Overview of the Organisation and its Strategic Plan
|
BAcquiring physical resources for supporting expansion plan of the business |
The physical resources will be consists of energy distribution assets, gas pipelines, other support assets |
The purpose of the physical resources is to support the operational plan of the business and also provide the efficiency in the distribution of energy |
Increase in the physical assets of the business |
The consultancy strategies of the business focus on securing approvals from the top-level management regarding the operational plan and other requirements which are necessary for the purpose of bring about growth and development (Uhl and Gollenia 2016). The requirement of the business to various resources and activities needs to be confirmed from the management which is shown in the template which is shown below:
|
Plan/ Activity |
Details |
Approval From |
Method of Approval |
Document Required |
Timing |
|
Operational Activities and Roles of Different Departments |
The different operational activities and different roles which are to be performed by different departments adhering to the strategic objectives of the business in order to achieve the goals and vision of the management of AusNet Services. |
Operational Manager and Board of Directors of the company. |
General Meeting of the Board of directors with the help of presentations. |
Documents of Proposals, presentation, charts referring to different responsibilities of different departments. |
After publishing the annual report of the business. |
|
Requirement of Human Resources |
The business will be requiring skill labour in order to ensure that the activities of the business are carried out diligently and efficiently (Griffin 2013). Moreover, the expansion plan of the business will be requiring adequate labour supply to meet the plans and strategies of the business. |
Human Resource Manager of the business |
Departmental Meetings with Human Resource Manager |
Recruitment plans and employee vacancy report of different departments |
Quarterly Reports |
|
Requirement of Physical Resources |
The physical resources of the business comprise of distribution assets, pipelines for gas distribution which will be necessary for bringing about development in business and achieving the strategic objectives. |
Operational Manager and Board of Directors of the company. |
General Meeting of the Board of directors with the help of presentations. |
Asset Management register and Blue prints of the pipelines which are to be developed. |
During the first half of the year. |
Stakeholders Register
|
Stakeholder name |
Role/Dept. |
Communication needs and strategy |
|
Geraldine Leslie |
HR Manager/HR |
Recruitment and selection of employees considering the needs of business and the expansion plan. Communication can be initiated with the help of e-mails, weekly reports, vacancy requirements. |
|
Adam Newman |
Chief Financial Officer |
Requirements of funds to initiate different projects of the management. Communication can be made with the help of presentation or financial proposal for funds. |
|
Mario Tieppo |
Technological Expert and Manager |
Requirement of updated software and reporting programs for efficient control and supervision program. |
The operational plan which the management of AusNet Services want to incorporate in the business which is to expand the scale of operations of the business keeping the quality of the services provided intact and also maintain the long-term safety objectives of the business. In order to achieve and successfully implement the operational plan the management will be requiring both human resources and physical resources as well.
The HR manager of the company needs to recruit new employees who are skilled and competent for the jobs in order to meet the human resources requirements of the business. In addition to this, physical resources will also be a requirement for the business which will be both assets which will be used internally and externally. A template showing different resource requirements of the business is shown below:
|
Resource type |
Details |
Key timelines |
Estimated cost |
|
Human Resources |
Handling distribution and handling and maintenance of energy distribution of assets. |
March 2018 to May 2018 and September 2018 to December 2018 |
$ 1,00,000 |
|
Physical Resources |
Different energy distribution assets and pipelines |
March 2018 |
$ 10,00,000 |
|
Item |
Price/Unit |
Quantity |
Total |
|
Recruitment of Employees |
$ 1,000 |
100 |
$ 1,00,000 |
|
Energy Distribution Assets |
$ 100000 |
3 |
$ 3,00,000 |
|
Pipeline for Gas Distribution |
$ 500000 |
1 |
$ 7,00,000 |
|
$ |
$ |
||
|
Sub-Total |
$ 11,00,000 |
||
|
Contingency – % |
$ 1,10,000 |
||
|
Total Budget |
$ 12,10,000 |
The different expenses which are covered in the Budget of the business are to be considered for the company and proper monitoring for the same is to be established. The targets which are set in the budget are to be monitored by the operational manager of the business and the same can be done by incorporating performance and progress report plan which will help the operational manager to keep track of the goals and objectives of the business are being followed or not under the operational plan of the business.
The key performance indicators of a business refer to the factors which represents the overall success of a business (Mathrani, Mathrani and Viehland 2013). The key performance indicator will help the management of the company to decide whether the plans of the business are implemented and whether the business is moving in the right track towards achieving the strategic objectives of the business. The key performance indicators of the business as per the operational plan of the business is shown in template below:
|
KPI – Type |
Details |
Measure |
Monitoring |
|
Efficiency |
Efficiency in the business process and management of the activities of the company |
The measures which can be adopted to bring about efficiency is by incorporating strong internal control, recruiting efficient employees for the business and better management framework of the business (Belov and Kravets 2013). |
The management of the company can monitor the activities of the business by incorporating performance reports in order to review the performance of the business. |
|
Profitability |
The profitability of the business depends on the practices of the management to follow the operational plan of the business. |
The expansion of the business and also increase in the scale of operations of the business will automatically increase the profits and revenue generation of the business. |
The profits of the business can be monitored by adopting practices such budgeting and performance management. |
|
Increase in the Customer base |
With the expansion of the scale of operations of the business, there will also be a better coverage of area and thereby customer base of the business will increase. |
More and more customers can be attracted by the company by providing the best quality of services to the customers |
The services and quality of the services can be monitored by the management with performance reports, feedback analysis of customers. |
|
Risk |
Priority |
Contingency plan |
|
Risk of Liquidity |
High |
The management needs to prepare a contingency plan which will avoid liquidity crisis (Graham and Kaye 2015). The management will be keeping aside some funds as reserves which will be tackling such a situation. |
|
Safety risks |
High |
The management is very strict on maintaining safety of the employees of the business and has Safety mission incorporated in the corporate structure of the business (Morecroft 2015). |
The contingency plans are prepared by the business for providing for risks which the business faces and as a source for a back up plan in the face of severe risks which are faced by the management. The contingency plans are to be implemented by the operational manager on the advises of the board of directors in case any risks which are mentioned in the plan surface. The contingency plans are to be implemented considering the risks depending on the departments which are most vulnerable to such risks.
The staff who are newly recruited by the company needs to be trained in order to ensure that they can handle the system and requirement of different process in an efficient manner. The coaching plan of the business will be sub-divided in three phases which are shown below in point form:
- Training period: The training period will comprise of the basic training which the employees need to undergo before joining respective teams and the individuals will also be coached to handle assets and systems which the management uses in day to day business.
- On Job Training:The employees in this stage will be provided an experience of on job training process and also an experience what the employees will be facing in team.
- Team Training:This process will be providing the staffs with experience of team atmosphere.
Purpose and Scope of the Operational Plan
The record keeping process which will be keeping a track record about the performance of the business since the implementation of operational plan of the business. The management has incorporated performance management criteria according to which every department needs to prepared and submit a performance report to the operational manager so that performance of each department and individual wise performance cab be established.
Example for Record Keeping
An example can be provided for the service department as they have to maintain a record of different and numbers of sales made during the month for which report is to be submitted to the board of directors and operational manager. Another common example which is provided is for the record keeping system is for accounting information. The accounting information were earlier keep in Journal and Ledger books of accounts which needed to be prepared and maintained by the accounting departments manually. The business in present times uses NetSuite ERP system to record accounting information and mainly handle the recording for cash of the business. The management has implemented the same in order to ensure that the management can save time in real time decision making process.
The human resources of the business will be appointed by the human resource manager of the business and the recruitment will be based on the vacancy requirements of the business. The staffs will be firstly invited for job applications which will require a level of educational qualification. The potential candidates will then be selected with the help of interviews which will be of different rounds and the same will be depending on the designation of the post which is offered by the company (Anderson 2013).
The short-listed employees will be moving forward for the induction ceremony where the norms and regulations of the organization will be explained to the candidates and also overview of the company and its visions and mission will also be provided to the candidates (Rao 2014). The candidates will also have a formal training before they are introduced to the teams.
|
Activities |
Checklist |
|
Introduction Session |
ü |
|
Explaining the Norms and regulations of the business |
ü |
|
Vision, Mission and Strategic Goals of the Business |
ü |
|
Facilities available to the employees including perquisites, leaves, holidays, bonus plan, promotion strategy |
ü |
|
Feedback session |
ü |
The physical resources which includes both assets and intellectual property should be acquired by the business in order to follow the strategic objectives and goals of the business. The intellectual properties which the business needs to acquire includes patents, copyrights and software installations (Tukker 2015). The management can acquire such resources from other business or third parties. The physical resources which are used by business are essential to ensure that the operating process of the business remains uninterrupted.
The intellectual property of the business needs to be protected by the management of the company by taking a legal status for the same in case some one tries to copy the intellectual property of the business. The management also needs to ensure that the business does not copy any other business’s intellectual property.
|
Suppliers |
Equipment |
Purchase price option |
|
Frank and Company |
Drillers, energy equipment |
Tender price |
|
ABC ltd |
Drillers, energy equipment, |
Open market price |
|
Nick and Corporation |
Drillers, energy equipment, |
Contract Basis (Bulk Purchases) |
The KPI which has not been achieved considered the case study which is provided in the question is the overall efficiency in the operations of the business. The management can monitor the KPI by incorporating effective supervision and control with induced focus on efficiency of the departments and its process (Calabrò, Lonetti and Marchetti 2015). This can be done with the help of CCTV Cameras and also performance reports. In order to achieve efficiency a framework needs to be set which can guide the actions of the employees and promote efficiency in the work process. Any incident of inefficiency needs to be investigated and corrective action on the basis of the same is to be taken. In order to bring about efficiency in the operations senior managers and board members can be consulted to bring about efficiency in the management of the business.
Key Deliverables of the Operational Plan
One of the major risks which can affect the implementation process is the liquidity risks which can severely affect the changes taking place in the business. This risk can be avoided with the of predicting the same and taking necessary actions such as creation of a reserve specially for such a situation so that lack of funds does not hampers the implementation process.
The employee needs to be retrained immediately so that the unproductiveness can be rectified and with proper training and dedication from the employee part positive results can be achieved.
The management needs to take strict action against the employee as the error has resulted in leakage of information to third parties and therefore is considered to an offence. The management can bring about improvements in reporting framework by introducing computerized system of reporting and the access to such information is to be only provided to the senior accountants of the business.
The company which is considered for this part is Webjet ltd which is engaged in providing airline services to the customers. As per the annual report of the company for the year 2018, the revenue which is earned by the business has increased significantly as the same is shown $ 751,783,000 for the year 2018 while the figure was around $ 199,219,000 in 2017 which shows tremendous improvements in the sales of the business (Webjetlimited.com. 2018). This also suggest that the management is following aggressive sales strategy. However, the profits of the business are lower than figures of 2017 which is due to the higher costs which is incurred by the business during the year.
The areas of non-performance which can be identified are the higher costs which is not effectively managed which reduces the profitability of the business. In addition to this, the current liabilities are more than the current assets of the business which also suggest that the business is facing problems regarding liquidity of the business.
|
Area of under-performance |
Solutions/Actions |
|
Maintaining the Liquidity position of the Business |
The management of the company needs to reduce the cash outflows of the business and improve the liquidity position which can be done taking additional loans or equity capital in order to meet the current obligations. |
|
Improvement of Profitability |
The annual report shows that even though the sales increases significantly in 2018, the profits were still lower than 2017 results which is due to the high cost of operations of the business which the management of the company needs to reduce. This can be done by following a proper supervision and control plan which can identified productive and unproductive costs, necessary and unnecessary costs and reduce the same. |
|
Meeting the Expectations of the Shareholders |
The Earning per share of the business has fallen significantly as compared to previous year and the management of the company needs to meet the expectation of the business. The managements to follow effective governance policies in order to improve the shareholders of the business. |
The organization which is selected for this assessment is AusNet Services which is one of the leading energy delivery businesses operating in Australia. An estimate suggest that the company works with around $ 12 billion of electricity and gas distribution assets for both domestic and foreign use.
The two models which are followed in operational planning of the business are Basic Strategy Planning Model and Issue Based Planning Model. Basic Strategy Planning Model follows strategies which allows businesses to frame an operational plan which meets the basic needs of the business and are formulated in businesses for a short period of time. In case of Issue based planning model, plans are formulated specifically for a problem which the business faces during the year.
There are various methods which can be used for the formulation of an operational plan. One of the method is Brainstorming method which requires the management to come with creative ideas which can be used by the management for formulation of plans which the business can used for the operational plan of the business. Another method is problem tree approach which allows businesses to follow the problems which the business faces and formulate a plan accordingly.
Consultation Strategy
In the case of AusNet Service ltd the development of an appropriate operational plan will help the management to achieve its goals and objectives effectively. Operational plan in AusNet Ltd will allow the management to set targets and develop a list of activities which are to be conducted by different departments for the purpose of achieving the goals of the business (Ausnetservices.com.au. 2018). An example can be given about the expansion plan which the management has undertaken for the purpose of expanding the business further and penetrating new markets. In such a situation operational plan is required for the purpose of ensuring that the requirement of resources, funds and proper monitoring of the plans of the business are undertaken.
Budgeting is one of the most used tools in companies which allows the businesses to formulate plans, forecast targets, monitor the targets and also identify variances in performance of the business. The process of budgeting enables a business to forecast the revenues and expenses for the business which the management will be incurring in future. The budgeting process is also used for the purpose of comparison of financial information which are shown in the budgets. In addition to this, budgeting process also helps in providing variance analysis which are difference between actual and budgeted performance.
The management of a company can develop key performance indicators of the business by developing a proper monitoring plan which will bring about efficiency in the workers of the organization and also improve the skills and reduce the processing time of the business. The processing time of the business will be considered to be key financial indicator of the business. In addition to this, management also develop financial plan which can also create key performance indicators for the business.
The KPI of AusNet services is the sustainability management practices of the business for the purpose of generating revenues for the business.
The operational plan of the business will be considering the regulatory framework of the business. The operational plan will be considering policies, rules and regulations which are developed by the business for the purpose of ensuring the objectives of the business are fulfilled. The plans and policies which are formulated by the business needs to be verified by the board of directors of the business.
The policies of the AusNet Services allow the business to follow sustainable practices which allows the business to fulfill the objectives of the business considering the requirements of the society and management. The company follows missionZero Safety vision which requires the businesses to follow their long-term objective to develop an efficient and safe working environment.
Reference
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Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business, strategy and owner-manager characteristics. Journal of small business and enterprise development, 20(1), pp.8-27.
Calabrò, A., Lonetti, F. and Marchetti, E., 2015, October. KPI evaluation of the business process execution through event monitoring activity. In Enterprise Systems (ES), 2015 International Conference on (pp. 169-176). IEEE.
Graham, J. and Kaye, D., 2015. A Risk Management Approach to Business Continuity: Aligning Business Continuity and Corporate Governance. Rothstein Publishing.
Griffin, R.W., 2013. Fundamentals of management. Cengage Learning.
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Morecroft, J.D., 2015. Strategic modelling and business dynamics: A feedback systems approach. John Wiley & Sons.
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Uhl, A. and Gollenia, L.A. eds., 2016. Business transformation management methodology. Routledge.
Ullah, A. and Lai, R., 2013. A systematic review of business and information technology alignment. ACM Transactions on Management Information Systems (TMIS), 4(1), p.4.
Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth, profitability, and family leadership. Springer.
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