Operational Plan For Transactions On Power Systems

Broad Consultation and Its Role

Discuss about the Operational Plan for Transactions on Power Systems.

Operational plan may be defined as a plan which is prepared by the senior management of the company for the purpose of implementation of the strategic objectives of the business and also for the purpose of effectively pursuing the business goals (Thomas and Silva 2016). The operational plan of the business should be aimed towards formulating plans for each department which can contribute to the company’s goal (Maes, Oracle International Corp 2015). The operation plans which are formulated by the business are majorly used to identify the following:

• The goals of the team and different department of the business.
• The activities in which the business engages in for the purpose of achieving the goals
• The resources which are utilized by the business for the achieving the goals of the business.

An operational plan is very essential for the purpose of planning and implementing adjustments which are required for the purpose of achieving the strategic goals of the business. Operational plan includes detailed directions which are to be followed by the employees of the business for the day to day performance of the tasks of the business (Griffin 2013). It is important for the management to refer to the operational plan of the business to ensure that the business is moving in the right course of action as per the strategic goals of the business. The operational plan of the business provides and answers What, Who, When and how much:

• What- The strategies which the business needs to undertake for business development.
• Who- The persons who are given the responsibility of each of the strategies of the business.
• When: This states the timeline in which the strategies are to implemented or the task is to be completed.
• How much: The amount of financial resources provided to complete each strategy and task as per the operational plan of the business. 

Broad consultation is an important role in the planning and overall management of the business. The process of broad consultant should be implemented from the very beginning of the planning process so as to ensure that the effective communication can be undertaken by the with the different department and other employees. Consultation with different department facilitates communication and effective solutions and development of strategic goals of the business. Broad Consultation provides the management with different opinion which helps in the decision-making process of the business (Head 2014). Broad Consultation can be achieved through formal channels meeting sessions, workshop, focus group task and also through informal channels such as informal communication. An example can be given of the importance of broad consultation in a business which is in the case of a budget. A budget should always be prepared on the basis of recommendation of all employee of the business. This ensures that the budget which is prepared by the management can be effective and follow all the requirement of the business.

Operation plan is a management tool which is used for the purpose of formulation and implementation of strategies which will help the management in achieving the goals of the business. The operation plan of the business provide management with a clear idea of the objectives and plan which the management wishes to achieve. The operational plan sets out the activities which are to be undertaken by the management in order to achieve the goals of the business (Buijs and Wortmann 2014). In addition to this, operational plan contributes to the decision of allocation of the business and on the basis of such a plan allocation of resources to different activities of the business are decided. The plan is also used as a means of exercising control over the activities of the business and also ensure that the strategies of the business are effectively implemented so that the strategic goals of the business can be achieved.

Role of Operational Plan

Budgets are prepared by business for the purpose of planning and exercising control over the operations and overall development of the business (Dudin et al. 2015). Budgets are used by the business for the purpose of forecasting the expenses and revenues of the business and the future activities of the business.

In several situation, budgets need to be revised and reformulated for the purpose meeting the changes which occur in the business environment. The business environment is dynamic in nature and is ever changing, therefore the budgets needs to changed accordingly to the changing conditions. The budgets are formulated by the top-level management and senior management executives and they consider the market condition and according formulates the budgets which the organization is to follow for achieving the strategic goals of the business. The senior management sets the targets and objectives of the business which the business is to follow and in addition to this, budgets are also used as a communication tool for the purpose of informing all the departments as to what are the roles which are to be played by each department.

In the preparation of the financial reports of the business, various ledger accounts which are prepared by the management during a particular period is considered. In addition to this, the management also considers the accounting principles and standards which are universally applied for the preparation of the financial reports of the business. The business also needs to adhere to the specific standards which are applicable to the business and ensure that the same are being followed. The business needs to disclose various treatments which the business has undertaken in the preparation of the financial statements of the company. The management also needs to consider the changes and amendments which are made to the accounting policies and standard which are made in the business.

The operational plan considers various resources and also incorporates allocation of the resources to various activities so as to ensure that the business objectives and goals are achieved by the company. The various resources which are often planned for in an operational plan of a business are discussed below:

• Financial Resources: The financial resources which are used by the business refers to the funds and money capital which is used by the business for the purpose of financing various activities of the business. For example, funds which are used by the business for the purpose of financing a project or an activity (Arefifar et al. 2013). This needs to be included in the operation plan of the business so that various departments
• Human Resources: This refers to the use of human capital for the purpose of effective operation of the business. This involves allocation of activities to different individuals who are to perform the same. For example, for a certain project, the management forms a team who is given the responsibility of performing in the project. This is referred to allocation of human resources for the purpose of completion of the task or operation.
• Physical Resources: The physical resources which are used by the business are essential for the purpose of production. In addition to this, this refers to the raw materials which are used by the business in the production. For example, the raw materials which are used by the business which includes, inventories and other resources for the purpose of production is also included in the operation plan for effective control purposes.
• Intellectual Resources: These refers to the intangible assets of the business which the business needs to maintain for the purpose of ensuring that the intellectual capital of the business is used to the full extent. An example can be given which are goodwill, patents which are used by the business.

The resources which are used by the business should be efficiently utilized by the business for the sustainable development of the business. A resource which is used in the business should be sustainably used so that the same considers the impact of the activities on the environment and society and also considers the self-interest of the business.

The five measures which the business can be undertaken by the management for reducing the waste of paper and resources are:

1. The business can implement the policy of reuse and recycle for reducing the waste of the business.
2. The business can follow sustainable practices for the purpose of reducing the wastage and efficient utilization of resources.
3. The business can opt for the use of alternative resources in place of paper so that the activities of the business are used.
4. Effective management of the waste which are generated of the waste which the business uses.
5. The management can follow activities or engage in innovative practices for effective utilization of resources of the business.

The various rules and regulations which are enforced by the government are to be followed by the business so that the management can carry on operation of the business in an ethical and legal manner. If the management does not implement and adhere to the legal rules than strict regulation might be imposed on the business by the government and also an penalty can be imposed on the business.

The policies and procedures which are followed by the management are based on the strategies and the goals which the company wants to achieve. The policies and procedures which are adopted by the business frames the operational plan of the business and the also guides the different departments as to what are the guidelines which the business needs to follow. In addition to this, it is also a known fact that different companies have different policies and procedures and therefore the operational plan of such companies will be different accordingly.

Reference

Arefifar, S.A., Mohamed, Y.A.R.I. and EL-Fouly, T.H., 2013. Comprehensive operational planning framework for self-healing control actions in smart distribution grids. IEEE Transactions on Power Systems, 28(4), pp.4192-4200.

Buijs, P. and Wortmann, J.C., 2014. Joint operational decision-making in collaborative transportation networks: the role of IT. Supply Chain Management: An International Journal, 19(2), pp.200-210.

Dudin, M., Kucuri, G., Fedorova, I., Dzusova, S. and Namitulina, A., 2015. The innovative business model canvas in the system of effective budgeting.

Griffin, R.W., 2013. Fundamentals of management. Cengage Learning.

Head, B.W., 2014. Evidence, uncertainty, and wicked problems in climate change decision making in Australia. Environment and Planning C: Government and Policy, 32(4), pp.663-679.

Maes, S.H., Oracle International Corp, 2015. Integrating operational and business support systems with a service delivery platform. U.S. Patent 8,966,498.

Thomas, S. and Silva, D., 2016. Strategic management.

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