Manage Operational Plan – BSBMGT517 Innovation and Business Industry Skills Council Ltd, 1st Edition Version 2, 2015 Page 1 of 15 Task 3: Monitor and Review Operational Performance Performance objective You will demonstrate skills and knowledge required to monitor and review operational performance. Assessment description In response to a simulated business scenario, and using work completed in Assessment Task 1, you will develop, monitor and review performance systems, analyse performance, identify areas of underperformance, take prompt remedial action and report on operational performance. In accordance with contingency planning developed in Assessment Task 1, you will take prompt action to address employee underperformance. In a role-play, you will coach the employee in accordance with performance management systems. You will then prepare and present, in a second role-play, a management report describing the performance system, performance results and recommendations for changes to operational plans. During the role-play, you will negotiate changes to operational plans and gain approval for recommendations from the Operations General Manager (the facilitator/assessor). Procedure 1. Read the simulated BBQ fun scenario information provided in Appendix 1 of this task and the business documentation provided in Assessment Task 1. 2. Prepare a plan for monitoring performance from the start of implementation to the end of the financial year. You may use the action plan template (provided in Appendix 2) or create your own plan. Ensure you include plans for monitoring and/or documenting: a. budgetary and financial performanceManage Operational Plan – BSBMGT517 Innovation and Business Industry Skills Council Ltd, 1st Edition Version 2, 2015 Page 2 of 15 b. productivity performance c. employee performance in line with performance management policy d. milestone achievement and performance against targets e. dates for monitoring activities in line with scenario f. resources for monitoring g. progress reporting at the end of each quarter to the Operations General Manager h. regular performance management of online staff and lodgement of records with the HR Manager. 3. Identify areas of employee underperformance, determine possible remedial actions and prepare to performance manage underperforming employees. Refer to, follow, or adapt, existing contingency plan for underperforming employees (developed in Assessment Task 1). 4. Follow your contingency plan and the BBQ fun performance management policy to coach and performance manage an underperforming employee. Arrange with your assessor to role-play the coaching session. You may wish to use the performance management plan template and coaching plan template (provided in Appendices3 and 4 of this task) to prepare for the coaching session. Make sure you begin a coaching session with an explanation of your role as a coach in supporting the employee to meet BBQ fun’s organisational goals. 5. Analyse operational performance as described in scenario, and produce an operational plan status report based on the information provided in Appendix 1. You may wish to use the Operational Status Report template (provided in Appendix 5). You will also need to include in your report: a. a description of budgetary and financial performance b. a description of productivity performance c. an analysis of milestone achievement and performance against targets d. three recommendations for operational improvement.Manage Operational Plan – BSBMGT517 Innovation and Business Industry Skills Council Ltd, 1st Edition Version 2, 2015 Page 3 of 15 6. Arrange a time to meet with your assessor to role-play the presentation of your report to the Operations General Manager and negotiate recommendations –involving, for example, changes to plans, changes to implementation of plans, changes to budget, etc. –and seek approval for the implementation of your recommendations. 7. Submit a portfolio of your implementation documents as outlined in the specifications below. Keep copies of your work for your records. Specifications You must: ● participate in two role-plays: ○ coaching an underperforming employee ○ presentation of report to Operations General Manager ● submit a portfolio that includes: ○ a monitoring plan ○ a contingency plan (amended from Assessment Task 1) for managing employee underperformance ○ a coaching and performance management plan ○ an operational plan status report, including: – a description of budgetary and financial performance – a description of productivity performance – an analysis of milestone achievement and performance against targets – three recommendations for operational improvement. Your assessor will be looking for: ● reading and writing skills to access, interpret and use workplace information and to write a practical monitoring plan and management reportManage Operational Plan – BSBMGT517 Innovation and Business Industry Skills Council Ltd, 1st Edition Version 2, 2015 Page 4 of 15 ● oral communication skills to present information in a clear and professional manner to underperformers and management, listen and comprehend information and confirm understanding through questioning and active listening ● planning and organisational skills to take responsibility for monitoring an operational plan to determine performance against operational goals ● leadership skills to communicate with and motivate underperformers, facilitate performance management discussions and collaborate to achieve business outcomes ● numeracy skills to monitor expenditure of financial resources ● knowledge of models and methods for operational plans ● knowledge of the relationship between an operational plan and organisational objectives ● knowledge of budgeting processes.Manage Operational Plan – BSBMGT517 Innovation and Business Industry Skills Council Ltd, 1st Edition Version 2, 2015 Page 5 of 15 Appendix 1 – Scenario – e-Commerce performance monitoring Background to scenario The BBQ fun 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 BBQ fun’s ecommerce strategy. Under the strategy, BBQ fun 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 BBQ fun 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 BBQ fun 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.Manage Operational Plan – BSBMGT517 Innovation and Business Industry Skills Council Ltd, 1st Edition Version 2, 2015 Page 6 of 15 Note: You may consider the management team of BBQ fun 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%.Manage Operational Plan – BSBMGT517 Innovation and Business Industry Skills Council Ltd, 1st Edition Version 2, 2015 Page 7 of 15 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%.Manage Operational Plan – BSBMGT517 Innovation and Business Industry Skills Council Ltd, 1st Edition Version 2, 2015 Page 8 of 15 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.Manage Operational Plan – BSBMGT517 Innovation and Business Industry Skills Council Ltd, 1st Edition Version 2, 2015 Page 9 of 15 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)Manage Operational Plan – BSBMGT517 Innovation and Business Industry Skills Council Ltd, 1st Edition Version 2, 2015 Page 10 of 15 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:Manage Operational Plan – BSBMGT517 Innovation and Business Industry Skills Council Ltd, 1st Edition Version 2, 2015 Page 11 of 15 Appendix 4: Coaching plan template Employee: Coach/Manager: Date of session: Questions Goal Reality Options WillManage Operational Plan – BSBMGT517 Innovation and Business Industry Skills Council Ltd, 1st Edition Version 2, 2015 Page 12 of 15 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) CommentsManage Operational Plan – BSBMGT517 Innovation and Business Industry Skills Council Ltd, 1st Edition Version 2, 2015 Page 13 of 15 Key performance indicators Current status (Red, Green, Amber) Comments Key action update Key action Accomplishments CommentsManage Operational Plan – BSBMGT517 Innovation and Business Industry Skills Council Ltd, 1st Edition Version 2, 2015 Page 14 of 15 Risk update Risk Contingency Comments 1. 2. 3. 4. General commentsManage Operational Plan – BSBMGT517 Innovation and Business Industry Skills Council Ltd, 1st Edition Version 2, 2015 Page 15 of 15