leadership and management materials with questions
Bader2012
BSBMGT517PPSlidesV224.01.19.pptxBSBMGT517
Manage operational
plan
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Housekeeping
Emergency procedures
Mobiles and security issues
Break times and smoking policy
This course is interactive – ask questions
Practise respect and confidentiality
Ground rules
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Objectives
Discover how to develop an operational plan
Learn how to plan and manage resource acquisition
Know how to monitor and review operational performance
Gain skills and knowledge required for this unit
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
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What is an operational plan?
An operational plan is derived from the strategic plan of the organisation and is a detailed plan to accomplish the objectives of the organisation
To be successful, your team should:
raise funds
allocate resources to fill gaps
clearly identify resource needs
have contingency plans
know the length of a project and sustain it.
Strategic plan
A strategic plan is written to answer:
What do we do?
Who are we doing it for?
How will we be successful?
Operational plan
You write an operational plan to answer:
Where are we now?
What do we want to be?
How do we get there?
What method/s can we use to measure our progress?
What is in an operational plan?
Organisational structure
Current and future desired goals
Who are the suppliers?
How many staff is required?
Facilities.
What is in an operational plan?
Production and manufacturing
Inventory
Distribution
Maintenance and service including customer service
Labour
Quality assurance, such as how performance is measured.
Effective operational plan
For an operational plan to be effective, it must:
Have clear goals, procedures, objectives, schedules and budgets
Include performance targets
Set timeframes
Have contingency plans
Issue responsibilities
Include strong cohesive teams.
Relevant personnel to consult with
Employees at the same level or more senior managers
Managers
Occupational health and safety committee/s and other people with specialist responsibilities
Supervisors
Union or employee representatives.
Research, analyse and document resource requirements, that include:
Goods and services to be purchased and ordered
Human, physical and financial resources - both current and projected
Stock requirements and requisitions.
To make decisions, consider:
Consult with staff
Activity 1A
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Develop operational plan
1.2 Develop and/or implement consultation processes as an integral part of the operational planning process
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What is consultation?
Consultation is the process where you gather information from both internal and external personnel to ensure that you can make an informed decision
Consultation is a key principle in ensuring that your organisation has a sound planning and decision-making process.
Effective consultation
For consultation to be effective, you must start consulting early in the process
Consulting requires that all parties are honest, open and committed to the project
Consulting when performed this way will assist in enhancing relationships between all parties.
Consultation processes
Consultation processes may refer to:
Email/intranet communications
Newsletters
Other processes and devices surveys, questionnaires and informal sessions
Meetings
Interviews
Brainstorming sessions.
Feedback
Feedback is the process in what part of the output of a system is returned to its input in order to regulate more output
Once you have gathered both the formal and/or informal information, you should review it and select any ideas of value to the planning process.
Activity 1B
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Develop operational plan
1.3 Ensure the operational plan includes key performance indicators to measure organisational performance
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Key Performance Indicators (KPIs)
KPIs will assist you in the planning process
They will provide you with quantifiable measurements that will reflect the success factors of the organisation
To be successful, KPIs must reflect the organisation’s goals, they must relate to the organisation’s success, and they must be quantifiable.
To write a KPI
2. KPIs have four components which are the:
i) Objective that tells what you aim to do. Example: To increase sales
ii) Measurement is the measurement we use. Example: Sales growth
3. These KPIs should be passed to their appropriate subordinates.
1. Once a manager has formulated the department’s objectives in line with its vision, mission, strategies and objectives.
4. The KPI is then monitored usually directly by the manager to ensure that the KPIs have been met.
iii) Target is what we want to achieve and when. Example: increase sales growth by 20% in 2011
iv) Initiatives is a set of all of the above actions, Example: (i)To increase sale (ii) growth (iii) by 20% in 2011
Activity 1C
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Develop operational plan
1.4 Develop and implement contingency plans for the operational plan
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A contingency plan
Simply a secondary or alternative plan that can be implemented when the original plan fails
These plans allow businesses and other entities to adjust as the circumstances change and you remain in operation
Most organisations have several contingency plans geared to fast responses in areas of operation.
Steps for creating a contingency plan
Complete an impact assessment
Build the plan
Develop recovery strategies
Select suitable measures and control
Identify your needs
Identify your needs
Write the objectives of the contingency plan
State who is responsible for the development, maintenance and implementation of the plan
Ask what is the scope of the plan including which departments participate in the execution of the plan?
Know how you will review the plan
Ask what resources, testing and training is involved in the plan?
Know how the plan will be maintained, backed up and stored.
To create an impact assessment
1. Identify the risks
What is the risk and the possible treatments for the risk?
2. What level of risk does the project pose?
What would happen if the risk happened?
3. What is the chance of each risk happening?
What is the potential of the risk?
4. Formulate a response
Design a plan in the case that the problem eventuates.
Select measures and controls
Once you identify the impact that disruptions can have, you should consider preventative measures
Prevention is better than a cure. This will end up as a cost assessment.
Develop recovery strategies
1.Transfer the risk to another party
2. Avoid the risk
3.Reduce the negative impact of the risk
4. Accept some or all of the consequences of the risk
Build the plan
Once you have identified the levels of risk, it is essential that you determine how to best service the plan by identifying contingencies
Costs play a part of the plan so it is important to make sure that any contingencies stay within the budget set.
Test, train and maintain
Make sure that all staff are ready for any contingency. This means that you may need to test the contingency and to train your staff to ensure that the plan runs smoothly.
Contingency plans
Contingency plans may include:
Contracting out or outsourcing human resources and other functions or tasks
Diversification of outcomes
Finding cheaper or lower quality raw materials and consumables
Increasing sales or production
Recycling and re-using
Succession planning
Continued..
Rental, hire purchase or alternative means of procurement of required materials, equipment and stock
Restructuring of organisation to reduce labour costs
Risk identification, assessment and management processes
Seeking further funding
Strategies for reducing costs, wastage, stock or consumables.
Activity 1D
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Develop 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
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Strategic goals
Can only be reached when organisational activities are completed to implement the operational plan
To get a larger slice of the budget, you need to develop a business proposal.
Develop a business proposal
1. Identify strategic goals
2. Prioritise strategic goals
3. Conclusion
Present the proposal
The use of graphs to demonstrate costs, savings from previous years
Strategies you considered and why you did not present them – these can also be operational plans to support the strategic plans.
Conclusions with the use of facts from your research.
A power point presentation with all of the key points of the proposal
Contingency plans and risk management plans and when they would be used and their impact on the proposal
Activity 1E
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Develop operational plan
1.6 Ensure the development and presentation of proposals for resource requirements is supported by a variety of information sources and seek specialist advice as required
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Obtain approval
Follow organisational policy and procedure
Stay as close to the timeline as possible within the approved budget.
Develop SMART goals
Activity 1F
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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
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Human Resources policy and procedures
Obtaining approval for the advertisement for a job requirement
Budgeting and costs
Advertisement, interviewing and selection of the applicants; is there a budget allocated?
Attraction and retention
Reference checking
Induction.
Approval to employ staff
Once approval to employ staff is accepted, you need to:
Plan and review the role
Develop a selection criteria
Decide whether to outsource (use a recruitment agency) or the use internal HR resources
Put together a panel
Plan the time for the recruitment to take place.
Do not forget...
Outsourcing versus the HR Department
The costs
The applicants
Make sure the selection criteria matches as close to the resume as possible.
Activity 2A
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Plan and manage resource acquisition
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
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Supplier relationships
Relationship between the organisation and suppliers
To save on costs increase the supplier relationship by:
using TQM to build lasting relationships
using JIT to save in storage costs which in turns saves on production costs.
Internal suppliers
Costs savings through:
Franchises
Networks
Customers
Measuring costs
What the supplier is looking for in the relationship
The way that the supplier is used by your organisation
How it relates to your organisation’s relationships with other suppliers
Relationship costs and benefits – Take the time to read this in your learner guide.
Barriers to maintaining effective customer relationships
Bad communication
Not keeping it simple
Not knowing what is in it for yourself and the supplier
Not having a strong leadership team.
What influences the choice of supplier?
Organisational culture
Organisational guidelines which govern and prescribe operational functions, such as the acquisition and management of human and physical resources
Standard operating procedures
Undocumented practices in line with organisational operations.
Activity 2B
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Plan and manage resource acquisition
2.3 Recognise and incorporate requirements for intellectual property rights and responsibilities in recruitment and acquisition of resources and services
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Intellectual property rights and responsibilities
When recruiting and acquiring resources and services, you need to be aware of intellectual property rights and responsibilities.
Non-compliance with intellectual property requirements can result in serious legal consequences, so it is important with the concept – you must make every effort to comply with them when acquiring resources and services.
Intellectual property within the organisation
Policies, procedures and information may include:
Intellectual property policy
Licensing agreements
Procedures for ensuring copyright protection
Procedures for registering intellectual property rights
Register of intellectual property assets
Activity 2C
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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
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"Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Performance management is a whole work system that begins when a job is defined as needed. It ends when an employee leaves your organisation."
Source: humanresources.about.com
Tools for measuring different types of performance
Measuring quality
quality assessment
quality monitoring
external evaluation of quality
Performance appraisals
Process appraisals
break downs
process report.
Processing performance
When processing performance, remember to ask:
The time in which the measurement took place
Did the measurement stay within acceptable performance limits?
Have there been any changes that will impact on the measurement? If yes, how?
What is the level of quality expected? Was this level acceptable? Why? Why not?
Activity 3A
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Monitor and review operational performance
3.2 Analyse and interpret budget and actual financial information to monitor and review profit and productivity performance
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Financial information
Financial information to monitor, includes:
Budgets
Ratio analysis
Budget forecasts
Cash flow statements
Profit and loss statement
Balance sheets
Investment and liability reports.
Activity 3B
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Monitor and review operational performance
3.3 Identify areas of under-performance, recommend solutions and take prompt action to rectify the situation
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Continuous improvement
“The process of increasing the quality and services through incremental gains accompanied by occasional innovation.”
(Kuratko and Hodgetts, 1995, p.697)
Innovation and change
Innovation is the development of a new idea or a new innovation. Innovation is looking at different ways to improve your job while retaining the same standards in the quality of your output. Innovation plays a huge role in your workplace
Innovation means the need to change
Change is implemented to make a job run more smoothly.
Factors affecting output and quality
An increase in output can be caused by:
Technological change
Economic change
Management trends
Political change
Variations to improvement processes
Consider advantages and disadvantages to an improvement
Consider impact to other departments in the process
Good versus bad.
Action learning
Action learning
Success of action learning comes from teams values, including:
Openness, trust and collaboration
Team spirit, respect for diversity; and
Tolerance of mistakes from which we learn.
Activity 3C
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Monitor and review operational performance
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
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Gap analysis
The gap between level of performance demonstrated and the desired level of performance
If a gap in skill level is identified:
coaches should be used to address job focused and performance oriented problems such as reaching goals and outcomes.
mentors should be used to address performance related issues such as lack of confidence and lack of motivation.
Activity 3D
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Monitor and review operational performance
3.5 Negotiate recommendations for variations to operational plans and gain approval from designated persons/groups
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Negotiation
“a process in which two or more parties who have both common and conflicting interest bring forth and discuss explicit terms of possible agreement”
(Collins, 2004, p.207)
Types of negotiation
Hard negotiator: Where negotiation is seen as a test of wills and who will finish off better. They will win at any cost and as such will damage relationships.
Types of negotiation
Soft Negotiator: Where negotiators want to avoid conflict. The negotiator does this by amicable agreement, with the least amount of fuss and bother, so they make concessions. These concessions make them feel exploited and that the other parties are taking unfair advantage of them.
Types of negotiation
Principle Negotiation: A combination of both hard and soft. It is about getting what you are entitled to and preserving your relationship with other parties. It can be used in any situation by many people, irrespective of whether they are experienced or not.
The Principle negotiator has three elements
Separates people from the problem
It focuses on interest not positions
It develops options.
Consistency of recommendations through policies and procedures
Benchmarking and continuous improvement followed by an update of the procedures
Benchmarking means that the organisation will be looking for the best way in which to implement improvement procedures.
Negotiation styles
Competition: A win/lose approach which leads to confrontation
Compromise: A win/win approach which is optimal
Co-operation: A win/win approach which creates joint problem solving
Accommodation: A lose/win approach which leads to capitulation
Avoidance: A lose/lose approach that leads to withdrawal.
Communication updates to designated personnel
Groups designated in workplace policies and procedures
Managers or supervisors whose roles and responsibilities include decision making on operations
Other stakeholders such as board members
Other work groups or teams whose work will be affected by recommendations for variations.
Activity 3E
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Monitor and review operational performance
3.6 Develop and implement systems to ensure that procedures and records associated with documenting performance are managed in accordance with organisational requirements
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Documentation
Documentation may include:
Operational plans
Strategic goals
SMART goals
Contingency plans
Job advertisement
Selection criteria and duty statement
Quality improvement and performance appraisals.
Activity 3F
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Skills and Knowledge Activity
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Major Activity
This activity should take anywhere between an 1-2 hours to complete and can be found at the end of your workbook.
Your instructor will let you know whether they wish for you to complete it in session time or your own time.
Summary and Feedback
Did we meet our objectives?
How did you find this session?
Any questions?
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Congratulations!
You have now finished the unit…
‘Manage operational plan’
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