OPERATIONAL PLANS-131586

Task –

Australian Institute of Management – Operational Plans

OPERATIONAL PLANS

BSBMGT515A Manage operational plan

‘A goal without a plan is just a wish’

Assessment Tasks
1. Underpinning Knowledge Questions

Instructions to participant

Complete the questions below and submit your answers, ensuring you include the original question in your answer. As a guide approximately 1⁄2 to 1 page maximum per question

1.            What are the main differences between strategic plan, business plan and operational plan?

Along with plans of Action and Monitoring, the Operational Plan is also a part of Strategic Plan. It has been defined as how we would operate in practice for implementing your plans of action and monitoring- needs of your capacity, how you will be engaging resources, how you will be dealing with risks and you would be ensuring sustainability achievements of the projects (Porter, 1987).

The purpose of the Operational Plan is to provide organisation employees with a clear picture of their tasks and responsibility in line with the goals and objectives contained within the Strategic Plan.

Basically, the operational Plan is a plan for the implementation of strategies contained with the Strategic Plan.

It is a management tool that facilitate the co-ordination of the organisations resources (human, financial and physical) so that the goal and objectives in the strategic plan can be achieved.

The strategic plan DOES NOT stipulate the day-to-day tasks and activities involved in running the organisation.

On the other hand the Operational Plan DOES present highly detailed information specifically to direct people to perform the day-to-day tasks required in the running the organisation

2.     What are the integral components of an operational plan?

The Operational Plan provides the what, who, when and how much:

    •       what – the strategies and tasks that must be undertaken

    •       who – the persons who have responsibility of each of the strategies/tasks

    •       when – the timelines in which strategies/tasks must be completed

    •       how much – the amount of financial resources provided to complete each strategy/task

3.     How are people recruited at your workplace? What is the relationship between recruitment criteria and the operational plans?

• Authority is provided/sought by/from higher management regarding headcount and budget. It is at this point that management would refer to the operational plan in terms of budget and headcount.
• HR is consulted regarding job requirement, advertising and deadline.
• HR sifts through applicants to ensure up front checks align e.g. education and experience.
• Applicants are sifted again via the hiring manager and feedback provided to HR.
• HR invites applicants to interview. Successful applicants progress to second interview with hiring manager.
• HR given feedback again and negotiation would engage at this point.

4.     Describe how your workplace monitors and reviews operational performance against budget and productivity plans.

My companies main driver is based on

• Funds Under Management,
• Incoming revenue via new client and ongoing advice fee revenue,
• writing new business via insurance products.

Advisers have a quarterly revenue target. The more business an adviser brings, the busier they are going to be and the more staff support is required. In order to bring the revenue through the door.

Reporting is an important aspect of monitoring the operational, productivity and budget performance of the business.

• WIP reporting provides, the work required to be completed to bring in the business revenue.
• Productivity provides the business with requirements of how productive we are and if more resources are required.
• Budget reports, provides the business with details of the funds on target or behind, any loss in revenue etc.

5.     Consultation is an important part of developing or maintaining an operational plan. Consider the following areas and comment on why you think consultation with these areas is advisable:

§  Human Resources

To ensure personnel management obligations and needs are being met. The assist with a healthy working place for employees. To ensure the business is meeting its legal obligations to its staff.

§  Finances/Accountant

To ensure spending and revenue is shape to allow for the continued growth of a business.

§  Marketing

To enable the business to attract continued business for the continued success of the business.

§  General Administration

This is the back bones of the business, without the general administration a business is less likely to have the ability to deliver on its products and services in an efficient and timely manner.

§  Production

For the same reason as general administration, without production you have no product delivery and therefore no revenue.

§  Information Technology

A good IT system means you have higher efficiency and the better efficiency the more revenue you’ll be able to generate by ensuring your staff have the right tools running as efficiently and effectively as possible.

§  Are there any other areas that are relevant to you?

6.     Describe the process of obtaining approval for an operational plan from relevant authorities within your workplace

In the business i work for, i’d need to take this to my State Manager who would take it to the CEO.

However in other business it could mean that you take it Employee Relations or other management lines.

7.     Explain the process of budget allocation for a project at your workplace and how work teams are involved in the budgetary decision making process?

Budget allocation occurs annually, each business unit would submit a case of their requirements for the next 12 months provide detailed information of how and where that budget would be spent and why that team requires the fund. e.g. last year we lost x amount of revenue in business due to having enough employees to generate through the workload, if we are able to hire an additional 3 personal this year, this would generate x amount of revenue.

8.     Explain how individual and work teams are supported to improve their efficiency and effectiveness at work?

Via budget approval and allocation. This is to ensure funds are spent on a specific team or are to ensure efficiency and effect of work.

9.     What is the process for an individual and teams to negotiate recommendations for variations to operational plans and gain approval from the management at your workplace?

Any significant variations from the operational plan should be approved by the appropriate level of management.

10.   Describe the performance review documenting system and how it is managed at your workplace?

We use and internal learning and development system. Employees are to note their goals and objectives for the year. Their strengths and areas they’d like to improve etc and this is then aligned back to the business’ own goals and objectives. Quarterly meeting occur providing feedback advising if they are on track, what they have done well and what requires improvement.

It is this tool that is then used to determine an employees eligibility for a bonus etc.

2. Work-based Project:

Candidates should complete either Assessment A or B.

Choose Assessment A if you have not developed a current operational plan; Choose Assessment B if you have developed a current operational plan.

Assessment A: Complete this assessment if you have NOT developed a current operational plan.

Undertake the following activities and document the outcomes in the form of a report. Your report should be approximately 2000 words (not including any appendices you choose to attach).

1.     As an introduction to your report explain the background and objectives of your operational plan.

Over the last 12 months the business has appointed an additional 3 advisers to ensure the business meets its ASIC  obligations of servicing new and existing clients on an ongoing basis.

New client revenue has increased substantially however our work turnaround times has slowed down. This is as a result of the increased work load on the administrative team.

Whilst we’ve appointment new advisers we have neglected to provide adequate support to them. This has meant that advisers are spending more time doing administrative tasks and less time servicing more clients or attracting new ones.

Along with plans of Action and Monitoring, the Operational Plan is also a part of Strategic Plan. It has been defines as how we would operate in practice for implementing your plans of action and monitoring- needs of your capacity, how you will be engaging resources, how you will be dealing with risks and you would be ensuring sustainability achievements of the projects (Porter, 1987).

2.     Meet with your manager and clarify the key 3 – 5 strategic goals/ objectives your business unit is expected to deliver – i.e. plans at the Strategic Plan level that sit above the operational planning level. Work with your manager to ensure these goals are:

1.     Specific, Measurable and Realistic to deliver

2.     Inclusive of both output targets and people targets

3.     Clearly linked to the overall organisational goals and values

The important elements of Operational plan must include following analysis:

–          Requirements of human and other capacity

–          Requirements of finances

–          Assessment of risk and Strategy mitigation

–          Project lifespan estimate, exit strategy and sustainability

3.     Document the business goals/objectives.

Goals and Objectives

• Provide adequate support to advisers.
• Increased efficiency and turnaround times
• Reduce errors
• Increase revenue
• Preparation of projects for raising funds, to be clear about getting the resources and arming with a convinced plan for reviewing with donors that are already existing and potential
• Efficient use of resources for help in allocating resources that are scarce for critical need and gaps
• Clearly defining your gaps of capacity and requirements of critical resources
• Reducing possible risks and preparing necessary plans of contingency
• Thinking about project’s long term plans for future, also ensuring sustainability of targets and impacts of your projects (Lorange, 1980).

4.     Conduct a SWOT analysis to assess you and your team’s current capacity to deliver against these goals. A SWOT analysis template is attached; include this as part of your report with  an explanation of the analysis.

5.     Identify the critical objectives and actions required for you to deliver effectively against your business unit goals (Step 3 of the workbook operational planning process). Ensure that you develop your Operational Plan via listing all factors outlined in section 3 of your workbook – KPIs (key actions, key performance indicators, consultation with involved parties, admin/policy/procedures etc) Resourcing (business as usual, human, physical, budgetary), and Contingencies.
Ensure you outline your Operational Planning using either a company approved tool or one that demonstrates how you yourself will be outlining such planning in the future.

An operational plan has been developed with the appropriate staff and partner’s involvement. Although, your core tam member’s project would take the lead in many areas, they would require support strongly, often involvement of staff from different areas of the organizations as follows:

–          An administrator or finance officer of the project (F&A) should have been involved in defining the requirements of finances

–          Staff of HR and F&A should be involved in assessing the needs of HR and capacity

–          Staff of IT, HR and F&A should be engaged in the processes discussions, procedures and their systems capacity needs.

Efficient implementation and operational planning would require continuous and open collaboration among the team of core project and their other staff members.

6.     With your contingencies (What if’s?) outline how you will/could overcome these.

If you would have to follow the standards, your Strategic Plan has been completed into the plan of action and operational plan (Jelinek, 1979). Be ready for writing proposals, raising funds, developing budgets and working plans, engaging your partners as required, and begin for achieving the results of conservation. Your plan for strategy would be helping you to decide and focus your attention.

If you will move towards implementations, the standards of project and program management link would be closely linked with the standards of network operations for budgeting, financial reporting, compliance and reporting (Gawler, 2005).

7.     Design a series of monitoring processes that you can/could you to ensure you are able to track your operational plan (observation, analysis, consultation).

Pick at least two likely scenarios where, once implemented, your monitoring shows your Operational Plan may be behind where it should be. For each scenario, outline how you would manage it to ensure things return to a back-on-track status (Improving people, equipment, and process).

1. In Bonaire, there was a model that has been set up where the payment of park fees by driving tourists has been used for the management and protection of the island surrounded by reefs of coral. This model has been applied successfully, generating enough money and running by local parties. WWF, whose development has been facilitated and applied in the model, has now phased out of the project has now been self-sustainable through mechanism of income generation (Schepers, 2005).
2. In Kwazulu Natal, expansion range of the endangered Black Rhino critically has been achieved by creating reserves of new Rhino. Under defining conditions clearly, owners of private lank had donated rhino for free of cost for making their land available for setting up the reserves (Ansoff, 1965). WWF has played a vital role in establishing these reserves on private land. The partner of government that donated rhino, would be creating reserves of private sector on its own and WWF would be able to phase our gradually.