BSBMGT517 Manage operational plan

BSBMGT517 Manage operational plan
Learner Guide
BSBMGT517 Manage operational plan
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Contents
Unit of competency ……………………………………………………………………………………………………………………….. 3
Unit introduction…………………………………………………………………………………………………………………………… 3
1. Develop operational plan ……………………………………………………………………………………………………………….. 4
1.1 Research, analyse and document resource requirements and develop the operational plan in
consultation with stakeholders ……………………………………………………………………………………………………….. 4
1.2 Develop and implement consultation processes as part of the operational planning process……………. 9
1.3 Ensure the operational plan includes Key Performance Indicators (KPI) to measure organisational
performance……………………………………………………………………………………………………………………………….. 11
1.4 Develop and implement contingency plans at appropriate stages of operational planning ……………… 15
1.5 Develop and present proposals for resource requirements …………………………………………………………. 19
1.6 Obtain approval for the operational plan and ensure understanding among work teams ……………….. 21
2. Plan and manage resource acquisition……………………………………………………………………………………………. 24
2.1 Develop and implement strategies to ensure employees are recruited and inducted within HR policies
and practices ………………………………………………………………………………………………………………………………. 24
2.2 Develop and implement strategies to ensure physical resources and services are acquired ……………. 30
2.3 Implement intellectual property rights and responsibilities in recruitment and acquisition of resources
and service………………………………………………………………………………………………………………………………….. 31
3. Monitor and review operational performance ………………………………………………………………………………… 35
3.1 Develop, monitor and review performance systems to assess profit and productivity ……………………. 35
3.2 Analyse budget and actual financial information to monitor and review profit and productivity ……… 37
3.3 Identify areas of underperformance, recommend solutions and take action to rectify the situation … 40
3.4 Plan and implement mentoring and coaching to support team members……………………………………… 45
3.5 Negotiate recommendations for variations to the operational plan……………………………………………… 48
3.6 Develop and implement systems to manage performance procedures and records……………………….. 51
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Unit of competency
The course content and assessments are designed to provide the skills and knowledge that are laid out in
detail in what is known as a “unit of competency”. A unit of competency covers a number of learning areas
within a given subject and clearly defines what evidence, skills and knowledge are required for you to be
assessed as fully competent.
You may complete one single unit of competency, or you may undertake a number of units of competencies
that are part of a training package.
When you complete all the required units in a training package qualification and are assessed competent in
all of them, you are entitled to a qualification, for example: a Certificate II in Business.
If you do not successfully complete an entire qualification, you will receive a statement of attainment for the
individual units you have successfully completed. These may be used at a later date towards a full
qualification.
The performance criteria for this unit of competency are set by training.gov.au. You can use the details of
these performance criteria to help guide you through what areas of knowledge and skill are covered in this
unit and what evidence will be required from you to assess you as competent:
https://training.gov.au/Training/Details/BSBMGT517
Unit introduction
The term, operations, refers to all of the day-to-day functions of a business that contribute to making profits
and meeting customer requirements.
Operations management is aimed at identifying and controlling the systems and processes by which the
organisation produces its products and services for its internal and external customers. It is concerned with
ensuring businesses and teams use their resources (including time, people, equipment and money) to meet
customer’s requirements in an efficient and effective manner.
Understanding these key terms is essential in successfully implementing an operational plan.
The unit covers the skills and knowledge required to develop an operational plan, plan and manage resource
acquisition and monitor and review operational performance.
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1. Develop operational plan
Section 1 introduction
In this section, you will learn about developing an operation plan.
By the end of this section, you will be able to:
• Research, analyse and document resource requirements and develop an operational plan in
consultation with relevant personnel, colleagues and specialist resource managers
• Develop and/or implement consultation processes as an integral part of the operational planning
process
• Ensure the operational plan includes key performance indicators to measure organisational
performance
• Develop and implement contingency plans for the operational plan
• Ensure the development and presentation of proposals for resource requirements are supported by
a variety of information sources and seek specialist advice as required
• Obtain approval for the plan from relevant parties and explain the plan to relevant work teams
1.1 Research, analyse and document resource requirements and
develop the operational plan in consultation with stakeholders
Introduction
Operational plans are regarded as the “game plans” or “work plans” that apply to a work team or
department.
Operational plans are used to identify:
• the goals of the team, department or whole of business
• how the goals will be achieved
• what resources are required to meet the goals.
Therefore, the main purpose for having an operational plan is to guide a team’s resources and actions to
ensure team-based performance is aligned with strategic goals of the business and the objectives for the
financial year. They communicate the specific requirements that the department or team has control over.
Operational plans apply to shorter reporting periods or segments, such as a week, month or quarter, which
makes it easier to evaluate progress and determine if the business unit is on track with the organisation’s
longer-term organisational strategy.
Levels of business strategy
Managers must have goals and strategies in place to achieve the success that the organisation requires.
Strategy and planning go hand in hand. Strategy is defined as the direction, scope and focus of a leader or
organisation over a period of time.
There are three main levels of strategy in business:
1. Strategic plans – These explain the long-term objectives and direction of the organisation.
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2. Organisational plans – These explain the structure and key objectives for the next 12 months (fiscal
year).
3. Operational plans – These explain the day-to-day objectives, resources, budgets and short-term
methods needed to achieve milestones written in organisational and strategic plans.
For a copy of a strategic plan, refer to GSE Intranet > Policies & Procedures > Strategic & Operational Plans >
General > ‘Strategic Business Plan 20XX-20XX’
For a copy of an operational plan, refer to GSE Intranet > Policies & Procedures > Hospitality > General >
‘Constellations Cafe – Team Performance Plan’
Alignment with strategic plans and objectives
Operational plans must be aligned with each level of the organisation’s planning processes.
Throughout the hierarchy, the objectives and targets should be based on a cascading effect, meaning your
operational plans and benchmark targets should feed directly into the organisational objective, which feed
into the strategic objectives.
This relationship ensures that everything an employee, team and department does creates value for the
organisation, including its customers and stakeholders.
Components of an operational plan
An operational plan may contain (but is not limited to) the components below:
• Business background – How the operational plan aligns with organisational objectives and strategies
• Operational objectives – Your SMART objectives for the reporting period. These should be a
breakdown of your business objectives.
• Key performance indicators – Benchmarks used to monitor and measure operational performance.
These are a further breakdown of your operational objectives.
• Actions – The activities and strategies that will be implemented to achieve the KPIs and objectives
• Timeframes – When each objective or strategy must be achieved by – a deadline
Strategic plans – 3 to 5 year goals and
strategies
Organisational plans – Goals,
strategies and budget for the next 12
months
Operational plans – Goals and actions
for a reporting period, e.g. one
month, for a team or business unit
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• Resources – An outline of the physical, human, financial and information-based resources needed to
support the actions
• Roles/responsibilities – Duties of key personnel in making sure the plan is successfully implemented
and the goals are achieved
Operational plans can also contain information about the following:
• Risk management/contingency plans
• Communications to stakeholders
• Reviewing and evaluating performance
Operational plans can be set out in a basic table style document or a business report.
To view an example of a basic operational plan, refer to GSE Intranet > Policies & Procedures > Hospitality >
General > ‘Constellations Cafe – Team Performance Plan’
Develop the operational plan
The development of an effective operational plan involves the following activities:
1. Identify and review the strategic business goals and objectives set out in the strategic business plan.
2. Determine your reporting period for the operational plan, e.g. week, fortnight, month, quarter.
3. Research and document your resource requirements for the period.
4. Consult with relevant personnel to confirm the resource needs and actions.
5. Check your budget to ensure your operational plan does not exceed allocated finances.
6. Plan how you aim to achieve your objectives using a strategic approach.
7. Set key performance indicators which will be used as benchmarks of performance.
8. Allocate roles and responsibilities to competent and willing personnel.
9. Document your outcomes into an action plan.
Operational resources
At the heart of every operational plan – are the resources. In the case of operations management, you must
identify and plan for the resources that you will need to achieve your team goals and objectives as stated in
the operational plan.
A resource is defined as anything tangible or intangible that assists a person, team or organisation to achieve
its business goals. Although this definition is broad, it provides insight into the types of assistance that are
needed to ensure the operational plan is successfully implemented and achieved.
In the area of operations management, resource requirements may refer to the following:
1. People
2. Physical
3. Financial
4. Time
5. Information
Each of these five categories is explained in more detail over the next set of slides.
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People resources
The most important resource of all is people. A team’s ability to maintain profitability, achieve operational
objectives and meet client demands is often a direct result of the performance of the people (human
resource). Managers must undertake forward planning and forecast its HR needs and maintain optimum
staffing levels to meet KPIs.
Successful teams involve people with a level of skill, willingness, diversity and the ability to work together,
support each other, share knowledge and solve problems.
Some questions to consider include the following:
• What is the knowledge you need to meet the requirements of the operational plan?
• Is this knowledge available internally?
• Who has the expertise in which areas?
• Are there external specialists that can be utilised by you?
• Do you need to recruit specialist skills or knowledge?
• Do you need to increase the labour force?
Physical resources
The most practical resources you need to achieve the objectives of the operational plan are physical
resources. They can include anything tangible that makes work more effective and efficient.
Physical resources required for the successful provision of an operational plan include the following:
• Computing equipment and relevant internet technology
• Tools, machinery and other equipment
• Stationery and office materials
• Communications equipment
• Products
• Promotional aids
Financial resources
You may also need to allocate financial resources by developing a budget to implement your operational
plan.
This includes providing money for recruitment tasks, travel, promotional events, purchase of equipment or
purchasing marketing materials.
It is important that authorisation limits and allocated budgets are followed, and ongoing consultation with
key stakeholders such as Finance and the Operations Manager is undertaken to ensure budgets are not
exceeded due to excessive spending.
Time
Time is the only resource that if it is lost, it can never be retained. Time therefore is valuable – it equates
directly to money and must be used wisely.
Team members must be allocated appropriate time to fulfil their duties in the operational plan.
Time as a resource can include the following:
• Rostering staff to attend training and communication sessions
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• Scheduling time to conduct operational duties
• Approving overtime
Information
The final resource category is that of information. Good information leads to knowledge, which ends in
power. This power is used to plan, give the right instructions, keep people safe and productive, educate
others and make informed decisions.
Information needed to achieve the requirements set out in the operational plan can include the following:
• Development of new team policies and procedures
• Instruction manuals and user guides
• Access to product information and pricing guides
• Development of promotional materials
• Policy and procedural manuals
• Guidance materials for the team
• Contact details of customers
• Implementation schedules and planning requirements
Key questions to consider in resource planning
When determining the resource requirements for your operational plan, the following questions need to be
considered:
• What is the current workloads of the team?
• Where can you obtain the necessary resources?
• What are the required and current competencies of the people?
• Would it be more cost-effective to outsource work?
• Will training be required in order for the work to be completed?
• Can the workload of existing personnel/workers be balanced differently?
• Will you need to hire new people or equipment?
• What resource costs are involved and what is the allocated budget?
• Are there limitations to the types of resources you can use?
• What time restrictions apply to the operational plan?
• Are there safety considerations or requirements regarding the resources?
Resource planning chart
It is critical at this stage that every requirement is recorded and implemented into the plan. If any factor is
overlooked, it can cause detrimental setbacks in the implementation stage.
A useful tool to consider every factor of required resources is a resource planning chart, which sets the
objectives, resources, responsibilities and contingencies to a timeline to clarify exactly what needs to be
completed in what order.
Refer to the GSE Intranet > Policies & Procedures > Strategic & Operational Plans > General > ‘Resource
Planning Chart Template’
Consult on resource requirements
Obtaining accurate resource information not only requires research and analysis but also consultation with
relevant personnel who are involved in the day-to-day operations of the business.
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It is a key component in resource planning due to the number of variables involved in the process.
Relevant stakeholders must be involved throughout the operations planning phase to confirm the resource
requirements for the period.
Key personnel
The people that you may have to consult with to confirm operational resource requirements can include the
following:
• Colleagues and specialist resource managers
• Operations manager
• Managers and supervisors from other teams and departments
• Specialist resource managers and departments such as finance/accounts, human resources or
procurement
• Work health and safety committees and other people with specialist responsibilities
• Members of the work team
1.2 Develop and implement consultation processes as part of the
operational planning process
Introduction
Consultation is defined as a two-way process of ongoing communication between the key parties involved in
operational activities.
Without the contributions from key people such as team members, specialist resource managers and
colleagues, the required resource acquisitions and timelines may not be achieved.
Consultation processes
Consultation is about engaging team members and other stakeholders and is an integral part of the resource
planning process.
The consultation processes that are used to liaise with key personnel will vary according to the size of the
organisation and the nature of the operational plan. They must also include opportunities for every relevant
stakeholder to be included, which should involve two-way communication.
Consultation may be generic or target specific functions and be tailored depending on what is required from
the individual.
Consultation processes should consider who needs the information, what is involved, how much content
needs to be communicated and the best method to provide the information in the most efficient manner
possible.
Types of consultation methods
At the heart of the consultation process is the method by which you meet and engage with your key
stakeholders.
Methods used to consult with key personnel on team resource requirements can include:
• Team meetings
• Emails
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• Telephone conversations
• Teleconferences
• Webinars
• One-on-one discussions
• Briefs
• Internal memos
Involve your key stakeholders
A stakeholder is any person or group who has a ‘stake’ in the organisation. A stake refers to a degree of
influence on the company or someone that is impacted by the operations.
Stakeholders can be internal or external and have a direct or indirect influence on the strategic planning
process.
Consultation is ongoing
Consultation should be a regular and ongoing phase in the operational planning process, to ensure all
stakeholders have plenty of opportunity to contribute, and to allow for identification of any changes and a
rapid response to those changes. This also allows the operational plan to be refined and improved over the
period of the planning process.
Considerable time and effort can be spent on seeking contribution and feedback; but if it’s not utilised, then
this can end up having a negative effect on the operational plan.
Taking on board suggestions from stakeholders
As a manager, remember that you are seeking information and ideas on resource requirements, not
necessarily direction. It’s always your responsibility to decide for yourself how your team or department is
going to operate, in alignment with organisational policies and procedures.
Therefore, you do not have to implement every piece of feedback into your operational plan. You must be
the judge of what is best for your team.
Once initial consultation has been implemented, the operational plan and its course can be further
developed.
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1.3 Ensure the operational plan includes Key Performance
Indicators (KPI) to measure organisational performance
Introduction
From the first minute that your work team starts to implement the operational plan, you will want to track
their progress and completion status against the overall objectives of the operational plan.
Since the operational plan is a general guideline rather than a specific instruction, you need a set of
performance benchmarks to measure if your team or department is accomplishing what it is supposed to.
Measurements of this type are accomplished by identifying and using Key Performance Indicators (KPIs).
Key Performance Indicators
KPIs are clearly defined, quantifiable measures that reflect the critical success factors of an organisation,
business unit, team or process. They help understand how operations are progressing in relation to the
higher level objectives of the plan.
As part of developing the operational plan, you need to identify what KPIs you are going to use in order to
accurately track the results of your team’s efforts. These KPIs should align with the objectives of the
operational plan.
KPIs should be:
• clearly linked to business and team strategy, i.e. the things that matter most
• properly defined
• measurable.
SMART framework
Every work team and department should have their own KPIs which should in turn be linked to the
organisation’s KPIs – hence leading to a cascading effect.
The S.M.A.R.T acronym is often used to describe a format for writing effective KPIs:

Each letter in the acronym is explained in more detail next.
Specific
KPIs need to be specific to the individual job; and if possible, expressed as statements of actual on-the-job
performance.
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For example, a KPI should:
• be as detailed at a “ground-level” as possible
• explain clearly to the team what they need do in terms of performance to be successful
• have an impact on successful job performance, that is distinguishing between effective performance
and ineffective performance
• focus on the performance itself rather than personality attributes such as ‘attitude to customers’.
Measurable
KPIs must be measurable, which is job-related and based on performance that can be observed and
documented.
They should also provide teams with ongoing feedback on their standard of performance.
Achievable
KPIs needs to be a challenge – something that the team works hard towards. Therefore, it is good business
practice to set KPIs that aim to motivate the team to over-achieve. However, they must remain attainable,
ensuring that the organisation’s goals are at the forefront.
If KPIs are set too high (such as an ambitious production target), not only will it be irrelevant but it will also
ensure failure and a loss of morale within the team environment.
Relevant
It is essential that KPIs feed directly into higher level team and organisational goals, and that they have a
shared understanding within all stakeholder groups.
For example, team goals that aim to achieve different results than what the organisation needs will result in
lost time, wasted resources, disunity and frustration on the part of team members and managers.
Timely
KPIs should have an appropriate timeframe governing when they must be completed.
It should be possible to collect the relevant information either ‘as it happens’ or within a short time
afterwards; otherwise, it will lose its relevance.
Timeframes may be stated as the following:
• Quantity of work achieved per hour, day or week
• Allocated space of time or duration to achieve one task
• A specific productivity rate to assess progress
• Setting milestone dates for completion of major tasks
Developing operational KPIs
There are three basic steps to developing your team KPIs:
• Step 1: Identify the Key Results Areas
• Step 2: Confirm the outcomes required
• Step 3: Develop qualitative and quantitative metrics for positive performance and outcome
measures
Each of these three steps is expanded upon in more detail next.
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Step 1: Identify the Key Results Areas
Key Results Areas (KRAs) are the areas of responsibility for an individual and work team. They are generally
described in a person’s job description.
If KRAs are not pre-determined, you will need to analyse the job roles of the team to identify what areas of
the business they’re responsible for.
The KRAs will change significantly depending on the nature of work operations, campaign types and job
roles.
They may include the following:
• Lead generation
• Sales
• Customer service
• Safety
• Team participation
• Innovation
• Quality
• Administration and support
• Learning and development
• Leadership
Step 2: Confirm the outcomes required
Based on each KRA, identify the standards of performance that need to be achieved. Given that “what you
measure is what you get”, it is critical that the KPIs support the outcomes you want to achieve. (If you get
these wrong, everything that follows will be out of alignment).
For example:
• External – Improving service levels to customers
• Internal – Reducing operating costs to international benchmark levels
Step 3: Develop qualitative and quantitative KPIs for positive performance and outcome
measures
Within each KRA, you must determine how you will measure the team and individual performance to assess
whether the area of responsibility has been fulfilled.
There are two types of performance measures that can be used in performance management:
1. Outcome/lagging indicators – targets used to measure the final achievements
2. Positive performance/leading indicators – the targets used to measure progress toward the final
outcomes
Quantitative KPIs are based on identifiable numbers and statistics. Qualitative KPIs are based on quality
outputs and are not as easily measured as quantitative measures. This is because the information is often
taken from perception and observation not statistical analysis and core data.
Quantitative and qualitative data
Quantitative data can be found in the following:
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• Sales reports
• Stock-take sheets/inventory lists
• Product recalls
• Waste reports
• Complaints register
• POS systems
• Customer survey/questionnaire results
Qualitative data can be found in:
• Personal observation
• Customer feedback
• Feedback from sales and service teams
• Word of mouth
Outcome and positive performance indicators are generally quantitative based, as these are easier to
monitor and measure. Qualitative performance measures such as customer satisfaction, service quality and
errors can be used to gauge progress toward the required outcomes.
Examples of team KPIs

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1.4 Develop and implement contingency plans at appropriate
stages of operational planning
Introduction
A contingency plan prepares a business for “Plan B” and is set-up and ready for an outcome that is
unplanned or in case of an emergency. Contingencies are essentially threats or risks associated with the
operational plan.
No matter how well an operational plan is researched and developed, not every outcome can be predicted.
The contingency planning process puts the organisation in the best possible position to manage any hiccups
that occur along the way. Even though these plans may not be implemented, it is still critical to develop and
review them on a continual basis.
Objectives of contingency planning
The major objectives of contingency plans 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.
Develop a contingency plan
Managing contingencies is an important part of successfully implementing an operational plan and involves
the development of a formal mitigation process.
Developing a contingency plan involves planning and understanding what can go wrong and what needs to
happen if these threats occur.
To effectively manage the contingencies associated with implementing operational plans, use the following
steps:
1. Identify the contingencies
2. Analyse and evaluate contingencies
3. Document a contingency plan
Each of these steps is covered in more detail next.
Step 1 – Identify the contingencies
The first step in managing contingencies is to identify the potential issues – “what can go wrong?” Risks to
the successful implementation of an operational plan can include the following:
• Over-spending of finance
• Lack of human, physical or financial resource availability
• Team members not having the required skills to meet the requirements of the plan
• Team members disagreeing or rejecting proposed actions
• Changes to organisational and strategic plans
• I.T. failures
• Conflicts, grievances or disputes within the team
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• Increased competitor activity
• Work health and safety (WHS) incidents
As a manager, you should work together with your stakeholders to identify as many potential contingencies
as possible that relate to your operational plan.
This could involve the following:
• Obtaining feedback from managers
• Reviewing past team performance
• Seeking advice from specialists such as accounts, procurement, human resources and WHS team
• Surveying customers
• Consulting marketing teams
• Seeking feedback from employees
Step 2 – Analyse and evaluate contingencies
Once contingencies have been identified, they need to be assessed for their impact to the business and the
likelihood of their occurrence. Risks may be plotted into a matrix according to a combination of their
probability and consequence as follows:
Risk consequence can be simple to measure, such as lost sales due to downtime from an I.T. failure.
However, it increases in complexity when addressing less tangible impacts such as drop in staff morale.
Probability can also be easy to measure when it applies to situations that have occurred previously. For
example, it would be considered likely that productivity will drop for a period following any major changes to
team processes and systems based on similar circumstances in the past. Probability can equally be very
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difficult to measure when it applies to unknown situations where no one is sure how likely the risk is to
occur.
In the risk assessment process, it is critical to obtain as much information as possible regarding past
contingencies and their impact on team operations. This will allow you to concentrate your resources and
efforts on the risks that pose the greatest threats and for the highest risks to be prioritised within the
contingency plan.
Refer to the GSE Intranet > Policies & Procedures > Strategic & Operational Plans > Risk Management > ‘Risk
Assessment Matrix’
Step 3 – Document a contingency plan
Risks to the implementation of your operational plan can arise for many reasons. Therefore, you need to
document how these issues will be dealt with if they arise.
A contingency plan details the actions to be taken should an identified risk be realised.
Review the following example which explains how contingencies are documented and managed:

It is important that management has agreed to the documented contingency plan actions prior to the
commencement of the implementation process. This ensures that if a risk occurs, the contingency plan can
be actioned immediately, thus minimising and controlling the damage as effectively as possible.
Actions to respond to contingencies
There are a huge range of contingencies that you may have to face. Therefore, as manager you must be able
to adjust the operational plan to cater for those different events.
Contingency plans can include consideration of the following actions to mitigate risk:
• Modifying the timeframes, KPIs or objectives of the operational plan
• Outsourcing human resources for specific functions or tasks
• Finding cheaper or lower quality raw materials and consumables
• Increasing sales or production
• Recycling and re-using
• Implementing health and safety initiatives and measures to prevent unnecessary illnesses and
incidents
• Rental, hire purchase or alternative means of procurement of required materials, equipment and
stock
• Restructuring of the team to reduce labour costs
• Risk identification, assessment and management processes
• Seeking further funding
• Strategies for reducing costs, wastage, stock or consumables
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• Succession planning
Guidelines for developing the contingency plan
Remember these guidelines when you prepare your contingency plan:
• Your main goal is to maintain effective team operations – Look closely at what you need to do to
deliver in the operational plan as a minimum level of service and functionality.
• Define time periods – What must be done during the first hour of the plan being implemented? The
first day? The first week? If you look at the plan in this way, you’re less likely to leave out important
details.
• Identify the triggers – What specifically will cause you to implement the contingency plan? Decide
which actions you’ll take and when. Determine who is in charge at each stage and what type of
reporting process they must follow.
• Keep the plan simple – You don’t know who will read and implement the plan when it’s needed so
use clear and plain language.
• Consider related resource restrictions – Will your organisation be able to function the same way if
you have to implement Plan B, or will Plan B necessarily reduce capabilities?
• Define ‘success’ – What will you need to do to return to ‘business as usual’?
• Include contingency plans in standard operating procedures – Make sure you provide initial training
on the plan, and keep everyone up to date on changes.
• Manage your risks – Look for opportunities to reduce risk, wherever possible. This may help you
reduce, or even eliminate, the need for full contingency plans in certain areas.
• Identify operational inefficiencies – Provide a standard to document your planning process, and find
opportunities for performance improvement.
Actioning the contingency plan
When should a contingency plan be put into effect?
The answer is: whenever it is needed.
That does not necessarily mean that a crisis has to occur to require the implementation of a plan.
The triggers that indicate a need could be that some performance reports don’t show the required level of
improvement after a pre-determined period of time.
In such a case, that would show failure of the primary plan, indicating a need to modify an aspect of the
operational plan, or implement a different mitigation strategy.
Maintaining the contingency plan
After you prepare the contingency plan, you need to do several things to keep it practical and relevant. As
your operational environment evolves, you’ll need to review and update your contingency plans accordingly.
Here are some key steps in the contingency plan maintenance process:
• Consult on the plan with all relevant stakeholders.
• Assess the results of training, and make any necessary changes.
• Review the plan on a regular basis, especially if there are relevant environmental, technological,
operational, and personnel changes, by reassessing the risks.
• Analyse efforts to control risk by comparing actual performance with the performance levels
described in the contingency plan.
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• Recommend and make changes, if necessary.
• Distribute revised plans throughout the team and your stakeholder groups, and make sure that the
old plan is discarded.
1.5 Develop and present proposals for resource requirements
Introduction
The operational plan provides details on actions required to achieve specific objectives and the resources
required to execute these actions.
At times, a formal proposal will need to be developed and presented to key stakeholders to acquire the
resources for the plan; for instance, the resources may be beyond the capacity of the organisation or exceed
the budget.
Overview of business proposals
The standard way of requesting resources is through a business proposal.
This is a formal document, which outlines the following:
• Reasons for the need
• How the resources will be used
• Costs involved
• Advantages to the business
• Disadvantages of not acquiring the resource
In a sense, a business proposal is an internal sales document. You are trying to sell upper management on
the idea of spending money for resources that you need to accomplish the objectives of the operational
plan.
Therefore, your proposal needs to convince and overcome whatever arguments there might be against
spending the money for those resources. This means that you will need to be sure that you write in a
convincing manner.
Refer to the GSE Intranet > Policies & Procedures > Strategic & Operational Plans > General > ‘Recruitment
Proposal for Expansion into South Australia’
Contents of the proposal
Typically, a business proposal will be divided into a number of key sections. Each section should outline a
different part of your proposal.
Below is an outline of the sections that a standard business proposal will typically include:
• Introduction – Provide a brief overview of the context of the proposal and what you are trying to
achieve within your team environment.
• Background – This section should aim at discussing the problem that needs a 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. Explain exactly what resources you need, why the resource is required
(what issues it addresses), what it will be used for and where it will be acquired from.
• Supporting evidence – Explain the quantifiable data that you have gathered that proves the
acquisition of the resource is going to be of benefit to the team and organisational plans. These
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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 and talk about costs versus benefits.
• Methodology – This section should explain exactly how the resource will work, and if approved, how
they will be implemented into the operational environment. 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.
• Risks/issues – Outline any risks or opposing conflicts that the acquisition may pose to the team or
organisation, including implementation of the resources and its impact on existing processes.
• Budget – Explain how the resource is within budget limitations and any more cost-effective options.
This should also cover any requests for changes to the budget to purchase the required resources.
• Schedule – Include a detailed timeline for implementation of the new resource. This should include
milestones that are implemented over the lifetime of the operational plan. If your plan runs over a
period of months, show the dates by which each milestone needs to be reached.
• Recommendations – Provide an overview of your recommendations moving forward, based on valid
evidence and the benefits of implementing the proposal.
Guidelines for developing the business proposal
Below are some key guidelines to apply when organising the proposal:
• Clearly state that the document is a proposal.
• Don’t try and impress your audience with words; keep it simple and to the point.
• Try and anticipate the questions your audience will have and prepare an answer in advance.
• Any request to spend money should be supported with a description of the costs and the benefits,
such as a CBA (cost benefit analysis) or ROI (return on investment).
• If you can’t show a financial benefit in spending the money, try and show a financial loss for not
doing so. That is almost as effective.
• Be clear in stating the problem/need and the proposed solution. If there were other solutions
investigated, briefly explain them and why they were not chosen.
• Present your information in an organised manner, which builds up to the conclusion.
• Don’t be afraid to mention that a specific action of the operational plan can’t be completed without
the resources you are asking for in your proposal; just be ready to back that up with valid evidence
to justify your request.
• Be sure to use headings and sub-headings on your sections so that the reader can find what they
want quickly. If your proposal is lengthy, provide an index.
Seek specialist advice
When putting together your proposal, you may need to seek the advice of internal or external specialists to
ensure it is powerful and influential in achieving your aims. This is particularly important if you are relatively
new and inexperienced in writing business proposals.
The more input and guidance you can take on board, the better your document will be which will increase
the likelihood of it being approved.
Specialist advice may come from the following:
• Peers/other managers
• Human resource staff
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• Resource managers
• Accounts personnel
• Operations manager
• Business consultants
• People within your external network groups
Organisational templates and style guides
Since every proposal is different, you may find that your organisation has a style guide or template with
different sections than those presented here or is in a different order.
A style guide explains the parameters that you need to follow when writing a business document, such as
font style, formatting structure, as well as a list of rules for content, proofreading, editing, formatting,
presentation, referencing, saving and storing files.
A template is a document that can be opened with the formatting, layout, sections and some text already
applied.
Where style guides and templates are made available, you should always utilise them to ensure consistency
and professionalism in your reports and presentations. They ensure consistency in document layout and
saves time and effort for both the developer and the reader.
Refer to the GSE Intranet > Policies & Procedures > Style Guides & Templates > General >
• ‘Report Template’
• ‘Style Guide’
Presenting the proposal
A business proposal may be presented to the key decision makers through a face-to-face formal meeting,
using Skype video conferencing, via email, use of file sharing technology or sent through internal mail.
Where possible, you should present your proposal to upper management in person. If you just send it via
email or internal mail, you don’t know if they will take the time to read it. By presenting the proposal in
person, you are assured that they have received the information and will respond to you accordingly.
1.6 Obtain approval for the operational plan and ensure
understanding among work teams
Introduction
Once the operational plan has been developed with the contingency plans and proposals (if required), it will
then need the formal support and approval of relevant parties.
This step in the process is important in ensuring your key stakeholders are in agreement as to what is
contained in the plan.
This is the final step before implementation.
Obtain approval
It is important to ensure approval from relevant parties so that they are in agreement to what is contained in
the plan and that it accurately supports organisational and strategic plans.
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Once you have developed the operational plan, you must submit the document to the relevant authority for
formal approval. This should be via an email or formal face-to-face presentation.
The relevant authority that will sign off on the plan will usually be the Operations Managers, General
Manager, Business Owner or other Senior Manager.
Check your organisational chart and workplace procedures for obtaining authorisation and approval before
implementing your operational plan.
Implementation of the operational plan
Before going ahead and implementing the operational plan, you need to consider how it can be best
introduced into the work team and what your staff needs from you. Successful implementation of the
operational plan requires careful consideration, consultation, planning and organisation.
You will need to break down the operational plan into specific tasks and determine the level of
communication and support that you need to provide, as it applies to your work team.
Components of a successful implementation process
An effective implementation process will generally include the following components:
• Consultation and communication – Effective consultation and communication with team members
will ensure everyone understands the objectives and what is expected of them in terms of their KPIs.
As the manager, you can also gather feedback on any issues, concerns and improvements to the
operational plan when you engage your team members in the implementation process.
• Training and support – Depending on the outcomes required from the operational plan, team
members may require a level of training and physical on-the-job assistance to get underway. On-thejob supervision, coaching and availability of management is crucial if workers have queries or
concerns that need to be addressed. Training must be competency-based (outcome-focused) for all
workers that are affected by the process.
• Resource support – In addition to the resource requirements outlined in your operational plan, you
may require additional resources to assist in the implementation of the plan. These may include
resources to support training or to deliver a formal presentation to the team to communicate the
details of the plan.
• Task schedule – Based on the proposed initiatives, a timeline of events may be required stating
when each activity must be implemented, with a deadline date that the team will work towards.
• Integration – An important element of implementing an operational plan is integration. It is essential
to consider how any changes will fit in with existing systems and processes in your team such as
contingency planning. Considering impacts on other management systems can help you to simplify
the administration of the plan, reduce downtime and errors, and support other team objectives.
• Assigning roles and responsibilities – An implementation process should confirm the roles and
responsibilities of team members. These duties need to be clearly communicated to each person
and supported in writing.
Importance of the implementation process
A well-planned implementation process helps to ensure the team starts off the new reporting period on the
right foot. Failing to clearly outline who is responsible for which aspect of a plan can result in confusion and a
failure to complete tasks on time, which can cause disruptions in the implementation of important initiatives
of your team’s operations.
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You need to identify each of the individual tasks required to achieve the desired outcomes of your
operational plan and consider what support, information and resources the team needs to meet the
requirements.
It is critical that you clearly define each task in the implementation process as well as the people responsible
for completing them.
Effective communication of the plan
A common complaint in business is that management and employees do not know the vision of the
organisation that they work for. This issue is generally as a result of lack of engagement and poor
communication of the operational plan once it is developed. Although front-line workers do not need to
know all of the details of a plan, it is important that they learn about and understand the vision, mission,
values and strategic goals of the organisation.
In simple terms, the real success of operational planning is in the implementation. Therefore, you need to
know how to communicate the plan to the organisation and who needs to know what information.
Communication methods
A plan not yet communicated has no power to impact change, inspire workers or command a new direction
that is needed to meet strategic objectives of the business.
A communication method (or vehicle) must be carefully chosen to ensure the information is provided to the
right people in a reasonable timeframe.
Details of the operational plan can be communicated using the following methods:
• Team briefings to engage front-line workers
• Newsletters/e-letters
• Holding short one-to-one meetings with key managers across the organisation
• Distributing a copy of the plan via email
• Posting highlights of the plan on the front page of the staff portal
• Displaying the plan in prominent locations across the team working area
Communications plan
Details of the communication process can be documented using a communications plan.
This plan should include a clear explanation to your work team about each of the following elements of the
operational plan:
• The objectives, KPIs and actions of the operational plan
• How the operational plan supports the greater organisational goals
• Resources that are allocated to support the actions
• Timeframes for when the objectives need to be achieved
For an example of a communications plan, refer to the GSE Intranet > Policies & Procedures > Human
Resources > General > ‘Communications Plan’
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2. Plan and manage resource acquisition
Section 2 introduction
In this section, you will learn about planning and managing resource acquisition.
By the end of this section, you will be able to:
• Develop and implement strategies to ensure that employees are recruited and/or inducted within
the organisation’s human resources management policies, practices and procedures
• Develop and implement strategies to ensure that physical resources and services are acquired in
accordance with the organisation’s policies, practices and procedures
• Recognise and incorporate requirements for intellectual property rights and responsibilities in
recruitment and acquisition of resources and services
2.1 Develop and implement strategies to ensure employees are
recruited and inducted within HR policies and practices
Introduction
It is a known fact that people are an organisation’s most valuable resource. All the equipment, processes and
technology available will not make team operations successful if the wrong people are selected for the job.
People are often the most expensive resource and can be the most unpredictable. Recruiting and inducting
the right people is a vital function of operational management and can have enormous impacts on the
achievement of team objectives.
Core recruitment tasks
Recruitment is the process of searching for and identifying applicants in sufficient quantity and quality to
meet operational requirements.
The major tasks that are conducted in a recruitment campaign include the following:
1. Confirm approval from appropriate manager to recruit
2. Consult on job description for position requirements
3. Develop job description
4. Advertise internally or externally
5. Develop interview guides and materials
6. Arrange interview dates with appropriate personnel
7. Arrange location for interviews
8. Conduct 1st interviews
9. Conduct 2nd interviews
10. Conduct reference checks
11. Make selection decision
12. Make an offer to applicant
13. Complete all required administrative paperwork
14. Conduct induction and orientation
15. Commence in role
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Internal recruitment
Internal recruitment is the assessment of the organisation’s existing talent pool to identify if any current
employees are sufficiently skilled or qualified to perform the required job vacancies.
When a business engages in internal recruitment, an existing employee may be reassigned to the new
position by giving them either a promotion or an internal transfer, return to work from long-term leave (such
as parental leave) or re-deployment.
Examples of internal sources of recruitment include the following:
• The organisation’s intranet site
• Word of mouth
• Referrals from management
• Internal talent management pools
• Online job portals
• Email notification
• Staff noticeboards
Advantages
• Cheaper and quicker than an external search
• Employees are already familiar with organisational policies, culture, etc.
• Signals to employees that career opportunities exist in organisation
• Rewards loyal and talented employees
Disadvantages
• Training will be needed and learning curves will occur for the new duties
• Jealousy, division and loss of morale for workers who did not get the job offer
• Politics and personal bias can be blamed for a candidate selection, causing disruption in team
dynamics
• Recruitment is required to fill the position left behind in the employee’s previous team
External recruitment
External recruitment means looking outside of the organisation to fill a vacancy. It is the assessment of the
current available pool of job candidates in the labour market, other than existing staff, to ascertain if any are
sufficiently skilled or qualified to fill and perform existing job vacancies.
The main external sources of recruitment include the following:
• Internet-based job advertising websites such as seek.com
• The organisation’s website
• Social media such as Facebook and Twitter
• Networking sites such as LinkedIn
• Alumni newsletters used to maintain contact with former employees
• Industry journals
• Newspapers
• Accessing graduate programmes
• Radio
• Recruitment agencies or specialists
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• Walk-ins and expressions of interest
• Existing applicant database
Advantages
• Provides new ideas/fresh perspectives
• Increase opportunities to find candidates with more advanced qualifications, experience and
competencies
• Hiring experienced employees can reduce training needs
• Increase diversity
• Bigger talent pool/more applicants
Disadvantages
• Less information available on applicants means greater risk of the candidate not turning out as
planned
• More time-consuming and costly
• External candidates take time to become familiar with current systems and organisational culture
Selecting the right candidates
The decision to hire a candidate must be made based upon a set of selection criteria. These are short
succinct statements specifying the essential and desired competencies and attributes that you and your
organisation are looking for in the new employee.
This task is completed at the start of the recruitment process as the criteria forms the foundation for job
advertisements, resume screening, telephone and face-to-face interview stages, as well as the short-listing
and final decision-making processes.
Establishing the selection criteria
In the recruitment process, decisions made must be based on valid, reliable and sufficient data. Selection is
not just about making a decision; it is also about gathering information about a person’s potential and ability
to fulfil the requirements of the job role and meet the pre-determined criteria.
The selection criteria should be taken from the job description, values, policies and procedures and
additional short and long-term needs of the business, such as the objectives and KPIs stated in the
operational plan.
Examples of selection criteria include the following:
• Knowledge of the job role requirements
• Ability to work in the designated environment
• Willingness to learn and adapt to new conditions
• Required skill types and levels
• Demonstrated experience in similar roles
Gathering information about candidates
To ensure the candidate you select is the best person for the position, you will need to gather as much
information about their competencies as possible and evaluate this information against the selection
criteria.
Examples by which this information can be gathered include the following:
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• Resumes
• Application forms
• Aptitude test or IQ testing outcomes
• Observational reports from “behaviour in leaderless groups” simulations
• Role playing/demonstration of techniques or technical skills
• Interview questions and outcomes, including structured interviews, behavioural interviews or other
interviewing methodologies
• Personality testing outcomes
• Referee reports
• Use of an assessment centre
• Psychometric testing reports
Employee induction
Once a new employee has been selected, he or she needs to be inducted into the workforce. For a new staff
member, the future employment relationship is heavily dependent by the way in which he or she settles into
the job.
A poor induction process can result in poor performance and low job satisfaction, absenteeism, and high
staff turnover. All of which will impact on the team’s costs, including low productivity and profitability.
Purpose of the induction
The purpose of an induction is to successfully integrate the new employee into the work team and
organisation. Giving regard to the costs involved in planning, advertising, screening, interviewing and
selecting the employee, it is essential that the process runs smoothly to ensure the investments pay off.
At a practical level, there are many tasks to organise to induct a new employee correctly. Most organisations
will have set induction procedures; however, these may vary depending on the role of the new starter.
Elements of an induction program
A good induction program will assist the new employee to settle into unfamiliar surroundings and become a
productive worker more rapidly and with less stress.
Induction programs should contain three (3) major components:
1. Orientation
2. Socialisation
3. Induction training
Each of these components is covered in more detail next.
Orientation
The orientation program should provide new employees with basic information about the company, its
goals, organisation structure and detailed job requirements.
It should also cover the organisational structure, hierarchy and its goals, company operations, rules and
regulations and safety procedures.
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Socialisation
Socialisation involves introducing the new employee to the existing members of the work team and
providing opportunities for staff to get to know their new colleague. This may include the use of team
meetings, team building events or social events/work outings such as a team lunch.
It can be helpful to appoint an existing employee to be a buddy or mentor for the new worker to assist with
this process.
Induction training
Induction training includes the following activities:
• Showing and discussing job tasks
• Showing the necessary documentation and paperwork involved
• Illustrating how to use equipment and resources
• Demonstrating how tasks are carried out
• Demonstrating and explaining the use of the computer system
It is important for the manager to develop an induction checklist to ensure that everything has been
completed and carried out to the right standards.
Refer to the GSE Intranet > Policies & Procedures > Human Resources > Recruitment > ‘Employee Induction
Checklist’
Timelines
A standard recruitment and induction process can take between 6-12 weeks. Therefore, as manager, you will
need to plan well in advance for your team’s human resources needs to ensure your operational plan is a
success. You will need to understand your organisation’s recruitment and induction policies, procedures and
processes to determine sufficient timelines.
The most effective way to ensure timeframes are met is to start from the date when the position should be
filled and work backwards. The schedule describing the recruitment activities must be carefully planned to
achieve the agreed outcomes within the allotted time.
Key personnel involved in recruitment and induction
Often the recruitment and selection decisions are not made by one person but rather a collaboration with
different people within the organisation to achieve a successful result. Most companies have a Human
Resources (HR) Manager or HR department who will be more than happy to work with managers in
recruiting the right staff for the role.
Other key personnel involved in the recruitment and induction process can include the following:
• Hiring manager – The person at the centre of the process who is responsible for ensuring the right
candidate is selected for the position. This may be the manager of the work team or a specialised
member of the HR department.
• HR department – The human resources representatives who provide information and support to the
Manager throughout the process
• Resourcing centre – The department within the organisation that facilitates the end-to-end
recruitment of the candidates in conjunction with the Hiring Manager
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• Remuneration department – The area of business responsible for identifying the package and salary
range for the vacant position in relation to the current marketplace. This may also be completed by
the payroll team, HR department or finance officer.
• General manager – The person responsible for the final sign-off, giving authorisation to the Hiring
Manager to plan for the recruitment and confirm the selection of a candidate
• Trainer – The person responsible for facilitating the formal induction and orientation program
Recruitment, selection and induction policies, procedures and practices
The recruitment and selection processes will often vary between organisations. Depending on the industry,
products, services, position level and nature of the work, organisations may use different approaches to seek
applicants and apply different styles of interviewing during the selection process.
Recruitment, selection and induction policies provide a guide for action and a statement of the
organisation’s human resource acquisition objectives. The policy will describe the organisation’s legislative
requirements, commitments, expectations and standards for recruitment, selection and induction, as well as
the various roles and responsibilities of key parties who have an impact on the process.
The procedures set out the step-by-step guidelines that must be followed to ensure the requirements and
the policy are achieved and the organisation is compliant with its internal and external requirements.
The practices refer to the approaches used by the business when conducting the recruitment and induction
process. These include the selection of advertisement channels and technologies, interview and assessment
techniques, selection practices and induction and orientation styles.
Refer to the GSE Intranet > Policies & Procedures > Human Resources > Recruitment >
• ‘Employee Induction Policy’
• ‘Recruitment and Selection Policy’
• ‘Employee Probation Policy’
Legislation impacting on the recruitment and selection process
The way the recruitment and selection process is conducted must be compliant with a range of
commonwealth and state/territory legislation. This includes practices followed in the advertising,
interviewing, selection and induction process.
Key legislation impacting on the recruitment, selection and induction process include the following:
• Competition and Consumer Act 2010 – Prohibits misleading or deceptive conduct about the
availability, nature, terms or conditions of employment, including any form of advertisement
• Fair Work Act 2009 – This Act prohibits unfair and unlawful conduct in the workplace including
minimum conditions for employment that must be offered as well as discrimination.
• Racial Discrimination Act 1975 – This Act prohibits discrimination based on race, colour, national or
ethnic origin and immigration.
• Disability Discrimination Act 1992 – This Act prohibits discrimination based on mental or physical
impairment (including disease). Employers are required to provide ‘reasonable accommodation’ in
the case of a disabled employee or job applicant.
• Sex Discrimination Act 1984 – This Act prohibits sexual harassment and discrimination based on
gender, marital status and pregnancy.
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2.2 Develop and implement strategies to ensure physical
resources and services are acquired
Introduction
An organisation will generally establish policies and procedures that outline how physical resources and
services are purchased to provide parameters on suitable vendors, methods of payment and any associated
risk.
The vendor selection process should be streamlined and controlled. Depending on the volume of purchases,
policies will contain processes that can involve creating vendor selection criteria and constraints, prioritising
and weighing the criteria and constraints and then analysing the results to determine the most suitable
vendor.
Organisations will also implement a policy on the total number of vendors, as limiting this can deliver cost
savings and enhance the vendor relationship by increasing business with fewer preferred vendors.
Physical resources and services
The quantity and type of physical resources and services will vary according to your operational plan.
Examples of physical resources and services include the following:

Purchase order method
The most common method used to purchase physical resources and services is through the use of a
purchase order. This is common for larger organisations that are making numerous purchases a day.
The purchase order method provides the following advantages:
• The purchase order provides all required details such as tax, delivery/invoice address, payment
terms
• Provides a legal contract between the organisation and the vendor
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• Assists in acquiring the best possible price with new and current vendors
• Allows for easier ordering and payment, receipt of product and payment tracking
Refer to the GSE Intranet > Policies & Procedures > Finance > General > ‘Purchase Order 4965’.
Procurement policies, procedures and practices
The term procurement means to plan for and acquire (or purchase) resources such as products, services or
contracts, in line with organisational budgets and plans.
An organisation will generally establish policies and procedures to outline how physical resources and
services are purchased. They aim to guide those in a position to acquire resources, to ensure the purchases
meet the organisational requirements including quality, time, cost, quantity, selection and use of preferred
suppliers, methods of payment and any associated risk.
Organisations will also implement a policy on the total number of vendors as limiting this can deliver cost
savings and enhance the vendor relationship by increasing business with fewer preferred vendors.
Refer to the GSE Intranet > Policies & Procedures > Finance > General > ‘Accounting Policy and Procedure’
2.3 Implement intellectual property rights and responsibilities in
recruitment and acquisition of resources and service
Introduction
Intellectual Property (IP) is a term that describes the application of the mind to develop something new or
original. IP can exist in various forms; a new invention, brand, design or artistic creation. Organisations need
to take steps to ensure their intellectual property is protected.
Operational plans can contain confidential information that should not be disclosed to the public, including
different types of IP. When recruiting new workers, purchasing goods or arranging service agreements with
suppliers, this information may need to be disclosed as part of the resource acquisition process. IP rights and
responsibilities must therefore be clarified with external personnel as this level of protection will prevent
unnecessary theft of your IP.
Protection of intellectual property
IP Australia states that “Intellectual property is an important asset in today’s knowledge economy and should
be strategically managed”.
Like a piece of physical property, IP rights are owned and can be sold or licensed. They offer protection and
can deter infringement. They provide exclusivity and can be used to protect different aspects of a product or
service in different countries.
IP rights establish ownership and exclusive control of your ideas and confidential information. Registered IP
rights are not granted automatically. You need to apply with IP Australia and meet specific criteria under the
legislation.
Relevant legislation
The following legislation govern your rights and responsibilities in relation to IP:
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• Patents Act 1990
• Designs Act 2003
• Copyright Act 2006
For more information on IP, visit the IP Australia website: https://www.ipaustralia.gov.au/understanding-ip
Types of intellectual property
The following types of IP may exist within an operational plan.
• Patents
• Trade marks
• Design
• Plant Breeder’s Rights (PBR)
• Copyright
• Trade secrets and confidentiality
• Business intellectual property
Each of these types is covered in more detail in the next sections.
Patents
A patent is granted for any device, substance, method or process that is new, inventive and useful. It gives
you the right to stop others from using and selling your invention. You can manufacture and commercialise
an invention yourself or you can assign or license your patent to others.
Example: The Cochlear bionic ear implant is a device designed to help the hearing impaired and the
profoundly deaf who are unable to benefit from traditional hearing aids.
Cochlear Pty Ltd has over 700 patents and patent applications worldwide protecting key features of the
implant. The University of Melbourne and the Australian Government also hold patents covering early
research, which have been licensed to Cochlear.
Trade marks
A trade mark can be a letter, number, word, phrase, sound, smell, shape, logo, picture, aspect of packaging,
or combination of these, that distinguishes your goods and/or services from those of other traders. It
protects the identity of your goods and services and is a vital element in developing and maintaining a brand
Example: QANTAS and the winged kangaroo logo are registered trademarks.
Design
A registered design protects the way manufactured products look. Specifically, design refers to the visual
features of shape, configuration, pattern or ornamentation of a product. Registration prevents other
manufacturers from producing products bearing the same design. A registered design that has been
examined and certified gives you a legally enforceable right to use your product’s design to gain a marketing
edge.
The design industry includes the following:
• Architecture
• Digital media
• Exhibition design and display
• Fashion design
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• Furniture design
• Graphic design
• Industrial design
• Interior design
• Jewellery design
• Landscape design
• Television, film and set design
• Textile design
Plant breeder’s rights (PBR)
Plant breeder’s rights are exclusive commercial rights to a registered plant variety. The rights are a form of
intellectual property like patents and trademarks.
Copyright
Copyright protects the original expression of ideas, not the ideas themselves. It protects your original works
of art, literature, music, films, broadcasts and computer programs from unauthorised copying.
An example would be this Learning Guide. Look in the footer and you will see the copyright symbol © of the
author. The Registered Training Organisation that is providing your training for this course purchased the
Licence to use the resource. Both parties signed a Licence Agreement and agreed to the terms and
conditions of use.
Copyright is automatic in Australia and generally lasts for 70 years after the death of the creator. Copyright
legislation is administered by the Australian Government Attorney-General’s Department.
Trade secrets and confidentiality
Trade secrets and confidentiality mean the same thing – maintaining secrecy.
Trade secrets are useful when the IP is unlikely to be registered (or is not registrable) or if you wish to retain
exclusive use of the IP beyond the term of a patent. There is no protection under legislation.
Example: The recipe for Coca-Cola is a trade secret.
Business intellectual property
The following list identifies IP and other intangible assets that may be associated with a business:
• Patents and trade marks
• Domain names
• Marketing strategies
• New products and services
• Copyright and industrial design registration
• Franchises and licences
• Distribution agreements
• Newspaper mastheads/publishing rights
• Secret processes and formulas
• Information databases, including client lists
• Computer systems software
• Core technology
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Protecting the organisation’s intellectual property
The strategy for protecting the organisation’s intellectual property should be incorporated in its operational
plan (and may also be incorporated in other organisational plans such as the strategic plan).
IP Australia provides the following tips for developing an IP strategy.
• Consider ways you can use the IP system in your business strategy and integrate IP with your other
competitive strengths.
• Search the patent, trade mark and design databases to ensure your ideas are new, and avoid
infringing the rights of others. Also, search for new business opportunities and competitor activities.
• Weigh the risks and the benefits of registered and unregistered rights. Secrecy and speed may be a
better option than patenting.
• Conduct an IP audit to ensure you own the IP you think you do, particularly if it has been produced
by contractors.
• Develop an infringement strategy and consider IP insurance.
• Educate staff of their obligations, and where necessary, have them sign confidentiality agreements.
• Make effective trade marks the core of your brand strategy.
Use of confidentiality agreements
In order to retain confidential information such as trade secrets and other IP, you would need to draw up
confidentiality agreements with the people who are party to the information. Confidentiality agreements
can be separate or built in to employment agreements or contract of supply by including a specific clause.
For example, if you are recruiting casual staff to top-up your work team for the upcoming operational
period, the employment agreements should contain a specific clause stating the rights and responsibilities of
the new employees with regards to protection and disclosure of IP. The same can apply when arranging
contracts of supply for goods and services with external vendors.
It is vital that trade secrets/confidentiality are explained at induction of all new employees as well, so they
understand what their obligations are as an employee of the organisation.
Maintaining records of IP
To help prove your ownership of IP, you must keep records of the following:
• What kind of right you have and in what form the right was created
• What, if any, material from a third party was used in the creation process and whether permission
for such use was obtained
• When it was created
• Who created it
• Evidence of ownership – such as an application for a patent, trade mark or design
• Contracts with all parties involved in the creation of the IP that clearly identify who owns the IP
• Log books showing how the creation process was undertaken (particularly important for IP created
by employees)
• Files of early drafts and prototypes that embody IP
• Copies of agreements with those on whose behalf you are distributing goods or services. These
should include agreements giving distributors the right to use trademarks and marketing material.
This evidence should be stored in an IP Register with a back-up copy retained in a separate location.
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3. Monitor and review operational performance
Section 3 introduction
In this section, you will learn about monitoring and reviewing operational performance.
By the end of this section, you will be able to:
• Develop, monitor and review performance systems and processes to assess progress in achieving
profit and productivity plans and targets
• Analyse and interpret budget and actual financial information to monitor and review profit and
productivity performance
• Identify areas of under-performance, recommend solutions and take prompt action to rectify the
situation
• Plan and implement systems to ensure that mentoring and coaching are provided to support
individuals and teams to effectively, economically and safely use resources
• Negotiate recommendations for variations to operational plans and gain approval from designated
persons/groups
• Develop and implement systems to ensure that procedures and records associated with
documenting performance are managed in accordance with organisational requirements
3.1 Develop, monitor and review performance systems to assess
profit and productivity
Introduction
One of the most important parts of managing a team is to monitor operational performance. Without this
assessment, it is impossible to determine the profitability and productivity of the team.
Once the progress is assessed and financial information has been analysed, areas of underperformance can
be rectified, systems can be implemented to provide the support of mentoring and coaching, approval can
be obtained for changes to operational plans, and performance appropriately documented.
Quality planning = Quality monitoring
As part of implementing the operational plan, processes should be put into place to track and report on
performance, which in turn will give an insight into whether operational plans/targets have been achieved.
Performance monitoring should be an uncomplicated and efficient task, provided the initial planning and
target setting have been developed correctly. The operational plan should clearly state the objectives and
performance measures that need to be achieved for the operational period. If these requirements are
written according to the SMART format, the process of monitoring team profit and productivity performance
will be much easier.
KPIs that are vague, unrealistic and difficult to measure or weighted too heavily on quality markers are
oftentimes difficult to assess against.
As a manager, you need to assess exactly how the performance of your team is progressing. Through
observation, data, feedback and reporting of results, team members can be made aware of what they are
achieving, how they’re supporting the organisation’s goals, and what needs to improve.
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The performance monitoring process
Four (4) steps are usually completed in the performance monitoring process:
1. Identify areas where monitoring is needed – Concentrate on what is important in terms of objectives
and Key Results Areas (KRAs).
2. Identify specific measures – These are the benchmarks and performance measures that must be
achieved in a set period of time.
3. Compare what is happening with what should be happening – Once steps one and two have
occurred, it should be relatively simple to complete a comparison.
4. Take action as necessary – Identify the source of the variation and what needs the most attention.
Implement changes immediately.
Four dimensions of operational performance
Team profit and productivity performance must be frequently monitored to pick-up on and rectify negative
variations as early as possible, before larger impacts on the team can occur.
Operational progress should be monitored across four (4) key areas:
1. Time – fast responses, on-time delivery to internal and external customers and stakeholders
2. Accuracy – error-free, delivered as requested
3. Satisfaction – meets or exceeds internal and external customers and stakeholder’s satisfaction
4. Waste – defects, losses of time, resource and money
Gathering performance data
Monitoring and assessment do not need to take a lot of time. Where possible, you should establish systems
that make it quick and easy to collect data about your team’s performance.
Where possible, you should utilise any existing automated reporting systems as this will save money,
resources and most of all – time.
Do not waste your valuable time measuring results that:
• are difficult to measure or understand
• are too expensive
• are measured somewhere else
• aren’t part of your plans and objectives
• wouldn’t cause changes in behaviour
• wouldn’t identify problem areas.
Observational techniques
A team member’s performance can be broken down into two major areas: performance results and
behaviours.
When observing a team member, it is important to focus on the activities and the behaviours displayed in
the workplace as each element can have a profound effect on culture, client satisfaction and profit.
Examples of each element are provided in the table below:
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Balance quantitative and qualitative performance data
Observation should not be the only way to monitor staff as it is not a true reflection on the total
performance and behaviours over a reporting period. It should be balanced with quantitative reporting
methods which rely on objective data. Observation also relies heavily upon subjective opinion and should
therefore be reserved for monitoring against quality based KPIs as much as possible.
Reporting systems provide quantitative data about your workers’ performance and in particular progress
against KPIs. It is important to note however that pure numbers don’t tell the whole story. Quantitative
reporting should be balanced with personal observation, communication with workers and two-way
feedback.
Frequency of performance monitoring
The frequency of the monitoring process will be dependent on what is being monitored and the details of
the performance measures.
This may include hourly, daily, weekly or monthly monitoring and reporting activities.
For example, customer satisfaction is generally monitored monthly, quarterly or bi-annually; however,
production times can be monitored hourly.
3.2 Analyse budget and actual financial information to monitor
and review profit and productivity
Introduction
Operational plans are underpinned by budgets. A budget is a financial plan that translates cost estimations
and operational objectives into measurable outcomes. These documents are primarily used as a method of
planning and controlling spending throughout a given reporting (or operational) period.
To effectively monitor your team’s performance, you need access to a range of information that reflects the
financial performance of the team’s outputs. These documents need to be analysed and interpreted to
determine the profitability and productivity performance for each operational period.
Team budget
A budget is used in operational management for the following purposes:
• Keeping track of revenue vs. expenditure
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• Ensuring accountability by managers and departments
• Directing activities
• Using finances, resources and time efficiently
• Setting benchmarks for monitoring performance
• Providing organised estimates of revenue, expenditure, staffing levels and equipment needs, with
departmental/team breakdowns for different time periods
Budgets are also used as a communication tool by management to explain team objectives and to ensure
responsibility and accountability for the team’s allocated funds.
To view a copy of a budget, refer to the GSE Intranet > Policies & Procedures > Project Management >
Mobile App Project > ‘Project Budget’
Developing a team budget
At times, managers are required to develop a basic budget. This may be based on an allocated amount of
money or the financial requirements as determined by your resource needs. The budget process should be
put together in a measured manner and include the input of the key stakeholders such as accounts, the
operations manager or senior business managers.
There are two (2) main processes that can be used to set your budget:
1. Top-down budgeting – Establish an overall budget figure to work with for all activities, which is then
divided into the different functional areas or activities such as recruitment, travel, marketing and
promotions etc.
2. Bottom-up budgeting – You first define the specific costs for each activity which are then aggregated
to give the total budget for the operational period.
Working within a budget
To ensure your operational plan achieves its financial targets, you need to be clear about your agreed
budget figure for the period. This is not to say that you cannot negotiate for more money or adjust the
budget at a later stage if required, but it gives you a figure to work within when purchasing resources and
approving expenditure for travel, promotions and other costs as requested from your staff.
The budget figure is the total amount of money that may be spent but not to be exceeded throughout the
operational period. It provides you with a target to work within and report back against.
To assist you in working within a budget figure, it is suggested to prepare a budget spreadsheet where all
costs are forecasted and entered. This is commonly referred to as a cash budget.
All invoices and receipts must be retained; and when money is spent, the details must be entered into the
cash budget so that actual spend can be monitored against the allocated budget.
A cash budget will usually include the three (3) major items:
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Measuring profitability
Every business venture, whether it be “for profit” or “not-for profit”, aims to make money. Profit is defined
as the financial benefit that is realised when the amount of revenue gained from a business activity exceeds
the expenses, costs and taxes needed to sustain the activity. In simple terms, it is the difference between
revenue (money coming in) and costs (money going out).
The main types of profit that you may need to measure can include the following:
• Gross profit – calculated by deducting the cost of sales of a business from its sales revenue.
• Operating profit – involves calculating the gross profit, then deducting overhead expenses.
• Pre-tax profit – calculated by deducting the non-operating expenses from the operating profit and
adding the non-operating revenues.
• Net profit – the profit that remains after tax.
Measuring productivity
Productivity is defined as the relationship between the quantity of output and the quantity of input used to
generate that output. It measures how effective and efficient the individual and/or team have been in using
their resources to produce the required results.
Productivity rates are defined as a ratio of output to input, with the result being multiplied by 100 to give a
percentage figure: