Term 3 Week 1

Session: 01
Subject: MG14 – Operational Planning
Trainer: Fabricio Masson
Email: fabriciom@aipe.edu.au
SUBJECT OVERVIEW

Develop and monitor implementation

of the operational plan to provide

efficient and effective workplace practices

within the organisation's

productivity and profitability plans.

SUBJECT OVERVIEW

1. Develop operational plan.

2. Plan and manage resource acquisition.

3. Monitor and review operational

performance.
Key Functions of
Management

Planning

Controlling Leading

Organising
Planning

Planning refers to the setting of objectives, the aligning of

resources, the assessment of strengths and weaknesses, and the
identification of opportunities and threats that result in an
operational programme. The planning process:

Implements,
Identifies directs,
Formulates Arranges
the goals or and monitors
strategies to or creates the
objectives to be all steps in their
achieve them means required
achieved proper
sequence.
Leading

Leadership concerns those behaviours that align the organisation

with the stated objectives, and motivate and challenge staff to
their achievement. Leadership might also be concerned with the
positioning of the organisation to ensure its continued
effectiveness.

Leadership Decision Making Communications

Group/Teams Motivation
Organising

Organisation deals with the construction of the necessary means

to achieve the objectives.

Organisation Design Culture Social Networks

Policies &
Operating Units
Procedures
Controlling

Control, sometimes softened to coordination, indicates the need to

manage the achievement of objectives.

Systems/Processes Strategic Human Resources

This includes systems to monitor their achievement, rewards and

non-performance consequences, reporting and auditing, and so
on. Control is achieved in different ways in different organisations.
 Types of Plans

Strategic
Plan

Business
Plan

Marketing Personnel Operational

Financial Plan Product Plan
Plan Plan Plan
Types of Plans

Strategic Plan
The strategic plan is developed for long-term planning and covers
a period of about five years.

The strategic plan specifies the missions and goals of the

organisation including decisions on how resources, both capital
and human, will be allocated to meet organisational goals.
Types of Plans

Business Plan
A business plan sits between the highest-level plan (the strategic
plan) and the operational plan.
A business plan is a formal statement of a set of business goals
and objectives that are to be achieved to meet the strategic
objectives of the organisation.
The business plan includes the reasons why the goals and
objectives are believed to be attainable, the plan for reaching
those goals inclusive of relevant information about the
organisation.
Types of Plans

Operational Plan
An operational plan focuses on the short-term objectives: what
needs to be accomplished in the near future in order that the
company can progress towards achieving its strategic
objectives.
Operational plans generally have a focus of less than one year
and are quite detailed in terms of what needs to be implemented
and how.
Operational Plans sometimes may also be called: Action Plan,
Annual Plan, Management Plan or Tactical Plan;
Steps for a Plan

• Set realistic goals and targets

• Develop SMART goals
Step 1

• List all the activities that need to happen to achieve the goal
• Involving others in this step of determining what needs to be
done;
• Brainstorming is a good group development techniques for this
Step 2 stage of the planning process;
Steps for a Plan

• Sequence the activities in order in which they occur

• Visual diagrams such as flow charts are useful to give clarity;
• Assign target dates and individuals responsibility to each activity;
Step 3 • Allocate resources for each activity;

• Communicate the plan to those who will be involved or affected

• Involving others increases success;
• People need to know:
• Why something is being done
• What is to be done
Step 4 • Who is to do it
• When and how it is to be done
Steps for a Plan

• Implement the plan

• Use the plan as a working document – revise and refer to it;
• Organise activities and resources;
Step 5

• Monitor the progress against the plan

• Check to make sure progress is on target and time frames are
being achieved;
• Take corrective action if problem occur;
Step 6 • Provide feedback on progress to all those involved;
SMART Criteria

Specific Measurable Achievable Relevant Timely

SMART Criteria

Specific
• A specific goal has a much greater chance of being
accomplished than a general goal. To set a specific goal you
must answer the six “W” questions:
– Who: Who is involved?
– What: What do I want to accomplish?
– Where: Identify a location.
– When: Establish a time frame.
– Which: Identify requirements and constraints.
– Why: Specific reasons, purpose or benefits of accomplishing the
goal.
SMART Criteria

Measurable
• Establish concrete criteria for measuring progress toward the
attainment of each goal you set.
• When you measure your progress, you stay on track, reach your
target dates, and experience the exhilaration of achievement
that spurs you on to continued effort required to reach your
goal.
– To determine if your goal is measurable, ask questions such as……
– How much? How many?
– How will I know when it is accomplished?
SMART Criteria

Achievable
• It is essential that employees clearly understand the goals, and
that they have the same meaning to both parties. Consultation
is more likely to result in standards that are relevant and valid.

Realistic
• To be realistic, a goal must represent an objective toward which
you are both willing and able to work.
SMART Criteria

Timely
• It should have an appropriate time frame.

• It should be possible to collect the relevant information either

'as it happens' or within a short time afterwards, otherwise it
will lose its relevance.
SMART Criteria

Examples:
• Submit to the Director by the 15th of each month, a monthly budget
report that summarizes for the previous month the total spent in all
budget categories and balances for all categories.

• Improve student service satisfaction ratings by (xx)% by the end of the

calendar year, as determined by student satisfaction surveys.

• Increase the number of people who visit our Athletics web site to (xx)
by the end of February.
SMART Criteria
Mission

• A mission statement is a key tool that can be as important as

your business plan.

• It captures, in a few sentences, the essence of your

business's goals and the philosophies underlying them.

• The mission statement signals what your business is all about

to your customers, employees, suppliers and the community.
Mission
• The mission statement reflects:

Range and nature of the products you offer,

pricing, quality, service, marketplace
position, growth potential, use of
technology, and your relationships with
your customers, employees, suppliers,
competitors and the community.
Mission
Mission
Google’s mission is to organize the
world’s information and make it
universally accessible and useful.

Facebook's mission is to give people the

power to share and make the world
more open and connected.
We are Australia’s Fresh Food People,
and our mission is to bring you the finest
quality fresh food at everyday great
value, giving you the best shopping
experience possible.
Vision

• Vision statement is an aspirational description of what

an organization would like to achieve or accomplish in the
mid-term or long-term future.

• It is intended to serves as a clear guide for

choosing current and future courses of action.
Vision
"Our vision is to be earth's most
customer centric company; to build a
place where people can come to find
and discover anything they might want
to buy online."
“To revolutionise air travel again,
this time across all market
segments. We will do this by
providing a seamless experience
across all international and
domestic markets, while retaining
the same excellent service.”
Mission and Vision
SWOT Analysis

• SWOT stands for Strengths, Weaknesses, Opportunities and

Threats.

• It is a way of summarizing the current state of a company and

helping to devise a plan for the future, one that employs the

existing strengths, redresses existing weaknesses, exploits

opportunities and defends against threats.

SWOT Analysis
SWOT Analysis

• Strengths:

• Identify skills and capabilities that you have.

• What can you do particularly well, relative to rivals?

• What do analysts consider to be your strengths?

• What resources do you have?

• Is your brand or reputation strong?

SWOT Analysis

• Weaknesses:

• What do rivals do better than you?

• What do you do poorly?

• What generates the most customer dissatisfaction and complaints?

• What generates the most employee dissatisfaction and complaints?

• What processes and activities can you improve?

SWOT Analysis

• Opportunities:

• Where can you apply your strengths?

• How are your customers and their needs changing?

• How is technology changing your business?

• Are there new markets for your strengths? (e.g. foreign)

• Are there new ways of producing your products?

• Are your rivals’ customers dissatisfied?

SWOT Analysis

• Threats:
• Are customers able to meet their needs with alternative products?

• Are customers needs changing away from your product?

• What are your competitors developing?

• Are your rivals improving their product offerings or prices?

• Is new technology making your product obsolete?

• Are your employees satisfied? Is turnover high?

• Is new competition coming?

• Are sales growing slower than the industry average?

GAP Analysis

• A technique that businesses use to determine what

steps need to be taken in order to move from
its current state to its desired, future state.

• Also called need-gap analysis, needs analysis,

and needs assessment.
GAP Analysis
• Gap analysis consists of:
– Listing of characteristic factors (such as attributes, competencies,
performance levels) of the present situation ("what is");

– Listing factors needed to achieve future objectives ("what should

be");

– Finally, highlighting the gaps that exist and need to be filled.

• Gap analysis forces a company to reflect on who it is and ask

who they want to be in the future.
GAP Analysis

1. Identify your future state

GAP Analysis

2. Analyse your current situation

GAP Analysis

2. Identify how you will bridge the gap

Activity

• Groups of 03 students;
• Choose a company;
• Identify its strategic objectives;
• Develop 03 SMART goals for the company;
• Identify its Mission and Vision Statement;
• Develop a SWOT Analysis for the company;
• Develop a GAP Analysis for the company;
• Discuss and present your findings;
 Thank you.
Subject: MG14 – Operational Planning
Trainer: Fabricio Masson
Email: fabriciom@aipe.edu.au