BSBMGT517 Manage

Operational Plan

Week 1
2 Objectives
Develop operational plan
Plan and manage resource acquisition
Monitor and review operational
performance
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Operational Plan

An Operational Plan is a detailed plan used to

provide a clear picture of how a team, section or
department will contribute to the achievement of
the organisation's strategic goals.
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Operational Plan

An operational plan addresses four questions:

Where are we now?
Where do we want to be?
How do we get there?
How do we measure our progress?
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Operational Plan
 An Operational Plan should provide a clear
picture on how to achieve organisational goals.
It focuses on the steps that should be taken to
ensure the company's overall vision and mission
are achieved.
 Operational plans break down larger objectives
into smaller objectives, and allocates
responsibilities / resources required to achieve
each step.
 GANTT Chart
6

A Gantt chart is a horizontal bar chart

developed as a production control tool in
1917 by Henry L. Gantt, an American
engineer and social scientist. Frequently
used in project management, a Gantt chart
provides a graphical illustration of a
schedule that helps to plan, coordinate, and
track specific tasks in a project.
 GANTT Chart
7
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PERT Chart
A PERT chart is a project management tool that provides
a graphical representation of a project's timeline. PERT,
or Program Evaluation Review Technique, was
developed by the United States Navy for the Polaris
submarine missile program in the 1950s. PERT charts
allow the tasks in a particular project to be analyzed,
with particular attention to the time required to
complete each task, and the minimum time required to
finish the entire project.
 PERT Chart
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 Four types of documents or information
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required to develop an operational plan
Business plan
Budgets
Mission statement
Organisational Chart
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BUSINESS PLAN
A business plan is a written document that
describes in detail how a business is going
to achieve its goals. A business plan lays out
a written plan from a marketing, financial
and operational viewpoint.
It provides an overview of the business
direction, along with key dates for
objectives to be met.
12 BUSINESS PLAN

The dates help in defining project

parameters to ensure targets and
stakeholder expectations are met
 BUDGETS
13

Budgets provide fund allocation to areas of

the business, projects and areas identified
as important to the business.
Outlines the available funds for the project
which have a direct impact on project size,
scope, resources, human resources, vendor
and process selections.
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BUDGETS

It can create a bigger picture of the

companies finances and expenses and take
into consideration any irregular spending.
With an annual budget a company can
estimate their expenses and carefully plan
and manage their finances.
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Mission statement
The mission statement should guide the
actions of an organization, spell out its
overall goal, provide a path, and guide
decision-making.
Company’s mission statement defines the
company’s goals, ethics, culture, and norms
for decision-making.
 The best mission statements define a
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company’s goals in these dimensions
What the company does for its customers
What it does for its employees
What it does for its owners
What the company does for its community
And, for the world
 Organisational Chart
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An organisational chart is a diagram that

shows the structure of an organisation and
the relationships and relative ranks of its
parts and positions/jobs.
Outlines the people and positions within the
company along with their authority.
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Organisational Chart
 Legislation, policies & procedures
19

There are certain things that may have an

impact on the implementation of an
operational plan such as legislation and
organisational policies and procedures;
• Public sector code of ethics/conduct
• Occupational health and safety and
environmental requirements
• Project governance requirements
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Legislation, policies & procedures

• Quality standards
• Risk management
• Procurement guidelines
• Budgetary framework
• Financial management requirements
21 Legislation, policies & procedures

• Human resource
• Public relations
• Equal employment opportunity
• Equity and diversity principles
22
Equal Opportunity
The objectives of the Equal Opportunity
Act 2010 are to encourage the
identification and elimination of
discrimination, sexual harassment and
victimisation and their causes, and to
promote and facilitate the progressive
realisation of equality.
23 Equal Opportunity Act 2010

Under this law it is against the law to

discriminate a person on the basis of age,
disability, marital status, gender identity,
physical feature, political belief or activity,
pregnancy, sexual orientation, race,
religious belief or activity.
24 Occupational health and safety
Employers rights and responsibilities
include:
Providing and maintaining safe plant
Safe systems of work
Implementing arrangements of safe use of
dangerous goods and other harmful
material
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Occupational health and safety

Maintaining workplace in safe condition

Providing adequate facilities
Making sure workers have adequate
information, training instruction and
supervision to work in safe and healthy
manner.
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Anti-discrimination
Age discrimination Act 2004
Disability Discrimination act 1992
Human Rights and Equal Opportunity
Commission act 1986
Racial Discrimination Act 1975
Sex Discrimination Act 1984
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Privacy Laws
Businesses are required by law to protect
the information of individuals, and not to
disclose such information unless granted
permission from such individual.
This is backed by the Privacy Act 1988, and
the Privacy Amendment (Private Sector) Act
2000.
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Copyright
Copyright is a form of intellectual property
that protects a variety of literary, artistic,
musical and dramatic endeavours as well as
other things such as sound recordings and
films. It is not ideas but their expression that
are protected by copyright law.
29 Copyright

In Australia, copyright law is contained in

the Copyright Act 1968 (the Act), and in
court decisions that have interpreted the
provisions of the Act. The Act is amended
from time to time to keep the law up to
date.
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Budgets in Operational Plans
Budgets helps a business carefully plan and
manage their finances.
They are used to identify, measure, analyze
and report financial information
Helps to carefully plan the allocation and
reduce unnecessary spend within the
organization.
Can also help in annual planning, cost
reduction debt reduction.
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Forecasting in an Operational Plan
Forecasting helps managers and businesses
develop meaningful plans and reduce uncertainty
of events in the future. It helps match supply with
demand; therefore, it is essential to forecast how
much space is needed for supply to each demand.
Business forecasts help a business predict cash
flow, and future growth.
32 Forecasting in an Operational Plan

Forecasting future growth allows a business to

plan ahead, in terms of increasing or decreasing
equipment, production or human resources.
As a forecast is the best guess of what will
happen to the business financially over a period
of time, it requires regular review and
amendments when circumstances change
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KPI’s and Milestones
Forecasting assumes milestones and KPI's will be
met. Forecasting future earnings will normally
commence with identifying the amount of sales,
and then multiplying the sales x unit price. Without
KPI's and Milestones, this is very difficult to
undertake.
Milestones and KPI's need to be realistic,
achievable and conservative as it does not place
false expectations on the business, or inflate the
perceived share price.
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Information required to create an
accurate financial forecast

 Sales history
 Expenses history
 Sales forecasts (KPI’s /milestones)
 Balance sheets
 Information required to create an accurate
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financial forecast

 Profit and loss statements

 Invoices and receipts
 Order and supplier documentation
 Taxation and statutory returns
 Important steps in Budgeting procedures
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Establish goals
Establish objectives
Prepare budget calendar
Define roles in budget preparation
Gather and review budget request
 Key Principles in preparing budget
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documents
Transparency
Co-ordination and Co-operation
Integration
Flexibility
Accountability
Comprehensive
 IMPORTANT CHARACTERISTICS OF KPI’s
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Specific
Measurable
Attainable
Realistic
Timely
39 Alternative approaches to developing KPIs

Cause and Effect: 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.
40 Alternative approaches to developing KPIs

Risk based: The risk based approach identifies

those specific services, functions or activities that
may have a negative or detrimental impact on
the agency. In general terms, there are a number
of methods for identifying risk and these
normally have two parameters:
Likelihood/probability of a risk occurring, and
impact of risk occurring.
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Alternative approaches to developing KPIs

Lifecycle approach: The use of a lifecycle

approach to developing KPIs would ensure an
agency takes into account KPIs at all stages of
the life of a record, from creation to disposal.
Each stage could also be considered a lifecycle
in its own right and appropriate KPIs developed.
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KPI’s – Strategic vs Operational

Strategic KPI’s are general and have a long

completion timeframe, for e.g., Over 5 or 10 years

Operational KPI’s are more specific, have targets

and are easier to measure. They generally have a
shorter timeframe, for e.g., 6 to 12 months
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Thank you!!

See you next week!