DEVELOP AND IMPLEMENT A BUSINESS PLAN

DEVELOP AND IMPLEMENT A BUSINESS PLAN
D1.HCS.CL6.05 D1.HSM.CL5.06 D2.TRM.CL9.02 Trainer welcomes students to class.

Subject elements This unit comprises four Elements:
Analyse the internal and external business environment Formulate business plans and strategies Implement the business plan Monitor the business plan Trainer advises this Unit comprises four Elements, as listed on the slide explaining: • Each Element comprises a number of Performance Criteria which will be identified throughout the class and explained in detail • Trainees can obtain more detail from their Trainee Manual • At times the course presents advice and information about various protocols but where their workplace requirements differ to what is presented, the workplace practices and standards, as well as policies and procedures must be observed.

Assessment Assessment for this unit may include: Oral questions
Written questions Work projects Workplace observation of practical skills Practical exercises Formal report from supervisor Trainer advises that assessment for this Unit may take several forms all of which are aimed at verifying they have achieved competency for the Unit as required. Trainer indicates the methods of assessment that will be applied to them for this Unit.

Element 1: Analyse the internal and external business environment
Introduce topic. Class Activity – General Discussion Ask general questions: What is the purpose of evaluation? What is the ‘internal’ environment? What is the ‘external’ environment?

Analyse the internal and external business environment
Performance Criteria for this Element are: Determine information requirements and undertake research to deliver relevant information Consult with all internal and external stakeholders in the research process Use research to assist in the prediction of social, political, economic and technological trends and developments Identify and seek assistance and advice from appropriate experts when necessary Trainer identifies the Performance Criteria for this Element, as listed on the slide.

Analyse the internal and external business environment
Performance Criteria for this Element are: Review and analyse the existing internal resources and capabilities Document and analyse business opportunities and obstacles based on valid and reliable comparative market information Review and analyse current and emerging competitors for their potential impact Trainer identifies the Performance Criteria for this Element, as listed on the slide.

Business planning A business plan
A business plan is a written document that presents detailed information about: The business Its projected plans and projections for the future Class Activity – Questions Ask general questions: What is the purpose of a business plan?

Business planning Importance of a business plan
A business plan is the key formal document that sets out a total picture of how a business will operate It helps to establish standards for measuring the success of all aspects of a business Class Activity – Questions Ask general questions: What information is included in a business plan?

Business planning Basis of a business plan The plan is based on:
An analysis of the business’ current situation Forecasts of future trends within the relevant industry and economy Includes results from research into all aspects of the business operation Is a logical and structured document Class Activity – Questions Ask general questions: How can you analyse current performance? How can you determine future trends?

Business planning Purpose of a business plan
Preparation of a business plan: Gives a sense of ownership and involvement in the future of the business Ensures that the commercial directions planned have been tested for their viability in the marketplace Class Activity – Questions Ask general questions: Who prepares a business plan? Who else should contribute to the development of business plans?

Business planning process
The planning consists of three activities: Core business concept Feasibility study Business plan Class Activity – Questions Ask general questions: What tasks are undertaken in each of these activities?

Core business concept Defines the essence of a new business idea: What are the products and/or services your business will market? What markets will you target with your products and/or services? Class Activity – Questions Ask general questions: Discuss questions in the slide

Feasibility study In three steps, the feasibility study determines the initial viability of the core business concept: Technical feasibility Market feasibility Commercial feasibility Class Activity – Questions Ask general questions: How can you determine feasibility?

If the feasibility study indicates that the business concept is a viable proposition, a detailed business plan must be prepared Class Activity – Questions Ask general questions: What activities are undertaken when developing business plans?

Research process The Research Process
You need to undertake initial research to determine your idea is viable before progressing on to a detailed business plan Class Activity – Questions Ask general questions: How types of research can be used? What is the purpose of each type of research?

Research process Five steps in the research process Define the problem
Analyse the situation Collect information and data Interpret the information Decide on a plan of action Class Activity – Discuss activities Trainer to detail possible activities under each of these research steps.

Research process Types of research Research may include:
Interviewing colleagues and clients Focus groups Data analysis Product sampling Documentation reviews Class Activity – Discuss activities Trainer to detail possible activities under each of these research steps. What are the advantages / disadvantages of each research method?

Research process Types of relevant information
Common types of relevant information may include: Current performance data Sales and contracts Forecasted trends and opportunities Available resource commitments and capacity Class Activity – Questions Ask general questions: What other information would you wish to collect?

Research process Sources of research information Trade associations
Unions Trade journals Daily newspapers Internet Government departments Local council Friends, colleagues, business associates Other associated businesses in the field Class Activity – Discussion & Activity Ask general questions: What are the benefits of each source? What information could be gathered from each source? COMPLETE ACTIVITY 1

Consult with stakeholders
Importance of consulting with stakeholders Who are possible stakeholders? Why is it important to consult with them? What do you require from them? Class Activity – Questions Ask general questions: Discuss questions in the slide

Key stakeholders Types of stakeholders Stakeholders may include:
Customers Employees Government agencies Owners Suppliers Strategic alliance partners Class Activity – Questions Ask general questions: What other stakeholders could be valuable?

Involving stakeholders
Importance of involving stakeholders Communication throughout the planning, preparation and delivery of new concepts is vital to ensure that all stakeholders: Are involved Had the chance to contribute ideas Provide feedback on initial concepts Understand how concepts will affect them How concepts interrelate or impacts other stakeholders Class Activity – Discussion & Activity Discuss the importance of these points. COMPLETE ACTIVITY 2

Conducting research When researching information to help facilitate the business planning process, it is essential to collecting and analysing information in a wide variety of 'environmental areas' that may impact on an organisation in the future. Information must ensure it not only explores: External environment - what is provided or needed by competitors and the industry as a whole Internal environment - what the organisation provides Class Activity – Questions Ask general questions: What information can be collected about each of these environments?

Analysing the environment
Importance of analysing the environment What do you want to analyse? What information do you seek? Where do you get this information? Class Activity – Questions Discuss questions in the slide

Understand external environment
What is market analysis? Market analysis provides us with the information necessary to understand what can cause changes in our operational environment A prime intent of this activity is to gain a more insightful and detailed view of the organisation and where it sits in the overall business and other settings Class Activity – Questions Why is market analysis is important?

Analysis of external environment
Competitors Economic climate Customer preferences E-business Markets Activity Identify different types of information to be collected under each point. Undertake analysis as part of Activity 3.

Analysis of external environment
Technology Political issues Legal issues Social issues and trends What other external influences exist? Activity Identify different types of information to be collected under each point. Undertake analysis as part of Activity 3.

Evaluating market trends
Types of information sources Why is it important to understand trends? Which trends and statistics are important? How can you collect this information? Class Activity – Questions Discuss questions in the slide

Types of information sources Colleagues, supervisors and managers Representatives Developing your own industry network Conferences and seminars Product launches Trade magazines Class Activity – Questions What information can be gathered from each of these sources?

Types of information sources Industry Publications Newsletters Brochures Advertisements Government bodies Class Activity – Questions What information can be gathered from each of these sources?

Types of industry statistics and trends Types of tourism and tourism businesses Types and demographics of customers Top destinations Hotel occupancy percentages Reasons for stays Current industry information Destination countries Departure months Activity Identify different types of industry statistics and trends. Undertake analysis as part of Activity 3.

Types of industry statistics and trends Length of stay Type of organisation for the trip Transport mode Accommodation type Expenditure Popular tourist attractions Tourism patterns Technology Activity Identify different types of industry statistics and trends. Undertake analysis as part of Activity 3.

Customer demands Impact of customer demands
What are common customer demands? What influences customer demand? Class Activity – Questions Discuss questions in the slide Think of yourself as a customer and what your needs would be.

Seeking advise from experts
Before you start your business it is advisable to consult as many organisations and persons that you believe can inform and assist you in your planning. Why is this important? What types of assistance and advice can be sought? What are sources of assistance and advice? Class Activity – Questions Discuss questions in the slide

Types of assistance and advice Assistance and advice from appropriate experts may be sought for: Collection and collation of facts and information Review or verification of facts Legal or financial advice Ensure compliance of regulations and laws Issuing of permits and licences Strategic planning Specialist skill sets Class Activity – Discussion & Questions Discuss importance of these pieces or advice What specific information is included under each of these points?

Sources of assistance and advice Local government agencies Tourism associations Non-government organisations Media personnel including journalists Copy writer Professional research organisations Solicitors Class Activity – Questions What specific information can be provided using each of these sources?

Sources of assistance and advice Family Existing employees Your existing bank Your accountant Financial adviser Your planning consultant Your architect Your local council Class Activity – Questions What specific information can be provided using each of these sources?

Sources of assistance and advice Your potential financier (if not your current bank) Tourism agencies (local/regional/state) Tourism operators Shareholders/business partners Customers Suppliers Neighbours and the local community Class Activity – Questions & Activity What specific information can be provided using each of these sources? COMPLETE ACTIVITY 4

Analysis of internal environment
Once management have had a thorough look at the external environment, the focus must be internally focused The internal environment is the environment within the business Class Activity – Questions What specific information can be sought about the internal environment?

Review internal resources and capabilities Location including premises Market share Turnover Profitability Staff Resources Future potential Activity Review internal environment components Undertake analysis as part of Activity 5.

Internal considerations Products and or services Skill level of staff and management Commitment to growth Current market share Level of debt Activity Review internal environment components. Undertake analysis as part of Activity 5.

Internal considerations Profit margins Capacity to produce goods and/or services Competition Skills of the owners Location of the business Equipment Activity Review internal environment components. Undertake analysis as part of Activity 5.

Organisational requirements Access and equity principles and practices Maintaining ethical standards Meeting goals, objectives, plans, systems and processes Legislated obligations Activity Review internal environment components. Undertake analysis as part of Activity 5.

Organisational requirements Management and accountability channels Manufacturer’s and operational specifications OHS policies, procedures and programs Quality assurance and continuous improvement processes and standards Activity Review internal environment components. Undertake analysis as part of Activity 5.

Types of resources Resources can encompass: Physical resources Human resources Financial resources Intellectual property Activity Review internal environment components. Undertake analysis as part of Activity 5.

Common resources Location/premises Occupational safety and health (OSH) resources Plant/machinery Raw materials – used to produce the products or service Refurbishment requirements Staff amenities Activity Review internal environment components. Undertake analysis as part of Activity 5.

Common resources Stock and supplies Storage space Technical equipment and software Staffing Training Training materials Activity Review internal environment components. Undertake analysis as part of Activity 5.

Analyse the environments
Analyse business opportunities and obstacles How can you do this? Class Activity – Questions Discuss questions in the slide

Analyse the environments
SWOT Analysis Strengths – what the business does well Weaknesses – what the business can improve upon Opportunities – where the business can improve or take advantage Threats – where the business may become disadvantaged, weakened or susceptible Activity Review SWOT Analysis components Undertake analysis as part of Activity 6.

SWOT Analysis Strengths and Weaknesses Finance Production Resources
Offerings Marketing Product life cycle Business relationships Relationships with customers Personnel Activity Review SWOT Analysis components Undertake analysis as part of Activity 6.

SWOT Analysis Opportunities and threats Political considerations
Economic considerations Social considerations Technological considerations Legal considerations Environmental considerations Activity Review SWOT Analysis components Undertake analysis as part of Activity 6.

SWOT Analysis Opportunities New markets
New, up-dated or modified products or services Occasions where new/higher prices may be charged Problems being experienced by other providers which result in an opening for you Closure of an opposition business Fresh markets now available Activity Review SWOT Analysis components Undertake analysis as part of Activity 6.

SWOT Analysis Threats Introduction of new or more severe legislation
Opening of a new competitor Worsening economic conditions Staff shortages Difficulty in obtaining physical resources An unsettled domestic situation which scares off tourists Negative comparative monetary exchange rates with countries who are major clients Activity Review SWOT Analysis components Undertake analysis as part of Activity 6.

Review current and emerging competitors
Importance of understanding competitive advantage Why is this important? How can you see what competitors are doing? How can you create a competitive advantage? Questions Discuss questions in the slide.

Review current and emerging competitors
Review and analyse current and emerging competitors Areas of review may relate to: Volume Price Territory Customer accounts Trading terms Market share Customer satisfaction Questions What information would you like to know under each point? How can you gather this information?

Current market situation
Total market characteristics - size, growth, trends Customer needs, perceptions and buying behaviour Products - service characteristics Prices Customer service and distribution Channels Communication Activity Identify examples of information you would like to get under each point Undertake analysis as part of Activity 7.

Competitive situation Industry structure The geographic market in which they compete Their current marketing performance Their competitive position Strengths and weaknesses, and vulnerabilities of each significant competitor Their objectives and competitive strategies Industry profitability Activity Identify examples of information you would like to get under each point Undertake analysis as part of Activity 7.

Product situation For each product/service that the organisation offers, sales, profits, contribution margins and growth should be displayed Product lifecycle and expected demand over the product’s life should be considered Growth of the product/service should be contrasted to total market growth Activity Identify examples of information you would like to get under each point Undertake analysis as part of Activity 7.

Joint ventures and strategic alliances
Explore the potential for joint ventures and strategic alliances. It may be that there is an opportunity for your business to form a joint venture or strategic alliance with another organisation Questions and Activity Identify different types of successful ventures or strategic alliances between companies. What made them successful? What would be the criteria for successful mergers? Undertake analysis as part of Activity 8.

Element 2: Formulate business plans and strategies
Introduce topic. Class Activity – General Discussion Ask general questions: How do you create business plans? What templates can be used to help formula business plans?

Formulate business plans and strategies
Performance Criteria for this Element are: Create or confirm enterprise mission, vision and purpose as the starting point for the business plan in consultation with stakeholders Establish realistic, clearly stated and measurable objectives for the business Develop appropriate strategies and tactics to address objectives across all areas of business operation Identify and include opportunities for strategic business alliances Trainer identifies the Performance Criteria for this Element, as listed on the slide.

Formulate business plans and strategies
Performance Criteria for this Element are: Develop all aspects of the business plan to ensure the business meets relevant legal, social, environmental and ethical obligations Include appropriate action plans and evaluation processes, including key performance indicators Consult with appropriate staff, management and other stakeholders to encourage support for the planning process so that all perspectives are taken into account in the development of the plan Trainer identifies the Performance Criteria for this Element, as listed on the slide.

Formulate business plan
Focus of business plans The business plan may be for: A new or existing small business venture A division or department of a large organisation A new product development initiative Questions What information would need to be included in business plans for each of these scenarios?

Formulate business plan
Contents of a business plan What needs to be included in a Business Plan? Questions Discuss question in the slide.

Executive Summary Business Profile Your Products and/or Services
The Market The Business Potential Mission, Goals and Objectives Strategies Business Structure Finance Conclusion Discuss, Review business plans & Complete Activity What information would be included in each of these sections? Trainer to show examples of existing business plans to audience. COMPLETE ACTIVITIES 9,10

Business Profile Business Name Business Location/s
Business Activity/Activities Business Objectives Business History/Entry Strategy Ownership Structure Legal Requirements Discuss, Review business plans & Complete Activity What information would be included in each of these sections? Trainer to show examples of existing business plans to audience. COMPLETE ACTIVITIES 11,12

Market Report Industry Profile
Review of Existing Operation (if appropriate) Your Product and/Service Competition Environmental Information and Trends Discuss, Review business plans & Complete Activity What information would be included in each of these sections? Trainer to show examples of existing business plans to audience. COMPLETE ACTIVITY 13

Marketing Plan Market Segmentation Your Customers Target Markets
Strengths, Weaknesses, Opportunities, Threats Analysis Key Issues Discuss, Review business plans & Complete Activity What information would be included in each of these sections? Trainer to show examples of existing business plans to audience. COMPLETE ACTIVITY 14

The Marketing Plan Sales and Marketing Goals and Objectives
Value Proposition (Competitive Advantages) Marketing Strategies Pricing Promotion Sales and Distribution Discuss, Review business plans & Complete Activity What information would be included in each of these sections? Trainer to show examples of existing business plans to audience. COMPLETE ACTIVITY 14

Operational Plan Premises, Plant and Equipment Floor plan Production
Purchasing List of Suppliers Stock levels Purchasing Policies and Controls Purchasing Controls Break-even Analysis Discuss, Review business plans & Complete Activity What information would be included in each of these sections? Trainer to show examples of existing business plans to audience. COMPLETE ACTIVITY 15

Finance Plan Current Financial Position
Capital Requirements and Funding Proposal Financial Budgets Cash-flow Projection Projected Statement of Financial Performance (Profit and Loss) Discuss, Review business plans & Complete Activity What information would be included in each of these sections? Trainer to show examples of existing business plans to audience. COMPLETE ACTIVITY 16

Finance Plan Projected Statement of Financial Position (Balance Sheet)
Financial Ratios Financial Controls Business Insurances Discuss, Review business plans & Complete Activity What information would be included in each of these sections? Trainer to show examples of existing business plans to audience. COMPLETE ACTIVITY 16

Risk Plan Risk Identification and Mitigation
What are different types of risks? What needs to be considered? What are the steps to reduce risks? Discuss, Review business plans & Complete Activity Discuss questions in the slide. Trainer to show examples of existing business plans to audience. COMPLETE ACTIVITY 17

Structure and Management Plan
Organisational Chart and Structure Key Personnel Labour Requirements and Skills Staffing Strategies Professional Advisers Staffing Controls Discuss, Review business plans & Complete Activity What information would be included in each of these sections? Trainer to show examples of existing business plans to audience. COMPLETE ACTIVITY 18

Strategic alliances Identifying possible strategic alliances
Your industry association can provide substantial information, and through trade shows and networking you will meet other similar or allied businesses that lead to new and expanded operations. How are suitable alliances in the tourism industry? What makes successful alliances? Discuss, Review business plans & Complete Activity Discuss questions in the slide COMPLETE ACTIVITY 19

Meet legal requirements
Requirements and Obligations Registration of Business Name Business Licenses Taxation Registration Industrial Awards Medical Insurance Intellectual Property Registration Other insurances Pollution/environmental controls Discuss, Review business plans & Complete Activity What information would be included in each of these sections? Trainer to show examples of existing business plans to audience. COMPLETE ACTIVITY 20

Action Plans One of the key requirements of any business plan is to outline how the goals, objectives and strategies will be accomplished. What actions need to be done To what standard must it be done What policies or procedures must be adhered to Who is responsible for action What tasks are associated with actions Timelines for actions Support mechanisms Discussion What activities are required to put business plans into actions?

Action Plans Areas requiring action plans
Areas of business operation in the business plan should have action plans include: Business establishment Operations Marketing Technology Human resources/labour requirements Management and organisational structure Financial plan and projections Quality management Discussion & Activity What activities are required to put business plans into actions for each of these sections? COMPLETE ACTIVITY 21

Monitoring and evaluation
Monitoring and evaluation mechanisms Evaluation processes may include: Key performance indicators Gap analysis Customer feedback Compliance reports Employee feedback Discussion & Activity Introduce topic. This will be discussed in more detail in the next section. COMPLETE ACTIVITY 21

Key Performance Indicators (KPI’s) Total number of customers Total number of customers per department or market segment Average dollar spent Total revenue per capita Sales per product group Average sales per day’s trading Questions What are other KPI’s that could be used, specific to the tourism industry? What exact measurements or standards for each KPI should be identified?

Key Performance Indicators (KPI’s) Average total revenue per client Marketing expense per customer Marketing expense and sales revenue per customer from a specific campaign Total revenue / full time employee Gross profit margin Questions & Activity What are other KPI’s that could be used, specific to the tourism industry? What exact measurements or standards for each KPI should be identified? COMPLETE ACTIVITY 21

Appendices What documents go into the appendices?
Discuss, Review business plans Discuss question in the slide. Trainer to show examples of existing business plans to audience.

Consult with stakeholders
Importance of stakeholders What are examples of stakeholders? Why involve them? Questions & Activity Discuss question in the slide. COMPLETE ACTIVITY 22

Element 3: Implement the business plan
Introduce topic. Class Activity – General Discussion Ask general questions: How do you implement the business plan?

Implement the business plan
Performance Criteria for this Element are: Communicate the business objectives and content of plans in a timely manner to facilitate a clear understanding of the plan and associated activities and individual responsibilities Use appropriate leadership techniques to encourage team commitment to the business plan Encourage staff to provide ongoing input into the business plan Implement and organise actions detailed in the plan in a cost-efficient manner and in accordance with schedule and contingencies Trainer identifies the Performance Criteria for this Element, as listed on the slide.

Communicate business plan
Present final business plan to relevant stakeholders accurately Once business plans, including objectives have been finalised, it is now time to present the final version to relevant stakeholders Questions What are considerations when planning to present final business plan? What activities need to be completed?

Stakeholder considerations Get a clear understanding of the business plan Ensure that all key concerns have been considered Understand the benefits of the business plan Understand how the business plan will benefit them Understand how the business plan will impact on them Questions How can you meet these concerns? What other concerns would you have?

Stakeholder considerations Understand their role in implementing the business plan Any potential problems identified Have their concerns addressed Be excited and reassured about the business plan Questions How can you meet these concerns? What other concerns would you have?

Types of stakeholders Clients Business partners Colleagues Staff Event organisers Sponsors from other companies Superiors Suppliers / vendors Team leaders Team members Venue operator / leaser Questions Why involve these stakeholders?

Communicate business plan information Key vision of the plan Reasoning or purpose behind the business plan Background information Business objectives How the plan will be implemented Roles and responsibilities of key stakeholders Timelines Support mechanisms Questions What else could be communicated?

Communicate information How can you communicate information to: Staff Managers Clients Suppliers Questions & Activity Discuss the question in the slide. COMPLETE ACTIVITY 23

Use leadership techniques
Leadership styles The role of leadership is vital in ensuring that new business plans and the implementation actions associated with them are: Understood by staff Staff are motivated and committed to its success What types of leadership styles are there? Questions Discuss question in the slide. What do you look for in a leader? What are examples of effective leaders in industry?

Leadership styles Autocratic and democratic leaders
An autocratic leader is one who centralises authority and relies only on legitimate reward and coercive power A democratic leader delegates authority to others, encourages participation and relies on expert and referent power to influence others Questions Do you like this leadership style? When would it be successful / not successful?

Leadership styles Charismatic leadership theory
The key characteristics of charismatic leaders are: Self confidence Vision Ability to articulate that vision Strong convictions about the vision Behaviour that is out of the ordinary Appearance as a change agent Environment sensitivity Questions Do you like this leadership style? When would it be successful / not successful?

Leadership styles Transactional versus transformational leadership
Transactional leaders are leaders who guide or motivate their followers in the direction of already set goals by making them clear and explaining task requirements Transformational leaders are leaders who inspire people beyond their own goals through individual consideration and charisma. They are capable of having a profound and extraordinary effect on their followers Questions Do you like this leadership style? When would it be successful / not successful?

Leadership styles Additional leadership techniques Have clear goals
Develop mutual trust Encourage good communication Provide internal and external support Questions & Activity How can you implement these techniques? COMPLETE ACTIVITY 24

Encourage staff to input into plans
Encourage staff to provide ongoing input into the business plan How can a manager do this? Questions Discuss question in the slide.

Methods to encourage staff input Asking for ideas Having an ‘open door’ policy regarding suggestions Sharing ideas Being prepared to test new ideas Seeking information and ideas from non-traditional places Questions & Activity What other methods could be incorporated to involve staff? COMPLETE ACTIVITY 25

Methods to encourage staff input Thanking people for their contributions Taking the time and effort to explain to someone who contributed an idea why their idea was not implemented Ensuring the person responsible for suggesting an effective new approach receives the credit for doing so Questions & Activity What other methods could be incorporated to involve staff? COMPLETE ACTIVITY 25

Implement action Implement business plan actions
Now that business plans have been communicated with stakeholders responsible for its delivery, it is now time to implement any actions Questions What needs to be considered?

Implement action Implementation considerations Compliance requirements
Occupational safety and health (OSH) Legal liability exposure Integration with other aspects of the business Timing issues Questions What needs to be considered for each of these points?

Implement action Implementation considerations Resources
Changes to policies and procedures Documentation and record keeping Service delivery Impact on organisational culture Questions What needs to be considered for each of these points?

Implement action Implementation planning inclusions
Details of intended actions to be taken Allocation of responsibilities for action to nominated persons Determination of accountability for actions taken Timelines for completion of nominated actions Details of the budget and resources allocated Description of monitoring progress Details and timelines for reviewing progress Questions What needs to be considered for each of these points?

Implement action Defining and assigning roles
It is important that everyone knows what is expected of them. What do staff need to know? How can they understand their roles and responsibilities? Questions Discuss questions in the slide.

Implement action Identify predictable consequences of change
Disruptions to routine Problems with timelines Issues with reporting structure Extra support required by employees Questions What are examples? What causes these actions? What can be done to prevent them in advance? How can you handle them when they occur?

Implement action Provide support and resources to support implementation actions The aim is to enable staff to be able to learn and implement new changes into the workplace. During this period, you must manage the twin functions of: Task functions Maintenance functions Discussion & Activity Identify the different types of functions. COMPLETE ACTIVITY 26

Element 4: Monitor the business plan
Introduce topic. Class Activity – General Discussion Ask general questions: How can you monitor the business plan? Who should do it? How can it be done? How often should it be done?

Monitor the business plan
Performance Criteria for this Element are: Review the business plan regularly and adjust in the light of changing circumstances Monitor activities detailed in the plan on an ongoing basis Identify and analyse successes and performance gaps on an ongoing basis Implement agreed changes to plans promptly Report performance in a transparent manner to all stakeholders Trainer identifies the Performance Criteria for this Element, as listed on the slide.

Reviewing business plans
Timing of business plan reviews They may be based on: Quarterly reviews Business plan cycle Performance reports Major events triggering a review Questions & Activity What else can influence the timing of reviews? COMPLETE ACTIVITY 27

Monitor activities In order for an organisation to be successful in being able to provide the highest quality of service whilst still making an adequate financial return for investors, it is vital that every aspect of the operation is operating to the best of its ability Therefore management must constantly assess and evaluate the performance of all areas that contribute to the functioning of the business Class Activity – Questions Why is the difference between ‘assessing’ and ‘evaluating’? How is it done in the workplace?

Monitor activities In order to do this, activities must be assessed and evaluated to find out: What is being done correctly What needs improvement by: Identifying problems Understanding causes Providing and implementing a suitable remedy Class Activity – Review of customer service The Trainer to get to think about recent experiences they have had. What are areas where performance is normally good? What causes these areas to be good? What are areas where performance is normally bad? What causes these areas to be bad? Besides through customer comments, as a manager of this business how could you identify the problem exists? What would be remedies you would put in place to improve them?

Monitoring and evaluation methods
Reports Obtaining customer feedback Using a pretend customer Walking around and observing Use of checklists Brainstorming sessions Staff input and review Class Activity – Questions What information do each of these tools provide?

Monitoring and evaluation methods
Observation Statistical and written reports Surveys Checklists Flowcharts Benchmarking Class Activity – Questions & Activity What information do each of these tools provide? COMPLETE ACTIVITY 28

Identify performance gaps
Compare what is happening against benchmarks Comparing actual performance against key performance indicators and/or service standards set Comparing actual performance against benchmark indicators, which can include industry indicators or performance levels of other branches Class Activity – Questions Where can you get access to KPI’s and industry indicators? How do you compare them? Why would original target become unrealistic?

Comparison against KPI’s
Organisation’s key performance indicators Organisation’s key performance indicators are a set of metrics which organisations can use to measure the success of business plan actions. What are examples of KPI’s? Class Activity – Questions What are examples of KPI’s?

Types of key performance indicators Market share Sales figures Customer satisfaction Growth Profitability Turnaround times Output rates Class Activity – Questions How can you compare results against KPI’s?

Types of key performance indicators Quality rates Customer feedback Equipment usage rates Lead times and down times Compliments-complaints ratio Customer Satisfaction Index (CSI) Class Activity – Questions How can you compare results against KPI’s?

Types of performance gaps Product or service failures Long wait times for service High volume of customer traffic Inaccurate or conflicting information provided to customers Lack of follow-up action by customer care representatives Class Activity – Questions What is the cause of these problems? What would you do to resolve these?

Types of performance gaps Aggressive cross-selling or up-selling by customer service representatives or sales persons Lack of resources required to implement service operations Conflicts in priorities Resource constraints Lack of information Supplier delays Differences in opinion Class Activity – Questions What is the cause of these problems? What would you do to resolve these?

Types of performance gaps Interpersonal conflict Hazardous events Time constraints Electricity shortages Bad weather Shortfalls in expected outcomes Poor staff performance Class Activity – Questions & Activity What is the cause of these problems? What would you do to resolve these? COMPLETE ACTIVITY 29

Implement agreed changes
Managers need to identify gaps and issues quickly and take appropriate action swiftly. Failure to identify these can lead to: Lack of repeat business Damage to the reputation of the venue General decline in sales and profit Class Activity – Questions Why is this important?

Corrective action Types of corrective actions
Quite simply, types of corrective actions taken to improve service operations may include: Improvements in the design of products or services Reviewing the allocation of resources for service operations Tweaking standard operating procedures to improve efficiency Questions What are examples of each type of action?

Initiate corrective action
Take appropriate corrective action This involves making the necessary adjustments to improve the level of service, productivity or customer satisfaction Depending on what is being monitored, involving staff in all or some stages of the monitoring process is likely to achieve better results Class Activity – Questions What are some examples of when operations have changed to improve the offering for customers?

Initiate corrective action
Short and long term corrective action Corrective actions taken within an operation workplace context can be seen as either: Short term corrective action Long term corrective action Class Activity – Questions What is the difference between short term and long term action? Why are these used?

Taking corrective action
Short term corrective action It is sometimes necessary to take short term action to solve a problem until it can be looked at more closely and the problem dealt with more thoroughly. Class Activity – Questions Why is this important to do?

Short term corrective action
Reasons for short-term action Isn’t time to stop and analyse the problem more carefully and in more detail To provide the necessary or expected services to the customer To meet OHS requirements To deal with a complaint To get staff working together again To give you time to analyse and work through the problem at a later date Class Activity – Questions What are examples of problems that require short term solutions?

Short term corrective action
Considerations for short-term action Make a definite time to look at it more thoroughly later on Decide who to involve in further problem solving Inform staff and management it is a short term solution Cost the implications of tackling the problem this way Class Activity – Discussion Discuss points.

Long term corrective action
Management changes New management Change in orientation to service Setting of some new directions in relation to several other factors New management focus Class Activity – Questions Why can a change of management greatly change the direction of a business? In what ways can the business change?

Organisational re-structures Change of personnel structure Elimination of positions New job roles Changes in job roles New knowledge or skills Class Activity – Questions If a position changes, as a manager what must you do to ensure this happens effectively and smoothly?

Introduction of new equipment New equipment means: Possible interruptions to operations for installation Training for staff Requires that staff can explain the new equipment to customers Changes in job roles Changes in procedures Changes to workflow Class Activity – Questions Think about a time when new equipment was introduced in a workplace. How did it interrupt operations and the role of staff? What can a manager do to ensure new equipment is introduced with minimal disruption to staff and operations?

Recruitment practices Need to establish comprehensive job descriptions and job specifications Seeking of new knowledge and skills Change advertising strategy Revised interviewing and selection process Revised selection criteria Class Activity – Discussion & Activity Discuss the points in this slide and their impacts on the recruitment process. COMPLETE ACTIVITY 30

Report performance Report performance in a transparent manner
Periodically, there will be a need for you to provide your team and management with feedback in regard to achievement or non-achievement of business plan initiatives Questions Ask general questions: Why is it important to report performance? What information should be included in a review? Why is honesty and transparency essential?

Report performance Methods to sharing performance related information
Holding team meetings Providing hard copy information Sharing information via the intranet Disseminating information at staff briefings Class Activity – Questions Ask general questions: What is the purpose of each type of presentation method?

Report performance Explaining performance related information
Explaining if your business plan strategy and effort work Identifying the reasons why they work or not work. Significant variations and the factors associated with the changes. Unusual results and determine their causes Class Activity – Discussion General discussion: Discuss the importance of these points

Report performance Explaining performance related information
Patterns and trends in consumer behaviours, and the factors that resulted in those behaviours Strengths and marketing opportunities Weaknesses and potential areas of improvement Impact / implications of the results and conclusions on performance Class Activity – Discussion General discussion: Discuss the importance of these points

Report performance Present recommendations for variation to business or operational plans What are possible reasons for recommendations? What information needs to be included in a recommendation What are types of recommendations? Class Activity – Discussion & Activity General discussion: Discuss the questions in the slide COMPLETE ACTIVITY 31.

DEVELOP AND IMPLEMENT A BUSINESS PLAN

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DEVELOP AND IMPLEMENT A BUSINESS PLAN

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Presentation on theme: "DEVELOP AND IMPLEMENT A BUSINESS PLAN"— Presentation transcript:

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