Appendix 1: Scenario – e-Commerce performance monitoring Background to scenario The BBQfun Board of Directors and the CEO have decided to implement an e-commerce strategy to maintain or increase market share and revenue and satisfy customer needs in line with company strategic directions. You have been hired as an external consultant to manage operational planning activities for BBQfun's e-commerce strategy. Under the strategy, BBQfun would offer all products in an online store. Stock could be stored at no extra cost at existing stores. Customers would cover delivery costs. The BBQfun website now has e-commerce functionality. The website has been redeveloped to incorporate this functionality in line with relevant technical specifications after you consulted with specialist managers. Existing infrastructure, such as office and store configurations, has been adapted to the new strategy. Additionally, assets such as delivery vehicles have been acquired. New staff has been recruited and existing staff retrained or informed of the e-commerce strategy and associated operational and performance targets. All resourcing should have been acquired and operations undertaken in accordance with relevant external standards, such as legislation and codes of practice, and internal standards, such as organisational policies and procedures and performance targets. It is now 1 January 2014. e-Commerce operations are expected to be underway by 1 October 2014. Scenario task You will need to plan monitoring activities for ongoing customer service activities, website maintenance, and revenue generation over the financial year from the start of implementation. You will then need to analyse performance data for the second quarter of the financial year. You will then need to coach an underperforming employee in accordance with the BBQfun performance management policy and previously developed contingency planning (the planning developed for Assessment Task 1). Finally, you will need to prepare and present a report with recommendations for operational improvement to the Operations General Manager. Note: You may consider the management team of BBQfun including team leaders in warehouses to be resources for the monitoring of performance. Use description of their roles in operational planning when assigning responsibilities. Note: Financial reporting is completed by the CFO at the end of each quarter of the financial year. Employee performance is gathered by store managers, sales and marketing managers (online staff) and compiled by the HR Manager at the end of each quarter. Individual performance data The following performance data is available for Lee Waters: KRA Target KPI Result Quality of online sales and service 1% error rate % of informational or order mistakes 10% Speed of service (online) <10 minutes per interaction Average time to completion 20 minutes Financial $30,000 sales $ sales $20,000 Professional development Participate in 2 hours of sales training per month. Training hours 0 hours Organisational performance Information from the Sales and Marketing Manager A discussion with the Sales and Marketing Manager has provided you with the following information. The Sales and Marketing Manager has been tracking progress against the following key performance indicators (KPIs): 1. Quality of online sales and service is measured in: % of mistakes made by a customer service employee when providing information or making an order. The target is 1%. Currently the rate of mistakes made is 10%. 2. Speed of online sales and service is measured in average time to resolve a customer enquiry. The target is <10 minutes. Currently, the average time to complete an online enquiry is 20 minutes. 3. Average delivery speed is measured in the average time in days from the order being made to the customer receiving delivery of the product. The target is three days from order to delivery. Currently, the average delivery speed is three days. 4. Revenue success is measured in the amount of revenue generated in dollars. The target is $300,000 in sales per quarter, which would make an $80,000 profit per quarter. In the second quarter this financial year, we generated $250,000 in revenue, providing a profit of $40,000 for the quarter. Further to the KPIs, the Sales and Marketing Manager provides more information on each area of performance. Quality of online sales and service: ● Staff not familiar with product line, even after training. ● Staff do not understand CRM (customer relationship management) systems and ordering processes. ● Staff do not understand product line. Unable to locate information. ● Poor communication lines. ● No job aids or support from management. ● No ongoing performance management as per company policy. ● Low staff morale: complaints of back pain and distractions in environment. Speed of online sales and service: ● Many customers abort interaction due to length of time for order completion. ● Some extra time taken because of lack of skills and knowledge. ● Some time taken because of poor website maintenance and occasional downtime. Speed of delivery: ● Driver team leader is exceptional motivator. ● Driver morale is high. ● Driver attendance of routine training and team briefings is at 100%. Online sales and revenue ● Some lack of sales may be due to poor customer service. ● Sales may pick up as awareness of online option through marketing actions increases. In terms of our key actions, we're tracking well. The website redevelopment has been completed on time and to budget. The delivery trucks and forklifts have been acquired and put into operation on time. In terms of recruitment, staff have been recruited on time, and the planned training has been completed. Information from the Chief Finance Officer (CFO) A discussion with the CFO has provided you with the following information: The CFO has been tracking progress against the following key performance indicators (KPIs): 1. Budget success is measured in % overrun/underspend. The target is 0% overrun. Currently there is a budget overrun of 10%. Cost overruns are due to: ○ wastage from order mistakes and over-stocking due to misuse of system ○ overtime due to overly long customer interactions. 2. The timeline for the e-commerce project is to have the e-commerce activities implemented by 1 October 2014. Currently the implementation is on track. In addition to these key performance indicators, we have identified a number of risks that all need 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. ● Website downtime contributes to increased service and sales disruptions. ● Sales continue to perform under target. On that last risk, I think sales may need to be more closely monitored. Customer needs and changing market conditions/competition may need to be reassessed and addressed. Appendix 2: Action Plan Template Milestone: Action and/or objective (to achieve strategic aims of physical or human resourcing) Date Person responsible Budget or resources (where applicable) Appendix 3: Performance management plan template Name/position: Manager: Review period: Reference from operational plan Key result area Indicator of success/ performance By when Status report Manager's comments: Signature: Date: Staff member's comments: Signature: Date: Appendix 4: Coaching plan template Employee: Coach/Manager: Date of session: Questions Goal Reality Options Will Appendix 5: Operational Plan Status Report template BBQfun operation plan status report Date: Plan goal Implement e-commerce strategy Department Operations Plan objective/s ● redevelop website and acquire physical resources ● recruit and train staff ● achieve profit targets ● adhere to budget ● adhere to timelines. Person responsible Project Officer Key performance indicators Current status (Red, Green, Amber) Comments Key action update Key action Accomplishments Comments Risk update Risk Contingency Comments 1. 2. 3. 4. General comments