BSBMGT517 Manage Operational Plan

Case Study Scenario 1 :

Superseeds is a small organization that has a core business of selling garden plant seeds by mail order. Orders are received by telephone or through the business web site. Supersedes competes with all businesses that sell the same products either through mail order or through shop front retail outlets. This includes large companies, nurseries and seed wholesalers.

Superseeds customers are mostly from small rural communities where there are few or no shop front retail outlets supplying seeds. Supersedes maintains a diverse range of seed varieties to provide customers with a wide selection.

A key customer service performance objective is to dispatch product within one working day of receiving the order. Orders are prepared and sent to the Post Office by 1:00 pm each day to ensure that overnight dispatch occurs.

Superseeds has a single CEO who has the responsibility to manage the overall business. There are two supervisors who report directly to the CEO. One supervisor manages orders and dispatch, while the other supervisor manages marketing, seed stock supplies and determines the product range that will be available for sale. At peak periods, there are three people working in dispatch, but in non-peak times there are only two people. There is one person working solely in marketing and sales catalogue production. The business manager is responsible for all other aspects of the business. Outsourcing is used for accounting, web page development and management, and recruitment.

Mission statement

Superseeds is committed to:

• providing high quality garden seed products
• providing a prompt mail order service
• offering a diverse range of garden seeds
• providing personalized service
• employing enthusiastic staff
• adopting sustainable work practices
• undertaking continuous improvement processes.

Strategic objectives

Over the five year period from 2020 -2025 Superseeds has the following strategic objectives:

• Consolidate and expand its niche position in the garden seed retail market for small rural communities
• Improve operational efficiency
• Increase cash reserves to better manage peaks and troughs in demand.

Business objectives

Superseeds will focus on the following business goals in 2020 to support its five (5) year strategic plan:

1 Financial stability:

1.1 Increase sales income by 10% annually

1.2 Increase profit levels from 10% of sales income to 15% of sales income

1.3 Invest 10% of current profit into supporting business plan initiatives

2 Market position:

2.1 Expand product sales into one new rural region

2.2 Improve telephone and on-line ordering procedures to provide improved levels of customer service

2.3 Promote seed products on a seasonal basis to existing customers

3 Human resources:

3.1 Create greater flexibility in working hours and work location

3.2 Increase trading hours to accommodate after hour and weekend sales

4 Product range:

4.1 Undertake research to better match sales catalogue to region, climate and season

4.2 Remove products from range that make a net loss

Note: As this is a simulated activity you are allowed to make up additional information to complete your resource proposal and operational plan.

1. “Operational planning is a yearly process routinely used in businesses to articulate their goals for the year”

1. What is an operational plan and what is its purpose?
2. Outline the information that is usually included in an Operational Plan.
3. Explain the role of an operational plan in achieving the organisation’s objectives.
4. List three legislation or regulation that will directly affect an operational plan of Superseeds.
5. Give five examples of policies, practices, and procedures that may directly relate to the operational plan of Superseeds.
6. State an operational goal of Superseeds aligned to the strategic objective provided in the case study.
7. Identify at least one method and one model for operational plan.
8. Outline the typical process for developing an operational plan that may be followed by Superseeds.

2. ”Key performance indicators act as benchmarks against which organizational goals and performance can be measured.”

1. Define and explain the purpose of key performance indicators.
2. Discuss four approaches for developing key performance indicators to meet business objectives that can be employed by Superseeds.
3. Outline and list the steps of using KPI to measure organizational performance.
4. Identify two performance criteria of Superseeds

3. “Budget a powerful tool for ensuring the success of business, is essentially the numerical representation of the annual operating plan”

1. Explain the purpose of a budget.
2. List what external factors and financial information is to be taken into considerations during budgeting processes to monitor and review profit and productivity performance.
3. List the steps for analysing and interpreting budget.
4. Outline a standard budgeting process that could be applied by Superseeds.

For the Strategic Objective : Expand its niche position in the garden seed retail market for small rural communities, create an operational Plan for Superseeds:

Operational Plan:

1. Effective performance managementcreates a harmonious and productive workplace which is beneficial for both employees and employers.

1. What is a performance management system?
2. List the steps to establish a quality management system
3. Give examples of performance standards that an organisation may use.
4. Why is it important to develop monitor and review performance system and processes to assess progress in achieving profit and productivity plans and targets?

2. It important to regularly monitor productivity and measure the efficiency of your operations.

1. Why is it important to note variations in “actual to budgeted” financial performance.
2. Based on mathematical information provided in the Appendix 1:
   1. Calculate Profitability Index.
   2. Calculate the number of employee required if business manager decided to build a new web page in-house.
   3. Calculate at least 3 Performance benchmark.

3. Every business is impacted by events, and a poor response to those events could, in extreme cases, result in the loss of the business.

1. What is the purpose of a contingency plan?
2. What sort of risks are likely to happen in an organisation?
3. What may be the impact of these risks occurring?
4. Identify three risks that are likely to be encountered by employees of Superseeds. Detail the possible impact of such events with contingency plans which might be implemented.

4. Accurate documentation is critical to good management and engaging employees.

1. Why is it important to develop and implement systems to ensure that procedures and records associated with performance management are manged in accordance with organizational requirements?
2. List the performance-related documentation that you need to collect and record?
3. When you process performance-related information, why it is important to note acceptable performance limits, changes to measurements, and whether the quality level was correct?

Efficient management of resources is often the greatest organizational challenge. Lack of visibility into resource constraints can be a major roadblock to completing work on-time and under budget. Hence setting the right expectations and accurately communicate what the organization can and cannot complete given resources constraints, dramatically increase the efficiency of the planning process.

There is a widespread view that if a plan is conceived without proper consultation with stakeholders then it has far less chance of successful implementation. There is a clear need for anyone responsible for the formulation of a plan to consult with all persons who will be affected by the plan. In fact there are significant benefits associated with implementing and maintaining a culture of consultation and cooperation in the workplace. Businesses working to best practice recognise the benefits of regularly seeking opinions and views from employees, whether that be through consultation with individuals or groups.

The ROLE PLAY is to be performed by working in pairs:

Get into pairs. Label yourselves Person A and Person B.

Person A : The Supervisor

Person B : Chief Executive Officer

Conduct a discussion with a class-member where you will present your development and monitoring processes to facilitate operational plan including developing and implementing effective consultation by:

1. Resource can mean many things when you are preparing an operational plan

1. Outline what strategies the organization will use to research, analyses and document resource requirements for the development of an operational plan.
2. List five relevant people who may be involved in the development of the operational plan of the organization.
3. Identify four sources of information which might be referred to in relation to proposals for resource requirements as well four sources from which specialist advice may be sought.
4. List five types of information in relation to development and presentation of proposals for resource requirements.
5. Identify four strategies for resource management that will support the team to effectively, economically and safely use resources.

2. Best practice is about developing and implementing effective consultation mechanisms which encourage cooperation and engagement of employees and management.

1. Explain why it is necessary to develop and/or implement consultation process as an integral part of the operating planning process.
2. Specify five ways of carrying out a consultation process in the organization.
3. List the relevant parties from whom would you need to gain agreement for the approval of the operational plan, and once approved how this information would be provided to work teams.
4. List at least three types of negotiation that the organization may use including at least five strategies for negotiation that could be used to achieve goals. Additionally Identify designated person or groups within the organization you would need to gain agreement and or endorsement for variations to operational plans.

Case Study Scenario 2: Responding strategically to changes in Healthcare

The Chief Financial Officer at a large, complex healthcare organization approached Wellesley Partners while preparing for an annual planning retreat. Based on the hospital’s goal to reduce cost of services and increase effectiveness and efficacy of care, the CFO was focused on improving the ability of his organization to enable organization-wide success.

Added to the goals for change, three major barriers presented themselves in addressing these goals.

• Lack of a long-term strategy
• Management is unsure that the team has the right skill set
• Lack of teamwork and collaboration

Wellesley Partners worked with the Finance management team to build a strategy with measurable goals and a roadmap while improving teamwork within the department. Execution of the plan will lead to improved efficiency within the department and improved teamwork.

The Wellesley Partners process revolves around aligning teams to clear values, effective processes and roles that are aligned with organization-wide goals. In this case, Wellesley Partners focused on two of the three major barriers: lack of strategy and lack of teamwork. The skill set required would be based on strategy.

Wellesley Partners created a program consisting of the following component:

Joint Planning: Workshop

The workshop will address team functioning, strategic context, implications and challenges as well as concrete action planning. Over the course of the day, the team will accomplish the following:

• Identify tactics to improve as a team
• Review the high level challenges facing Finance for the following 2-3 years
• Identify implications and responses to these challenges
• Define next steps

In this case not only will the team feel as though they have a plan to move forward with, but they will also be actively engaged in creating the plan, which will lead to improved motivation, teamwork and commitment to the success of upcoming initiatives.

https://wellesleypartners.com/consulting-services/case-study-strategic-planning/

1. “Attracting the right calibre of people is essential for the success of any organisation in reaching their strategic and operational goals.”

1. Why is it important 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
2. List key areas, functions or topics that an organisation’s Human Resource policies and procedures should address.
3. Identify four recruitment process and HR polices that the Healthcare Organization must ensure following during recruitment.
4. Identify and list at least two advantages and disadvantages of outsourcing recruitment.
5. What is purpose of induction and what information should be included in induction.
6. What strategies could you use to ensure team members are clear about their roles and responsibilities as well as the requirements of the operational plan?

2. “Requirements and responsibilities for intellectual property rights is an important part of the business environment, an organisations are wise to take steps to protect their own intellectual property.”

1. Explain how you would incorporate requirements for intellectual property rights and responsibilities within an organisation in recruitment and acquisition of resources and services.
2. Identify at least three resources and services that may have intellectual property rights and responsibilities attached to them. What measures do you need to take in order to prevent non-compliance with these?
3. Give three different examples of intellectual property and explain how would enforce your rights for each one.

3. Read the following information carefully:

“Speed of service is measured in average time to resolve a customer enquiry. The target is <10 minutes. Currently, the average time to complete an enquiry is 20 minutes. In addition a number of risks has been identified that needs immediate action:

The training program has not been adequate to cover required skills and knowledge. Training has been too short and insufficient to be effective.

Staff are unable to perform roles due to lack of support in job roles and ongoing training, coaching.

Thus a gap has been identified between accepted and desired performance. Based on information that you have received when you spoke to staff, there seems to be a mixture of performance and lack of skills with staff to be the problem.”

1. How would you handle any under-performance issues in regards to the skills and the level of performance?
2. Identify the factors that affects output and quality of performance in an organization.
3. What are the three major barriers presented in addressing the goal ‘reduce cost of services and increase effectiveness and efficacy of care’ for the health care organization?
4. What steps were recommended by Wellesley Partners to support the team to achieve the goal?
5. What is Continuous Improvement? Identify three benefits of adopting continuous improvement to address under performance.
6. Define an effective mentoring or coaching relationship.
7. Referring to the Principles of coaching underperforming employees in Appendix 2, Create a coaching plan to address under performance and support an individuals to achieve performance target.(you may use or modify the template provided in the Appendix 2)

4. “While there is no set rule for defining resource acquisition strategies, most organizations will have policies and procedures that govern the way resources are obtained?

1. List two strategies which might be used to ensure that physical resources and services are acquired in accordance with the organizational policies, practices and procedures.
2. What is a supplier relationship and what are some of the factors that influence an organization’s choice of supplier?
3. Why is it important to consider the relationship costs when you build relationships with suppliers?
4. What impact does Just In Time and Total Quality Management had on organizations in supplier relationships?
   Who are inter suppliers and what are the barriers to maintaining effective supplier relationships:

Plant and equipment

Delivery vehicle = $40,000

Promotional costs

$30,000

Website developers

$120,000

Recruitment costs

$30,000

Staff training

Employee training $3,000 per staff member = $9000

Office reconfiguration

$60,000

Total

$289,000

PI>1 indicates project should be undertaken

Key Benchmark Range

Annual turnover range

$250000 - $750000

More than $750000

Cost of Sales/turnover

39% - 53%

47% - 56%

Labour/turnover

13% - 22%

14% - 20%

Labour/turnover

13% - 22%

14% - 20%

Vehicle expense/turnover

2% - 4%

1% - 4%

Employee:

Coach/Manager:

Date of session: