Task 1: Develop an Operational Plan
Performance objective
You will demonstrate skills and knowledge required to develop operational plans in consultation with key stakeholders.
Assessment description
In response to a simulated business scenario, you will research resource requirements and develop (or amend) an operational plan in consultation with relevant stakeholders. As a part of the development of your plan, you will set performance indicators, plan for contingencies, and obtain approval in accordance with organisational requirements.
Procedure
1. Read the BBQ fun scenario information and documentation provided in Appendix 1 (page 10) and the BBQ fun simulated business documentation provided in Appendix 2 (page 23).
2. Write a brief summary of the BBQ fun operational environment that includes:
a. an outline of the legislative and regulatory context that is relevant to BBQ fun’s operational plan (available on pages 15–17)
b. an outline of the BBQ fun policies and procedures that directly relate to the operational plan
c. an explanation of the role of an operational plan in achieving the successful implementation of the e-commerce strategy
d. a discussion of your intention to either develop a new operational plan for BBQ fun, or to amend the existing operational plan; support your discussion with reference to different methods and models for developing operational plans – such as methods for setting goals, outlining actions, identifying risk and monitoring performance.
3. Research resource requirements for implementation of e-commerce strategy.
4. Arrange with your assessor to participate in two resourcing consultation role-plays.
5. Participate in consultation role-plays with relevant personnel to determine resourcing needs. You will role-play with the:
a. Sales and Marketing Manager – prepare to discuss human resourcing requirements
b. Technology consultant – prepare to discuss physical resourcing requirements related to development of ecommerce website.
Note: During consultation, ask questions and encourage the personnel to provide information.
6. Develop an action plan for the implementation of the e-commerce strategy. In your plan include:
a. Physical resourcing (all major steps for resourcing, including procurement of different types of resources, but not to the detail of including all procurement steps for each resource type)
b. human resourcing (all major steps, e.g. recruiting, training, communication)
c. timelines and milestones for implementing the e-commerce strategy
d. consultation and communication (ensure all affected staff are informed and engagement is encouraged for all stakeholders).
An example action plan template is provided in Appendix 3 (page 44).
Ensure plans adhere to organisational requirements set out in the scenario and in relevant policies and procedures.
7. Develop performance indicators for operational and financial targets and amend or develop existing operational plans to include KPIs and financial targets related to e-commerce strategy. Develop a balanced scorecard for an ecommerce customer service representative including three KPIs and associated targets.
Note: The current budget and operational plan for BBQ fun is located in Appendix 1. A balanced scorecard template is located in Appendix 4 (page 45).
8. Identify at least three risks to the implementation of the operational plan and develop a contingency plan for each risk - you may use the contingency plan template provided in Appendix 5 (page 46). Risks must include:
a. one risk due to employee underperformance
b. one risk related to management of intellectual property (IP)
c. one risk due to breach of health and safety compliance responsibilities.
9. Develop a proposal for resourcing to be presented for approval to the Operations General Manager. Include in your proposal:
a. description of proposed implementation of resourcing
b. breakdown of costs
c. benefits to organisation
d. a list of different approaches to developing key performance indicators
e. risks to organisation by not implementing
f. outline of identified risks and contingency planning
g. description of sources of information used to develop proposal (use internet research on technical aspects of e-commerce and importance to retailers; use consultation, use company financial projections).
10. In a third role-play, present proposal for approval by the Operations General Manager.
11. Submit a portfolio of your implementation documents as outlined in the specifications below. Keep copies of your work for use in Assessment Tasks 2 and 3 and for your own records.

Specifications
You must:
? participate in three role-plays:
? consult with the Sales and Marketing Manager
? consult with the technology consultant
? present the resourcing proposal for approval from the Operations General Manager
? submit a planning portfolio, including:
? a summary of the operational environment of BBQ fun
? action plan
? performance indicators for operational and financial targets (in the new/amended operational plan) ? balanced scorecard for e-commerce customer service representative ? proposal for resourcing.
Your assessor will be looking for:
? reading and writing skills to use workplace information to write an operational plan that meets organisational requirements
? oral communication skills to present information in a clear and professional manner, listen and comprehend information and confirm understanding through questioning and active listening
? planning and organisational skills to take responsibility for developing and implementing a plan to achieve operational goals including resource needs, strategy development, sequencing activities, identification of risks and impact on operational performance and generating contingency plans
? interaction skills to communicate and empathise with stakeholders during consultation processes and collaborate to achieve business outcomes
? numeracy skills to work with an existing budget to allocate and manage 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
? knowledge of legislation and regulations relevant to the operational plan of the organisation
? knowledge of intellectual property rights and responsibilities relevant to the operational plan ? knowledge of using KPIs to develop business objectives.
Appendix 1: Scenario BBQfun (e-Commerce Strategy)
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 e-commerce 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.
Currently, BBQ fun has a website, but this website lacks e-commerce functionality. The website would need to be redeveloped to incorporate this functionality in line with relevant technical specifications. Existing infrastructure, such as office and store configurations, would need to be adapted to the new strategy. Additionally, assets, such as delivery vehicles would need to be acquired. New staff would need to be recruited and existing staff retrained or informed of the e-commerce strategy and associated operational and performance targets.
All resourcing must be acquired and operations undertaken in accordance with relevant internal and external standards – legislation and codes of practice; intellectual property (IP) rights and responsibilities; and organisational policies and procedures.
Preliminary approval has been given to amend existing budget and operational planning to incorporate this strategy.
It is now 30 June 2013 and e-commerce operations are expected to be underway in one year and three months, by 1 October 2014.
Scenario task
As the external consultant, you will need to determine physical and human resourcing requirements. Review organisational documentation and undertake preliminary research on e-commerce. Consult with the following personnel to determine resourcing needs:
? Sales and Marketing Manager ? technology consultant.
You will then need to plan physical and human resourcing and establish associated performance measures and targets. You may consider the Management Team of BBQ fun, including team leaders in warehouses, to be resources for the implementation. Use description of their roles in operational planning when assigning responsibilities.
Finally, you will need to propose resourcing and associated operational changes to the Operations General Manager, who will, in consultation with the CEO and Board of Directors, provide approval.
Resourcing and budget: e-Commerce strategy
After consulting with the management team at BBQ fun, you determine:
? eight online sales and customer service people will be needed to manage increased online customers
? since stores are overstaffed, four of the required customer service staff could be sourced from existing employees at the two stores
? no current staff have any online customer service skills
? management would like to develop people through re-training rather than hire new staff to handle online sales
? six delivery trucks needed to enable distribution
? e-commerce website will take 50 days to develop
? three forklifts are needed
? four additional warehouse workers are needed
? six additional drivers are needed
? office space will need to be reconfigured.
The following operational costs are associated with e-commerce business strategy.
Costs: e-Commerce strategy (initial investment)
Resources Costs
Plant and equipment ? Delivery trucks $50,000 x 6= $300,000
? Forklifts $10,000 x 3 = $30,000
Promotional costs $300,000
Website developers $100,000
Staff training Online customer service training $3,000 per staff member = $24,000
Recruitment costs $30,000
Costs: e-Commerce strategy (initial investment)
Resources Costs
Management change leadership training for store managers and team leaders $3,000 each = 1 Brisbane store manager, 4 Brisbane team leaders, 1 Gold Coast store manager and 3 Gold Coast team leaders x $3,000 = $27,000
Warehouse and office reconfiguration $50,000
Total $861,000
In addition, ongoing staff costs will be incurred.
The expected life of the initial investment is expected to be three years.
Costs: e-Commerce strategy (ongoing)
Resources Costs
Additional staff: (At $40,000 year average annual salary)
• 4 online staff 4 x $40,000 ($160,000) per year for 3 years = $480,000
4 warehouse staff 4 x $40,000 ($160,000) per year for 3 years = $480,000
6 delivery drivers 6 x $40,000 = $240,000 per year for 3 years =$720,000
Total $1,680,000
The following expenses should be incurred in the 2014financial year and be included in associated financial targets for spending:
Additional staff $400,000
Additional marketing $300,000
Additional training $51,000
Recruitment $30,000
Benefits to business
According to financial projection prepared by the CFO, the business expects the proposed strategy to be profitable over three years.
Profitability index over three years
Present value (PV) of future cash flows
Profitability index (PI) =
Present value (PV) of initial investment PI 1 indicates project should be undertaken
FY 2014 FY 2015 FY 2016
Cash flow from operations (minus ongoing operational costs associated with e-commerce such as additional staffing) $200,000 $500,000 $800,000
Present value of future cash flows (discounted future cash flows with respect to opportunity cost, inflation) $180,000 +$420,000+$600,000 = $1,200,000
Present value of initial investment $861,000
Profitability index 1.39
The expected additional profit for 2014 would be $200,000. This figure should be added to targets.
Risks to implementation
After consulting with stakeholders at BBQ fun, you determine:
? medium risk of poor online sales
? high risk of customer service quality problems for online customers leading to a breach of consumer law
? high risk of staff misunderstanding changes and considering online sales as threat to jobs
? medium risk of not being able to recruit fully trained online staff
? low risk of loss of IP relating to confidential information contained within the e-commerce strategy when employees leave the organisation
? medium risk of loss of IP ownership if a relationship with the website developer contract ceases
? low level risk of not complying with WHS legislation through lack of risk assessment conducted on potential musculoskeletal disorders resulting from poor customer service workstation design
? medium risk of wastage due to overstocking product in anticipation of increased online sales.
All additional costs associated with contingency planning will be approved in accordance with BBQ fun policies and procedures.
Budget summary
BBQ fun 2013–2014 Approved budget by activities to be undertaken
Income:
Sales $11,000,000 Barbecues and related equipment.
Investment income $1,567,000 Real estate investment income and rental of office space.
Cost of goods sold (COGS) ($5,890,000) Cost of provision of goods, purchase of stock, distribution.
Gross profit $6,677,000
Gross profit.
Expenses:
Wages, salaries and on costs $2,567,890 Wages, salaries, superannuation, work cover insurance, payroll tax.
Consultancy fees $50,000 Project management: WHS management system; change management.
Communication expenses $42,000 Telephone, ISP costs, IT support.
Marketing $920,000 Cost of staff travel and associated costs for sales, etc.
Premises expenses $1,000,000 Rent, electricity, maintenance, cleaning.
Insurance $120,000 Liability insurance
Depreciation and amortisation $177,569 Computers and capital equipment that is depreciated.
Office supplies $65,068 Printing and stationery, postage, amenities.
Training $62,187 Sales training: leadership, WHS, ethical/legal training.
Total expenses $5,004,714
Net profit $1,672,286 Net income before tax.
Operations
General operating hours
BBQ fun operates Monday to Friday from 9 am to 5 pm. BBQ fun will be operational year-round except legislated holidays.
Human resources
Pat Mifsud, CEO
Pat is responsible for working with the Board of Directors to oversee the business, set overall strategic directions, manage risk, and authorise large financial transactions.
Riz Mehra, Chief Financial Officer
Riz is responsible for preparing quarterly financial statements and overall budgeting. Riz is also responsible for
overseeing budgets for cost centres and individual projects. At completion of financial quarters and at the end of projects, Riz is responsible for viewing budget variation reports and incorporating information into financial statements and financial projections.
Kim Chen, Operations General Manager
Kim is responsible for the day-to-day running of the company. Kim oversees the coordination of all operations. Kim is responsible for sponsoring projects that affect operations of the organisation as a whole. Kim works with the HR Manager to coordinate systems and projects to achieve company-wide synergy.
Les Goodale, Human Resources (HR) Manager
Les is responsible for the productive capacity and welfare of people at BBQ fun. With the Operations General Manager, Les works to coordinate projects and management systems, such as performance management, recruitment and induction.
Sam Lee, Marketing Manager
Sam is responsible for the management of all aspects of marketing. Sam manages the activities of the marketing team.
Pat Sweeney, Manager: Brisbane (Kenmore)
Pat is responsible for the management of all aspects of the Brisbane store.
Alex Mitchell, Manager: Gold Coast
Alex is responsible for the management of all aspects of the Gold Coast store.
A summary of human resources at each of the two locations appears below:
Brisbane: Head office
? Employees:
? 30 full-time and casual sales and customer service people, check-out staff trained in use of POS
– integrated with ERP (enterprise resource planning) and CRM (customer relationship management) software system
? senior management team (five) + one store manager
? four sales team leaders
? one delivery truck driver ? one warehouse worker.
Gold Coast operation
? Employees:
? 30 full-time and casual sales and customer service people, check-out staff trained in use of POS
– integrated with ERP (enterprise resource planning) and CRM (customer relationship management) software system
? one store manager
? three sales team leaders
? one delivery truck driver ? one warehouse worker.
Office requirements
The office space is leased and will accommodate the necessary office equipment, such as computers, fax machine, photocopier and other engineering equipment.
Brisbane: Head office
? Location: Kenmore.
? Size: 15,000 square metres (50% warehouse, 50% display area). Warehouse area used at 45% of capacity, but poorly configured to accommodate heavy increase in distribution traffic.
? Large mezzanine office space (used to be occupied by online retailer, currently subdivided and occupied by the management team).
? Loading bay with large capacity (most of area incorporated into customer display area, could be easily and cheaply reconfigured to accommodate extra distribution).
Gold Coast operation
? Location: Robina.
? Size: 12,000 square metres (50% warehouse, 50% display area). Warehouse area used at 50% of capacity, but poorly configured to accommodate heavy increase in distribution traffic.
? Large mezzanine open-plan office space with separate access (was previously rented out to a telemarketing company).
? Lots of spare office space.
? Loading bay with large capacity.
Operating capital requirements
BBQ fun requires approximately five million dollars in working capital to sustain and ensure the business meets all opening and ongoing financial obligations.
The company may experience financial pressures during slow sales periods.
A long-term strategy to maintain a positive cash flow during these periods will be to diversify the company’s product range and develop business opportunities such as e-commerce to boost sales and sales capability overall.
Operational expenses
Wages, salaries and on-costs $2,567,890
Consultancy fees $50,000
Communication expenses $42,000
Marketing $920,000
Premises expenses $1,000,000
Insurance $120,000
Depreciation and amortization $177,569
Office supplies $65,068
Training $62,187
Total Expenses $5,004,714
Insurance requirements
BBQ fun will have to incur costs for business liability insurance. The estimated cost for this requirement is $100,000 per year.
Operational workflow
1. Conduct market research to determine needs.
2. Negotiate with suppliers.
3. Receive and warehouse products.
4. Provide service and information to warehouse customers.
5. Receive payment.
6. Arrange delivery of items (if required).
BBQ fun accepts cash, EFTPOS and major credit cards. Credit terms are available for trades.
Operational plan (with strategic objectives, measures and tasks) FY 2013–2014
BBQ fun Operational Plan (with strategic objectives, measures and tasks) FY 2013–2014
Objectives: Performance measures Tasks:
1 Engaging with customers through marketing, research and personalised service. ? Completion of market/marketing research.
? Completion of customer surveys.
? Completion of reports to identify marketing opportunities. ? Conduct quarterly surveys on customer satisfaction.
? Evaluation of market and marketing data to determine marketing opportunities.
2 Building reputation for quality products and quality customer service:
? Raise organisational profile by 20%.
? Improve client satisfaction performance by 25%. ? Percentage of brand recognition in soughtafter categories in periodic customer surveys.
? Percentage of customers with positive view of organisational responsiveness, innovation, quality, ethics, safety.
? Number of customer complaints.
? Delivery times.
? Number of returned items. ? Audit of supplier quality.
? Regular contact with suppliers.
? Investigate resourcing needs: people, products.
? Fulfil resourcing and distribution needs in accordance with policies and procedures.
? Maintenance of enterprise resource management (ERP), point of sale (POS) and customer relationship management (CRM) systems.
BBQ fun Operational Plan (with strategic objectives, measures and tasks) FY 2013–2014
Objectives: Performance measures Tasks:
3 Supporting people to perform via training and performance management. ? Numbers of injuries (Target = 0).
? Numbers of absentees
(Target = 3% of total hours).
? Anti-discrimination complaints (Target=0).
? Lost Time Injury Frequency Rate (Target=2)
? Percentage completion of performance plans and performance management process.
? Numbers of coaching sessions completed.
? Numbers of operational-related training programs completed. ? Research effectiveness of possible incentives for: safe work achievement; healthy lifestyle.
? Engage workers with strategic goals of business and support professional development in line with strategic goals. (Targets to be set by individual managers).
? Management engagement with employees to achieve greater buy-in of organisational goals.
? Include explanation of how activities work with organisational strategic goals in all communications to internal personnel.
? Regular coaching.
? Training needs analysis and training (leadership, WHS, ethical/legal training).
? Strategic goals included in induction program.
? Employee incentives for performance in all areas relevant to operational and strategic goals.
BBQ fun Operational Plan (with strategic objectives, measures and tasks) FY 2013–2014
Objectives: Performance measures Tasks:
4 Increasing sales revenue. General ledger accounts; financial statements:
? Revenue target = $11 million
? Profit target = $1,792,286 ? Marketing campaigns. ? Sales training for floor staff.
5 Reduce direct and indirect costs of operations. ? General ledger accounts; financial statements:
? wages
? cost of agent services
? consultancy fees
? wastage and associated expenses.
? Expense target = $5,004,714
? COGS target = $5,890,000 ? Renegotiate with suppliers.
? Research potential new suppliers.
? Research new distribution possibilities, such as e-commerce/delivery.
? Management engagement with employees to achieve greater employee support of organisational goals.
? Greater use by managers of budgets to encourage restraint.
? Greater focus on budget restraint in management of projects/activities.
? Inventory management through ERM to reduce overstocking and risk associated with storage.
? Incentives (as part of manager/employee performance management and bonus system).
Appendix 2: BBQfun Documentation
Business plan excerpt
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BSBMGT517 Innovation and Business Industry Skills Council Ltd, 1st Edition Version 3, 2015
greenwichcollege.edu.au
BBQfun organisational chart
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BSBMGT517 Innovation and Business Industry Skills Council Ltd, 1st Edition Version 3, 2015 greenwichcollege.edu.au
Performance management policy and procedures
BBQfun Performance Management Policy
The purpose of this policy is to ensure performance management is
Purpose carried out consistently, fairly and transparently and in accordance with organisational requirements.
Scope The scope of this policy covers the performance management process by employees and contractors of BBQfun.
Resources Specific procedures for the implementation of this policy are available below and on the company intranet.
Responsibility Managers will:
? carry out formal performance review discussions twice annually
? monitor individual performance throughout the year, recording key events, observations of importance which relate to the performance, both positive and negative
? use the performance management documentation to record formal and informal performance reviews
? provide employees with the opportunity to participate and contribute to their professional and personal development
? provide employees access to training and development, as reflected in the individual’s development plan
? provide underperforming employees with coaching and development throughout the review period, using the GROW model to help structure their planning for formal coaching sessions or informal, side-by-side sessions
? provide employees with opportunity to communicate their career development goals.
Relevant legislation, etc. ? Privacy Act 1988 (Cwlth)
? Queensland Anti-Discrimination Act 1991 (Qld)
? Fair Work Act 2009 (Cwlth)
? AS ISO 15489: 2002 Records management
10/2012 – Riz Mehra CFO
Updated/authorised
Procedure to conduct performance review
The employee’s performance will be monitored and evaluated regularly throughout the year. The performance review encompasses three elements:
? an annual formal review discussion
? a six month follow-up discussion
? continuous monitoring of the employee’s performance.
1. Annual discussion
The annual discussion is a key step in the performance review process. Essentially, this step involves compiling all the information collected and assessed throughout the year relating to the employee’s performance.
The key elements of the annual discussion are to:
? reflect on performance during the year
? clarify key responsibilities of the role and review the job description
? discuss successes as well as areas for improvement
? set agreed targets and performance standards for the next six months
? agree on key areas of development for effective performance in the role.
2. Documentation
The performance review documentation provides an important guide to record the standards expected of an individual, their targets (according to the job role) and individual development plans. It is important to use the correct forms to maintain the integrity of the information, and to help the manager and employee ensure the review is completed correctly.
3. Timing
Employee performance is to be formally reviewed every 12 months with a follow-up review in six months. A new plan should be completed at each annual appraisal discussion.
4. Six month follow-up discussion
The follow-up review provides an opportunity for managers and employees to revisit targets, standards and development plans to:
? establish that progress is on track
? identify changes impacting on the achievement of targets and standards set
? discuss development plan progress or establish development plan ? modify standards and targets, if required.
Implementation of performance review process
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 comm
ents: Signature:
Date:
Principles of coaching underperforming employees
What do we coach?
Generally, most performance problems can be resolved through effective communication between managers and employees. Most employees can benefit from coaching in some way. Coaching applies to any skill at any time. It is a simple way to set, discuss, and monitor goals in a collaborative way.
When do we coach?
Coaching is different to formal training. But how do you know when you should step in, or let employees work through the problems for themselves?
? Observe the employee's work and be alert for certain triggers or signs. For example, you may notice an attitude or behaviour creeping in, or you discover a slump in the employee’s KPIs.
? Coach when you want to focus attention on any specific aspect of the employee's performance.
? Don’t hesitate – do it now. Coaching is a process that is most effective when it happens promptly.
How do we coach?
? Good coaches challenge employees and ask questions that help the employee to discover how to improve.
? Coach when you wish to focus attention on any specific aspect of the employee’s performance.
? A coaching meeting should focus on just one or two aspects of performance. Any more than that and employees won’t remember the main impact of your meeting.
? Keep coaching conversations brief and between 5 and 15 minutes long.
? Being an effective coach requires understanding of what motivates the members of your team. Remember that people are motivated in different ways. Be sensitive to the things that drive your people to perform.
? When things are performing well, take the time to understand what is working and why.
? Good coaching is guiding, not telling or doing.
? Allow the employee to own the problem and its solutions. Ask them: ‘How do you think we should handle this?’
? Be sure you document any key elements that come out of your coaching sessions and store them in the employee’s file.
The GROW model
GROW is a simple but effective model for running coaching sessions. GROW is an acronym that stands for: Goal – (current) Reality – Options – Will.
Goal
Things can change, and the employee’s goals may need to be revisited and reviewed.
Current Reality
Getting to the root cause of problems means asking the team member about what is happening and how the problem is affecting them. Often managers can leap to a conclusion about solving a performance problem. Important information that can help to solve the problem is often missed.
Some useful coaching questions include:
? How is this change affecting your work?
? If things changed do we need to revisit how we planned to approach this?
Options
Once you and your team member have explored the current reality, it's time to start exploring the alternatives for solving the problem. It should be a two-way process, so encourage the team member for their ideas and views about what might be done.
Ask questions like:
? What other options have you considered for how we might handle this?
? What are the alternatives?
? How else could we approach this? What risks are involved?
? What are the possible risks involved in these other options?
? What constraints exist?
Will
By this stage you will have examined the current reality and canvassed the options for what could be done. The team member should now have a clear idea of how to deal with the situation. The final step for you as a coach is to get them to commit to taking action.
? How will you take this forward?
? How are you going to achieve this?
? What obstacles could prevent this happening?
? What else will you do?
Note: The coaching conversation does not need to rigidly follow the order above. Any genuinely two-way conversation will develop in unplanned ways. Nevertheless, each element of the GROW model should be addressed at some point in any coaching session that is likely to be effective.
Procurement policy and procedures
BBQfun Procurement Policy
The purpose of this policy is to ensure the acquisition of resources is carried
Purpose out consistently, fairly and transparently and in accordance with organisational requirements.
The scope of this policy covers the purchasing and acquisition of resources
Scope by employees and contractors of BBQfun.
Specific principles for the implementation of this policy are available below.
Resources
Responsibility for the implementation of this policy rests with employees and
Responsibility management of BBQfun with responsibility for purchasing resources.
Relevant legislation, etc. ? Privacy Act 1988 (Cwlth)
? Anti-Discrimination Act 1991 (Qld)
? A New Tax System (Goods and Services Tax) Act 1999 (Cwlth)
? Fair Work Act 2009 (Cwlth).
? AS ISO 15489: 2002 Records management
6/2012 – Riz Mehra, CFO
Updated/ authorised Principles governing procurement process
1. Probity and ethical behaviour
The principle of probity and ethical behaviour governs the conduct of all procurement activities. Employees who have authority to procure goods and services must comply with the standards of integrity, probity, professional conduct and ethical behaviour. Employees or directors must not seek to benefit from supplier practices that may be dishonest or unethical.
2. Value for money
Value for money is the core principle underpinning procurement. Contracted organisations must be cost effective and efficient in the use of resources while upholding the highest standards of probity and integrity. In general, a competitive process carried out in an open, objective and transparent manner can achieve best value for money in procurement.
3. Non-discrimination
This procurement policy is non-discriminatory. All potential contracted suppliers should have the same opportunities to compete for business and must be treated equitably based on their suitability for the intended purpose.
4. Risk management
Risk management involves the systematic identification, analysis, treatment and, where possible, the implementation of appropriate risk-mitigation strategies. It is integral to efficiency and effectiveness to proactively identify, evaluate, and manage risks arising out of procurement related activities. The risks associated with procurement activity must be managed in accordance with the organisation’s Risk Management Policy.
5. Responsible financial management
The principle of responsible financial management must be applied to all procurement activities. Factors that must be considered include:
? the availability of funds within an existing approved budget
? staff approving the expenditure of funds strictly within their delegations in accordance with the delegations table on page 33 and the completion of the Expenditure Payment Approval Form
? measures to contain costs of the procurement without compromising any procurement principles.
6. Procurement planning
In order to achieve value for money, each procurement process must be well planned and conducted in accordance with the principles contained in this document and comply with all of the organisation’s policies and relevant legal and regulatory requirements.
When planning appropriate procurement processes, consideration should be given to adopting an approach that:
? encourages competition
? ensures that rules do not operate to limit competition by discriminating against particular suppliers
? recognises any industry regulation and licensing requirements
? secures and maintains contractual and related documentation for the procurement which best protects the organisation
? complies with the summary of procurement delegations (on page 33).
7. Buy Australian made/support for Australian industry
Employees who are involved in procurement activities must make a conscious effort to maximise opportunities for Australian manufacturers and suppliers to provide products where there is practicable and economic value. In making a value for money judgement between locally made and overseas-sourced goods, employees are to take into account:
? whole-of-life costs associated with the good or service
? that the initial purchase price may not be a reliable indicator of value
? the quality of locally made products
? the record of performance and delivery of local suppliers
? the flexibility, convenience and capacity of local suppliers for follow on orders
? the scope for improvements to the goods and ‘add-ons’ from local industry.
8. Pre-registered list of preferred suppliers
BBQfun shall maintain a pre-registered list of preferred suppliers, following a request for expressions of interest and an evaluation of the submissions. Suppliers can request to be evaluated for inclusion on the existing pre-register list at any time.
All purchases under $5,000 may be made from preferred suppliers without undertaking a competitive process. Purchases above $5,000 where a preferred supplier exists should include a competitive process if practicable.
This list is reviewed at regular intervals with admission of interested parties on a rolling basis. Care should be taken to ensure that such lists are used in an open and non-discriminatory manner. BBQfun encourages new contractors to provide information on their experience, expertise, capabilities, pricing, fees, and current availability. It is in the interest of the organisation that the pool of potential suppliers is actively maintained and updated. Employees should be encouraged to provide reports of their experiences in working with each contractor/consultant to assist future decisions concerning
commissioning suitable contractors and consultants.
9. Avoid conflict of interest
Employees and directors are required to be free of interests or relationships in all aspects of the procurement process.
Employees and directors are not permitted to personally gain from any aspect of a procurement process.
Employees and directors shall ensure that, to the best of their knowledge, information and belief, that at the date of engaging a contractor no conflict of interest exists or is likely to arise in the performance of the contractor’s obligations under their contract.
Should employees or directors become aware of potential conflicts of interest during the contract period, they must advise the CEO and Board of Directors immediately.
Prior to any situation arising with potential for a conflict of interest, complete disclosure shall be made to the CEO and Board of Directors to allow sufficient time for a review.
10. Report collusive tendering
Employees should be aware of anti-competitive practices, such as collusive tendering. Any evidence of suspected collusion in tendering should be brought to the attention of the CEO and Board of Directors.
11. Competitive process
It is a basic principle of procurement that a competitive process should be used unless there are justifiable circumstances. For purchases under $5,000, the list of preferred suppliers may be used. The type of competitive process can vary depending on the size and characteristics of the contract to be awarded.
12. Direct invitation (selective or restricted tendering)
A process of direct sourcing to tender may be used. This may involve:
? an invitation to organisations deemed appropriately qualified for a particular product or service (this may be appropriate for specialised requirements in markets where there is a limited number of suppliers or service providers)
? an invitation to tender to organisations on BBQfun’s pre-registered list of preferred suppliers, if applicable.
13. Evaluation and contract award
For projects being awarded, consideration will be given not only to the most economically advantageous tender, but also to the track record of the tender respondent and the degree of confidence that the panel has in the quality of the bid. It will be the normal practice to have the evaluation of tenders carried out by a team with the requisite competency.
14. Results of tendering process
All tender respondents should be informed in writing of the result of a tendering process immediately after a contract has been awarded.
Summary of procurement policy delegations
Position Purchase amount Required number of quotes Comment
CEO and one director Authority to sign contracts for products and services over $75,000. Two or more competitive quotes for contracts over $75,000. Detailed services contract required.
CEO Authority to sign contracts for products and services up to $75,000. Two or more competitive quotes. Detailed services contract required for contracts over $20,000.
General managers
Delegated authority only through CEO Authority to sign contracts for products and services under $30,000. One or more competitive quotes preferred. Provided they are within the approved budget and consistent with business/operational and strategic planning.
Position Purchase amount Required number of quotes Comment
Managers Authority to sign contracts for products and services under $10,000. One or more competitive quotes preferred. Follow BBQfun purchasing procedures.
Contractors and external consultants No authority One or more competitive quotes preferred.
Must use preferred suppliers list. Contractors and external consultants must follow BBQfun purchasing procedures and must seek approval for purchases from person holding relevant authority.
Recruitment and induction policy and procedures
BBQfun Recruitment and Induction Policy
Purpose The purpose of this policy is to establish guidelines for the recruitment and selection of employees. BBQfun aims to attract and employ the most suitable person for the position who will support the organisation’s values, culture and goals in order to achieve its strategic directions. Recruitment and selection of employees will comply with all legal requirements, and with relevant equal opportunity, affirmative action and human resource management principles, policies and guidelines adopted by the organisation.
Scope The scope of this policy covers the recruitment and induction by employees and contractors of BBQfun.
Resources Specific procedures for the implementation of this policy are available below and on the company intranet.
Responsibility Responsibility for the implementation of this policy rests with employees and management of BBQfun with responsibility for participating in the recruitment and induction process.
Relevant legislation, etc. ? Privacy Act 1988 (Cwlth)
? Queensland Anti-Discrimination Act 1991 (Qld)
? Superannuation Guarantee (Administration) Act 1992 (Cwlth)
? Fair Work Act 2009 (Cwlth)
? Work Health and Safety Act 2011 (Qld)
? AS ISO 15489: 2002 Records management
Updated/ 10/2012 – Riz Mehra CFO
authorised
Principles
The following principles guide decision-making in relation to recruitment and selection of employees:
? The aim of the recruitment and selection process is to appoint the most suitable person to the position.
? Recruitment of new employees will only be undertaken after capabilities of existing workforce have been taken into account and training options sufficiently explored.
? Recruitment and selection will be informed by the organisation’s strategic directions and priorities and will take place following an evaluation of the need for the role given the staffing requirements to achieve these directions and priorities.
? Recruitment and selection will be guided by requirements of relevant legislation and other relevant human resource management policies in use by the organisation, such as equal opportunity and anti-discrimination policies.
? Recruitment and selection processes will be conducted on the basis of fair, equitable and respectful treatment of all applicants.
? Positions will be advertised on a range of sites including print and web media (where appropriate), which are most likely to maximise the field of suitably qualified applicants.
? All appointments will be made on the basis of careful and consistent application of the principle of merit and adherence to the key selection criteria and requirements of the position as outlined in the position description.
? Appointments will be made in open competition from the widest field of applicants attracted by both internal and external advertising.
? Recruitment and selection processes will be transparent, consistent, professional and timely. Accountability will be achieved by recruitment and selection processes being open and subject to appropriate scrutiny and review, having regard to the confidentiality of the applicants.
? All recruitment and selection processes will be conducted so as to ensure the confidentiality of the applicants and to preserve the integrity of the process.
? Decision-making is the responsibility of the Chief Executive Officer or as delegated to the senior management team and/or nominee.
Procedure to recruit employees
1. New jobs and job vacancies
The occurrence of a vacancy is an opportunity to review the necessity for the post and its duties, responsibilities and grade. Where the duties of a post have changed significantly the manager must ensure that the job description is reviewed.
When a vacancy arises, consideration must be given, prior to open advertising, to any employee for whom redeployment is being sought on the grounds of redundancy or disability.
For vacancies of less than three months the manager may choose to fill the post by means other than advertising, for example, by word of mouth or the use of agency staff.
2. Job description
A job description is a key document in the recruitment process, and must be finalised prior to taking any other steps. It must include:
? the job title (which must be gender neutral)
? the location of the job
? wage or salary scale for the position
? the line manager to whom the incumbent is responsible
? any posts reporting to the incumbent
? main purpose of the job
? main duties and responsibilities
? any special working conditions (e.g. evening or weekend work).
Items that should be included in job descriptions are:
? a note that indicates that, as duties and responsibilities change, the job description will be reviewed and amended in consultation with the incumbent
? an indication that the incumbent will carry out any other duties – which are within the broad scope and purpose of the job – as requested by the line manager.
3. Person specification
The person specification is of crucial importance and informs the selection decision. The person specification details the knowledge (including necessary qualifications), skills and abilities, experience, aptitudes required to do the job. The person specification should be specific, related to the job, and not unnecessarily restrictive; for example, only qualifications strictly needed to do the job should be specified.
Great care must be taken if physical requirements are specified. Anti-discrimination legislation requires employers to make reasonable adjustments to jobs to make them suitable for people with a disability. It is therefore important that any physical requirement is stated in terms of the job that needs to be done. For example, a job may require that the appointee ‘must be able to travel to a number of different locations’. In this instance, it will be necessary to consider if an ability to drive is required, or whether or not reasonable adjustments can be made for non-drivers.
4. Publicising the vacancy
All posts must be advertised internally, unless the position is under three months in duration, or the manager has designated a particular post as potentially suitable for a person for whom the organisation is seeking re-deployment.
The majority of posts will also be concurrently advertised externally to maximise the chances of attracting the best candidate. Consideration should also be given to advertising in locations/publications likely to increase diversity in the workforce.
5. The application pack
Applicants will be able to request a recruitment pack by phone or email. Packs should also be made available to be downloaded directly from the organisation’s website. A log of the names and addresses of all individuals requesting an application pack will be taken for tracking and monitoring purposes.
The application pack will always include:
? applicant cover letter – includes closing date
? application form
? guidance notes for completing the application form
? equal opportunities monitoring form
? Equal Opportunities Policy statement
? criminal convictions declaration form
? job description
? person specification.
The pack may also include further information relevant to the particular post, e.g. annual report, organisational structure chart as appropriate.
6. Processing applications
Staff must be aware that when dealing with enquiries about vacancies that it is unlawful to state or imply that applications from one gender or from a particular racial group, age group, sexual orientation or religion/belief would be preferred, (unless a genuine occupational qualification or requirement applies) and to do so may lead to a complaint of unlawful discrimination.
Care must also be taken that all applicants are treated in the same way, for example, with regard to invitations to visit the department, informal meetings to discuss the vacancy, and provision of information. However, it is acceptable to respond to requests from individual candidates who demonstrate initiative in their preparation.
The confidentiality of applications must be respected by all of those involved in the selection process.
7. Shortlisting
After the closing date has passed, applications from candidates may be shortlisted. This decision should be based on evidence that the applicant has met the requirements of the person specification.
The original applications from all applicants, together with a written note of reasons for shortlisting or rejection, must be retained for a minimum of six months from the date that an appointment decision is notified, in case of complaint to an employment tribunal. All photocopies of application forms must be shredded.
8. Criminal conviction declaration forms
Criminal declaration forms belonging to candidates who have not been short-listed for interview will remain sealed and will be shredded. Shortlisted candidates’ forms will be opened and checked for relevant convictions. If it is deemed that a conviction is relevant to the post, the candidate may be withdrawn from the list of interviewees. Further guidance on this can be found in the Rehabilitation of Offenders Policy (and the application pack guidance notes).
9. Arrangements for interviews
Letters or emails to short-listed candidates should include:
? date, time and place of their interview
? travel directions to the interview venue
? request that they contact the author of the letter/message if they have any special requirements in relation to the interview (related to access to the venue or any other special need related to a disability)
? if appropriate, details of any test or presentation they will be required to do, or anything that they should bring with them (e.g. examples of work or proof of qualifications that are essential to the post).
It is best practice to write to candidates who have not been shortlisted but if this is not possible due to limited resources, the application pack should make clear that if not notified after a certain date or period, applicants should consider themselves not to have been shortlisted.
10. Interviewing
Interviews should be scheduled as soon after the closing date as reasonably possible.
The structure of interviews should be decided in advance by determining whether the interview panel will be assembled and what areas of questioning are required to cover all of the elements of the person specification. The question areas to be explored by each panel member should be agreed in advance to avoid overlap or repetition.
The same areas of questioning should be covered with all candidates. Interview questions should be phrased so that they do not favour any one candidate and should be designed to seek evidence of how the interviewee meets the criteria of the job role. Supplementary questions should be used to probe for further information or clarification where answers are incomplete or ambiguous. Care must be taken to avoid questions that could be construed as discriminatory (e.g. questions about personal circumstances that are unrelated to the job).
The interviewer (or interview panel, if used) is to act for the organisation in making selection decisions and is accountable for them. Interview notes must be taken to help make an informed decision based on the content of the interviews. Such notes must relate to how candidates demonstrate their knowledge, skills, experience and abilities in relation to the requirements of the job role. Applicants can request disclosure of such notes in the event of a complaint. Obviously any inappropriate or personally derogatory comments contained within the notes could be considered discriminatory and are unacceptable.
Disabled applicants
Where the candidate being interviewed has a disability for which adjustments may need to be considered, the candidate’s requirements should be discussed with them once the planned questioning is complete. The outcome of these discussions must not influence the consideration of the candidate’s application. If the disabled candidate best meets the person specification, consideration must be made regarding what would be ‘reasonable adjustments’ to accommodate the needs of the person in question.
On considering these, if it is considered that the adaptations needed would not be deemed to be ‘reasonable’ under antidiscrimination legislation; the manager will draft a letter to the applicant explaining why the adaptations cannot be made.
Reasons for not making adjustments to the working environment must be both material and substantial, and must be documented.
11. Making a decision after interview
The information obtained in the application, the interview, and in any selection tests will allow candidates to be assessed against the person specification and a selection decision to be made. The manager or panel chair must ensure that a written note of the reasons for selecting the successful candidate and rejecting others is made and placed on the recruitment file, together with the original applications and notes of all panel members, for a minimum of six months after the appointment decision has been notified to the candidates.
Interview proceedings are confidential and interviewers are free to divulge to others the decision reached only once the appointee has accepted the post.
The manager will make a provisional offer to the preferred candidate subject to satisfactory references and disclosures (if appropriate) being received.
12. Feedback
It is good practice to offer applicants feedback after interviews and it is our policy to respond if requested. Feedback should be specific and honest. Panel members giving feedback must ensure that any feedback they give relates to the selection criteria for the post and that the words that they use could not be taken to infer unlawful discrimination.
13. Pre-employment checks
A number of employment checks are required to be undertaken before a formal offer of employment can be made. It must be ensured that any offer of employment given, is a ‘provisional’ one, subject to receipt of documentation as shown below.
References
References should only be used after interview to confirm, but not influence, a decision. Candidates’ permission must be sought prior to seeking references.
Appropriate referees are those who have direct experience of a candidate’s work, education or training, preferably in a supervisory capacity and a reference must be obtained from the current or previous employer.
References are confidential and must be sought ‘in confidence’. Panel members must return all copies of any references with the application forms and their interview notes to the manager on completion of the recruitment process. References must only be kept in the personal file.
Asylum and immigration
It is a criminal offence to employ someone who does not have the permission to work in Australia. All external candidates at interview must therefore be asked to provide proof of citizenship, e.g. a passport or birth certificate. Note that it will be unlawful racial discrimination to carry out checks only on potential employees who, by their appearance or accent, seem to be other than Australian. Checks must be carried out on all external applicants.
Criminal conviction information
The organisation will seek a disclosure (police check) for all posts. It should be noted that this may delay the offer of a position until the disclosure process is complete.
Pre-employment health check
The organisation requires certain information prior to an individual commencing employment, to ensure that they will be able to perform the requirements of the job and give reliable service, and to ensure compliance with relevant health and safety regulations. The information is also required in order to establish whether any reasonable adjustments may need to be
made to assist them in performing their duties.
Qualifications
Proof of trade or academic qualifications and any others considered essential for the post must be verified.
14. Appointment
Only the manager issues letters of appointment and places individuals on the payroll.
15. Induction and probation
All new staff will undergo a probationary period during which they will be introduced to the main duties and responsibilities of their post. An induction program will be set out, which covers information about the organisation and their post. Induction checklist
Item Responsible officer Completed
(Sign-off and date)
Hand out new employee folder, payroll documents and organisational policies Store Manager
Introductions to all staff. Store Manager
Role, responsibilities and performance expectations
Position description Store Manager
Mission, values and relevant areas of business plan/objectives Store Manager
Work plan/performance expectations Store Manager
Performance evaluation Store Manager
Reporting relationships Store Manager
Item Responsible officer Completed
(Sign-off and date)
Organisational overview
History of the organisation Store Manager
Organisational structure Store Manager
Office facilities and equipment
Bathroom, kitchen, use of photocopier and phone system Store Manager
Introduction to email, electronic filing, internet use, templates, hard copy filing procedures. Store Manager
IT system set-up, username and password Information
Management
Officer
16. Recordkeeping
All records relating to the recruitment and selection procedure will be retained only for as long as is necessary (generally six months), and will be securely destroyed thereafter.
Appendix 3: 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)
RTO Provider 91153 - Cricos Code: 02672K Page 45 of 50
BSBMGT517 Innovation and Business Industry Skills Council Ltd, 1st Edition Version 3, 2015 greenwichcollege.edu.au
RTO Provider 91153 - Cricos Code: 02672K Page 46 of 50
BSBMGT517 Innovation and Business Industry Skills Council Ltd, 1st Edition Version 3, 2015 greenwichcollege.edu.au
Appendix 4: Balanced scorecard template
KRA (key result area) Target KPI (key performance indicator) Result
Appendix 5: Contingency plan template
Contingency Plan
Company name: BBQ fun
Name of person developing the plan:
Who was consulted as part of this plan?
Name
Position
Risk identified:
Strategies/activities to minimise the risk By when By whom