D2.TTO.CL4.06 Slide 1. Subject elements This unit comprises three Elements: 1.Develop operational...

D2.TTO.CL4.06 Slide 1

Subject elements This unit comprises three Elements: 1.Develop operational plans 2.Administer and monitor operational plans 3.Conduct ongoing evaluation Slide 2

Assessment Assessment for this unit may include: Oral questions Written questions Work projects Workplace observation of practical skills Practical exercises Formal report from supervisor Slide 3

Element 1: Develop operational plans Slide 4

Develop operational plans Performance Criteria for this Element are: Develop operational plans and strategies based on monitoring of workplace needs and identification of opportunities for improvement and innovation Develop scope and objectives of the required initiative based on enterprise goals, staff and customer feedback Identify and analyse internal and external factors that may impact on the plan Consult appropriate stakeholders during the development of the plan Slide 5

Develop operational plans Performance Criteria for this Element are: Develop appropriate and financially-sound resource strategies Develop administrative framework and systems capable of supporting the planned initiative Identify and communicate clearly all priorities, responsibilities and timelines Develop evaluation systems in consultation with appropriate colleagues Slide 6

Operational planning An operational plan An operational plan is a written document that presents detailed information about: The operational Its projected plans and projections for the future Slide 7

Operational planning Importance of a operational plan A operational plan is the key formal document that sets out a total picture of how a operational will operate It helps to establish standards for measuring the success of all aspects of a business Slide 8

Operational planning Basis of a operational 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 Slide 9

Operational planning Purpose of a operational plan Preparation of a operational plan: Gives a sense of ownership and involvement in the future of the operational Ensures that the commercial directions planned have been tested for their viability in the marketplace Activity 1 - Management practices Slide 10

Operational planning Benefits of operational planning Operational plans are implemented by frontline managers and identify: What has to be achieved? What results are to be expected? What methods are to be implemented? What time frames need to be worked to? Slide 11

Operational planning Benefits of operational planning Provides guidance towards objectives Reduces uncertainty, expense and duplication of effort Supplies a means to track and assess performance Helps to ensure that various activities are integrated Information allows us to adapt and adjust to changing environments Agreement is gained on major issues The whole operating picture is seen more clearly Slide 12

Operational planning Benefits of operational planning Responsibility is placed more precisely A sense of order and control over activities exists There is coordination between different work units/departments Objectives are more specific and better known throughout the organisation Guesswork is minimised Time, effort and money can be saved There is a reduction in decision making errors Slide 13

Operational planning Barriers to operational planning Time The inability to forecast or predict what will happen in the future Planning for oneoff activities or non repetitive tasks is difficult Plans tend to be inflexible Planning takes time and money Planning can stifle initiative and flexibility The work involved in the planning may exceed the actual contribution Slide 14

Operational planning Where do operational plans fit into the overall planning process? Mission statement Corporate goals Strategic plans Operational plans Activity 2 - Goal setting for organisational positions Slide 15

Operational planning What is an operational plan? Planning is broken down into two components: Identification of the desired result what needs to be done to get there (strategic plan) The means and how it is to be done (operational plan) Slide 16

Operational planning Purpose of an operational plan Whilst each and every organisation should have operational plans for all aspects of their business, they are often prepared for a specific purpose. What are examples of purposes of operational plans? Slide 17

Operational planning Purpose of an operational plan This purpose may be for, but not limited to: Introduction of a new product Staff re-organisation Impacts of marketing initiatives or campaigns An office relocation or refurbishment Upgrading of facilities Changes in work practices or procedures Business expansion or contraction Introduction of new systems Slide 18

Operational planning Strategies of an operational plan Strategies may include: Client development Geographic expansion Organisational growth Service growth Debt reduction Income development Slide 19

Develop objectives Purpose of objectives Before we can devise strategies for operational success, it is important that we have clear objectives of what we want to achieve The objectives are the goals or targets to work towards and once defined, enable the planning of strategies to achieve them Slide 20

Develop objectives Types of objectives Sales figures Revenues Delivery times Service standards Client numbers Sales figures and targets Slide 21

Develop objectives Types of objectives Client handling times Staff turnover Profit margins Booking levels Customer or staff feedback Productivity gains Activity 3 - Identify key objectives Slide 22

Develop goals Goal setting and the benefits Goals should firstly be measurable, so you can know when you have achieved or made substantial progress towards your goals. Why is this important? What are examples of measurable objectives? Activity 4 - Goal setting Activity 5 - Decision making Slide 23

Develop goals Identifying goals Specific Measurable Achievable Relevant and realistic Timespecific Activity 6 - Identify goals Activity 7 - SMART goals Slide 24

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? Slide 25

Analysing the environment Importance of analysing the environment 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 Slide 26

Analysis of external environment Competitors Economic climate Customer preferences E-operational Markets Slide 27

Analysis of external environment Environment Technology Political issues Legal issues Social issues and trends What other external influences exist? Slide 28

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? Slide 29

Evaluating market trends Types of information sources Colleagues, supervisors and managers Representatives Developing your own industry network Conferences and seminars Product launches Trade magazines Slide 30

Evaluating market trends Types of information sources Industry Publications Newsletters Brochures Advertisements Government bodies Slide 31

Evaluating market trends 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 Slide 32

Evaluating market trends 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 Slide 33

Customer demands Impact of customer demands What are common customer demands? What influences customer demand? Activity 8 - Identify external environment factors Slide 34

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 operational Slide 35

Analysis of internal environment Internal environment factors Internal environmental factors include such things as: Customers Suppliers Competitors Stakeholders Slide 36

Analysis of internal environment Review internal resources and capabilities Location including premises Market share Turnover Profitability Staff Resources Future potential Slide 37

Analysis of internal environment Internal considerations Products and or services Skill level of staff and management Commitment to growth Current market share Level of debt Slide 38

Analysis of internal environment Internal considerations Profit margins Capacity to produce goods and/or services Competition Skills of the owners Location of the operational Equipment Slide 39

Analysis of internal environment Organisational requirements Access and equity principles and practices Maintaining ethical standards Meeting goals, objectives, plans, systems and processes Legislated obligations Slide 40

Analysis of internal environment Organisational requirements Management and accountability channels Manufacturers and operational specifications OSH policies, procedures and programs Quality assurance and continuous improvement processes and standards Activity 9 - Identify external and internal factors Slide 41

Analyse the environments Analyse operational opportunities and obstacles How can you do this? Slide 42

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 Slide 43

SWOT Analysis Strengths and Weaknesses Finance Production Resources Offerings Marketing Product life cycle Business relationships Relationships with customers Personnel Slide 44

SWOT Analysis Opportunities and threats Political considerations Economic considerations Social considerations Technological considerations Legal considerations Environmental considerations Slide 45

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 operational Fresh markets now available Slide 46

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 10 - Conduct a SWOT Analysis Slide 47

Identify competitive advantage Importance of understanding competitive advantage Why is this important? How can you see what competitors are doing? How can you create a competitive advantage? Activity 11 - Competitive advantage Slide 48

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? Slide 49

Key stakeholders Types of stakeholders Stakeholders may include: Customers Employees Government agencies Owners Suppliers Strategic alliance partners Slide 50

Involving stakeholders Importance of involving stakeholders Ensures 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 Activity 12 - Identifying stakeholders Slide 51

Seeking advise from experts As part of the operational plan development process, besides talking with stakeholders, it is advisable to consult as many 'experts' 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? Slide 52

Seeking advise from experts 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 Slide 53

Seeking advise from experts Sources of assistance and advice Local government agencies Tourism associations Non-government organisations Media personnel including journalists Professional research organisations Solicitors Tourism agencies (local, regional, state) Tourism operators Activity 13 - Identify experts Slide 54

Develop resource strategies Importance of resources Workplace operations or activities focus on the preparation, production or obtaining of the products or services you offer or sell Inputs in the form of resources are applied to a series of operations to produce your output through the use of products and services Slide 55

Develop resource strategies Types of resources Resources can encompass: Physical resources Human resources Financial resources Intellectual property Slide 56

Develop resource strategies 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 Slide 57

Develop resource strategies Common resources Stock and supplies Storage space Technical equipment and software Staffing Training Training materials Slide 58

Operational Resource Plan Types of resource plan considerations Capital Requirements and Funding Proposal Operational Budgets Plant and Equipment Floor plan Purchasing and Suppliers Stock Levels Purchasing Policies and Controls Labor Requirements and Skills Staffing Strategies Activity 14 - Prepare Operational Resource Plan Slide 59

Develop administrative framework Importance of administrative framework and systems Once your organisation has identified its goals, it needs a logical and systematic process of achieving them This defines the need for systems to be established in which operational plans and activities are to built around Slide 60

Develop administrative framework Importance of systems The role of a manager is one that manages systems A system is an arrangement or combination of interrelated and interdependent things or parts that form a whole Your role is to ensure that the various parts of the system are working together effectively so that the organisations goals can be achieved Slide 61

Develop administrative framework Categories of operational plans If a tourism organisation has a number of departments then it will also have an operational plan for each division. There are two broad categories of operational plans. They are: Standing or multi use plans Single use plans Slide 62

Operational Plan Inclusions in an operational plan Overall goals / objectives What actions need to be done To what standard must it be done (Key Performance Indicators) What policies or procedures must be adhered to Who is responsible for action Slide 63

Operational Plan Inclusions in an operational plan Timelines about when things are going to happen What tasks are associated with actions How is the action inter related and interdependent? Specific details of how things are going to be done Actions will need to be prioritised and listed in order What standards or measures can be applied straight after the action is completed? Slide 64

Operational Plan Inclusions in an operational plan Where the action will take place? What additional resources will be required? Timelines for actions Support mechanisms Develop a system of measuring recording and reporting results Slide 65

Action Plans Areas requiring action plans Areas of business operation in the operational 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 Activity 15 - Prepare an Operational Plan Slide 66

Contingency Plans Contingency plans Contingency planning is the ability to have a what if plan in place It is sometimes referred to as Plan B, which can call up if required, as circumstances change Slide 67

Contingency Plans Contingency plans What are reasons for contingency plans? What are advantages of contingency plans? Slide 68

Contingency Plans Areas / factors requiring contingency plans Unforeseen incidents Staff Environmental factors Resource and materials availability Budget constraints Activity 16 - Prepare a Contingency Plan Slide 69

Communicate operational plan Communicate operational plan priorities, responsibilities and timelines Once operational plans, including objectives and tasks to be performed have been finalised, it is now time to communicate these expectations to relevant stakeholders In many cases, this will be staff who will be required to carry out operational activities Slide 70

Communicate operational plan Stakeholder considerations Get a clear understanding of the operational plan Ensure that all key concerns have been considered Understand the benefits of the operational plan Understand how the operational plan will benefit them Understand how the operational plan will impact on them Slide 71

Communicate operational plan Stakeholder considerations Understand their role in implementing the operational plan Any potential problems identified Have their concerns addressed Be excited and reassured about the operational plan Slide 72

Communicate operational plan Types of stakeholders Clients operational partners Colleagues Staff Event organisers Sponsors from other companies Superiors Suppliers / vendors Team leaders Team members Venue operator / leaser Slide 73

Communicate operational plan Communicate operational plan information Key vision of the plan Reasoning or purpose behind the operational plan Background information operational objectives How the plan will be implemented Roles and responsibilities of key stakeholders Timelines Support mechanisms Slide 74

Communicate operational plan 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? Slide 75

Communicate operational plan Communicate information How can you communicate information to: Staff Managers Clients Suppliers Activity 17 - Communicating an Operational Plan Slide 76

Develop evaluation systems Importance of control and evaluation Why is control important? Why is evaluation important? Slide 77

Develop evaluation systems Importance of control and evaluation Activities must be controlled and evaluated to find out: What is being done correctly What needs improvement, by identifying causes and remedy Slide 78

Develop evaluation systems Characteristics of effective control systems Accuracy Timeliness Economy Flexibility Understandability Reasonable criteria Strategic placement Emphasis on the exception Multiple criteria Corrective action Slide 79

Develop evaluation systems Types of controls Feed forward control Concurrent control Feedback control Activity 18 - Types of controls Slide 80

Develop evaluation systems Aim of monitoring business activities Identifying areas which are being done well and rewarding accordingly Identifying where areas of operations can be improved through: Identification of problems Understanding the cause Finding suitable solutions Selecting the correct solution Implementing and monitoring the solution Slide 81

Monitoring and evaluation Monitoring and evaluation mechanisms Evaluation processes may include: Key performance indicators Gap analysis Customer feedback Compliance reports Employee feedback Slide 82

Monitoring and evaluation Key Performance Indicators (KPIs) A common and extremely effective way to ensure that you achieve the results required in any plan is to use Key Performance Indicators (KPIs) Measures for monitoring or evaluating the efficiency or effectiveness of a system Slide 83

Monitoring and evaluation Key Performance Indicators (KPIs) Organisations key performance indicators are a set of metrics which organisations can use to measure their performance of service operations. KPIs may relate to the results of: Satisfaction surveys Staff feedback forms Staff performance appraisals Sales Slide 84

Monitoring and evaluation Key Performance Indicators (KPIs) 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 days trading Slide 85

Monitoring and evaluation Key Performance Indicators (KPIs) 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 Activity 19 - Prepare a list of tourism KPI's Slide 86

Element 2: Administer and monitor operational plans Slide 87

Administer and monitor operational plans Performance Criteria for this Element are: Implement and evaluate identified actions in accordance with agreed priorities Monitor performance indicators Provide progress and other reports in accordance with enterprise requirements Make assessment of the need for additional resource requirements and take appropriate action in accordance with enterprise policy Slide 88

Implement action Implement operational plan actions Now that operational plans have been communicated with stakeholders responsible for its delivery, it is now time to implement any actions Slide 89

Implement action Implementation considerations Compliance requirements Occupational safety and health (OSH) Legal liability exposure Integration with other aspects of the operational Timing issues Slide 90

Implement action Implementation considerations Resources Changes to policies and procedures Documentation and record keeping Service delivery Impact on organisational culture Slide 91

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 Slide 92

Implement action Identify predictable consequences of change Disruptions to routine Problems with timelines Issues with reporting structure Extra support required by employees Slide 93

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 Slide 94

Monitoring and evaluation methods Key performance indicators Gap analysis Customer feedback Compliance reports Employee feedback. Using a pretend customer Walking about the premises and observing what takes place Slide 95

Monitoring and evaluation methods Use of checklists Brainstorming sessions Observation Surveys Checklists Flowcharts Benchmarking Activity 20 - Evaluation methods Slide 96

Monitor performance indicators Importance of monitoring performance systems Monitoring performance systems and processes of the venue is one way of allowing you to determine the extent to which plans and targets are being achieved. What are the advantages of doing this? How can it be done? Slide 97

Monitor performance indicators Importance of monitoring performance systems Performance systems and processes may refer to: Informal systems used by frontline managers for the work team in the place of existing organisation-wide systems Formal processes within the organisation to measure performance Slide 98

Monitor performance indicators Monitoring Key Performance Indicators As operational plans are put into place it is also important to monitor the actual performance indicators themselves to ensure that they are still achievable and relevant KPI's themselves may also need to change to reflect any deviation to operational plan activities Slide 99

Monitor performance indicators Reviewing Key Performance Indicators Discuss KPIs with key stakeholders Reviewing each KPI to ensure it is still accurate Reviewing 'required level of achievement' for each KPI Checking level of success against current KPI's Identifying reasons why KPI's have or have not being met Determine is KPI's need to be amended Making recommendations for changes where amendments are required Activity 21 - Evaluation KPI's Slide 100

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 operational plan initiatives Slide 101

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 Slide 102

Report performance Explaining performance related information Explaining if your operational 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 Slide 103

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 Activity 22 - Reporting progress to stakeholders Slide 104

Taking managerial action Make assessment of the need for managerial action Once areas of operational need improvement there are a number of changes that managers and supervisors can make Before any changes are implemented, assessment must take place to determine if action is necessary and the type of action that needs to be taken Slide 105

Taking managerial action Types of managerial action Do nothing Correct actual performance Revise the standard Activity 23 - Taking managerial action Slide 106

Element 3: Conduct ongoing evaluation Slide 107

Conduct ongoing evaluation Performance Criteria for this Element are: Review the operational plan to assess effectiveness in the workplace Monitor performance Identify problems and make adjustments accordingly Incorporate the results of evaluation into ongoing planning and operational management Slide 108

Review the operational plan Importance of reviewing the operational plan It is important that operational plans should reviewed on a regular basis In the natural evolution of business activities, changes to operational plans will need to take place to reflect changes in operations and direction Slide 109

Review the operational plan Timing of operational plan reviews Daily, weekly or monthly reviews Business plan cycle Performance reports Major events triggering a review, e.g. Change in market-place Activity 24 - Prepare review timetable Slide 110

Review the operational plan Conduct ongoing evaluation of operational plans Are we on track? Have we achieved what we planned? Are any variations acceptable, or do they require action? Were the original goals realistic and achievable? Have we improved our planning ability through these actions? Slide 111

Review the operational plan Evaluation and review operational plans Level 1 - Did we do things right? Level 2 - Did we do the right things? Level 3 - What have we learnt during the process? Slide 112

Monitor performance 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 operational Slide 113

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 Slide 114

Monitoring performance Areas of performance to monitor Market share Sales figures Customer satisfaction Staff satisfaction Growth in existing markets Development of new business sectors Staff retention Awards received Activity 25 - Monitoring performance Slide 115

Identify performance gaps 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 Slide 116

Identify performance gaps 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 Slide 117

Identify performance gaps Types of performance gaps Interpersonal conflict Hazardous events Time constraints Electricity shortages Bad weather Shortfalls in expected outcomes Poor staff performance Slide 118

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 Slide 119

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 Slide 120

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 Slide 121

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 Slide 122

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. Slide 123

Short term corrective action Reasons for short-term action Isnt 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 OSH 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 Slide 124

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 Slide 125

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 Slide 126

Long term corrective action Organisational re-structures Change of personnel structure Elimination of positions New job roles Changes in job roles New knowledge or skills Slide 127

Long term corrective action 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 Slide 128

Long term corrective action 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 Activity 26 - Identify and resolve problems / performance gaps Slide 129

Report performance Present recommendations for variation to operational or operational plans What are possible reasons for recommendations? What information needs to be included in a recommendation What are types of recommendations? Activity 27 - Making recommendations Slide 130

D2.TTO.CL4.06 Slide 1. Subject elements This unit comprises three Elements: 1.Develop operational...

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Transcript of D2.TTO.CL4.06 Slide 1. Subject elements This unit comprises three Elements: 1.Develop operational...