BSBOPS402-LR-F-v1.0

Learner Resource
BSBOPS402
Coordinate business operational plans
Version Number: 10 (Review date: 25/03/2022) Unit Code: BSBOPS402 Page 1 of 112
Australis Institute of Technology and Education (AITE)
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Parramatta NSW 2150, Australia
Website: https://www.aite.edu.au
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BSBOPS402 - Coordinate business operational plans (Release 1)
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Version Control & Document History
Date Summary of modifications Version
Version 1 final produced following assessment

02 October 2020 1.0
validation.
3
Table of Contents
ABOUT THE BUSINESS SERVICES TRAINING PACKAGE.....................................................6
ABOUT THIS UNIT OF COMPETENCY............................................................................8
CHAPTER 1: PREPARE TO IMPLEMENT OPERATIONAL PLAN............................................9

1.1 Consult with Stakeholders to Identify Resource Requirements Relevant to
Operational Plan..........................................................................................................10
1.2 Collate, Analyse and Document Details of Resource Requirements..........................16
1.3 Develop Operational Plan and Determine Implementation Method.........................23
1.4 Plan for Contingencies.................................................................................................25
Activity 1..........................................................................................................................27
1.5 Develop and Present Proposals for Resource Requirements.....................................28
Activity 2..........................................................................................................................32
Key Points: Chapter 1........................................................................................................ 34

Chapter 1 – ‘True’ or ‘False’ Quiz......................................................................................35
CHAPTER 2: IMPLEMENT OPERATIONAL PLAN............................................................36

2.1 Assist in Recruiting and Onboarding Employees Required to Implement Operational
Plan According to Organisational Policies and Procedures.........................................37
Activity 3..........................................................................................................................48
2.2 Acquire Physical Resources and Services According to Organisational Policies and
Procedures................................................................................................................... 49
2.3 Support Efficient, Cost-Effective and Safe Use of Resources......................................53
2.4 Adjust Implementation of the Operational Plan in Consultation with Others to
Manage Contingencies................................................................................................ 55
Activity 4..........................................................................................................................65

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CHAPTER 3: MONITOR OPERATIONAL PERFORMANCE.................................................69
3.1 Collate Relevant Information and Determine Operational and Productivity
Performance................................................................................................................ 70
3.2 Identify and Use Key Performance Indicators (KPIs) and Assess Operational
Performance................................................................................................................ 73
3.3 Identify Unsatisfactory Performance and Take Action to Rectify the Situation
According to Organisational Policies...........................................................................78
Activity 5..........................................................................................................................80
Activity 6..........................................................................................................................89

CHAPTER 4: REVIEW OPERATIONS BASED ON PERFORMANCE.......................................93

4.1 Develop Recommendations for Variation to Operational Plans................................94
Activity 7..........................................................................................................................96
4.2 Present Recommendations to the Designated Persons or Groups to Gain Approval 97

4.3 Maintain Records Related to Operational Performance According to Organisational
Policies and Procedures...............................................................................................99
4.4 Report Information on Operational Performance to Management.........................102
Activity 8........................................................................................................................103
Key Points: Chapter 4...................................................................................................... 105

Chapter 4 – ‘True’ or ‘False’ Quiz....................................................................................106
SUMMARY..........................................................................................................107
REFERENCES....................................................................................................... 108
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About the Business Services Training Package
The BSB Business Services Training Package covers a diverse range of industries and occupations.
Business Services covers a range of cross-industry functions and services supporting the commercial
activities of all industries.
Defining Qualifications
When units of competency are grouped into combinations that meet workplace roles, they are
called qualifications. These qualifications are aligned to the Australian Qualifications Framework
(AQF). Each qualification will have ’packaging rules’ which establish the number of core units,
number and source of elective units and overall requirements for delivering the qualification.
Delivery and Assessment of Qualifications

RTOs must have the qualifications (or specific units of competency) on their scope to deliver
nationally recognised training and assessment. RTOs are governed by and must comply with the
requirements established by applicable national frameworks and standards. RTOs must ensure that
training and assessment complies with the relevant standards.
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Qualification Training Pathways
A pathway is the route or course of action taken to get to a destination. A training pathway is the
learning required to attain the competencies to achieve career goals. Everyone has different needs
and goals, and therefore requires a personalised and individual training pathway.
Foundation Skills
Foundation Skills are the non-technical skills that support the individual’s participation in the
workplace, in the community and in education and training.
Australian Core Skills Framework (ACSF)

This Assessment meets the five ACSF core skills as described in the Foundation Skills mapping.
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About this Unit of Competency
BSBOPS402 - Coordinate business operational plans

This unit standard BSBOPS402 Coordinate Business Operational Plans covers the skills and
knowledge required to implement operational plans by planning and acquiring resources,
monitoring and adjusting operational performance and providing reports on performance, as
required.
The unit applies to individuals who plan activities to achieve team and organisational objectives. At
this level, work will normally be carried out within routine and non-routine methods and involve
procedures that require planning, evaluation, leadership and guidance of others.
This Learner Resource is broken up into four elements. These include:
1. Prepare to implement operational plan
2. Implement operational plan
3. Monitor operational performance
4. Review operations based on performance
At the end of this training, you will be asked to complete an assessment pack for this unit of
competency. You will need to access a supervisor, a manager, or your assessor who can observe you
perform project or workplace tasks and verify your competency or performance.
On competent completion of the assessment, you must have demonstrated skills and knowledge
required to coordinate business operational plans.
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Chapter 1: Prepare to Implement Operational Plan
The first element of coordinating business operational plans involves your preparations to
implement the plan. Like any other organisational endeavour, you must make the necessary steps to
ensure that you are fully equipped to execute your operational plan.
The preparation stage of your process involves five different sub-steps. You begin with consultation.
More specifically, you must consult with stakeholders to identify what requirements you will require.
These identified requirements must be relevant to your operational plan. Likewise, you must collate,
analyse, and organise the details of these resource requirements.
Once you have accomplished these first two steps, you must then develop an implementation
method for your operational plan. After this, you must also plan for contingencies. Finally, you must
develop and present proposals for resource requirements.
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1.1 Consult with Stakeholders to Identify Resource Requirements Relevant to Operational
Plan
Operational planning and management involves a wide variety of skills. It attempts to ensure the
successful implementation of operational plans through the effective management of people and
resources. To begin your planning process for this endeavour, you must first have a fundamental
understanding of the activity.
1.1.1 Introduction to Operations Planning

Like any management activity, operational planning is based on a set of key management
principles. The key functions of management can be simplified into an acronym known as
PLOC – planning, leading, organising, and controlling.
Functions of Management
Controlling Planning
Organising Leading
 Planning
Defining goals and objectives and developing plans to achieve them
 Leading
Setting a good example, guiding, and motivating the team
 Organising
Arranging resources to get the work done
 Controlling
Watching how things are going
Management is an ongoing process involving four major

functions.
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1.1.2 Consultation with Stakeholders
Once you have a clear understanding of how operation planning works, you can now engage
in the first action step in your preparation stage. Like any other activity, operational planning
requires resources. To sufficiently determine what your resource requirements are, you need
to engage in consultation with your stakeholders.
Consultation refers to the formal discussion and collaboration between or among people. In
the context of operational planning, the stakeholders you will be engaging with are relevant
personnel including colleagues and supervisors alike who are directly involved and/or affected
by the endeavour, as well as specialist resource managers whose expertise can be useful in
determining key information regarding identified resources.
In consulting with these stakeholders, your main purpose is to determine what resources are
required to maintain operations. You will simply need to reach out to your different
stakeholders and ask them what resources they require and how they intend to use these.
Given their insight and feedback, you will take note of these as you move on to the next key
step in your preparation stage.
Using the Appropriate Language and Structure in Consultation

A key consideration you must consider as you engage in consultation is the way you
communicate with your stakeholders. Every stakeholder you will consult with is different,
and you must make use of the appropriate language and structure to communicate with
them effectively. Language refers to the words you use in speaking, while structure refers
to how you put these words together to communicate your ideas.
It is important to use language that is appropriate for your audience. Avoid informal
language that may reduce the level of seriousness of the exchange. Use simple and
effective language that your stakeholders will understand. You may also use specific
words suited to your exchange (e.g. organisation or business-specific vocabulary), but you
should avoid terms that are too technical as these may alienate your stakeholders.
Likewise, you must make sure that your structure is appropriate for your audience. This
means structuring your consultation to facilitate easy understanding for your stakeholder,
highlighting the value of the exchange to your stakeholders. The flow of your consultation
should provide them with the opportunity to explain their needs, and you should also be
given a chance to discuss how they will benefit from the consultation. Balance giving the
stakeholder the chance to speak with ensuring that you stay in topic.
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1.1.3 Identifying Resource Requirements
During your consultation, you will identify the various resources necessary for your
operational plan. These may include:
Human, physical
Stock and financial
requirements resources -
and requisitions (current and
projected)
Goods and services to be

purchased and ordered
You must note these as you move to the next step in your planning process.
Processes for Identifying Resource Requirements

There are different processes you can use to identify these requirements, and the most
fundamental one is consultation. Along with this, other processes you may engage in
include:
 Document Review
This involves looking into records, reports, and other relevant documents that can
provide insight as to what resources are being used by employees in their tasks
and projects.
The main advantage of document review is that it relies on actual recorded data.
This makes it the most objective process of identifying resource requirements.
However, given its dependence on such, there is always a possibility that the data
you will use is outdated. Moreover, there are factors that data alone cannot
account for. This is because not every single factor that affects resource use may
be recorded, and records may contain human errors.
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 Observation
This involves directly observing different employees within the organisation to see
what resources they use and how they make use of these to fulfil their respective
work tasks.
The main advantage of observation is that it allows you to see what resources are
actually being used and how these are being used exactly. Through observation,
you can also determine ways through which usage of resources can be optimised
and identify what resources may be needed to improve operations.
However, this process can be time-consuming. Moreover, it can only give you an
estimation of how resources are used on a regular basis. Remember that there are
factors which you have no control of, and these can greatly impact your
observation. These include:
o Employees being cautious with their actions because they are being
watched
o Making your observation on a particularly quiet or busy day
o Sudden, unexpected changes in priorities and/or schedules
 Survey
This involves sending out a form – either physically or electronically – to
employees to find out what resources they make use of and would need to work
on their tasks.
The main advantage of surveys is that they allow you to reach out directly to
employees who make use of resources in their daily tasks. Because of their
involvement with the resources, you can be assured that they can give practical
insight as to what resources are actually needed. This process is, however, not
foolproof as surveys have limitations by design. They will provide you with an
overview of the resource requirements of many employees, but you will not find
in-depth information through surveys alone.
The processes discussed above can be used for identifying resources because they each
allow you to gather relevant data through different means and in different forms. This
data allows you to identify what resources have been used, are being used, and will be
needed by employees.
As you can see, these processes are not, by themselves, sufficient; all have respective pros
and cons. Once again, it is ideal that you consult with employees as you engage in any of
these processes. It is also suggested that you use more than just one to have a holistic
view of what resources you really need.
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Steps in Identifying Resource Requirements
Three key steps in your resource identification process include:
1. Identify need for resources
2. Determine resources required
3. Identify how the resources will be acquired
1. Identify need for resources

For human resources, reasons for additional recruitment include the need for
additional manpower to achieve goals or objectives and the improvement of
existing processes by distributing tasks to more people.
For physical resources, reasons to acquire new resources include the need for
new or specialised physical resources to achieve goals or objectives and the fact
that existing physical resources are too old or broken to complete their required
tasks.
2. Determine resources required

Methods to determine required human resources include reviewing the budget
allocated for the operational plan to determine how many employees can be
hired and consulting human resource specialists to help determine the most
appropriate job role for the operational plan.
For physical resources, methods to determined required resources include
reviewing the operational plan to identify the most appropriate quantity and type
of physical resources to be procured and consulting with procurement specialists
who can provide information on the quantity and type of physical resource
needed.
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3. Identify how the resources will be acquired
Steps in identifying how you will acquire human resources include consulting with
relevant individuals to determine the organisation’s chosen recruitment processes
and systems and checking whether the needed employees can be sourced within
the organisation or requires outside recruitment.
On the other hand, steps in identifying how you will acquire physical resources
include determining affordable suppliers for the physical resource and consulting
with relevant individuals to determine the most appropriate procurement process
and documents to use.
Key Sources of Information

Along with these different processes, there are key sources of information that will help
you identify your resource requirements. These include:
Employees
They are the main source of information in your identification of resource
requirements as they use resources on a daily basis.
These include colleagues, managers and supervisors ,and other employees.
As you reach out to them, consider insights of those from a wide range of social,
cultural, and ethnic backgrounds, and people with a range of physical and mental
abilities.
Specialist Resource Managers
Their expertise will enable you to determine your resource requirements with more
accuracy.
They will also make the identification process more efficient.
You may also find yourself reaching out to other people with specialist responsibilities
(e.g. work health and safety committees, employee recruitment specialist,
procurement specialists) as necessary.
Relevant Documents
Along with the personnel listed above, relevant documents that provide data and
records on resource allocation within your organisation are also a key source of
information that will help you better determine your resource requirements.
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1.2 Collate, Analyse and Document Details of Resource Requirements
A key skill that all managers should possess is the ability to define goals and develop plans in order
to achieve them. In the case of operations planning, you require the ability to plan the resources
that you will need to achieve your goals and objectives. Planning for your resource requirements
involves collating, analysing, and organising the details of these.
Although the three concepts are closely related, they have key differences. Collating is the process of
gathering all the necessary information – in this case, the details of your resource requirements.
Once you have collated such data, you can then analyse it. This process involves taking the time to
go over the data and look into the details you have collected in the context of your endeavour. In
this case, that is planning for their use.
Finally, organising is the process of ensuring the details you have collected and investigated are
arranged sensibly. This is important so that your information is useable and understandable.
Organising data also makes it easier for you to engage in succeeding tasks that would require their
use later on.
By engaging in these three steps, you come up with a satisfactory assessment of your resource
requirements.
As has been mentioned in the previous section, the resource requirements you will need to assess
include:
 Human, physical, and financial resources - both current and projected
 Goods and services to be purchased and ordered
 Stock requirements and requisitions
These requirements are more easily classified into three main categories, namely your human
resources, physical resources, and services.
1.2.1 Resource Plan

There is a range of tools that you can use as a manager in order to plan and allocate
resources. The tools that you use will be very much dependent on the nature of the operation
that you are undertaking. One of the tools that you may put to use is the Resource Plan. A
resource plan is a chart that outlines the objectives you wish to achieve and how you plan on
going about achieving them. Each objective that you set yourself should have a resource plan
provided.
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A typical resource plan format is provided below.
Resource Plan for Company XYZ

Objective
 Here you must describe what must be done, by when, by whom.
Plan
 Once you have set your objective, you need to define exactly how you plan to
achieve it.
 What tasks are involved? In what order will they be done?
 What are the key deliverables?
Resources Required
 Here, you must list all the required resources to undertake the relevant tasks.
These include: financial, staffing, training, and materials.
Contingencies
 Finally, you should describe ‘What If?’ situations.
 What problems can you foresee?
 How will you go about resolving them if they arise?
A plan such as this can be developed for each of your key objectives. It allows you to think out
the key sections of your plan and determine how best to achieve them. This forms the basis of
your operational planning.
One of these charts should be completed for each of the major objectives that you wish to
achieve. This will become the outline of your operational plan.
When you are setting goals, you need to attempt to align them to specific aspects of your
business or overall strategic plan. By doing this, you work towards something that is
meaningful to the organisation. As with all goals and objectives, there are some attributes that
are important – they must be clear, concise, and measurable. If you cannot measure your
objective, you will have no idea whether or not you have actually managed to achieve it.
Completing a chart such as the one above will assist you in identifying who you will need to
assist you in achieving the objective and outlining each team member’s contribution to the
overall project. It will also assist you in defining the resources that you will be required to
obtain in order to achieve the given tasks.
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You may find that you are not in a good position to be able to ascertain all the requirements
by yourself. For this reason, it is important to remember that it is okay to ask for help. You do
not need to feel you are expected to know everything as a manager. A good manager knows
when it is time to seek advice and assistance from others in the organisation – particularly
where they may have their own areas of expertise. You are also likely to find that if you
involve others in this early stage, they will be more interested and committed to ensuring the
success of the plan.
These decisions will usually be undertaken with others, namely the key stakeholders discussed
in the previous section.
1.2.2 Resource Capability Table

A second tool that you could use for your planning processes is the Resource Capability Table.
This table allows you to determine the skills of your team members and determine where any
weaknesses lie. By doing this, you can attempt to determine where changes need to be made
in order to improve your ability to reach your objectives.
This table may look like the following:
Team Member: Skill: Skill: Skill: Skill:
In order to complete this table, you need to:

1. Write the operational plan that you are undertaking above the table.
Operational plans may be organisational plans or tactical plans developed by the
department or section to detail product and service performance. This can easily be
linked back to the plan you prepared earlier in this section.
2. List each of the members of your team down the first column.
You may be able to simply use their first name. However, if there are some roles
which are yet to be assigned the role title may be added in this column.
3. Label each skill heading by adding a task skill that is needed to deliver your plan.
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Note that each task should be outlined in the plan you prepared, so it is just a matter
of determining the skills that are needed to achieve the overall objective that is
required here.
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4. Record the skill level of each team member in the appropriate cell.
This rating is up to you – however, you may use a five-point rating scale where each
number represents a different level of skill. For example:
0 – Has no proficiency.
1 – Has minimal proficiency.
2 – Has some proficiency.
3 – Has medium proficiency.
4 – Has good proficiency.
5 – Can train others, excellent proficiency.
A table such as this allows you to identify where your strengths and weaknesses exist;
where there are skill gaps, where you are strong, and where you may need to find
new staff to fill any gaps that may exist. Where you find that you have any skill gaps,
you may fill that with new staff or increase training in order to increase the level of
proficiency in the team.
For your reference, a sample table is provided below:
Plan for Marketing Team’s Upcoming Campaigns
Team Content Photo and Time Stakeholder

Member: Creation Video Editing Management Engagement
Keith 5 2 3 4
June 2 5 2 2
Jean 2 4 3 3
Minnie 3 2 3 5
Jay 4 3 2 3
Using this table, you can identify the strengths and weaknesses of the members of your
marketing team. This is necessary so you know what tasks to assign to them for your
upcoming campaigns. Members will likely be assigned to tasks where they can use their
strengths. For instance, Keith will be assigned to make proposals for the themes and overall
concepts of your campaigns since he has excellent proficiency in content creation.
This table also indicates the skills your team and its members may need further guidance in.
For one, the whole team needs further guidance on time management. Additionally, the table
helps identify who has the potential to train others in areas where they need improvement.
Because of their excellent proficiency, Keith, June, and Minnie can train team members on
content creation, photo and video editing, and stakeholder engagement, respectively.
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1.2.3 Key Details of Resource Requirements
To effectively make use of the tools above, you must sufficiently determine the key details of
the resource requirements. The key details you must note and likewise collate, analyse, and
organise for your resource requirements are different for each type of resource you would
require. These are further discussed below.
Human Resources
Human resources refer to your employees – the human element of your business.
Employees are responsible for maintaining operations, and are, by extension, in charge of
making use of your physical resources.
Key details you may require to sufficiently plan for your human resources include:
 Number of personnel required
How many employees are needed to complete the task at hand?
 Availability of employees
What is the schedule of employees? Will they be able to make time for the task at
hand?
 Type of employment
This includes:
Full-time Part-time Casual

Employee Employee Employee
has guaranteed work hours may vary
works 38 hours a week
minimum of work hours each week depending
on an ongoing basis (less than 38 hours a week) on available work
Fixed Term Shiftworker

works shifts and
works for a fixed time
receives extra payment
period
for working shift hours
Based on Types of employees, used under CC BY 3.0 AU. Fair Work Ombudsman.
 Type of work required from employees

What work do the employees need to do? What tasks must they accomplish?
What is the difficulty level of these tasks?
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Physical Resources
Physical resources refer to all material necessities your organisation needs to operate.
These are resources you can buy, feel, and touch. These would include your equipment,
fixtures and paint, properties and/or facilities, stocks and supplies, and vehicles. These
resources are essential in ensuring that your employees are fully equipped to accomplish
the tasks geared towards meeting your organisational goals.
Key details you may require to sufficiently plan for your physical resources include:
 Amount/number of resources required
How much or how many resources do you need to complete the given task?
 Availability of resources
What is the availability of the resources? Are there various employees scheduled
to make use of a given resource?
 Type of physical resource
This includes:
Premises Equipment
Rent; rates; service costs (heating, Costs of purchase, hire or lease;
lighting, cleaning, security) and insurance, running costs (service,
structural alterations repair)
Vehicles
Costs of purchase, hire or lease;
Raw Materials
insurance, road tax; running costs Costs of purchase, cost of storage
(service, repair)
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Services
Services refer to the work tasks you would require in maintaining your operations. This
type of resource requirement is often overlooked because most organisations source
services internally. However, outsourcing – entrusting these functions and processes to
external personnel – is also a common practice deemed to make operations more
efficient.
Key details you may require to sufficiently plan for your services include:
 Type of service required
What is the nature of the service needed?
 Output required from service
What are the material and non-material results you expect to receive from a
service you have acquired?
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1.3 Develop Operational Plan and Determine Implementation Method
Once you have sufficiently gone over your resource requirements, you can now move on to
developing your operational plan. To adequately develop your plan, you must have a working
knowledge of its key parts. You must also determine how you will implement your plan. This is
through your implementation method, which is the approach you will use to execute your
operational plan. To determine your implementation methods, you must know what options are
available to you.
1.3.1 Developing an Operational Plan

An Operational Plan (OP) is a detailed blueprint that provides a clear picture of how teams will
contribute to the achievement of an organisation’s strategic goals. Although there is no one
strict format for this document, key parts included in most OPs include:
Strategies
How will the objectives in the strategic plan be achieved?
Actions
What are the key actions that need to be undertaken to achieve each
strategy?
Timeframes
What are the due dates for each action?
Resources
What are the financial, material, and human resource implications for the
organisation?
Responsibility
Who will be responsible for the given tasks and actions to be undertaken?
Performance indicators
How will you know if you have successfully completed each action?
Risk mangement
What is the possibility that elements of the plan will be unsuccessful? How can
you manage this?
Communication plan
How will the plan be communicated to ensure maximum benefit?
Review of plan
How do you ensure that the plan remains current and will be monitored for
progress?
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1.3.2 Methods of Implementing an Operational Plan
To ensure that your plan will be implemented effectively, you must select and develop the
right methods for doing so. There are a number of methods you can implement. These
include:
 Big Bang
This implementation method has everyone adapt to the operational plan
simultaneously. The main advantage of this plan is that it has a shortened
implementation time with lower costs. Moreover, since every change involved in the
plan is laid down at the onset, there will be no confusion over changes that may
reveal themselves later on. However, this method is high-risk; many details of the plan
may be overlooked since the speed of implementation is prioritised. Productivity may
also suffer due to the learning curve involved in adjusting to the plan.
 Phased
This method involves incremental changes over time, implementing an operational
plan through an extended period of time (i.e. through phases). It is a method of
moderate risk that gives employees sufficient time to ease into the new way of doing
things, so the efficiency and effectivity associated with this method are high. The main
disadvantage of this method, however, is the amount of time it takes to execute the
operational plan. This can make processes complex and difficult to teach, making
training a challenging endeavour.
 Parallel
This third and final implementation method allows you to run existing and new
operational plans in parallel so that employees can ease into the latter while still
working with the old one. Among the methods, this involves the least risk as it only
allows the change to fully occur once everyone is fully prepared to work with the new
operational plan. It is slower than the big bang method but faster than the phased
method, making it the middle ground choice. However, this has the highest costs as
you would need to implement both the old and the new system at the same time.
As seen in the discussion above, each implementation has its set of advantages and
disadvantages. Aside from considering these at face value, you must ensure that you select
your implementation method appropriately. What considerations do you need to keep in
mind in deciding what implementation method you will employ? There are a lot of factors you
must keep in mind. These include:
 Number of employees affected by the change
 Amount of resources (especially financial) available
 Time-sensitivity of change
 Support given by management
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Always remember that it is not enough for your plan to be well-developed. It must also be
well-executed. Choosing the right implementation will help guarantee that it is.
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1.4 Plan for Contingencies
Business Contingency Planning continually confronts the likelihood of a disaster. For the most part, a
contingency is seen as being anything that disrupts the normal operations of your organisation –
something that involves your organisation not being able to achieve its goals and objectives. There is
a large range of contingencies that you may have to face. The interruption could be related to a
winter storm, the loss of electricity to the area, or the complete inaccessibility of a facility for an
extended period of time due to fire or an earthquake. Strikes, sickness, or many other factors may
also cause major problems for an organisation. The cause of the interruption does not matter.
However, being capable of gaining management control of the interruption does.
Depending on the length or severity of the interruption, significant consequences or the very survival
of your organisation may depend on management’s ability to re-establish critical business functions.
Usually, these business functions have required years to create and establish, but management must
re-establish these functions sometimes within hours or days. This is a difficult problem and re-
establishing the complex business environment in a timely manner requires a well thought out plan
in place and ready to be executed.
The answer to this problem is to be prepared in advance – with business contingency planning.
Planning for any contingencies that may arise (usually only the critical and likely ones) is an
important part of the operational planning process. This process involves you in proactively
determining what problems may emerge and developing solutions to them before they occur. As the
boy scouts say – ‘Be Prepared!’. The plan creates a management team empowered to control any
interruptions to the business. Properly constructed, the management team has the capability of
responding appropriately to any interruption; from the interruption of telephone service to and
including a worst-case scenario involving complete inaccessibility of facilities.
1.4.1 Objectives of Contingency Planning

The objectives of Business Contingency Planning are to:
Ensure continuity and survival of the business
Provide protection of corporate assets
Provide management control of risks and exposures
Provide preventative measures where appropriate, and to take proactive

management control of any business interruption
27
1.4.2 Contingencies to Consider
Contingencies could 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-use
 Rental, hire purchase, or alternative means of procurement of required materials,
equipment, and stock
 Restructuring of the organisation to reduce labour costs
 Risk identification, assessment, and management processes
 Seeking further funding
 Strategies for reducing costs, wastage, stock, or consumables
 Succession planning
1.4.3 Guide Questions

Business Contingency Planning implementation and ongoing maintenance will provide
answers to the questions of:
How do I re-
establish my When do the How much loss can
What is a disaster?
business impacts begin? be tolerated?
function(s)?
What are the What will a recovery How much is

options? plan cost? enough?
Further guidance on managing contingencies will be provided in section 2.4.
28
Activity 1
Match the parts of the operational plan with the questions that they answer.
Who will be responsible for the given

Actions tasks and actions to be undertaken?
What is the possibility that elements

Communication plan of the plan will be unsuccessful?
How can you manage this?
What are the financial, material, and

Performance indicators human resource implications for the
organisation?
What are the due dates for each

Resources action?
What are the key actions that need

Responsibility to be undertaken to achieve each
strategy?
How will the plan be communicated

Review of plan to ensure maximum benefit?
How will you know if you have

Risk mangement successfully completed each action?
How will the objectives in the

Strategies strategic plan be achieved?
How do you ensure that the plan

Timeframes remains current and will be
monitored for progress?
29
1.5 Develop and Present Proposals for Resource Requirements
The final step in your preparation phase involves the development and presentation of your
proposals for resource requirements. This must be done in accordance with your operational
planning process, which is essentially the process of proposing, developing, and implementing your
operational plan.
1.5.1 Writing and Developing Your Proposal
The result of the planning process will be a proposal which will then be examined by
management in order to decide whether or not to implement it. Typically, a proposal will be
divided into a number of key sections. Each section should outline a different part of your
proposal. In this section, you will examine each of these parts in turn. Every proposal is
different, and so you may find that your proposal has different sections than those presented
here or is in a different order. Since your proposal is unique, work with the information that
you have and make it as convincing as possible.
30
 Introduction
Your introduction should be planned carefully. It is the section that outlines your ideas
and needs to give a solid first impression. Ensure that you include all of the following:
o State that the document is a proposal.
o Provide information about why the proposal was commissioned and who it
had been discussed with.
o Make sure that you can find a statement that sums up what you are asking for
and provides a motivation for its implementation.
o Give an overview of the contents of the proposal.
You may find that some of these sections can be combined together and can be
concise and to the point. A brief introduction serves its purpose better than a longer
introduction.
 Background on the Problem, Opportunity, or Situation
This section should follow on from what you have written in the introduction and
should be aimed at discussing the problem that needs resolution. Discuss the situation
as it stands in simple terms so even those not familiar with all the technical aspects of
the problem can understand it. The better the background you can provide, the more
likely the solution is to be implemented.
 Benefits and Feasibility of the Proposed Plan
In order to get the attention of the decision-makers in your organisation, you need to
ensure that they understand exactly how any change will be beneficial to the
organisation. The benefits will be the motivating reason for approving any proposal.
So, you need to clearly state the arguments you have for the solution you are
presenting. Discuss how likely the solution is in resolving the problem, talk about costs
against benefits, and try to convince management that the plan will be largely
beneficial to the organisation as a whole.
 Description of the Proposed Work (Results of the Project)
A proposal should describe what it is that you are trying to get out of the project. That
means describing the operational plan you propose to implement; its purpose;
providing an outline of what will take place and the resources that you will require to
undertake the project as you state it. This is the basic background information.
31
 Method, Procedure, Theory
In this section, you should examine and explain exactly how your proposed actions
will work and if approved, how they will be implemented into the organisation. By
discussing this, you are showing management that you fully understand what is
required and have spent the time thinking through all the issues and how they will
actually affect the organisation. This differs from what you outlined in the previous
section because you are looking at the broader aspects of the plan, just not what it
will involve.
 Schedule
Always be sure to include a detailed timeline for implementation. This should include
a range of milestones that are implemented over the lifetime of the project. If your
project takes a number of months to complete, you should show the dates by which
each milestone needs to be reached. This will allow you to ensure that the project
runs to time and that you have thought through the implementation process.
 Costs, Resources Required
Management will be most interested in this section – it is where you lay out the costs
of actually implementing your project. You will need to justify the cost of the project
against the benefits – this may, in fact, be the factor that makes up the mind of the
managers to implement a project. You will need to include the hourly rates of
contractors, all of the equipment required, staff hours that will be used, and the like.
This overall project cost will be the factor that has the most significance in the actual
decision-making process.
 Conclusions
To conclude your proposal, you should look at bringing the reader of the proposal
back into the benefits of implementing the proposal, rather than focussing on the
costs and resources needed.
All good ideas need to have well-written proposals if they are to be accepted.
Often, good ideas can be shot down simply because the benefits are not well-
expressed, and the almighty dollar comes into play.
32
1.5.2 Presenting and Organising Your Proposal
As for the organisation or arrangement of the content of a proposal, remember that it is
essentially a sales or promotional document. Here are the basic steps to keep in mind as you
present your proposal:
 Begin by stating the purpose and content of the document.
 Then look at the background – what problem it is trying to resolve, what opportunities
it will bring, or why exactly the proposal was needed.
 Once you have stated the problem, discuss what it is that you are proposing to do
about it. How will what you propose make things better? What benefits will the
project bring about?
 Describe what the end project will actually look like. How would it work and what
would the end-user or reader actually notice?
 Describe the methods that you would put in place to implement the end result.
 Give a schedule of events that are put in place to implement the changes.
 Provide a list of the costs and resources needed.
 End by summarising the document and put in a final ‘sales push’ to ensure that the
end-user wants to make a positive decision.
As you can see, there is a logic to the way the proposal is actually structured. It is much like
advertising – you begin by getting the reader’s attention. You raise their interest by stating the
problem and how you will solve it. You create a desire by giving the benefits for the project,
and you try to create action by urging for a decision to be made.
33
Activity 2
For each of the following items, describe your ability to set work-related goals. Are you
skilled or is there room for improvement?
After you have finished, share with the group and discuss strategies to deal with the
areas where you are challenged.
Clarity
Specific to achieving
goals in work
Challenging ‘stretch’
goals
Ability to establish
personal work goals
Deadlines
Sufficiency of
resources
Sufficiency of skilled
labour
34
Notes
35
Key Points: Chapter 1
 When developing an operational plan for your organisation, the key is to ensure
that you collect, analyse, and organise all required resource information in
consultation with colleagues and specialist resource managers well before it is
required to be implemented.
 Resource requirements refer to your human resources, physical resources, and
services.
 The operational plans of an organisation contribute to the achievement of the
organisation’s performance or business plan.
 In your preparation phase, you must establish your method for implementing the
operational plan as well as your contingency management plans.
 Staff must be involved throughout the process, from determining resource
requirements to business contingency planning.
36
Chapter 1 – ‘True’ or ‘False’ Quiz
Tick ‘True’ if the statement is correct, and ‘False’ if not. True False
Management is only about being able to lead and control.
Organising involves arranging resources to get the work done.
The first step in developing an operational plan is to develop a set of

goals and objectives for that plan.
A resource plan is a chart that outlines the objectives you wish to

achieve and how you plan on going about achieving them.
Objectives are specific, measurable results produced while

implementing strategies.
Skill gaps are not an issue that a manager should be concerned with.
The objectives that you set must contribute to your organisation’s

overall strategic or business plan.
A good manager always tries to solve problems by themselves.
Consultation with staff over major decisions is critical to the success of

any operational plan.
Proposals do not need to discuss the benefits of a plan.
37
Chapter 2: Implement Operational Plan
The second element of coordinating business operational plans involves the implementation of your
operational plan. This is the heart of your endeavour and is essential when you put your plans into
action.
The implementation stage of your process involves four different sub-steps. You begin by assisting in
the recruitment and onboarding employees who represent your human resources. These employees
are required to implement your operational plan, and you must ensure that your processes for
recruiting and onboarding them are aligned with organisational policies and procedures.
Likewise, you must acquire your physical resources and services according to the same
organisational policies and procedures. Once you have all your resources at hand, you must then
ensure that you support the efficient, cost-effective, and safe use of these. Finally, you will need to
adjust the implementation of the operational plan in consultation with others to manage
contingencies, as necessary.
38
2.1 Assist in Recruiting and Onboarding Employees Required to Implement Operational
Plan According to Organisational Policies and Procedures
In the implementation of your business operational plan, you must be able to recruit and onboard
the employees you will need according to your internal requirements. In this regard, you play an
assistive role and require fundamental knowledge of the processes involved in recruitment and
onboarding.
2.1.1 Process Overview

Any operational plan in an organisation requires staff. Finding the right staff is a process
known as recruitment and selection. There are three major steps in this process. In your
capacity and role of assisting relevant personnel, you can take note of this to ensure that the
organisation recruits the most effective staff to improve your team’s performance. These
steps are:
Develop a list of
Induct the new staff
requirements for Interview and select staff
member
recruitment
1. Develop a list of requirements for recruitment

The first step of the recruitment process involves determining the key requirements
for the staff to be hired. This would include the skills and experience they need to
have to fulfil the work required for their respective roles, the type of employment you
need, etc.
2. Interview and select staff
Once staff requirements are identified, you can move on to interviewing potential
employees and selecting the staff you will hire. At this point, it is best to reiterate that
you will be playing an assistive role and may not have the final say in the process. You
will likely help the relevant personnel by being assigned to interview prospective
hires. As you do, keep in mind the requirements you have and other key
considerations. These include organisational policies and procedures.
3. Induct the new staff member
The third and final step in the process is the induction of your selected new staff
members. In this process, you will once again assist relevant personnel. You will help
them guide the newly hired staff and help the staff ease into their new role. Training
may also be necessary, and you would need to help relevant personnel plan for and
execute training sessions.
39
2.1.2 Organisational Policies, Practices, and Procedures to Consider
Your organisation will have policies, practices, and procedures that dictate how recruitment
and other resources are to be sought. Organisational policies are guidelines that direct
members in fulfilling their respective roles and responsibilities within the organisation. On the
other hand, procedures are the means through which policies are implemented. They are
logical actions steps that would inform employees how to enact or implement organisational
policies. Finally, practices are the way in which things are generally done in your organisation.
Those relevant in your endeavour would include:
Organisational culture
This refers to the system of shared beliefs, values, and behaviours within an
organisation.
These are the collective practices which affect how you and the relevant
personnel will go about recruitment and what you will be teaching newly hired
staff.
Standard operating procedures (SOPs)
SOPs are instructions that provides step-by-step guidelines for carrying out
different tasks.
There will be SOPs you and relevant personnel can use as a basis for your
process of recruiting and acquiring resources.
Organisational guidelines
These are rules that govern and prescribe operational functions, such as the
acquisition and management of human and physical resources.
You must abide by these at all times to ensure that you do your tasks
satisfactorily.
Undocumented practices in line with organisational

operations
These practices are not found in documents but are considered generally
acceptable ways of doing things within the organisation.
These must be kept in mind as you assist relevant personnel in recruiting and
acquiring resources as they may help make your processes more efficient.
It is essential that you know, understand and abide by organisational requirements as you
undergo the different processes involved in resource acquisition, especially when human
resources are concerned.
40
2.1.3 Planning Your Recruitment Process
Hiring new staff members is a big responsibility. Organisations spend tens of thousands of
dollars a year to get a job done. Although you are only playing an assistive role, it is very
important that you help plan your recruitment well to ensure that you hire the right staff. The
major points that you must consider are:
 Ensure you have a correct job description
You must help the relevant personnel in examining the job description very carefully.
Is it still accurate, or has it changed slightly since it was last used? In order to do this, it
is a good idea to work with the supervisor or even the person who is undertaking the
job – as they have a good idea of what is actually required for a position. Remember
the purpose of a job description is to ‘describe the job’, and thus you should ensure
that you have established: the job title, the purpose of the job, responsibilities and
duties, what skills are needed, what relationships the incumbent will enter into, what
are the special demands of the job, and are there any special conditions of
employment?
 Identify the qualities you are looking for
From the job description, you and the relevant personnel should be able to identify a
number of traits that you are looking for when trying to fill the position. Go through
the job description and person specification and try to identify the attributes that you
expect from the person undertaking the job. Look for qualifications, communication,
organisational and interpersonal skills, work skills, experience, and other attributes
that you want. You may also break this list into things that a Candidate must have to
be considered and those which it would be nice to have.
 Create a list
This may take the form of a checklist that you can use. This checklist should be used
during the interviews to establish which attributes a specific Candidate has.
 Create a list of questions
Interviewing involves a lot of preparation and developing a set of questions based on
your checklist is a good place to start. Work with the relevant personnel you are
assisting and jointly develop a series of questions that would enable you to collect the
information that they would need to decide who to hire.
41
2.1.4 Recruitment and Selection Process
In recruiting and selecting employees, managers must attempt to match the applicant’s skills
with those needed by the organisation (and more specifically needed by the specific
operational plan). To ensure that potential employees bring the necessary skills or the
capacity to learn them, most organisations implement a step-by-step approach to recruitment
and selection.
To begin the process, you must assist relevant personnel in finding potential applicants and
making contact with them. Businesses access both internal and external sources to find
qualified Candidates. Policies of hiring from within emphasise internal sources so that
employers consider their own employees first for job openings. Internal recruiting is less
expensive than external methods, and it helps to boost employee morale. But if recruiters can
find no qualified personnel, they must look outside the organisation.
Recruitment from external sources involves advertising in newspapers and trade magazines
and working through employment agencies, university recruiting, and job fairs. One of the
most effective external sources is employee referral, in which employers ask current
employees to recommend applicants from their network of friends, rewarding them with
bonuses or prizes for new employees.
Many organisations also use the Internet as a recruiting tool by posting jobs at their website,
or at specialist job sites such as seek.com.au. Internet recruiting is a quick, efficient,
inexpensive way for an employer to reach a large global pool of job seekers. According to
employers, online recruiting is likely to become the most prevalent method of finding
qualified job Candidates.
42
2.1.5 The Selection Process
Once you and the relevant personnel have identified methods for getting applicants for a
given position, you may begin the selection process. In recent years, organisations have
typically had many more Candidates than they have needed to fill their vacant positions. This
has meant that once an organisation has found qualified Candidates for a job, it must begin
the major task of selecting which qualified Candidate is most appropriate for the job. Through
this process, you will assist relevant personnel in seeking the most qualified Candidates using
a number of methods. These include:
 Screening Applications and Resumes
Candidates for a job respond to recruitment by filling out an employment application
or sending in a resume or Curriculum Vitae (CV). The first stage of the selection
process is to review the applications that you have received to screen out Candidates
who are unqualified or less qualified than others. The objective of screening is to
narrow down the pool of Candidates to the number that you want to interview for the
job.
This task is undertaken by comparing the applications or CVs with the job description
prepared earlier in the process. Any Candidate who obviously fails to meet the
qualifications called for in the job description is eliminated at this stage of the process.
 Interviewing Candidates
When you and the relevant personnel have narrowed down the number of applicants
to just a few well-qualified people, the next step is to interview them. The objectives
of interviewing include narrowing down the search by assessing each Candidate’s
interpersonal and communication skills, seeing whether you and the employee are
comfortable with one another and learning details about the information the
Candidate has provided on the application or in their CV. In addition, each Candidate
has an opportunity to learn about the organisation, which helps in the decision about
accepting a job offer.
Learning and carrying out effective interviewing practices may seem like a lot of effort
for the supervisor or manager. Likewise, it may be challenging for you, as well. When
tempted to look for shortcuts, however, you should bear in mind the significance of
the selective process. For any new employee that is recruited into an organisation, the
organisation will be paying tens or even hundreds of thousands of dollars on salaries,
wages, benefits, and training. So, collecting the information needed for making the
right hiring decision is at least as important as any other investment of a similar size.
To prepare for an interview, interviewers should review the job description and
develop a realistic way to describe the job to the Candidate. An interviewer also
should review an applicant’s CV or job application and consider whether the
information in their CV suggests specific questions that should be asked.
43
Most job Candidates feel at least a little nervous going through the job interview
process. This can make it hard from an interview to tell what a person would actually
be like on the job. Therefore, it is important for an interviewer to conduct an
interview under conditions that put a Candidate at ease. Good interview conditions
include privacy and freedom from being interrupted, and seating should also be
comfortable. Some interviewers sit next to the Candidate at a small table, rather than
behind a desk to create a less formal, more equal setting.
After making the Candidate comfortable, an interviewer should begin by asking
general questions about the Candidate’s background and qualifications. An
interviewer should also ask a Candidate about their goals and expectations concerning
the job. The following are among the most common asked during an interview:
Why do you want to What have you learned What are some of the
work in this in school to prepare for things you are looking
organisation? this career? for in an organisation?
What are your Why did you choose the Are you a leader? Why
strengths? Weaknesses? school you attended? do you say so?
How do you plan to

continue developing
yourself?
Interviews allow you to gauge a Candidate’s personal and communicative qualities.

When the interviewer has asked enough questions to gauge the Candidate’s ability for
the position, they should give the Candidate a chance to ask questions. This not only
can help the Candidate learn more, but it can give the interviewer insight into the
Candidate’s understanding and areas of concern. The interviewer should close the
session by telling the Candidate what to expect regarding the organisation’s decision
about the job, such as a telephone call in a week or a letter by the end of the month.
As soon as the Candidate has left, the interviewer should jot down notes of
impressions about the Candidate. Memories fade quickly – so noting down what you
think will be of great assistance to the final decision-making process.
44
Overall, the interview process can be summarised in the following diagram:
Prepare content and

Record impressions.
conditions for interview.
Make the Candidate feel Close with a statement of

comfortable. what to expect.
Ask about qualifications, Answer questions from

goals, and expectations. Candidate.
 Verifying Information
A basic way of verifying the information that you have been provided in interviews
and CVs is to check references. This is something relevant personnel may likely need
assistance it as it may take some time to do so.
Checking an employee’s background can save the organisation from hiring an
unqualified person, and it can also protect the organisation from poor performance.
Applicants for a position may provide several kinds of reference:
o Personal references
People who will vouch for the applicant’s character

o Academic references
Teachers or professors who can describe the applicant’s performance in

school or university
o Employment references
Former employers who can verify the applicant’s work history

Most people think of a friend or teacher who can say something nice about them, so
the main use of personal and academic references is to screen out the few cases of
people who cannot do so. Previous employers are in the best position to discuss how
an applicant has performed in the past.
45
 Making the Selection Decision
The final decision of whom to hire is usually up to the manager. Typically, more than
one person will survive all of the preceding steps of the screening process. As an end
result, the final decision is usually a judgement call from the manager. Managers may
choose an employee whose strengths differ from and balance their own strengths.
At this point, your only role would be to provide assistance to the relevant personnel
they make their decision. This means answering any further questions they may have
about a candidate you may have interviewed and giving insights when asked. Once
they have selected the Candidate to hire, they should then offer the job to the
Candidate.
2.1.6 The Induction Process

When a new member of staff commences employment, it is essential to effectively induct
them into the organisation. This will strongly aid the establishment of successful, productive
working relationships. Their first interactions with their manager should create a positive
impression of the department and the organisation as a whole.
Once again, you must assist the relevant personnel in carefully planning for the newly hired
staff’s first days and weeks on the job to greatly increase their ability to succeed in the job.
Principles of Induction
An effective employee induction will:
Fo ste r an u n d e rsta n d in g o f th e o rg an isa ti o n ’s cu ltu re , its valu e s, an d its

d ive rsity.
H e lp th e n e w e m p lo yee m a ke a su cce ssfu l ad ju stm e n t to th e n e w

jo b .
H e lp th e n e w e m p lo yee u n d e rsta n d th e ir ro le an d h o w th e y fi t in to
th e o rgan isa ti o n as a w h o le .
H e lp th e n e w e m p lo yee ach ie ve o b je cti ve s an d sh o rte n th e le arn in g

cu rve o f a n e w jo b .
As you plan, remember that the best way to help the new employee develop a positive
working relationship by building a foundation of knowledge about the organisation, its
mission, objectives, policies, organisational structure, and functions.
46
 Before the Employee Arrives
When orienting new staff, you and the relevant personnel must remember to begin
doing so before they start work. Ensure that you jointly plan well in advance of the
orientation occurring so that you are well aware of what is needed from you. By
planning in advance, you will know that you can spend all of the first day attending to
those matters which are most productive, rather than foundering around unsure what
to do.
There are a number of matters to be attended to when planning, so you must keep
this in mind and help the relevant personnel accordingly. Said matters include:
o Spend time informing everyone in the business that you have someone
starting in their department. The scope of who you tell will depend on the size
of the business and the importance of their role. Ask the people you inform to
welcome the new staff member into the department and to support them
wherever they can.
o Ensure that the work you provide on day one keeps them motivated and
interested.
o Ensure that you have all documentation prepared. Provide them with
organisational charts, their job description, employee manuals, and all other
relevant documents for their job.
o Ensure that their work area is ready for when they arrive, is kept clean and
presentable, and is complete with all required stationary.
o Provide them with their contract and manuals ready to be signed for your
paperwork.
o A buddy system for the first few days works well. Try to find someone who
can do this for the first few weeks of work.
o It is often useful to find a list of staff that the individual can spend time with,
discussing the position and the organisation as a whole.
o If you use employee IDs, this should be arranged early on day one.
o A training plan should be put in place initially to get the new employee up to
speed.
Once again, it must be reiterated that your role is to assist relevant personnel in
accomplishing the tasks above. Given their number and complexity, however, you
must not downplay your role and do your best to help them out. This will ensure
effectivity and efficiency.
47
 The First Day on the Job
New staff members encounter unusual pressures. They may feel anxious about their
work and may need support to ensure that they start their job in a positive way. In
order to do this, ensure that you make the new employee comfortable in their role
and make sure they do not feel overwhelmed.
Remind the relevant personnel you are assisting that orientation should take place
over the first few weeks, not just the first day, so the first day should include an
overview of how the rest of the orientation should go. This may include:
Welcoming the new employee into the workplace
Discussing the orientation plans
Introducing them to their workmates
Showing them around the organisation
Going through the job description and organisational structure
Completing all the paperwork
48
 Completing the Orientation
Once the initial introduction into the organisation is complete, the orientation can be
continued to the point where you and/or the relevant personnel you are assisting can
meet with the staff member and go over more about the organisation, confirming that
they are aware of:
o Workplace Safety
Ensure that the new employee is aware of how to deal with any injuries in the
workplace and the procedures to report these to management.
o Training
Go over the training plan so that you are certain that they are aware of what you
expect of them and look for areas where additional training could be given.
o Mission and Vision
Ensure the employee knows about the mission for the organisation and how their
position contributes to this.
o Performance Evaluation
Discuss the processes for evaluating performance, how often these occur, who
they are done by, and the methods used.
o Rules
Every organisation has a set of house rules that must be followed. Ensure the new
employee is aware of these as well as leave procedures.
o Security
Go over Internet use and whether or not files need to be kept locked. Privacy
procedures may also need to be discussed.
49
Activity 3
Unjumble the phrases below to form meaningful sentences. After this, arrange the
sentences properly to represent the flow of the standard interview process.
about and ask candidate

answer candidate
expectations goals comfortable feel
from questions
qualifications make the
a close expect of and conditions

statement with content for impressions record
what to interview prepare
1. 6.
2. 5.
3. 4.
50
2.2 Acquire Physical Resources and Services According to Organisational Policies and
Procedures
The next step in your implementation phase is the acquisition of physical resources and services. As
with your human resources, you must ensure that you acquire these resources in accordance with
your internal requirements.
2.2.1 Purchasing Resources

In the first section of this resource, you explored the various resources that an organisation is
likely to require when introducing a new operational plan. This will include a range of
resources, both human and physical in nature. Now that you have looked at acquiring the
human resource, you can move on and examine the acquisition of physical resources. These
resources may include supplies, materials, services, or equipment. You usually go about
purchasing these types of resources on an ‘as needed’ basis – or perhaps on an ongoing basis
to make sure that you have adequate resources for the plan you are implementing.
Purchasing is often controlled through your organisation’s policies and procedures. It is these
that determine what can and cannot be purchased, as well as determining the way in which
purchases are made. It is essential that you are fully aware of the relevant procedures and
policies and are able to implement these effectively.
Purchasing decisions can be made internally or externally. It may seem strange to acquire
goods or services internally – but think about a decision regarding advertising. Say that your
operational plan requires an advertising campaign to be developed. If you have an internal
marketing department, there may be the expertise to formulate and design the campaign
internally – or you may feel that outsourcing the work to an advertising agency may achieve
better results. This internal versus external decision may come up in information technology,
management consultancy, and a range of other decisions. Even in manufacturing, you may be
faced with the decision to purchase externally or make a part yourself – therefore, being able
to decide whether or not to purchase from within or externally is an important one.
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There are various factors that you should consider when deciding to purchase goods or
services internally or externally. The key points that you should consider are:
Risk Costs Quality Control Service
 Risk
All businesses have risks – but think about the idea of taking a process that you have
handled internally and giving it to an external company. There are major risks
associated with this – will they be able to meet your high standards? What level of
control will you have? Will this extend the timeline for production? However, as with
all aspects of business, the risk will have to be weighed against the benefits.
 Costs
It is likely that there will be lower costs which will result in higher profitability for your
organisation. What can you do to save the organisation money? What are the
alternatives available to you?
 Quality
As mentioned previously, it is important to consider whether the external
organisation will be able to meet your quality standards. What specific standards must
you keep in mind? How do you ensure that your standards are being met?
 Control
How much control are you willing to place outside your organisation? How will this
affect the way that you manage the processes?
 Service
You will be striving to provide the highest level of customer service possible. Will
outsourcing work to other organisations allow you to continue to provide this high
level of service?
The decision as to whether to purchase internally or externally is a difficult one, and there is
no definitive answer to the problem. You must consider all the factors carefully and make
your decision based on the individual circumstances that you face.
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2.2.2 Types of Purchases
Having already addressed the difference between internal and external purchasing, you can
now take this one step further and look at the four major types of purchase that you are likely
to make:
 Small purchases
This includes any type of purchase that is made within a department – rather than by
a purchasing officer. You will generally pay for these types of purchase by using petty
cash, and the purchases will generally be for amounts less than about $100 (or
whatever your petty cash allowance is). It will be up to the individual manager to
decide on a supplier, to place the order, and to manage the process.
 Regular purchases
In regular purchases, the buyer in the purchasing department buys goods and services
at the request of the requesting department. Although the procedures for these
various classes of purchases generally cover getting the goods and services to the
requesting departments, the accounting department can pay for the items only after
it has been notified by the requesting department as to how much of the supplied
items are of the requested quality.
 Large unique purchase methods
When a purchase is unique, it means that it is not something commonly purchased. As
such, you must sufficiently consider not only the price since your purchase is large but
also the quality and value you get. Yes, price is often the deciding factor nowadays in
the selection of an appropriate supplier. Aside from that, however, you will look for
the ability to deliver quality goods and services on a timely basis and the ability to
meet the unique technological and business needs of your organisation or specific
operational plan.
 High volume continuous supply methods
When materials are purchased in high volume to be continuously supplied throughout
the month or year, purchasing officers tend to issue requests for quotations to several
potential suppliers. When a supplier is selected (based on price, quality, and ability to
supply at desired levels) a blanket purchase order that covers the materials to be
purchased for the entire year is issued. The authorisation for this level of purchase
should come directly from the need for the materials in the production budget. These
are often prepared months in advance and cover long periods of time.
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2.2.3 Purchasing Processes
The process of purchasing new products or services is a balancing act. You are trying to
balance price, the time it takes to get the product, quality, and a number of other factors
while trying to get the best deal possible. In order to guarantee that the deal you are receiving
is the best you can obtain, it is important that you have a process in place to ensure the
purchasing is as effective as possible. The general process that is used for purchasing is as
follows:
Obtain agreement to determine supplier and price/terms
Prepare purchase order
Receive order
Prepare goods received docket
Match goods received to purchase order
Receive invoice for goods
Agree invoice price/terms
Pay invoice
Your role in the purchasing process will vary depending on the procedures followed in your
organisation. Some managers are responsible for most or all of the process in their areas.
Others may only be involved in the requisitioning, receiving, and checking stages.
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2.3 Support Efficient, Cost-Effective and Safe Use of Resources
The next area of concern for in your implementation phase is the use of your resources. It is not
enough that you have acquired your resources in accordance with internal requirements. You must
likewise ensure that these are allocated properly. Of particular interest are efficiency, cost-
effectivity, and safety in your use of resources.
2.3.1 Key Sources of Information
To ensure that you are able to make use of your resources as best as you can, there are key
sources of information where you can find proper guidance. These include:
 Policies and Procedures Documents
All organisations have respective policies and procedures in place to ensure that
operations remain efficient. These cover a wide range of matters, including the use of
resources within the workplace. You can refer to documents that outline company
policies and procedures relevant in helping you determine how to make use of
resources.
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 Company Handbooks
Handbooks are available to help you determine the best practices to follow in
enacting different functions and tasks, and these would include the use of resources.
Best practices often align with industry standards as well as company values, goals,
and objectives. Such also promote cost-effective practices deemed to be best
practices.
 Safety Manuals
Safety manuals are a standard resource that must be available in every organisation.
These provide clear guidelines and standards for assessing and maintaining safety
within the workplace. Of particular interest would be the guidance such provide in
using resources, specifically in terms of ensuring that they are used safely.
2.3.2 Strategies for Supporting Resource Use

Along with these key sources of information that provide guidance in using resources, there
are key strategies that you must keep in mind to ensure that your use of resources is efficient,
cost-effective, and safe at all times. Strategies to support the proper use of resources include:
 Formulate a Plan
As with any endeavour, the process of supporting the proper use of resources should
begin with proper planning. This would entail coming up with a plan that enables you
to determine how you can effectively provide support and promote best practices in
using resources.
 Provide Training and Resources
One key strategy in supporting resource use is providing the proper training. This can
involve formal sessions, hands-on workshops, etc. Additionally, it is also important to
make key resources available for employees’ reference. These would help them guide
themselves and ensure their use of resources is always at par with standards.
 Provide Incentives
One effective strategy for developing best practices amongst employees is to set up a
reward system for their behaviour. Provide incentives for the proper use of resources
as this would reinforce the behaviour and help employees continue to practise them.
These incentives can include bonuses and simple tokens.
 Use Resource Management Software
A reliable strategy for supporting the proper use of resources is to employ software in
managing your processes. Resource management software enables you to effectively
monitor how your resources are being used. These would also enable you to set
shared schedules and plan for how you will utilise resources amongst yourselves. This
is especially helpful when the resources you will need to make use of is required by
others as well.
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2.4 Adjust Implementation of the Operational Plan in Consultation with Others to Manage
Contingencies
The last order of business involved in your implementation stage is the adjustment of your
processes, as necessary. In general, you will need to adjust the implementation of your operational
plan to manage any contingencies that you will encounter.
2.4.1 Methods of Managing Contingencies

There are key methods that you can use to manage any contingencies that may arise as you
implement your operation plans. These include:
 Conduct a Risk Analysis
Risk analysis is the process of identifying and assessing potential issues you may
encounter that would have a negative impact on your operations. There are key steps
involved in this process. These include:
1. Identify resource requirements.
Determine what resources you will need to execute your plan and prioritise
them based on their importance.
2. Determine key risks.

Take note of the risks involved in your resource management. During this
step, it is advisable to consult relevant stakeholders who can help you
determine risks.
3. Prioritise and rate your risks.

Once you have identified your risks, prioritise them based on the level of
threat they impose. In this step, you can make use of the Risk Rating Guide – a
tool that measures the level of threat a risk event has based on two criteria
(i.e. the likelihood that they would occur and the level of impact they would
have).
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Risk Rating Guide
Using the guide involves several steps, and these are outlined below.
a. Rate the level relative likelihood and impact of your risk using the
scales below.
Likelihood Scale
Level Likelihood Description
The event may occur in exceptional

1 Rare circumstances.
Less than once in two years.
The event could occur at some time.

2 Unlikely
At least once per year.
The event will probably occur at some

3 Moderate time.
At least once in six months.
The event will occur in most

4 Likely circumstances.
At least once per month.
The event is expected to occur in all

5 Certain circumstances.
At least once per week.
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Impact Scale
Level Impact Description
The event will have little or no impact on

1 Minimal
achieving objectives.
The event will cause one or more

2 Minor objectives to fall below goals but well
above minimum acceptable levels.

3 Moderate objectives to fall well below goals but
above minimum acceptable levels.

4 Significant
objectives to fall below acceptable levels.
The event will cause one or more critical

5 Severe
objectives to not be achieved.
b. Match the identified levels of risk and impact to determine the

priority level of your risk. Use the matrix below as your guide. The
green cells represent the levels you have previously established.
Risk Rating Matrix
Likelihood
Rare Unlikely Moderate Likely Certain
Impact Level 1 2 3 4 5
Minimal 1 1 2 3 4 5
Minor 2 2 4 6 8 10
Moderate 3 3 6 9 12 15
Significant 4 4 8 12 16 20
Severe 5 5 10 15 20 25
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c. Using the identified risk rating, determine the priority level of your
risk event and determine the type of action you will do to address it.
The list below outlines the different risk priority levels and the type of
action required for each.
Risk Priority Scale
Risk Risk
Description
Rating Priority
May require consideration in any future

1-3 Low changes to the work area or processes, or can
be fixed immediately.
May require corrective action through planning

4-6 Moderate
and budgeting process.
8-12 High Requires immediate corrective action.
Requires immediate prohibition of the work

15-25 Extreme
process and immediate corrective action.
4. Create contingency plans.

Once you have sufficiently analysed your risks, you can now create
contingency plans for them. In doing so, you must seek to determine what
you will do to prevent and/or mitigate the risk and what actions you will take
once the risk has made its impact.
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Consult with Relevant StakeholdersConsultation with staff over major decisions is
critical to the success of any operational plan. Consultation processes are used to get
your staff involved and use them to the advantage of the process. These processes
may include:
o Mechanisms used to provide feedback to the work team in relation to
outcomes of the consultation.
 Meetings, interviews, brainstorming sessions, email or intranet communications,
newsletters, or other processes and devices which ensure that all employees
have the opportunity to contribute to the team and individual operational plans.
Some of the most important points to note are:
o When you plan to implement an operational plan, it is vital to gain the
involvement and input of staff in all areas of the company. By involving your
staff, you will have a much smoother implementation process, and you will
find that the added suggestions that your staff make add value to the process.
Involving your internal stakeholders and staff in this process is a way that can
be used to discuss any issues that you have noted and find ways of resolving
them. Remember, your staff are there on a daily basis and so have an
excellent understanding of where bottlenecks and other issues exist. Listen to
them and their ideas. You will also find they feel empowered when you act on
their suggestions.
o Do not let a single department run the entire project and then drop any
changes it thinks are needed on the company. What you are doing is going to
affect the whole organisation, so you need to be sure that your staff are
aware of where you are heading. This is vital because input is usually required
from various company departments and management. Once your staff
understand that everyone is involved, they will be more willing to put forward
ideas and offer their knowledge and skills. Process improvement is an
organisation-wide process.
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o Avoid fears of change. Consider asking people how they feel about the plans.
Then make a serious effort to address their concerns. In some cases, the
project can be redesigned to take account of these fears. This is where good
communication comes into play. This can take a variety of formats such as
briefing sessions, memos on notice boards, or informal briefing of work teams
by their supervisors. It is vital to fully brief supervisors and managers so that
they are not giving out contradictory messages. Fears of staff could include
concerns about new processes and systems replacing their jobs, effectively
making them redundant. Other concerns may include their skill levels.
Planning for these and any other questions that can be thought of given the
nature of the plan and industry helps to prepare answers to include in the
plan and also helps the communication about the plan to staff. You may lose
valuable staff to other organisations if they feel at risk.
Your staff are like cogs in a machine. They need to be involved in decision-
making, or your organisation is likely to grind to a halt!
 Review Existing Contingency Strategies

Along with risk analysis and consultation, you may also do management contingencies
by reviewing existing strategies you have in place. Other operational plans may be
reviewed to identify what contingency strategies were developed and implemented.
These existing contingency strategies can be compared to the risks relevant to the
operational plan to see if they are applicable.
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2.4.2 Supporting the Implementation of Your Operational Plan
At this point, it is important to take note of how you can support the implementation of your
operational plan. A key means of doing this is to present information that would provide
support and guidance for your implementation. Such information would include:
 Objectives
You must clearly establish and communicate the objectives of your operational plan to
everyone. These are the foundation of your plan, and they guide every process you
undergo and the decision you make.
 Activities and Processes
You must sufficiently present the various activities and processes that will take place
as part of your operational plan. These must be laid out and understood by everyone
who will be involved and affected.
 Standards
To perform your activities and processes satisfactorily, you will have standards you
must comply with. These must not only be established but also presented properly so
that they may be adhered to.
 Targets
Likewise, workers must be made aware of the specific targets they are to meet as they
complete their tasks. These are founded on your objectives and made in adherence
with your standards.
 Timetables
Finally, you must make your schedule and timetables clear.
In presenting information to support your implementation, you must strive to be as detailed
as possible. The information you will provide would ultimately enable workers to implement
the operational plan satisfactorily.
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2.4.3 Workforce Planning
Workforce planning can help to ensure that you have the right people with the right skills who
are available where and when you need them. This means analysing your current job roles
and available skills and your future needs for specific skills. You can use this comparison to
design new job roles and amend existing jobs to meet your needs. You can also use it to plan
and budget for recruitment, training, and development.
Ideally, this is not a one-off or standalone process. To be effective, your workforce planning
should:
Be integrated with your business goals.
Incorporate analysis of current and future operations, major projects, and

culture change.
Be reviewed to align to changes in direction.
Allow time and opportunities for skills development.
Inform the design of your job roles and your recruitment activities.
2.4.4 Retention Strategies

Staff retention is another workforce issue that needs to be considered. High staff turnover can
damage your reputation and can make it harder to recruit the right people. Recruiting staff is
also costly when you consider advertising costs, time spent calling and interviewing, and the
time and money invested in training new staff.
Retention strategies are often aligned with workplace issues. You may need to address
workplace bullying and discrimination. Or you might be able to improve retention rates by
establishing a culture of collaboration and providing structured staff development and
progression opportunities.
You might identify other benefits of value to your staff, for example, improvements to
lunchrooms and recreational areas or improved transport and parking options.
Recognising and rewarding the contribution of staff can be a powerful retention strategy. You
might want to establish training programs and award nationally-recognised qualifications as a
way of rewarding staff as well as building their skills and knowledge. You might also build on
your continuous improvement systems and ensure that useful staff suggestions are
recognised and put into practice.
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2.4.5 Workplace Culture
Managing your workplace culture can encourage your team to work together to achieve your
business goals. Defining the organisation’s values so that they are aligned to your process
goals is the first step. Making sure these values are reflected in decision-making, management
practices, and operating procedures will help to establish a workplace culture of shared values
and clear expectations of attitudes and behaviours.
Clear expectations for acceptable practice will encourage individuals to apply procedures such
as turning off lights and can encourage suggestions for further improvements.
A culture that respects and values the different views, experiences, and cultures of employees
and that actively encourages their participation in the organisation will support your
commitment to the change and can encourage staff commitment and loyalty.
You may be in a position to make minor changes that will support a better workplace culture.
You might use performance reviews and goal setting to encourage consistent behaviours and
procedures. You could set up a reward system for employee suggestions that are
implemented or teams that achieve sustainability targets. Reinforcing your values and
expectations in team meetings, toolbox talks, and newsletters will also help to embed your
desired culture.
Some culture improvements may be more challenging, and you may need to use a structured
change management approach. Over time, this can be effective in shifting attitudes and
transitioning individuals, teams, or organisations to a desired state. The organisation may
even want to consider employing a specialist in this area.
Note that the term ‘change management’ is also used in project management where it refers
to a formal process for approving changes to the scope of a project.
Managers and business owners have the most influence as role models, but everyone in the
business can play a part in demonstrating the organisation’s values and acceptable
behaviours.
If you want your workplace to be based on respect and collaboration, there are practical
things you can do. You can make sure you give constructive feedback that is based on the
work rather than the person and give people the opportunity and support to get it right.
Listen to suggestions from all employees and show how you have used their input. You can
also learn how to respond to conflict using negotiation and listening skills.
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2.4.6 Operational Procedures
Improving your process does not mean you have to create a whole set of new procedures. It is
often about identifying the areas that need updating and planning how to incorporate your
suggestions into existing procedures.
You might decide to update your standard operations procedures to specify practices and
equipment optimisations. Or it might mean spelling out new requirements for purchasing
materials or contracting suppliers.
You might be aware of areas where you are falling short – this might be in terms of
compliance requirements, community expectations, or customer value. You may want to
focus on Work Health and Safety (WHS) so that you reduce the risk of incidents and the
associated costs. In this instance, you may need to document and communicate new
procedures; but you might also need to plan for appropriate WHS training and examine
whether your management practices or workplace culture contribute to unsafe practices.
You might want to minimise waiting time and reduce the movement of work or workers to be
more cost-effective and reduce energy consumption. You will need to plan your stakeholder
consultations to include the right input (shop floor workers, equipment manufacturers). You
will also need to plan how to allocate the personnel and time to develop, trial, and refine the
new systems.
You may not be in a position to make decisions that impact on the whole business. However,
you may already be aware of small changes that can be made in your area. You may know that
by simply moving a piece of equipment or the storage location of frequently-accessed items,
the amount of time it takes to collect those items will be reduced – instantly increasing
efficiency. Perhaps you and your team can be the champions who show the rest of the
organisation how small changes to procedures can have an impact across the whole
organisation.
Improving in your organisation does not have to mean making big, expensive changes to your
SOPs; it can simply mean ‘working smarter.’
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Activity 4
List as many sources of recruitment as you can think of. Which do you think would best
suit filling the role of a senior manager in your organisation?
Sources of
Recruitment
Source Best
Suited to Fill
the Role of
Senior
Manager
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Notes
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 All operational plans require human and physical resources to be successful.
 Human resources must be carefully recruited and selected to ensure that the
individual will be most effective in undertaking their position.
 Physical resources can be provided in-house or from external suppliers.
 Each organisation will have its own process for purchasing physical resources and
must be followed carefully.
 You must ensure that your acquisition processes are aligned with organisational
policies and procedures.
 It is necessary to adjust the implementation of your operational plan to manage
contingencies.
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All operational plans will require staff.
Employing a staff member begins by interviewing those who apply for

the job.
A job description outlines what you require in a person undertaking a

specific job.
Managers must attempt to match the applicant’s skills with those

needed by the organisation.
The Internet is a common recruiting tool that can help you reach out to
more potential Candidates.
Effectively inducting new employees to the organisation and to their

positions is critical in establishing successful, productive working
relationships.
Purchasing is often controlled through your organisation’s policies and

procedures.
To support the efficient, cost-effective, and safe use of resources, it is

enough to give access to key sources of information.
Small purchases should be bought using petty cash.
Managing contingencies is a task ideally done in consultation with relevant

stakeholders.
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Chapter 3: Monitor Operational Performance
The third element in coordinating business operational plans is monitoring operational performance.
At this point, your concern is ensuring that everything is going as planned and identifying key areas
where you may need to further improve.
There are three key sub-steps involved in your monitoring stage. First, you must collate relevant
information. The information you need to look into would enable you to determine operational and
productivity performance.
After this preliminary step, you must then identify and as make use of key performance indicators
(KPIs) to assess your operational performance. Finally, you must also identify unsatisfactory
performance and take action to rectify the situation according to organisational policies.
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3.1 Collate Relevant Information and Determine Operational and Productivity
Performance
By its very nature, operational planning deals with finances and budgets. Money makes the world go
round – and in operational planning, money is often everything. Generally, it is financial monitoring
that can reveal where major problems lie and also suggest ways of improving overall performance.
This section will discuss some of the most important tools in monitoring financial performance;
these are the relevant information you must collate to determine your operational and productivity
performance.
3.1.1 Organisational Objectives in Operational Planning

There are a number of organisational objectives you must be mindful of as they represent
relevant information that will help you determine your performance. These are:
 Actual Costs
Actual costs refer to expenses linked to operational planning.
 Identified Shortfalls
Identified shortfalls refer to losses in profit, flaws in established systems, or shortage
in required outputs.
 Surpluses
Surpluses refer to excess resources or outputs that could be put to better use.
3.1.2 Budgets
The first key source of information you must examine is your budget. Budgets can be put to
use in monitoring performance. Basically, a budget is used to collect information on the
estimated costs of a plan. It will provide estimates of the costs of the various resources, and it
may also be used to estimate sales and other items. A budget gives a target in dollar terms
and requires that this be met as much as possible.
Variance Report
The key use of a budget is in preparing a variance report. A variance report sets out to
compare actual sales and spending against budgeted figures to find a percentage variance.
This figure can then be used to find areas where improvements can be made. So, once you
have prepared your budget, you need to look for variance – this could be done at the end
of each day, week, or month depending on the type of budget being prepared. What you
are doing is comparing the budget against actuals. This will highlight any positive and
negative variation, which can then be used for further analysis.
Budgets contain information on your financial goals over extended time periods. They are best
guess estimates. As a manager, you must try and juggle what you have in order to produce the
highest level of performance.
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3.1.3 Financial Statements
Along with your budgets, there is a number of analysis tools that can be applied to the most
common financial statements. This can provide valuable information on performance over a
long period of time and reveal important trends. You can apply such analysis to:
Balance sheets Cash flow statements Profit and loss statements
This takes a snapshot of This statement examines This type of financial

what the company owns where cash has come statement attempts to
and what they owe on a from and where it has determine whether a
certain date. gone. profit or loss was made by
Such information can be the organisation.
used to provide a look at
the financial stability of
the organisation.
You can apply variance analysis as well as ratios and formulae to these statements to
determine where problems lie.
3.1.4 Profit and Productivity Performance

Using the budget and financial information outlined above, you can determine profit and
productivity performance.
Profit represents the amount of earnings that exceed your expenses at a given period. It is
out-put based, representing the financial aspect of your objectives and indicating how much
you have earned at a given time period. On the other hand, productivity is efficiency in terms
of how much you have produced output or done work relevant to meeting your objectives.
The value of these two interrelated concepts lies in monitoring them to determine
performance. This is done using key performance indicators, which will be discussed in the
next section.
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3.1.5 Variances
Having looked at the various types of financial statements and how they can be used to
determine where variations lie, you can now look at the types of variation that may occur and
what they may mean. Variations from budget and from previous years may occur in a number
of key areas.
Variances can be thought of as a gap between where you are and where you want to be.
Where you The Gap

are now - Where you
your current want to be -
level of The state of variance that exists your goal
between current and desired
performance performance
3.1.6 Your Own Role

Dealing with financial matters is a tedious task that would require much time and effort.
Moreover, it would be necessary to have a level of expertise and relevant experience to
engage in this task. It is, therefore, important to ground this discussion to the context of your
own role.
Collating financial information is a task that will not be done on your own. You must seek the
necessary assistance from your supervisor so that you can have access to the relevant
documents outlined above. You must then carefully go through these and collate key
information that will enable you to monitor profit and productivity performance.
Things to keep in mind as you engage in your task include:
 Ensure that your numbers are accurate
It is unavoidable that you will deal with number-heavy data. As such, you must be
extra mindful and ensure accuracy in all of the reports you will be making.
 Keep information confidential
Do not mishandle and leak the data you will be dealing with as these can be used
against you and the organisation.
 Seek guidance, as necessary
You are not expected to understand the very complex nature of the information at
first sight. As such, you are expected to consult with personnel who can help you and
provide their expertise to clarify things for you. Do not be afraid to seek guidance.
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3.2 Identify and Use Key Performance Indicators (KPIs) and Assess Operational
Performance
To sufficiently assess your operational performance, you must properly make use of key
performance indicators (KPIs). These will help in effectively evaluating how well you were able to
implement your plan and how you can adjust it, as necessary.
3.2.1 Key Performance Indicators and Performance Objectives

Key Performance Indicators (KPIs) are measures for monitoring or evaluating the efficiency or
effectiveness of a system, and which may be used to demonstrate accountability and to
identify areas for improvements. They are developed from the objectives.
Objectives and Planning

Objectives are specific, measurable outcomes of business processes that are the direct
result of that process, in this case, while implementing strategies. The key question that
you need to look at when defining objectives is to decide whether what you are trying to
achieve is actually feasible. The objectives that you set should not be set in stone.
Businesses and the environment within which they operate are constantly changing, so
should the objectives if a change is noted. However, do not change things just for the sake
of change. Ensure that if a change is made, you are sure that it is needed and you
understand why it must be made.
Your planning for new initiatives within an organisation should be related to the overall
mission of the organisation. The mission states exactly what you hope to achieve in the
operation of the business, and so everything you do needs to work towards that mission.
The mission is a large long-term goal that the organisation wants to work towards, so a
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method that is often used is to break down this goal into smaller goals, and break those
down further and further until you have operational goals that can be easily implemented.
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These operational goals can then be used to work towards specific goals that are set by
implementing initiatives. These initiatives can come at any time but must be related to the
way that business operates and the overall goals it wishes to achieve.
Any overall planning for long-term projects must include an element of strategic planning.
This could involve you in examining the vision the business has for its future, its mission,
the values it holds, and any goals already set. Strategies for achieving long-term goals are
critical to success. It is one thing to know where you need to go; it is another to know how
to actually get there. Planning for a new business initiative must be tied to overall
planning to be most effective. Once you identify these goals, you can begin to create a
framework of ideas that will allow these goals and objectives to be met.
Many managers work with the idea that developing new ideas should come in response to
a problem – this approach could be likened to having the ambulance at the bottom of the
cliff – just picking up the pieces. However, a more effective approach is to look for
continuous improvement by proactively looking for ways to make improvements. The first
approach shows you are not considering the organisation’s mission and vision in your
planning.
When you are looking for ways in which to improve your organisational processes, look
beyond your staff. Other key stakeholders can offer a unique perspective that staff may be
too close to notice. Just think about the purpose of your organisation for a moment. At its
basest level, it is to satisfy its customers – so when you need to know how to improve,
why not start your search there? What do your customers want? What do they need from
your organisation? Talking through major issues with your key customers can provide you
with insights that you otherwise may well have missed.
The plan, once developed, needs to be implemented. Plans are only useful if they are
implemented in time to actually solve a problem. Implementing plans is also most
effective when broken down into milestones which can then be used to measure how well
you are doing. By breaking down the implementation into milestones, you can ensure you
are on track, you have been realistic in your planning, and you can ensure things are going
to plan. You may find it useful to set up periodic meetings with those involved. These
meetings would be used to discuss how things are going, what problems have been
experienced, and where things are in relation to the milestones that have been set. This
review process also allows for the problem solving and brainstorming of any issues that
have arisen.
Setting milestones allows you time to stop and review the progress you are
making.
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Performance Objectives
Of specific interest are your performance objectives, which are aims that must be met by
your operational plan. These must be aligned with your KPIs, which are the tools you will
measure throughout your implementation. As you measure your KPIs, you will be able to
determine if you are able to meet your performance objectives satisfactorily.
There are different aspects of performance that you will be using KPIs for, and you are
particularly interested in productivity. Likewise, there are many facets of productivity that
a KPI can measure, but the most important ones include:
Effectiveness Levels
You must know how much time employees spend actually working on their
tasks. They should use office hours effectively and get things done. A
feasible KPI for this is an 84% level of effectiveness per day.
Efficiency Levels
To supplement employee effectiveness, it is important that they are also

working efficiently. It is, therefore, important to measure how long it takes
for your employees to complete work tasks so you can determine in which
aspects they can be further trained.
3.2.2 Monitoring Performance and Performance Systems

A plan is only effective if it meets the operational guidelines that were set out for it during the
planning. If you remember back to the first chapter of this resource, you examined the
process of establishing goals, timelines, and objectives.
Monitoring takes this information and uses it as a basis for establishing just how well the plan
is performing. If a plan is not performing well, steps need to be taken to find solutions to
problems and implement changes to make sure that the plan is running smoothly.
Monitoring is a balancing act; you have to balance what you want to achieve against any
constraints placed against you in terms of budget and timelines.
Performance systems and processes may refer to:
 Informal systems used by frontline managers for the work team in the place of
existing organisation-wide systems.
 Formal processes within the organisation to measure performance, such as feedback
arrangements, individual and teamwork plans, key performance indicators (KPIs), and
specified work outcomes.
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Two particular performance monitoring systems that are of interest to you are
performance reviews and resource inspections.
 Performance Reviews
This system enables you to sufficiently evaluate the performance of

employees – your human resources – through the use of KPIs. It is reliable and
valid, provides support and training, and is based on standardised procedures.
Performance reviews involve processes in evaluating employee’s
performance, including:
o Annual performance reviews
These occur once a year and employ a systematic evaluation of

performance. By design, they are less time-consuming. They are also
involved in your performance improvement plan.
o Behavioural checklists
These are rating scales that identify specific behaviours relating to

performance. You will rate the performance of each employee for
each behaviour and then calculate a total score that represents their
overall performance.
o Feedback reviews
These involve seeking feedback from employees to determine their

performance. They are perhaps the most time-consuming process but
can provide detailed insights which could prove useful to your
monitoring.
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 Resource Inspections
This system is useful in evaluating the performance of your physical resources.
Resource inspection is a formal process that provides accessible results. It also
promotes resource improvement and productivity assurance.
Processes involved in inspecting the performance of physical resources
include:
o Inventory
This involves checking on stocks and supplies and recording numerical

values for each one. The process makes use of categorised
organisation, making it efficient. This efficiency is further supported by
the use of routine procedures.
o Resource walkthrough
This is a tedious process that involves going through your physical

resources and checking on them. It allows you to check the actual
performance of a resource and determine how satisfactory the
observed performance is.
o Technical review
This is a reliable process that involves qualified personnel inspecting

the technicalities of physical resources to determine how it has
performed. Their assessment would provide technical insight into the
performance and state of the physical resources.
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3.3 Identify Unsatisfactory Performance and Take Action to Rectify the Situation According
to Organisational Policies
As you monitor performance levels during the implementation of your performance plan, you are
bound to come across unsatisfactory performance. Given this, you must have a key understanding of
performance management. Your knowledge must be especially focused on identifying and rectifying
unsatisfactory performance, and such must be done in accordance with your organisational policies.
3.3.1 Steps in Performance Management

Just like any system, performance management is a process. There are four key steps that you
should take when developing your performance management system. These key steps are:
1. Establish What Needs to be Monitored
Not everything needs to be monitored – if you were to monitor everything, you would
end up over monitoring. Over monitoring will result in you spending all day pouring
over reports and trying to make sense of huge amounts of data that in the end, may
not tell you anything about your current level of performance. Instead, it is important
that you identify and monitor only the activities that will have the greatest impact on
your overall plan.
Ask yourself what the most important aspects of your plan are. What would be the
impact if my plan did not work as expected? Where would I see problems developing?
Where would I see the greatest improvements being made?
By answering these questions, you can begin to establish what needs to be monitored.
For example, if cutting costs is of the greatest importance to you, you can monitor
budgets, invoices, and establish costs to see if improvements are being made.
Conversely, if the most important thing is to improve sales, you could monitor sales
data. If improved sales are important, there is very little use in looking at costs as
costs do not impact sales, and thus, you would be over monitoring!
2. Find Specific Measures

Previously, you determined how to establish what to monitor. Once you have
determined what to monitor, you need to find specific measures that will allow you to
actually monitor that attribute. You are looking for the answer to exactly what should
be monitored. It is no good saying, ‘We should monitor sales.’ This is a good starting
point, but exactly how do you monitor sales? Cash register receipts? Invoices? Sales
reported in your financial statements?
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When thinking about the type of measure to use, there are two major types that you
should consider. They are:
 Lead indicators
This type of measure allows you to monitor a process while it is actually
occurring. If there is a problem with the process, you can immediately look for
ways of resolving it in real-time, preventing the problem from causing too
many issues. They set out to tell you whether or not the targets of your
processes are actually being met.
 Lag indicators
This second type of indicator measures how well the process is working.
However, the indicator will not show until after the process has completed a
cycle. That is, you will not get any results until the process has been
completed. This means that in most circumstances, it is less effective than
lead indicators because you need to complete a full cycle before any changes
can be made. By that time, you may find that costs have already been
incurred needlessly. Lag indicators often will not tell you why a process did
not work – only that it did not.
These types of indicators can take many forms – you may have goals,
performance standards, quality standards, or key performance indicators.
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Activity 5
Give examples of lag and lead indicators from your workplace.
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3. Examine How the Plan Worked
The next stage in the process is to examine how closely the plan meets with the goals
that you established for it. It is important to note that you should not expect
perfection as with any plan, there may be some variation from expected results. What
you are looking for is any significant variance between what you hoped for and what
actually occurred. You must be able to decide when a variation is important and when
it is not.
4. Take Corrective Action

The aim of this process is to continually improve your processes – thus, the next stage
of the performance measurement process is to attempt to find ways to improve the
process based on the results of your monitoring. There is a range of actions that you
can take when attempting to resolve a problem in your processes. You may use:
 Stopgap measures
This form of action attempts to take action that will resolve the issue
temporarily while you look for a more permanent solution to the problem.
This is a good idea if the problem is significantly affecting performance, but it
is crucial to remember that you need to find a more permanent solution. It is
like the pies on a conveyer belt that you often see on TV – a stopgap solution
may be to stop the pies temporarily – but something needs to be done in the
long term before they begin to pile up and pile up and pile up!
 Corrective action
In this second form of action that you can take, you attempt to remove
whatever is having a negative impact on your plan. You get rid of what is
causing the problem to bring performance back up to the level it should be.
For example, poor performance may be caused by a worker taking longer than
normal to undertake a task, slowing down the whole process.
 Preventative action
In this form of action, you are not just removing whatever is having a negative
impact; you are also determining what the cause of the negative impact is and
remove that. For example, the poor performing worker may be having trouble
due to lack of training so a preventative measure could be to provide training.
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 Adaptive action
In this form of action, you are not looking at changing items in the process;
rather, you are looking at changing the process itself. Perhaps there have
been changes in the economy that have reduced sales or performance
standards need to be changed. These types of action adapt the plan to suit
changes in the environment.
 Contingency planning
In this final form of action, you are looking to turn around trends that suggest
the plan will continue to perform poorly or perhaps something has occurred
that will adversely affect the entire plan. In these cases, you must implement
contingency plans (which you examined in the first chapter of this resource).
Methods for Problem Solving

It is also useful to have knowledge of common methods for solving the problems you will
encounter during operational planning. These are the procedures or approaches to find
solutions for issues that arise. Three methods that merit discussion include:
 Root Cause Analysis
The Root Cause Analysis can be used to identify the underlying issues causing
the problems with resource acquisition. This method focuses on fixing the
root cause, such as a problem with organisational processes, in order to solve
the resulting problem and avoid further issues.
 Path of Least Resistance
The Path of Least Resistance can be used to identify what alternative to follow
when facing problems with resource acquisition. This method focuses on
pursuing the easiest and cheapest option in order to quickly resolve the
identified problem.
 Working Backwards
In instances where the problem is unclear, but your desired outcome is
established, this approach is useful. By working backwards, you focus on
determining the key outcome(s) you want to achieve and from there,
determine your action step – what can be done to achieve these. After you
have identified these, you can easily determine hindrances and problems that
keep you for doing your action steps. Upon the identification of such, you will
then be able to formulate ways to counter these.
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3.3.2 Performance Gap Costs
When examining performance, you should concentrate your efforts on overheads, materials,
and labour.
 Overheads
Overheads are any expense that is not directly attributable to a specific product or
service offered by an organisation. For example, power, telephone services, and office
supplies are all integral to keeping an organisation running, but you cannot directly
attribute the cost of these to a specific product or service. Changes to your overheads
could be the result of many factors, and it is important that you try and determine
where the problem lies. For example, if telephone costs go up, but you are working
the same amount and producing the same quantity, you need to find out why this is
the case.
 Materials
Material costs can rise for two major reasons. You can be using more of the materials,
or the materials can be costing you more. Determining which of these is the major
factor is relatively simple. What is more difficult is determining why the factor
changes. Material usage can be caused by defects and rejects. This, in turn, can be
caused by poor quality materials, workmanship, damage, theft, or tools not being
right for the job. Price variances are normally out of your control as it is the supplier
who will dictate the price. However, you can bring back some control by attempting to
set long-term price contracts that allow you to have a set price for an extended period
of time.
 Labour
Once again, there are two major factors at play here: the cost of labour and the
amount that you use. Like materials, there is a range of reasons why you may be using
more labour: staff absenteeism, idle time due to delays, poor workmanship, poor
materials, equipment breakdowns and such.
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3.3.3 Identifying Unsatisfactory Performance
There may be times when it is not your plan that is at fault – rather, it is your staff whose
performance may be causing the plan to falter. Given this, you must be able to sufficiently
identify unsatisfactory performance.
As outlined by the Fair Work Ombudsman site, manifestations of unsatisfactory performance
include:
Unsatisfactory work performance, that is, a failure to perform the duties of the
position or to perform them to the standard required.
Non-compliance with workplace policies, rules or procedures.
Unacceptable behaviour in the workplace.
Disruptive or negative behaviour that impacts on co-workers.
Sourced from Managing underperformance, used under CC BY 3.0 AU. Fair Work Ombudsman.
Likewise, the most common reasons for unsatisfactory performance include:

 Lack of or unclear workplace policies, procedures, goals, and standards
 Interpersonal differences
 Mismatch between employee’s capabilities and the job’s required skills
 Lack of feedback on employee’s performance
 Lack of personal motivation, low morale in the workplace and/or poor work
environment
 Personal issues such as family stress, physical and/or mental health problems
or problems with drugs or alcohol
 Cultural misunderstandings
 Workplace bullying
Based on Managing underperformance, used under CC BY 3.0 AU. Fair Work Ombudsman.
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Guidance in identifying unsatisfactory performance includes:
 Observe performance
A reliable way to identify unsatisfactory performance is to observe employees as they
work on their assigned tasks. This is especially effective if they are unaware that they
are being observed.
 Review records
Another way to identify unsatisfactory performance is to review relevant documents

that record performance. This will enable you to see if there are any patterns or
trends worth noting.
 Seek feedback
A third way of identifying underperformance is seeking insights from the employees
themselves. They can provide useful insight as to how they feel they are performing and
in what areas they can further improve.
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3.3.4 Rectifying Unsatisfactory Performance
Once you have identified unsatisfactory performance, you can move on to rectifying this. It is
important to align your approach with organisational requirements. This would include
policies and procedures relevant to you.
Managing Unsatisfactory Performance
The Fair Work Ombudsman site provides a five-step guide in dealing with the
unsatisfactory performance of employees.
1. Idenitfy the problem
2. Asses and analyse the problem
3. Meet with employees to discuss the problem
4. Jointly devise a solution
5. Monitor performance
1. Identify the problem

Managing unsatisfactory performance begins with identifying the problem at
hand. The previous subsection provides further guidance on this.
2. Assess and analyse the problem

Take note of the following:
 The gravity of the problem
 The length of time the problem has existed
 The gap between what you have expected and what is being
delivered
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3. Meet with the employee to discuss the problem
As you meet with the employee to discuss the problem at hand, you must
remember to:
 Focus on the issue and not the person.
 Investigate the issue and try to determine why it exists.
 Clarify details, as necessary.
 Remain calm and encouraging towards the employee.
 Make a summary to ensure that you understand each other properly.
4. Jointly devise a solution

If it is possible, devise a solution with your employee. In doing this, remember
to:
 Ask questions and encourage the exploration of their ideas.
 Emphasise your common ground.
 Focus on the positive possibilities.
 Stay on track.
 Offer your employee assistance, as necessary.
With the help of your employee, come up with a performance agreement or
action plan that would:
 Reflect a shared understanding of expectations.
 Clarify the employee’s responsibilities.
 Include strategies for their career development and training.
 Include timeframes.
 Reinforce the value of the employee’s role.
After this, set a date for a follow-up meeting to review the employee’s
progress and performance.
Remember to keep a record of all the discussions and agreements you make.
This would help you keep track of their performance and may also be used as
evidence should you need to take legal action on the matter.
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5. Monitor performance
Continue to monitor your employee’s performance. Even if their performance
is no longer an issue, you may find it useful to meet and discuss their
progress. Provide positive and negative feedback and continue to work with
them to ensure that they continue to maintain and improve their
performance.
If their performance does not improve, it may be time to take more serious
actions (i.e. counselling, issuing formal warnings). If the issue cannot be
resolved, they may ultimately need to be terminated.
Based on Managing underperformance, used under CC BY 3.0 AU. Fair Work Ombudsman
Providing Support to Improve Performance

You can provide support to individuals and teams alike in the form of mentoring, coaching
and supervision.
 Coaching
Coaching is a process whereby an employee is provided with feedback – this
feedback is of a specific nature and is intended to assist the employee in finding
ways of improving their current levels of performance.
 Mentoring
Mentoring is used to help employees who show promise, but that promise is not
backed up by performance. This often is due to personal problems or a lack of
confidence or motivation. The mentor is an individual who is more experienced at
the job and who can offer a place to turn to for guidance and assistance.
 Supervision
Supervision refers to support provided through regular interactions with
members. It is long-term and focuses on motivating members and sharing
feedback. A team leader can supervise their members to review their work and
ensure that they are completing their tasks correctly.
 Training
If a problem is related to lack of knowledge in a specific skill, training becomes a
very important tool. Training is used to improve skills or knowledge in a specific
area, but of course, if the problem lies elsewhere, for example, a lack of
motivation, training will not be a great deal of help.
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Activity 6
Find the five types of corrective action in the word search below.
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Notes
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 Monitoring a process involves implementing a performance management system.
 A performance management system involves assessing the progress a process or
plan is making towards its targets.
 Budgeting and financial information can be used to monitor productivity and
operational performance.
 Wherever you have noticed unsatisfactory performance, you must take prompt
corrective action to resolve any issues that exist.
 Coaching, mentoring, supervision, and training can be used to improve the
performance of staff members.
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Monitoring attempts to judge how well a plan is performing.
You should monitor as many parts of your plan as you can.
Specific measures should be used to gauge how successful your plan is.
Lead indicators are only produced once a process has completed a

cycle.
Preventative action removes a problem.
Financial control is very important in the process of performance

management.
Variance reports are prepared from budgets.
Variances in labour are only caused by paying too much.
Coaching is a process whereby an employee is provided with feedback.
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Chapter 4: Review Operations Based on Performance
The fourth and final element involved in coordinating business operational plans is the review of
your operations based on performance. Having sufficiently planned, executed, and monitored your
operational planning, you can now work towards ensuring continuous improvement in your
processes.
The evaluation stage of your process involves four sub-steps. You begin by developing
recommendations for the variation of your operational plans. After this, you will then present the
recommendations you have made to the designated persons or groups. This is done in order to gain
approval for your recommendations.
Once you have developed and presented recommendations, the next step in your process is to
maintain records on operational performance. This task must be done in alignment with your
organisational policies and procedures. Finally, you must report relevant information on operational
performance to management for the continuous improvement of your organisation.
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4.1 Develop Recommendations for Variation to Operational Plans
As you review your operations, you may discover key areas that would require variation. This need
for variation would arise from the fact that your execution may still need further improvement. In
your capacity to implement your operational plan, you can and should also make recommendations
for the necessary variations.
The need to make recommendations and vary your plan may arise from:
Variations to or refinement of stakeholder or organisational requirements
The eventuation of risks identified in the project brief
Project targets being exceeded
Unforeseen difficulties
With this in mind, you can take note of the guidance in developing recommendations for a
variation to your plan. This includes:
 Reviewing performance
You must review performance satisfactorily in order to come up with the appropriate
recommendations. This would involve evaluating performance through observation,
going through records and relevant documents, etc. In reviewing performance, you
must seek key points of interest; these include emerging patterns or trends in
performance, possible causal relationships, and correlations.
 Determining the kind of change necessary
There are different types of change you may need. It is important to note that the
need for variation in your plan may also be influenced by factors outside of
performance (e.g. major organisational change, external issues you are affected by).
The three types of change you may need to undergo include:
o Developmental change
Developmental changes are those you make to improve current business

procedures.
Examples of developmental change include:
 improving existing billing and reporting methods
 updating payroll procedures
 refocusing marketing strategies and advertising processes
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o Transitional change
Transitional changes are those you make to replace existing processes with
new processes.
Examples of transitional change include:
 experiencing corporate restructures, mergers, or acquisitions
 creating new products or services
 implementing new technology
o Transformational change
Transformational changes are those you make to completely reshape your

business strategy and processes, often resulting in a shift in work culture.
These changes may be a response to extreme or unexpected market changes.
Transformational changes will usually involve both transitional and
developmental change where businesses recognise that they need to
overhaul the way they do business.
Examples of transformational change include:
 implementing major strategic and cultural changes
 adopting radically different technologies
 making significant operating changes to meet new supply and
demand
 reforming product and service offerings to meet unexpected
competition and dramatic reductions in revenue
Based on Types of change, used under CC BY 4.0. Business Queensland.
 Ensuring alignment with organisational requirements

A key consideration you must keep in mind as you develop recommendations would
be your organisational requirements. As has been previously mentioned, you must
keep your efforts aligned with these at all times to ensure that they are relevant to
your overarching purpose, values, and standards. Make sure that the
recommendations you come up with are aligned with the relevant requirements –
especially the relevant policies and procedures you have in place.
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Activity 7
Select one of the reasons the need to make variations to your operation plan arises and
discuss how this identified need must be addressed.
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4.2 Present Recommendations to the Designated Persons or Groups to Gain Approval
There will be times when you can see how a change in the process will allow for improvement. It is
your responsibility to communicate and implement these possible changes. You will need to inform
those workgroups or teams and groups designated in workplace policies and procedures. You will
also have to discuss with those who have the authority to make decisions and/or recommendations
about operations such as workplace supervisors, other managers. Given this, you must be able to
present the recommendations you come up with appropriately. Success in doing so will enable you
to gain approval more easily.
Before you begin communicating, it is wise to follow a plan that will make it easier for others to
understand your motivations and suggestions and to ensure that how you see it is appropriate and
useful.
1. Clearly Understand the Current Process
One of the most important questions to ask at this stage is ‘Why is the process in its current
state?’ All too often, you see individuals try to drive change without understanding what
caused the process to become the way it is. It is a sign of lazy analytics if the change
proposer assumes the process is flawed because individuals who designed it were lacking in
process design knowledge. Perhaps the changes you seek are only possible because of new
technology or change in supplier. Regardless of the reasons, you need to understand the
lineage of the process to avoid past mistakes. Additionally, you need a readily communicable
model of the current process. If the organisation is ISO-certified and fully compliant, good
documentation of the process should be readily available.
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2. Clearly Understand Why a Change in the Process is Necessary
The typical reason for process change is either cost reduction or variation reduction. For
cost-reduction changes, a good cost deployment is essential. For variation reduction, the
change agent should know whether random variation or special-cause variation (or both) is
to be eliminated. Typically, special-cause variation with rifle-shot solutions (turn off the
special cause and you turn off the variation) can be erased. For random variation, typically
increased capital expenditure (except in the cases of very sloppy processes) is needed to
decrease variation.
3. Know Precisely the Change to be Made

Once the current process is found to be deficient in some way, the new process should be
articulated clearly and concisely. This may be in the form of a text-based document, a flow
chart, or other organisation-appropriate forms of documentation. Sample testing of the
documentation to guarantee clarity is essential. Can operators look at the document and
explain back to you how the new process will work? Do several operators understand the
documentation the same way, or do they interpret it differently? Documentation should
lead to a clear understanding with little to no operator-to-operator interpretation variation.
4. Seek Feedback and Attain Buy-in from All Affected Stakeholders

In a forum of your choice (tailgate meeting, posting with opportunity for anonymous
feedback, intranet etc.), the new process should be expressed to all individuals who are
affected by the change. This includes all individuals who provide input to the process as well
as those who receive an output from the process. Will they be affected in a meaningful way?
Will the change cause unanticipated results in their portions of the process? Will this process
change add value (or eliminate value-destroyers) for the customer?
5. Revalidate Process Protocol, Data, and Measuring Systems for the Change
At all times, you should be certain that processes are followed, data is reliable, and your
measuring systems are capable of providing data you can use to make good managerial
decisions. That said, once you ‘shine the management light’ on the process you are working
to improve, change can occur that makes it necessary to re-validate your behaviours,
methods, and measurements.
Before driving the change in your process, you must ensure that the process that is in place
is adhered to properly. This alone can drive a significant reduction in random variation. Once
you are certain of strong process discipline, you should measure the process once again and
make sure that you are obtaining reliable data from your measuring systems. If necessary, a
good review of rules and regulations should be conducted to ensure the quality and
reliability of data.
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4.3 Maintain Records Related to Operational Performance According to Organisational
Policies and Procedures
The third step in your evaluation stage involves records relevant to your operational performance. It
is vital that you are able to properly maintain such records and do so in accordance with
organisational policies and procedures.
Procedures play a crucial role in embedding processes into the day-to-day operations of your
organisation. Providing information, training, or mentoring will ensure that all employees
understand what is expected of them. Another crucial factor is making sure that the procedures are
applied consistently. This requires commitment from employees to apply the procedures and from
management to allocate the time and equipment needed.
Gaining the input of staff is essential. They are likely to have good ideas about how to reduce waste
and increase efficiency. They are also more likely to follow procedures consistently when they have
had a hand in designing them and really understanding them.
A full set of Standard Operating Procedures (SOPs) that capture your sustainable practices will help
the process become the ‘norm’ with everyone knowing what is expected of them.
SOPs may include:
Databases and other recording mechanisms for ensuring records are kept in accordance
with organisational requirements
Individual and team performance plans
Organisational policies and procedures relative to performance
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4.3.1 Guidance for Maintaining Records
To ensure that you are able to satisfactorily maintain records, you will need to have sufficient
knowledge of your mechanisms in place and the relevant organisational requirements you
have to guide you.
There are different mechanisms for recording information, but for the most part, these would
include databases available in your organisation’s systems. In the past, records have been
kept in physical form. However, businesses are adapting to technological changes and learning
to use cloud storage and file-sharing services to store organisational data, including records on
performance. It is, therefore, important that you are aware of the software and systems being
used as these differ among organisations.
The organisational requirements you must use as guidance for maintaining records are your
policies and procedures. This in itself would suggest that the process, standards, and rules for
record-keeping differ per organisation. As a best practice, you must, therefore, have sufficient
knowledge of the policies and procedures in your company that would provide guidance on
how your records should be kept.
These would include:
 Style and formatting guides
 Information management policy
 Information storage and security policy and procedure
 Reporting procedure
 Performance management policy and procedures
The first four examples will guide you with the technical aspect of maintaining your records
while the last one will enable you to determine how you will sufficiently assess performance.
Further Reading
To find examples of the documents outlined above, you can access
the website of the simulated business, Bounce Fitness.
Policies and Procedures
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4.3.2 Individual and Team Performance Plans
A key record that you must keep in mind is the performance plan. This identifies the
performance levels you would like both teams and individual team members to achieve. A
performance plan also outlines how you will attain and measure these, and the document
provides guidance and direction in achieving your desired performance level.
There is no one format for the performance plan. However, there are key pieces of
information that may be found in most performance plans. These are:
Objectives and Roles and Performance

Action Plan
Goals Responsibilities Measures
 Objectives and Goals

Objectives and goals are at the heart of every performance plan. These will determine
the overall aim of your plan and lay down the specific targets you will work towards in
order to achieve these. These must be set up to be SMART: specific, measurable,
attainable, relevant, and timely.
 Roles and Responsibilities
Setting and identifying the roles and responsibilities of your team and its members is
another fundamental part of your performance plan. Clarifying and clearly
establishing the roles and responsibilities of each member is significant in ensuring
that your plan is executed well. In writing these, you must, therefore, aim to be as
detailed as possible.
 Performance Measures
Performance measures refer to your Key Performance Indicators (KPIs). These are the
measurable and observable indicators that will help you determine if you are
performing as per your set standards as you achieve the objectives and goals that you
have set.
 Action Plan
The action plan is an integral part of your performance plan that delves into the
details of how you intend to execute your performance plan. It will include your action
items, expected outcomes, and the timeline of dates when you intend to implement
your plans. Action items are a key feature of your action plan. They determine what
ought to be done in your plan. Moreover, they also establish who ought to do these
items by means of assigning members for each action item.
104
4.4 Report Information on Operational Performance to Management
Finally, you must report the information on operational performance to management. This last step
will ensure that your operational plan will continuously improve and that its development is actively
supported by management.
4.4.1 Key Differences in Reports for Physical and Human Resources

Your reports for physical resources and human resources have key differences. By the nature
of the resources involved, your physical resource reports will highlight how your resources
have been used in projects and processes. These reports would look into how efficiently your
resources were used and how effectively they were able to improve your operations.
On the other hand, reporting the level of performance of human resources has to do with
your employees’ success in meeting set benchmarks and completing tasks that have been
assigned to them. Measuring employee performance is more straightforward than the former
since it focuses on the outputs and objectives that an employee was able to accomplish
through work.
In both cases, it necessary to report the adjustments you have made in the process of
evaluating performance against set service and product delivery standards. Both your physical
and human resources must meet product and service delivery standards. If in any point in the
usage of your physical resources you have made adjustments in the procedures set so you can
better align the allocation of physical resources with your standards, you must note the
reason for this and the specific rectification that you have made.
Likewise, for human resources, if you have adjusted the procedures for meeting these
standards to better align them with employee performance, you must also outline the
changes you have made. As it is with your physical resources, you must explain the reason for
the adjustment and specify the rectification you have made.
4.4.2 Key Considerations in Reporting to Management

As with any endeavour, you must make sure that your report is made appropriate to your
intended audience. To ensure than management will sufficiently consider your report, it must
be as detailed as possible. Include relevant documents, proof, statistics, records, etc. that
would substantiate the information you are providing.
Moreover, it is not enough to simply be detailed. You must balance this with clarity and
conciseness in your writing. This means being straightforward and reporting information.
Avoid going around in circles and make your key points stand out. This will help management
understand the information you are providing and more easily discern your key findings.
105
Activity 8
Using the clues provided, fill in the crossword puzzle below.
1. The kind of planning that ensures you have the right people with the right skills.
2. Something you must develop recommendations for.
3. Something your report to management must be aside from clear and concise.
4. Something you seek from all affected stakeholders aside from buy-in.
5. The kind of change you make to improve current business procedures.
106
Notes
107
 Your plan is a work in progress, and you may need to develop recommendations
to make variations to it.
 To properly present the recommendations you come up with, you must come up
with a plan for doing so.
 You are presenting recommendations for approval so that your operational plan
may be modified, as necessary.
 It is vital that you maintain records of your operational performance; these must
be kept in accordance with organisational policies and procedures.
 You must sufficiently report information on operational performance to
management.
108
The eventuation of risks identified in the project brief is one of the

reasons the need to make recommendations and vary your plan may
arise.
The variation in your operational plan can only be caused by poor

performance.
You must understand both the current process and the reason why this
needs to be changed.
It is enough to have an idea of what changes need to be made.
Procedures play a crucial role in embedding processes into the day-to-

day operations of your organisation.
There are key differences in your reports for human resources and
physical resources.
109
Summary
“The world rewards

those who take
responsibility for
their own success.”
Curt Gerrish
This unit of competency has been about how to make a plan and implement it – ensuring that it
reaches all goals and objectives that you have set. Ensuring that you know how to plan and
implement is crucial to your success as a manager. Implementing a plan involves many tasks:
 You must ensure that you have developed a plan that lists all resources required and provides
all necessary information for implementing the plan.
 You have identified key performance indicators that will allow you to monitor the process
and make sure it is working effectively.
 You have hired all staff required to undertake your plan.
 You have acquired all physical resources that are needed for the plan to be implemented.
 You have monitored your process to ensure it is meeting requirements.
 You have made any adjustments to your plan to keep its performance high.
As you can see, this is an on-going process of improvement – the better your plan is formulated, the
more effective it will be, and the easier the rest of the process will be to implement.
110
References
These are some references that we feel may be of assistance to you in completing the Assessment
for this unit of competency:
 Certo, S. (1999) Supervision: Quality, Diversity and Technology
 Managing underperformance. (2019). Fair Work Ombudsman.
https://www.fairwork.gov.au/how-we-will-help/templates-and-guides/best-practice-
guides/managing-underperformance
 Needle, D. (2001) Business in Context
 Policies and procedures. (n.d). Bounce Fitness. Retrieved September 9, 2020, from
https://bouncefitness.precisiongroup.com.au/category/policies-and-procedures/
 Robbins, S. & De Cenzo, D. (2002) Supervision Today!
 Types of change. (2018). Business Queensland. https://www.business.qld.gov.au/running-
business/employing/staff-development/managing-change/types
 Types of employees. (2019). Fair Work Ombudsman.
https://www.fairwork.gov.au/employee-entitlements/types-of-employees
111
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BSBOPS402 - Coordinate business operational plans (Release 1)

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Date Summary of modifications Version

Version 1 final produced following assessment

ABOUT THIS UNIT OF COMPETENCY............................................................................8

CHAPTER 1: PREPARE TO IMPLEMENT OPERATIONAL PLAN............................................9

1.5 Develop and Present Proposals for Resource Requirements.....................................28

Key Points: Chapter 1........................................................................................................ 34

CHAPTER 2: IMPLEMENT OPERATIONAL PLAN............................................................36

Key Points: Chapter 2........................................................................................................ 67

Key Points: Chapter 3........................................................................................................ 91

CHAPTER 4: REVIEW OPERATIONS BASED ON PERFORMANCE.......................................93

4.2 Present Recommendations to the Designated Persons or Groups to Gain Approval 97

Key Points: Chapter 4...................................................................................................... 105

Delivery and Assessment of Qualifications

Australian Core Skills Framework (ACSF)

BSBOPS402 - Coordinate business operational plans

1.1.1 Introduction to Operations Planning

Management is an ongoing process involving four major

Using the Appropriate Language and Structure in Consultation

Goods and services to be

Processes for Identifying Resource Requirements

o Sudden, unexpected changes in priorities and/or schedules

1. Identify need for resources

2. Determine resources required

3. Identify how the resources will be acquired

1. Identify need for resources

2. Determine resources required

Key Sources of Information

1.2.1 Resource Plan

Resource Plan for Company XYZ

1.2.2 Resource Capability Table

Team Member: Skill: Skill: Skill: Skill:

In order to complete this table, you need to:

Team Content Photo and Time Stakeholder

Full-time Part-time Casual

Fixed Term Shiftworker

 Type of work required from employees

1.3.1 Developing an Operational Plan

1.4.1 Objectives of Contingency Planning

Ensure continuity and survival of the business

Provide protection of corporate assets

Provide management control of risks and exposures

Provide preventative measures where appropriate, and to take proactive

1.4.3 Guide Questions

What are the What will a recovery How much is

Further guidance on managing contingencies will be provided in section 2.4.

Who will be responsible for the given

What is the possibility that elements

What are the financial, material, and

What are the due dates for each

What are the key actions that need

How will the plan be communicated

How will you know if you have

How will the objectives in the

How do you ensure that the plan

1.5.1 Writing and Developing Your Proposal

Management is only about being able to lead and control.

Organising involves arranging resources to get the work done.

The first step in developing an operational plan is to develop a set of

A resource plan is a chart that outlines the objectives you wish to