Contents

Contents
Before you begin

Learning outcomes

Competency standard

How to use this book

vii

Assessment

viii

Developing employability skills

ix

Developing an evidence portfolio

xii

Resources

xiii

Introduction: Managing operational plan

Chapter 1: Developing an operational plan

1.1 Understanding and documenting resource requirements, and developing

the plan in consultation with relevant people

1.2 Including consultation as an integral part of the planning process

1.3 Ensuring the plan includes the development of key performance indicators

13

1.4 Developing and implementing contingency plans

16

1.5 Supporting proposals for resource requirements with a variety of 

information sources

21

1.6 Obtaining approval for the plan, and ensuring understanding among
people involved

23

In ACTION

24

Discussion topics

25

Chapter summary

25

Find out more

26

Checklist for Chapter 1

26

Assessment activity 1: Developing an operational plan

27

Record your employability skills

28

Chapter 2: Planning and managing resource acquisition

29

2.1 Developing and implementing strategies for employee recruitment 

and induction

30

2.2 Ensuring physical resources and services are acquired in accordance with
policies, practices and procedures

35

In ACTION

39

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BSBMGT515A Manage operational plan

Discussion topics

39

Chapter summary

40

Find out more

40

Checklist for Chapter 2

40

Assessment activity 2: Planning and managing resource acquisition

41

Record your employability skills

42

Chapter 3: Monitoring and reviewing operational performance 43

3.1 Using performance systems and processes to assess the achievement of
plans and targets

44

3.2 Using financial information to monitor and review profit and productivity 
performance

49

3.3 Identifying problem areas, recommending solutions, and taking prompt 

remedial action

52

3.4 Ensuring mentoring and coaching are provided to support the effective, 
economical and safe use of resources

55

3.5 Negotiating recommendations and gaining approval for variations to plans

59

3.6 Ensuring procedures and records associated with performance 

documentation are managed appropriately

61

In ACTION

64

Discussion topics

64

Chapter summary

65

Find out more

65

Checklist for Chapter 3

66

Assessment activity 3: Monitoring and reviewing operational performance

67

Record your employability skills

68

Final assessment: BSBMGT515A Manage operational plan

69

Employability skills

71

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Introduction: Managing operational plan

Introduction
Managing operational plan
There are three types of plan used at different levels within an organisation:
Strategic plan
Business plan
Operational plan
The strategic plan is developed for long-term planning and covers a period of about
five years. The strategic plan specifies the missions and goals of the organisation
including decisions on how resources, both capital and human, will be allocated to meet
organisational goals.
A business plan sits between the highest-level plan (the strategic plan) and the operational
plan. A business plan is a formal statement of a set of business goals and objectives that
are to be achieved to meet the strategic objectives of the organisation. The business plan
includes the reasons why the goals and objectives are believed to be attainable, the plan
for reaching those goals inclusive of relevant information about the organisation.
An operational plan focuses on the short-term objectives: what needs to be accomplished
in the near future in order that the company can progress towards achieving its strategic
objectives. Operational plans generally have a focus of less than one year and are quite
detailed in terms of what needs to be implemented and how.
The focus for this unit is on the management of operational plans and this will be
considered in three steps:
1. The development of operational plans
2. The implementation of the plan in relation to resource acquisition
3. The monitoring and review of performance against the targets in the plan

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Chapter 1: Developing an operational plan

1.6 Obtaining approval for the plan, and ensuring

understanding among people involved
Most people working in an organisation must report to internal entities such as a
management team, a board of directors or a council. These entities also need to report
to and gain approval from external authorities such as various regulatory or government
agencies; for example, the Australian Taxation Office or WorkSafe authority.
Formally presenting plans provides an opportunity for stakeholders to understand the
key issues and impacts and to provide feedback for adjustment prior to final submission.
In presenting a plan, verbal agreement or agreement in principle can often be reached
subject to some adjustments.
Operational plans should be formally signed off by people with the delegated authority.
It is at this stage, the finalised plan effectively becomes a policy. Signed copies should be
kept on file as a formal record and provided to the appropriate parties responsible for
implementing the plan.

Plans and reports usually need to be officially approved and signed off.

Example
Lindsay heads up the International Office for a university and holds the title of director. He has
two senior managers, Abdul and James, reporting to him. Abdul manages the recruitment,
marketing and administrative support for international students while James manages the
English language courses and academic support. Lindsay operates as a team with Abdul and
James to develop the planned expenditure of the allocated budget for the forthcoming year and
the operational plan for the office.
Lindsay formally presents the key details of the operational plan to his supervisor Robin, the pro
vice-chancellor. Abdul, James and respective senior staff in their areas also present information.
The outcome of the presentation is a verbal agreement from the pro vice-chancellor on the
plan.
Lindsay has worked closely with Abdul and James, and the consultation with their senior staff
and others has contributed to the smooth process of plan approval. Lindsay finalises the written
report and submits the plan to Robin who duly signs it off the following week.

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Chapter 1: Developing an operational plan

Discussion topics
Learners in a classroom can form a discussion group or have a debate. Those in the
workplace might like to brainstorm these ideas with their colleagues. If you are learning
independently, you might like to set up a chat room with other learners or ask a friend
for their opinion.
The cost of excessive contingency planning has the potential to cost more than the
impact of an event. Discuss with reference to different types of organisations and
workplaces.
What systems of consultation and communication do you have in place at your
workplace or in your industry? Outline the advantages and disadvantages of such
systems.
During tough economic times the manager does not seek input from the employees
but makes decisions and advises workers of the outcomes. Discuss this statement
with particular reference to the importance of consultation with employees.

Chapter summary
The first step in managing operational plans is to plan the process. Appropriate
research and analysis needs to be undertaken to gain an understanding of the
organisational area for which you are responsible.
It is important to consult with colleagues, relevant personnel and subject matter
specialists from within and outside the organisation when developing any plans.
In developing the operational plan, further consultation and communication with
stakeholders is required
Key performance indicators (KPIs) should be determined and included in the
operational plan in order to assess the organisations performance against the
planned outcomes.
It is important that contingency plans are developed as part of the operational plan
because external influences have the potential to impact on an organisation or parts
of it.
Operational plans should be presented as professional reports and supported with
appropriate information.
Operational plans should be drafted, approved and signed off before being
communicated to all stakeholders and relevant parties.

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BSBMGT515A Manage operational plan

Find out more

Resource

Why it is useful

Kaplan, R & Norton, D 1996, The balanced

scorecard: translating strategy into action,
Harvard Business School Press, Boston, MA.

The balanced scorecard approach provides an

insight into a range of performance measures
that might be considered for any organisation.

Annual reports for one of the major banks.

Place annual report and the ASX code for the
bank (ANZ, CBA, NAB, WBC) into a search
engine.

These annual reports provide a good standard

to consider for the layout of high-level reports.

The National Offshore Petroleum Safety

Authority
Key performance indicators
www.nopsa.gov.au/safety_performance.asp

This authority collects and summarises data

on the safety performance of the industry and
its own performance. It also produces a set of
charts of significant KPIs for the industry.

National Blood Authority Australia

National blood supply contingency plan
www.nba.gov.au/nbscp/nbscp-complete.pdf

It provides a real example of contingency

planning for a situation that exists in everyday
life at a national level in Australia and provides
an insight into the entities involved and the
extent of planning undertaken

Checklist for Chapter 1

Tick the box when you can do the following.
Understand and document resource requirements, and develop the plan in
consultation with relevant people
Include consultation as an integral part of the planning process
Ensure the plan includes the development of key performance indicators
Develop and implement contingency plans
Support proposals for resource requirements with a variety of information sources
Obtain approval for the plan, and ensure understanding among people involved

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Chapter 1: Developing an operational plan

Assessment activity 1
Developing an operational plan
The following table maps the assessment activity for this chapter against the element
and performance criteria of Element 1 in BSBMGT515A Manage operational plan. The
activity has been designed for all learners to complete.
Part

Element

Performance criteria

1.1, 1.2, 1.3, 1.4, 1.5

1.1, 1.2, 1.3, 1.5, 1.6

Part A: Theory review and application

1. Briefly explain the difference between a strategic plan and an operational plan.
2. Provide four examples of situations where you would seek input from specialist
resource managers when developing an operational plan for your area. At least two
of these specialists should be external to your organisation.
3. Developing and managing operational plans involves relating to people from a
cross-section of the organisation and from outside including contractors, suppliers,
clients, staff and government departments. Identify five different groups of people
you would need to consult with when developing and managing the operational
plan. Briefly explain why their input would be useful.
4. List four different methods you would use to communicate with your staff and other
stakeholders regarding the operational plan.
5. Provide a list of KPIs that are used to measure the performance of your organisation.
6. Contingency plans require the identification of a potential risk and an assessment
of that risk. List five areas of risk facing your organisation and the potential impact
of those risks.
7. Briefly explain what disaster recovery planning means and what it involves.
8. Using the Internet, source a copy of an annual report for an organisation. Provide
a brief overview on the format of the report and how tables, diagrams, colour and
page layout are used to make the report attractive and readable.
9. Briefly explain why it is important to:
a) determine resource requirements
b) develop and implement consultation processes
c) develop KPIs to measure organisational performance
d) develop contingency plans
e) present resource acquisition proposals effectively
f) obtain approval before implementing the operational plan.

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Chapter 2: Planning and managing resource acquisition

Chapter 2
Planning and managing resource
acquisition
Resources can be classified as human resources, physical resources and services. Human
resource management generally includes the recruitment of people to work in the
organisation. This process needs to be undertaken in accordance with the recruitment
policies of the organisation in terms of selection and induction.
The acquisition of resources also needs to comply with the policies and procedures
of your organisation. Using appropriate strategies to determine what resources and
services are required, at what time and effective use of the resources, is important for
the ongoing operation of the business.
This chapter will discuss the following theory:
2.1 Developing and implementing strategies for employee recruitment and induction
2.2 Ensuring physical resources and services are acquired in accordance with policies,
practices and procedures

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Chapter 2: Planning and managing resource acquisition

The following example shows how a human resource department recruits and inducts
new employees into their business.

Example
Raylene recently applied for a position as an operator in an in-bound call centre on the Gold
Coast and is one of 20 successful applicants. As it is an inbound call centre, an induction and
training program must be completed satisfactorily before an operator can take any real calls.
The induction and training program has taken six weeks to complete. During this time, Raylene
has been paid the basic wage for the role she commenced. She is now eligible to get bonuses
based on meeting KPIs.

Practice task 8
List the key resources you require for your organisation or your area of the organisation so that
you can meet the targets in your operational plan. Consult with staff and others as required.

In ACTION
Jenna is the manager of a product assembly plant situated west of Sydney. The plant is ideally
situated because it has good road access for delivery of the various components to make
the product and the finished products can be shipped up and down the eastern seaboard.
When the plant was first built, land was not at a premium and the philosophy had been to
protect against part shortages and supply issues by having a substantial storage area and
significant levels of supply stock. The cost of maintaining the huge storage area is increasing
with maintenance required and the need to update the systems. Furthermore, there is additional
pressure from senior management to increase the production area for some new products and
for increased volume of output.
Jenna addresses the reduced storage space by implementing two new strategies; issuance of
tighter supply contracts for all major input resources and the trucks that deliver containers of
raw materials now also take containers of finished products to customers.

Discussion topics
Learners in a classroom can form a discussion group or have a debate. Those in the
workplace might like to brainstorm these ideas with their colleagues. If you are learning
independently, you might like to set up a chat room with other learners or ask a friend
for their opinion.
The most important duty that should be listed on a position description is any other
tasks as deemed relevant to the position by your supervisor. Discuss.
There is a trade-off between bulk delivery and the cost of having large storage
facilities versus small storage and just-in-time deliveries of the required quantity of
materials. Discuss the advantages and disadvantages of each and provide examples.
Job rotation and providing training to staff so they can slot into other roles if
necessary, provides a mechanism for managing human resources to maintain
production when a crisis hits. Discuss this in relation to your own organisation.

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BSBMGT515A Manage operational plan

3.1 Using performance systems and processes to

assess the achievement of plans and targets
Once KPIs have been determined, it is necessary that you obtain information to compare
ongoing actual results against targets. In other words, monitor the performance and
report appropriately.
A performance system effectively outlines what can or needs to be measured in terms
of quantifying the outcomes that can be compared against the targets and goals set.
The process of comparing the measured achievements against the goals and targets will
determine how well the organisation has performed.

Monitoring business performance

There are many factors that can impact on performance or affect results:
new technology and equipment that works more effectively and efficiently
new inputs such as raw materials that reduce environmental impact
changing consumer tastes and demands that may have an impact on types of
products
staff changes such as loss of experienced staff with new staff having lower level
knowledge and a reduced skill base
new products and services such as competitors producing a better or cheaper
product or service.
It is necessary to monitor such changes and impact in order to implement adjustments
through corrective action. Where negative impacts are identified, you may need to
adjust plans, designs, resources, procurements and operations to counter the changes.

Variance analysis
A common financial control approach is the use of variance analysis. Variance analysis is
a tool that is used in controlling budgets. It can be used for expenditures (inputs) where
the planned amounts of a resource used is compared against the actual amount used.
Similarly, variance analysis can be used for income (outputs) by comparing the quantity
produced and sold (income) against the planned amount. The difference between the
planned value and actual values is called the variance.
In effect, budgeted amounts are compared against actual income and expenditure. The
following table is used to consider if the variances are favourable (F), unfavourable (U)
or within expectations (OK).

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BSBMGT515A Manage operational plan

A coach or mentor can be allocated to an individual or a team to provide additional

training for future opportunities and enhancement or to address current shortcomings
or performance issues. In using a coach or a mentor for your staff, you ensure there are
clearly defined goals and outcomes from the process and have reports provided back to
you on the progress of the individual or team Of course there are other performance
measures that you may have at your disposal to judge the performance of an individual
or a team.
The following example outlines how appointing a coach to a work team can improve
communication and client relations.

Example
A sales and support team for medical scanning equipment consists of four people as follows:
Mary is responsible for identifying potential buyers and making initial contact.
Mike is the sales representative and follows up on the leads that Mary provides.
David is the post-sales installer and provides technical support.
Peter provides post-sales training and operational support.
Feedback from clients identifies that confusing and conflicting information has been provided
throughout the process of initial contact, agreements to purchase the medical scanning equipment
and the post-sales support and training.
The managing director appoints a team coach to the group. The coach focuses on communication
issues between the team members and provides input into regular debriefing meetings about
each of their clients.

Practice task 12
Read the case study, then complete the task that follows.
Case study
Ingrid works as an administrative assistant and has to produce a range of documents,
letters and reports for various people who work in the department. Ingrid is often given
various pieces of documentation either in print or electronically and instructions from
the staff member who requires the report or letter written. The quality of the work being
produced by Ingrid is not up to standard. It has been noted that she has issues with
spelling and grammar and complying with the corporate style for presentation for reports
and correspondence in general. Ingrid is exhibiting signs of stress and frustration with the
number of documents being returned to her for correction.
Write a succinct and practical plan using a coaching or mentoring approach to address the skill
deficits demonstrated by Ingrid.

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Chapter 3: Monitoring and reviewing operational performance

Assessment activity 3
Monitoring and reviewing operational performance
The following table maps the assessment activity for this chapter against the element
and performance criteria of Element 3 in BSBMGT515A Manage operational plan. The
activity has been designed for all learners to complete.
Part

Element

Performance criteria

All

All

Part A: Theory review and application

1. A member of your staff who operates various pieces of equipment says, I keep
hearing people refer to the budget. What is budgeting? Provide a written summary
to explain budgeting to your staff member.
2. Briefly explain why budgets are prepared.
3. Why is performance against budgets monitored?
4. Identify two systems that could assist you in monitoring and managing performance
more effectively.
5. Provide a description of the following terms:
a) Balanced scorecard reporting
b) Triple bottom line reporting
6. Provide an explanation of the difference between mentoring and coaching and
provide an example of each.
7. a) Why do problems occur in the implementation and management of operational
plans?
b) What type of problems may be encountered?
c) How can these problems be addressed?

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