as: on process PERFORMANCE APPRAISAL Performance appraisal includes completing a confidential questionnaire relating to the job/employee, assessing whether objectives previously agreed have been met, having the questionnaire signed by the employee and supervisor, carrying
  • 86. out an interview with the employee and agreeing development objectives for the next period. As well as determining if objectives have been achieved, the process should also assess things such as: -operation
  • 87. 42 ANALYSE AND INTERPRET BUDGET AND ACTUAL FINANCIAL INFORMATION TO MONITOR AND REVIEW PROFIT AND PRODUCTIVITY PERFORMANCE Budgeting is the process of planning an organisation's sales, production, expenses, cash flow, assets and liabilities for a specified future time period. Financial analysis involves consideration of the profitability, solvency and liquidity of the organisation and may compare results/figures with those applying to competitors and/or in the industry or as trends. PREPARATION OF BUDGETS Most organisations prepare budgets. Some larger organisations spend many months each year in considering finalising and issuing agreed budgets to the relevant sections/areas responsible for their implementation and operation. Some smaller organisations have far less sophisticated methods and in some cases the budget may be something which
  • 88. the owner/operator has in mind but does not commit to paper. A budget is a plan of an organisation's proposed future operations for a specified period of time, e.g. one year and summarised in financial terms such as sales, expenses and cash flow. A budget is usually broken down to individuals responsible for various activities. The sales budget may be broken down by geographical area if that is how the organisation is structured, e.g. there may be a Queensland sales manager and a Victorian sales manager who would be responsible for separate sales budgets in their respective states. Budgets may be prepared for a 12-month period broken up into calendar months or 13 four- weekly periods. These periods may be dissected even further into weeks or even days. Much thought needs to go into their preparation, e.g. forecasting sales may be very difficult and needs to take into consideration factors such as:
  • 89. 43 WHY ARE BUDGETS PREPARED? Budgets are prepared for a number of reasons including: and production budgets need to be integrated. Otherwise, shortages or over-stocking may occur ating future profit and cash flow
  • 90. figures can be checked against actual figures achieved and appropriate bonuses and/or other incentives given for high performance as finance for capital expenditure and people to be employed in say the production area Budgets may be imposed on operational management in some organisations with little or no input allowed. This may create a problem as people may not feel committed to achieving the targets and/or may feel the targets are unrealistic. FINANCIAL ANALYSIS Analysing the financial well-being of an organisation is an often neglected aspect of an organisation's operational plan. Often business owners and/or managers do not understand accounting principles or other issues involved in financial analysis.
  • 91. Financial analysis involves seeking answers to questions such as the following: scount policy appropriate? services? 44 credit terms to our customers? have too much cash earning low or little interest?
  • 92. An organisation can employ a variety of approaches to obtain answers to these questions including: records, i.e. Clearly understood and accurate Timely with no errors gures with budgets and analysing these variances to determine the reason for the difference customers for the activity ng ratios comparing figures, e.g. Assets employed compared to profit The financial analysis may also be undertaken by using figures from competitors or appropriate
  • 93. industry standards. It is important that you practice analysing and interpreting budgets and actual financial information. You should arrange to access this information in your workplace and prepare a report that analyses profit and productivity performance. If you are not currently employed, you may use the Internet to access the Annual Report of an organisation that interests you and practice analysing and interpreting the information presented. 45 IDENTIFY AREAS OF UNDER-PERFORMANCE, RECOMMEND SOLUTIONS AND TAKE PROMPT ACTION TO RECTIFY THE SITUATION A variety of problems can arise in the management of operational plans. These problems need to
  • 94. be identified as soon as possible and resolution achieved. Problems in the day to day operation of a business can arise from a number of sources including: IDENTIFICATION OF PROBLEMS It is obviously better to identify problems as soon as possible and certainly well before they reach crisis point. Problems may be identified through a variety of means including:
  • 95. Audits uncovering weaknesses in financial and other controls in costs weaknesses air pollution 46 g. Factories, shops employees
  • 96. Each of these problem areas needs a different approach to being resolved, some of which are self-evident, e.g. vehicle faults need to be repaired and/or vehicles replaced with drivers instructed to drive more carefully if this contributed to the fault. In regard to customer feedback, it is usually well worth a business putting the following in place: dissatisfied handling system have the authority to resolve problems DISCIPLINARY ACTION Disciplinary action may be needed for unsatisfactory performance by an employee. Unsatisfactory work performance or conduct may include:
  • 97. Absenteeism -compliance with safety standards Formal discussions and warnings including written communication should be followed. If performance does not improve then, the termination process may need to be commenced. 47 TERMINATION OF EMPLOYMENT An employer may terminate services where there is a valid reason, e.g. employee's capacity or conduct or operational requirement of the organisation. However, great care should be taken to avoid unfair dismissal claims.
  • 98. It is illegal to terminate employment for reasons such as: witness involving alleged violation of laws or regulations ns including race, colour, sex, age, physical or mental disability, marital status, family responsibilities, pregnancy, religion, political opinion or nationality An employee's employment can usually be terminated without notice or payment in lieu for misconduct including: ACHIEVING RESOLUTION - DECISION-MAKING
  • 99. Achieving a resolution to problems involves decision-making techniques and may need to consider such things as: 48 Good decision-making technique is often an important aspect of resolving problems. There are five distinct stages in any decision-making process:
  • 100. Each of these stages has several steps and includes identifying the real problem and not just the symptoms, getting all the necessary facts and working to appropriate timeframes. 49 PLAN AND IMPLEMENT SYSTEMS TO ENSURE THAT MENTORING AND COACHING ARE PROVIDED TO SUPPORT INDIVIDUALS AND TEAMS TO EFFECTIVELY, ECONOMICALLY AND SAFELY USE RESOURCES Coaching, mentoring and other forms of help may be used in managing operational plans. Operational managers need to:
  • 101. may be beneficial understand the advice and information obtained to improve the business Coaching and mentoring are activities used by some organisations to ensure that business owners and/or employees receive expert guidance for managing the workplace. There is an old saying `two heads are better than one'. Mentoring may usually be on a one on one basis whereas coaching can be individual or to a group/team. Coaching in business is the process of using an external source of expertise to help in the running of the business, either of a particular aspect or the entire business. Business coaching may help to:
  • 102. Make a website work results orientated climate effective in how they work. A good business coach: 50 upports The advice may be tendered in some cases through telephone discussions and written communication without the coach having to visit the business premises.
  • 103. The Small Business Development Corporation in each state has teams of experienced professional advisors who can assist in the development of new or existing businesses. The Corporation provides a one on one mentoring service through the start-up, growth and survival phase of a business's lifespan. OTHER SOURCES OF HELP The following are some of the main sources of help/information available in the day to day management of operational plans: THE RELEVANT COMMONWEALTH, STATE, TERRITORY AND LOCAL GOVERNMENT The relevant Commonwealth, State, Territory and local government department and agencies include the following: and training
  • 104. and payroll tax stralian Competition and Consumer Commission (ACCC) for trade practices exporting for company law tralia) covering patents and trademarks and running businesses. ACCOUNTANTS Accountants can provide help and information on a number of the issues involved in the day to day management of operational plans particularly: 51
  • 105. manuals SOLICITORS Solicitors can assist in things such as the following: termination of employees Defending actions against the business RECRUITMENT CONSULTANTS Provide services in regard to the appointment of employees for the business. BANKS Banks provide services such as assisting in preparing business plans and as a source of finance
  • 106. some of which are suitable for the day to day management of operational plans, e.g. overdraft facilities. BOOKS, MAGAZINES AND NEWSPAPERS Books, magazines and newspapers can provide valuable advice and assistance in managing operational plans. The various governments have bookshops while newsagents and bookshops stock books and magazines on a variety of business topics including customer service, computers and accounting. 52 UNIVERSITIES, TAFES AND OTHER EDUCATIONAL ORGANISATIONS Assistance from Universities, TAFEs and other educational organisations includes:
  • 107. -up phase, e.g. Premises at cheap rental COMPUTER HARDWARE AND SOFTWARE ORGANISATIONS Computer hardware and software organisations can provide assistance in designing, installing, operating and maintaining computer systems. BUSINESS ENTERPRISE CENTRES Business Enterprise Centres are located in city and country areas throughout Australia and provide free assistance and support through their network of contacts. The help includes:
  • 108. planning UNDERSTANDING ADVICE AND TAKING ACTION 53 It is necessary to determine which source of help and information is likely to be beneficial and to be careful about the following types of issues: issue ully researched/incomplete
  • 109. Misinterpreting advice may lead to inappropriate decisions, e.g. if market research does not use a sufficient sample to predict overall view. Failing to take appropriate action is also an issue, e.g. studies may show that a possible business location is a poor site because of the lack of parking but this may be ignored instead of trying to solve the matter. 54 NEGOTIATE RECOMMENDATIONS FOR VARIATIONS TO OPERATIONAL PLANS AND GAIN APPROVAL FROM DESIGNATED PERSONS/GROUPS
  • 110. VARIATIONS TO OPERATIONAL PLANS The nature of planning and business guarantees that you will have to make changes to any reasonably long term plan over the course of its implementation. Variance is the term that is used to describe what happens when performance results differ from the performance that was expected. Variances can be either favourable or unfavourable. If you are responsible for identifying a deviation in the budget, then you will need to investigate and report on why it has occurred. In those cases where the variances are negative, you may be asked to take corrective action to address the variance. There is a range of issues that can impact on resource costs and can have an effect your work areas' ability to stick to the budget. These issues may include: ff during skills shortage
  • 111. materials It is essential that stakeholders, in particular your senior manager and any teams, departments, organisations or individuals affected by any variation in your plan, need to be advised as soon as possible of any variance that is to be implemented. 55 DEVELOP AND IMPLEMENT SYSTEMS TO ENSURE THAT PROCEDURES AND RECORDS ASSOCIATED WITH DOCUMENTING PERFORMANCE ARE MANAGED IN ACCORDANCE WITH ORGANISATIONAL REQUIREMENTS SYSTEMS TO DOCUMENT PERFORMANCE
  • 112. Policies and procedures are documents that detail the overall processes, rules, and guidelines that an organisation follows which show how it performs its operations and the laws that it must follow. Policies show what the organisational objectives and the recommended actions when operating in various areas are, as well as the general industry guidelines that must be followed by the organisation. Some rules in regard to policies include: nto real practices Procedures are effectively the guides for the organisation of the methods that are used to
  • 113. perform the daily, routine tasks and jobs. They can also be used as a training guide for new employees as they detail how to perform the basic tasks. Policies deal with what is to be done while procedures indicate how it is to be done. An organisation may have policies and procedures for a multitude of aspects such as: 56 rces
  • 114. Each of these policies and procedures areas can then be broken down further. Written policies and procedures can be kept in bound manuals with appropriate reference titles and numbers. By doing this, it will assist you in the management of operational plans by: treat particular issues organisation ctice tool to show that the organisation is complying with legislation and other requirements The following are the matters which could be included in a procedure manual for a business.
  • 115. Internal control is an aspect which greatly impacts on how operational plans are managed and implemented within an organisation. Internal control comprises of several elements including: THE CONTROL ENVIRONMENT The control environment will include things like: 57 committee
  • 116. THE MANAGEMENT INFORMATION SYSTEM The management information system is concerned with: and data as required g, summarising and reporting information on a timely basis to all relevant parties THE CONTROL PROCEDURES management of day to day operational plans and may include: rising, recording, and custody aspects to different employees eliminate unauthorised use, removal or destruction of them
  • 117. All organisations are dependent on a variety of systems which will assist in the day to day operations, so it is important that the appropriate systems for the particular business are implemented. These systems may include: 58 nd watering systems
  • 118. 59 SUMMARY Now that you have completed this unit you should have the skills and knowledge required to develop and monitor implementation of the operational plan to provide efficient and effective workplace practices within the organisation's productivity and profitability plans. If you have any questions about this resource, please contact your trainer. They will be only too happy to assist you when required. 60 REFERENCES Books
  • 119. Malouf, Doug 2001, How to sell stacks and stacks of anything, Business + Publishing, Warriewood, NSW. Petty, John Douglass 2000, The Australian Business Toolkit: Practical Tools, Tips & Solution s on How to Start, Run & Grow Your Own Business, CCH Australia, North Ryde, N.S.W. Stanley, Philip 2000, How To Read And Understand Balance Sheets And Financial Reports In The New Millennium, [New] ed., Information Australia, Melbourne. Wrice, M. 1998, First Steps in Retail Management, Macmillan, South Melbourne. Stanley, John 1999, Just about Everything a Retail Manager Needs to Know, Plum Press,