BSBLDR602 - Simulation Pack.v1.0

BSBLDR602 Provide leadership across the organisation
Case Study
Boutique Build Australia was established in 2013. It is a boutique building company based in
Sydney that specialises in the design and build of high-quality designer homes for the Sydney
metropolitan and surrounding areas.
A Strategic Plan has been developed for the company by an external consultant with input from the
CEO and senior management. The rationale for the Strategic Plan is to set the direction for the
company over the next three years, establish strategic priorities and to describe how these will be
achieved and the measures (operational priorities) to achieve them.
A first important stage of implementing the Strategic Plan is to meet with the Senior Management
team to plan the operational activities to be implemented to achieve the organisation’s objectives.
The preliminary meeting will focus on the objectives for the upcoming year being the expansion of
the company into Brisbane and the Sunshine Coast markets as described in the Strategic Plan and
to discuss and allocate roles and responsibilities in relation to the expansion.
The Senior Managers who attending the meeting will be:
 Operations Manager (Bob Sales) – Bob has been with the company since its inception. He
was a former builder and therefore has an excellent understanding of the industry. His main
role is to manage the day-to-day activities for the business, including setting and reviewing
budgets and overseeing procurement.
 Marketing Manager (Jane Smith) – Jane has recently joined the company. She is responsible
for all aspects of marketing, including marketing planning and marketing implementation.
Jane’s strengths are in digital marketing.
 Human Resources Manager (Deborah Terns) – Deborah has been with the company for 2
years. She has worked in human resources for 10 years and her previous position was also
with a construction company and she therefore has an excellent knowledge of the industry.
 Customer Service Manager (Amar Singh) – Amar has recently joined the company to manage
the increasing number of sales staff. Amar previously worked with a construction company
who expanded into other states and therefore has strengths in understanding how this process
works.
Document Name: Simulation Pack

Document No: BSBLDR602 Version No: 1.0 Last Modified 1st Jan 2022
Date:
© AIM Institute of Health & Sciences| RTO Code: 41578| CRICOS Code: 03806D Page Sequence: 1
Strategic Plan
2021 – 2023
Boutique Build Australia

Date:
Executive Summary
Established in 2013, Boutique Build Australia is a building company specialising in the design and
building of high-quality designer homes for the Sydney metropolitan and surrounding areas.
Our vision – to be the best home builder in Australia – drives everything we do, from the friendly
greeting we give to customers at our display centre, to our supplier relationships and to our
employees’ professional development.
Vision
To be the best quality home builder in Australia.
Our values are:

The core values underpinning our activities are:
 Quality.
 Innovation.
 Leadership.
 Respect.
 Honesty and Reliability.
Strategic Priorities
Key strategies:
To be well led, high performing, profitable and accountable
 Ensure that all financial operations, performance indicators and results support the strategic
policies.
 Identify new and expand existing sources of revenue.
 Achieve profits of at least 10% per annum.
Build high quality residences to meet customer needs and aspirations
 Increase sales of homes in current Sydney market by 10% per annum over the next three
years.
 Establish a presence in Queensland and build at least 100 new homes in Brisbane and the
Sunshine Coast during the period of the Strategic Plan.
 Research and plan for the launch of new innovative, environmentally friendly homes.

Date:
Continue building deeper customer relationships
 Customer-centred practice, with a focus on meeting their total needs for a high-quality home.
 Strengthen the skills of our people, to better support customers.
 Drive innovation to better meet customer demands.
Attract, engage and develop the best staff
 Continuing the drive to a customer centred, high performance workforce and culture.
 Strengthening the skills of our people, to better support customer needs.
 Empowering innovation and responsiveness to change.
 Continuing to enhance the diversity of our workforce.
Operational Objectives
The following table identifies the operational objectives we plan to achieve in pursuit of our
strategic objectives.
We have allocated a budget of $100,000 to the expansion.
Date Priorities Key performance indicator
2021
February 21 Employ at least 3 permanent Site staff in place

site staff
March 21 Commence recruiting for key Key staff established for

positions in Brisbane and Brisbane and Sunshine Coast
Sunshine Coast
August 21 Develop and implement work- Increased employee

life balance programs satisfaction as measured by
surveys
October 21 Commence promotions in the Presence in Brisbane

Brisbane and Sunshine Coast established
market
Set up display centre in
Brisbane and Caloundra QLD
November 21 Staff performance reviews All staff performance reviews

conducted

Date:
Date Priorities Key performance indicator
2022
Jan 22 Develop and implement Number of females in

strategies for increasing company increased by at least
number of women in the 4 by mid 2022
workplace
March 22 Commence design of Designs completed

environmentally friendly
homes
May 22 Commence marketing Build at least 4

environmentally homes environmentally friendly
homes by the end of 2022
November 22 Staff performance reviews All staff performance reviews

conducted
2023
Feb 23 Review other potential Potential markets explored

markets
Sept 23 Analyse workforce diversity Number of women in

workforce continuing to
increase
Nov 23 Staff performance reviews All staff performance reviews

conducted
The Market
Market characteristics & conditions

The construction industry had been facing a stagnant phase in recent times, however experts
predict a turn around, providing real opportunities in the sector. Although much of the construction
industry is expected to see real growth in the coming 12 months, it is the residential building
sector that should experience the most growth.
The Housing Industry Association (HIA) recently released the summer 2021 edition of its housing
forecasts and announced that, despite the ongoing Covid-19 pandemic, the residential building
industry was lucky enough to not see too many declines in sales as opposed to other industries.

Date:
According to statistics, dwelling commencements were forecast to go up by 24.4% in 2020/21 to

reach 127,143 from the previous year. This is said to be the strongest 12 months for dwellings in
almost 30 years. However, this is then unfortunately predicted to steadily decline once more in the
coming years, further aftermath of the pandemic.
Read through the following link for further information:
https://hia.com.au/-/media/HIA-Website/Files/IndustryBusiness/Economic/forecasts/housing-
forecasts-summer-2021.ashx?la=en&hash=AD375BE5A8E34AC292140A8F8F972C3A1A85815F
Although a number of states are set for an increase, the Sunshine State is set to experience the
most growth. The Queensland Government is providing support by offering first home buyer/builder
grants as well as easier procedures for development application approvals.
If you were to compare all the major Australian industries; construction, manufacturing, engineering
and mining; construction is the only one that is expected to see real growth in the coming years.
Globally it is expected that the construction industry will grow from $7.2 trillion to over $12 trillion.
The global construction industry has a number of challenges and opportunities according to a
recent report by Global Construction Perspectives and Oxford Economics. A number of factors are
expected to affect outcomes:
 Countries’ decisions with respect to carbon reduction, climate change, waste disposal, clean
technology and renewables.
 Emerging economies in general are expecting large population increases in the coming
decade creating demand for construction activity whereas population growth in developed
countries will be flat.
 The key area of construction growth in emerging countries will be infrastructure: transport,
energy, social infrastructure, schools, hospitals, government accommodation, water, defence
infrastructure and natural resources.
 Eastern Europe and Russia are expected to expand construction by 100% primarily led by
Poland and Russia.
 China is expected to become the world’s leading construction market with a construction
output of $2.5 trillion.
In the future, trends in technology, particularly information technology (IT), may be the greatest
driver of change in the building and construction industry. Electronic tendering and documentation,
data communication, virtual design, shared project data and databases, construction automation,
and energy management will have a significant impact on industry practices. Those parties that are
slow to react to these trends will have difficulty in remaining competitive.
Project Managers, Structures Forepersons and Commercial Contract Administrators will be at the
top of any wish list for construction businesses this year.

Date:
Situation Analysis
Strengths Weaknesses
 Value and quality  Focus on Sydney market only
 Strong management  Brand name not developed as yet
 Customer loyalty  High turnover of casual workforce
 Friendly organisational culture  Lack of diversity in workforce
 Level of available finance for investment
Opportunities Threats
 Housing sector experiencing growth  Environmental effects
 Potential for growth in Brisbane and  Changes in Industry/ Government

Sunshine Coast market legislation affecting construction industry
 Innovation in environmental housing  Possible adverse effects of government

policy formulation
 High level of competition
 Predicted uncertainties in the world

economy impacting level of demand for
housing
 Low price competitors
 Failing to satisfy clients demands
Marketing Strategies
Our marketing strategies aim to:
 build trust,
 generate leads now,
 help to convert those leads quickly, and
 will form the basis of ongoing relationships and referrals.
We plan to develop our market share by:
 Improving our marketing and advertising
 Continually improving the quality of service given to clients
 Maintaining effective communication channels with all stakeholders to ascertain industry

requirements and then develop products and manage services accordingly

Date:
 Continually improving communication channels with all our stakeholders, ensuring a flow of
timely and accurate information to facilitate effective planning and decision making
 Targeting identified growth markets with planned, market appropriate campaigns employing a
variety of promotional strategies and advertising mediums
 Offering attractive fee structures to our clients
 Continually improving the skills, knowledge and effectiveness of Boutique Build Australia
through our commitment to training and development
 Regularly reviewing the effectiveness of all our operations and making improvements when
and where necessary.
Risk Management
The following section identifies the associated risks in pursuit of our strategic objectives and how
we will deal with them.
Strategic Objectives
1. To be well led, high performing, profitable and accountable
2. Build high quality residents to meet customer needs and aspirations
3. Continue building deeper customer relationships
4. Attract, engage and develop the best staff
Risk Australian government changing policy in relation to industry
 Accepting policy change will be a constant factor to manage
 An understanding of this should be instilled in all staff
 Develop ability to foresee and react quickly to change
 Maintain effective communication channels with stakeholders
 Diversification of source markets
 Develop product range
Related to Strategic Objectives: All
Risk Significant drop in cash flow
 Identify operating costs as per future plans and past performance
 Identify available finance available

Date:
 Efficient invoicing and debt recovery
 Accurate income projections
 Close monitoring of expenditure
 Arrange overdraft facilities
 Scenario planning
Risk Failure to recruit planned number of clients
 High quality delivery of all services
 Swift reaction to feedback
 Skilled motivated staff
 Attractive fee structures
 Effective market research
 Monitor performance
 Take early corrective action if not meeting targets/ expectations
 Maintaining effective relationships with clients
 Maintaining effective communication channels with all stakeholders
Risk The world recession and the domino effect
 Diversification of target market
 Target markets with strong growth forecasted
 Monitor the economic trends
 Regularly review performance in line with anticipated market conditions
 Develop culture of accepting continual change
 React quickly to change

Date:
Related to Strategic Objectives: 1, 2

Date:
Risk Over committing resources
 Balance activities with amount of finance available for investment
 Financial planning
 Monitoring of cash flow
 Review invoicing/ debt recovery system
 Swift response to identified issues
 Accessing financial advice
Related to Strategic Objectives: 1, 2, 4
Risk Adverse changes in market conditions
 Effective communication channels
 Continuous market research
 Monitor new markets and overall recruitments trends for all market segments
 Develop working knowledge of potential markets
 Networking
Risk Changes to Acts and other relevant legislation
 Emphasis on professional, ethical practices with all stakeholders
 Staff training
 Leading by example
 Policy implementation and monitoring
 Effective communication channels with all stakeholders
 Ability to manage change
 Managing available finance for re-investment

Date:

Date:
Risk Shortage of/ Difficulty in recruiting appropriate qualified and skilled staff
 Development of HR policies and procedures
 Offer attractive salary package
 Provide opportunities for career progression
 Develop stimulating and enjoyable working environment
 Commitment to training and development
 Commitment to professional development
Related to Strategic Objectives: 5
Risk Failure to meet and manage client’s expectations
 Accurate and timely communication with potential and current clients
 Management of recruitment activities
 Continuous improvement system
 Regularly review learning and teaching approaches, resources, structure and systems
 Client management policies in academic and support services
 Industry liaison
 Reviewing effectiveness of communication channels with clients
 Employing a continuous improvement approach to all operations
 Continuous market research and action
 Systematic feedback on management performance and personal reflection
Related to Strategic Objectives: 5
Risk Failure to comply with legislation
 Consistently implement compliant policies and procedures
 Continuous improvement system
 Commitment to training and development
 Systematic review of policies and procedures
 Regular reviews of all operations

Date:
Risk Failure to control expenditure
 Effective financial planning and review
 Co-ordination of activities
 Systematic review of practice
 Financial management and control systems
 Facilities management
 Implementation of efficient processes
 Efficient procurement of products and services
 Cost comparisons prior to purchasing
Related to Strategic Objectives: 1, 4
Risk Only providing boutique homes
 Weighting between diversification/ specialisation
 Monitor recruitment trends per market
 Forecasting
 Cost benefit analysis
 Developing reputation for being a specialist in high quality homes
 Developing market share for boutique homes
Risk Ineffective planning
 Experienced management team
 Continuous market research
 Planning system
 Organisation structure and systems
 Regular review of structure, systems and procedures
 External liaison

Date:
Risk Competitors undercutting prices
 Maintain competitive pricing policy
 Monitor competitors prices vs quality
 Regularly review financial management models/ processes
 Continue focusing on quality
 Continue strategy of quality brand promotion
Risk Rate of growth in client numbers
 Systematic review of systems and practice
 Buying in knowledge and skills
 Sourcing reliable market information
 Strategic and operational planning
 Review/ amend management structure
 Develop policies and procedures
 Regular reviews of capacity and operation of all functional and curriculum areas
 Good communication channels with stakeholders
 Recruitment policy
 Finance available for expansion
Related to Strategic Objectives: 1, 2, 3, 4
Risk Unethical/ unprofessional practices of staff
 Staff selection processes
 Staff monitoring systems
 Previous experience of managing staff
 Swift reaction to feedback

Date:
 Termination of agreements
 Maintain currency of market recruitment trends
 Maintain relationships with HR organisations
Risk Casual staff team
 Develop database of contract staff
 Employ a permanent team of staff
 Planning for holidays/ leave
 Maintain relationships with HR organisations
 Offer incentivised pay structure for casual staff

Date:
Boutique Build Australia
Code of Ethics
All staff should act with honesty, sincerity and integrity in their approach to their work for the
Boutique Build Australia.
All staff should behave with integrity, honesty and fairness in all business, professional and
personal relationships.
Staff should not knowingly or recklessly supply any information which is confidential, or make any
statement which they know is misleading, false or deceptive to a colleague, client of the Boutique
Build Australia, or the general public.
While Boutique Build Australia staff must observe the terms and conditions of their employment,
staff cannot be required to be complicit in any illegal act. If advised, instructed or encouraged to
engage in unlawful activity, they must decline, and report the matter to a line manager.
Conflicts of interest
Boutique Build Australia staff should both be and appear to be free of any interest (financial or
otherwise) which might be regarded as being in conflict or incompatible with their integrity and
objectivity.
Independence is the cornerstone of objectivity. Both external and internal parties have a need for
credibility of information and action in relation to Boutique Build Australia activities. Boutique Build
Australia management at all substantive levels seeks credibility and accountability in information
and in the activities of all of its staff. Boutique Build Australia management must be careful to apply
an attitude of professionalism within the bounds of commercial confidentiality, and should remain
independent in fact as well as independent in appearance.
Accordingly, Boutique Build Australia staff should recognise and avoid situations which may affect
their integrity and objectivity by:
 being cautious of undue benefits or preferential treatment received in the course of their
employment. Such benefits may cloud their judgement or objectivity
 ensuring Boutique Build Australia facilities or property, information or resources are used in
the best interests of the Boutique Build Australia community
 guarding against conflicts of interest arising from inappropriate financial involvement and
personal relationships.
The interests of the Boutique Build Australia and the broader community
Boutique Build Australia staff comprises a diverse population of individuals with differing roles and
functions, ethnic and cultural backgrounds and differential and sometimes complex relationships
within the community. For such a community to function fairly and effectively, due regard must be

Date:
given to behaviour which recognises the dignity and privacy of individuals, enhances fair dealing
and representation both in action and perception.
The effective functioning of Boutique Build Australia depends on the mutual respect required of
individuals co-existing within that diverse community and with its broad clientele, together with the
pursuit of an environment characterised by co-operation, collegiality, impartiality, equity, and
financial responsibility.
Individuals must therefore be accountable for their actions both in a social and financial sense by
clearly establishing their own personal standards and those of the staff for whom they are
responsible and being aware of how these standards may conflict with tasks they ask others (or
themselves are asked) to do.
This should be in consonance with the Boutique Build Australia's strategic intentions, recognising
that the Boutique Build Australia has a responsibility both to its stakeholders and the broader
community.
Confidentiality
Boutique Build Australia staff must protect the confidentiality of information acquired in the course
of their work. No staff member should use or disclose any confidential information to a colleague,
client of the Boutique Build Australia or any other party without specific authority or unless such use
or disclosure is:
 in the normal course of business within the Boutique Build Australia, or
 there is a legal or professional duty to disclose the information.
Staff may acquire confidential information in the course of their employment. This may take the
form of confidential information about staff, customers, suppliers or other information intended to be
confidential. It is important that this information should not be disclosed to third parties except when
consent has been obtained from the Boutique Build Australia or with the consent of the other party,
when there is a duty to disclose.
Staff members should discuss the matter fully with their immediate superior if they are in doubt as
to whether there exists a right or duty to disclose confidential information. If the problem cannot be
resolved by this action, they should consult an appropriate higher authority within the Boutique
Build Australia, and/or the Boutique Build Australia's legal advisors.
Boutique Build Australia staff at all levels should ensure that staff members for whom they are
responsible, are aware of the confidential nature of relevant information acquired by them in their
work, and should inform them of the need to maintain confidentiality of such information.
Staff members in receipt of confidential information should not use or appear to use such
information to gain personal advantage for themselves or for a third party.
Technical standards
Boutique Build Australia staff shall carry out their job responsibilities in accordance with relevant
contractual arrangements and/or in accordance with the technical and professional standards
relevant to that work. In this sense, Boutique Build Australia staff members owe a duty of skill and
care to the Boutique Build Australia.

Date:

Date:
Fair and honest dealing

Boutique Build Australia staff must be fair and must not allow bias or prejudice to influence or
override their objectivity in academic, research, administrative, business or management matters.
Staff should maintain an impartial attitude, particularly in terms of the equity of individuals (including
colleagues) or groups who may be vulnerable.
Objectivity is an important characteristic of Boutique Build Australia staff. If the work of a staff
member is influenced by dishonesty, prejudice, conflict of interest or bias, or involves misuse of a
Boutique Build Australia position for personal gain (financial or otherwise), then that staff member
cannot meet the test of objectivity.
The 'reasonable person' test is appropriate in determining whether a staff member has behaved in
an objective manner. In other words, whether a reasonable colleague, knowing all the facts and
circumstances, would conclude that the staff member has acted properly and impartially.
Gifts, benefits and hospitality

 Gifts, benefits or hospitality which are irregular and of nominal value, used for promotional
purposes by the donor and seen as generally accepted commercial practice (such as a
business lunch), may be accepted.
 Gifts, benefits or hospitality which exceed a nominal amount, must be declared to the staff
member's line manager and must not be accepted if in the view of the line manager the
acceptance of the gift or gratuity would compromise objectivity and be seen by the wider
community as likely to influence the staff member in their official capacity.
 Gifts, benefits or hospitality offered as an inducement to place a staff member under an

obligation to purchase goods or services cannot be accepted.
 Staff must not accept gifts of money.
Ethical behaviour
Boutique Build Australia staff should conduct themselves in a manner which is consistent with the
Boutique Build Australia's strategic intentions, reputation, and functions for which it was created
under the Boutique Build Australia of South Australia Act. Staff should refrain from any conduct
which might bring discredit to the Boutique Build Australia.
It is important that colleagues, clients, suppliers and the wider community, be satisfied that
Boutique Build Australia staff are acting fairly, honestly and in good faith. You should not condone
misleading, false or deceptive statements. The character of staff will be judged by their conduct,
real or apparent.
Indicators of personal ethical behaviour

 You must not allow dishonesty, personal prejudice or bias to influence you in the conduct of
your employment.

Date:
 You should not accept gifts, benefits or hospitality if their nature and value may be seen as
compromising your objectivity and influencing you in your official capacity.
 Your actions should be fair, honest, and truthful.
 You should avoid actual or perceived conflicts of interest.
 You should not condone the use of any statement which is misleading, false or deceptive.
 You should conduct yourself with care and skill, and ensure your actions do not conflict with
the requirements of integrity and objectivity.
 You should not use confidential or other information for personal advantage or for the
advantage of another.
Finally
If you would be ashamed if your conduct was reported in a Boutique Build Australia newsletter or a
local newspaper read by friends and colleagues, you should question whether your behaviour is
ethical.

Date:

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BSBLDR602 Provide leadership across the organisation

Document Name: Simulation Pack

Boutique Build Australia

Document Name: Simulation Pack

Our values are:

 Honesty and Reliability.

To be well led, high performing, profitable and accountable

 Identify new and expand existing sources of revenue.

 Achieve profits of at least 10% per annum.

Build high quality residences to meet customer needs and aspirations

Document Name: Simulation Pack

Continue building deeper customer relationships

 Strengthen the skills of our people, to better support customers.

 Drive innovation to better meet customer demands.

Attract, engage and develop the best staff

 Strengthening the skills of our people, to better support customer needs.

 Empowering innovation and responsiveness to change.

 Continuing to enhance the diversity of our workforce.

Date Priorities Key performance indicator

February 21 Employ at least 3 permanent Site staff in place

March 21 Commence recruiting for key Key staff established for

August 21 Develop and implement work- Increased employee

October 21 Commence promotions in the Presence in Brisbane

November 21 Staff performance reviews All staff performance reviews

Document Name: Simulation Pack

Date Priorities Key performance indicator

Jan 22 Develop and implement Number of females in

March 22 Commence design of Designs completed

May 22 Commence marketing Build at least 4

November 22 Staff performance reviews All staff performance reviews

Feb 23 Review other potential Potential markets explored

Sept 23 Analyse workforce diversity Number of women in

Nov 23 Staff performance reviews All staff performance reviews

Market characteristics & conditions

Document Name: Simulation Pack

According to statistics, dwelling commencements were forecast to go up by 24.4% in 2020/21 to

Document Name: Simulation Pack

 Value and quality  Focus on Sydney market only

 Strong management  Brand name not developed as yet

 Customer loyalty  High turnover of casual workforce

 Friendly organisational culture  Lack of diversity in workforce

 Level of available finance for investment

 Housing sector experiencing growth  Environmental effects

 Potential for growth in Brisbane and  Changes in Industry/ Government

 Innovation in environmental housing  Possible adverse effects of government

 High level of competition

 Predicted uncertainties in the world

 Low price competitors

 Failing to satisfy clients demands

 generate leads now,

 help to convert those leads quickly, and

 will form the basis of ongoing relationships and referrals.

We plan to develop our market share by:

 Improving our marketing and advertising

 Continually improving the quality of service given to clients

 Maintaining effective communication channels with all stakeholders to ascertain industry

Document Name: Simulation Pack

 Offering attractive fee structures to our clients

Risk Australian government changing policy in relation to industry

 Accepting policy change will be a constant factor to manage

 An understanding of this should be instilled in all staff

 Develop ability to foresee and react quickly to change

 Maintain effective communication channels with stakeholders

 Diversification of source markets