Monitor and review operational performance.

Monitor and review operational performance
Submission details
Candidate’s
name
Phone
no.
Assessor’s name Phone
no.
Assessment site
Assessment
date/s Time/s
The assessment task is due on the date specified by your assessor. Any variations to this arrangement must be
approved in writing by your assessor.
Submit this document with any required evidence attached. See specifications below for details.
Performance objective
You will demonstrate skills and knowledge required to monitor and review operational performance.

Assessment description
In response to a simulated business scenario, and using work completed in Assessment Task 1, you will develop,
monitor and review performance systems, analyse performance, identify areas of underperformance, take prompt
remedial action and report on operational performance.
In accordance with contingency planning developed in Assessment Task 1, you will take prompt action to address
employee underperformance. In a role-play, you will coach the employee in accordance with performance management
systems.
You will then prepare and present, in a second role-play, a management report describing the performance system,
performance results and recommendations for changes to operational plans. During the role-play, you will negotiate
changes to operational plans and gain approval for recommendations from the Operations General Manager (the
facilitator/assessor).
Procedure
1. Read the simulated BBQfun scenario information provided in Appendix 1 of this task and in the business
documentation provided by your assessor (the same documentation provided in Assessment Task 1).
2. Prepare a plan for monitoring performance from the start of implementation to the end of the
financial year. You may use the action plan template (provided in Appendix 2) or create your own
plan. Ensure you include plans for monitoring and/or documenting:
a. budgetary and financial performance
b. productivity performance
c. employee performance in line with performance management policy
d. milestone achievement and performance against targets
e. dates for monitoring activities in line with scenario
f. resources for monitoring

g. progress reporting at the end of each quarter to the Operations General Manager
h. regular performance management of online staff and lodgement of records with the HR Manager
i. describes the development and implementation of document storage processes in line with organisational
requirements.
Appendix 2: 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)
Analyse budget and financial performance End Month Pat ( CEO)
Riz ( finance
chief)
Mehra ( financial
head)
Financial software tools
Revenue/profit targets
Compare departmental productivity Weekly Regional
managers
(Mitchelle/Sween
ey)
HR ( Goodale)
Kim (OM)
Performance indicators
Coaching/training
sessions
Check employee performance Monthly Goodale ( HR)
Regional
managers
Management policies
Performance indicators

(Mitchelle/Sween
ey)
Construct milestone achievement and performance
against target
Quarterly Regional
managers
(Mitchelle/Sween
ey)
Expense targets
Deliveries
Marketing
research/customer
surveys
Set dates for monitoring activities Week 1 Regional
managers
(Mitchelle/Sween
ey)
Recruitment
consultant
Analytical tools
Performance completion
plan
Allocate resources for monitoring Week 1 Regional
managers
(Mitchelle/Sween
ey)
COG targets
Expenses target
Present quarterly progress reports to OM Quarterly General OM,
Kim (OM)
-Risk management plans
-Management reports
-Research reports
Manage online staff and lodge records Daily
(Regularly)
Goodale (HR) -Number of absentees

Kim ( OM)
Lee ( Marketing)
Regional
managers
(Mitchelle/Sween
ey)
-Customer complaints
( CRM)
-Performance process
Breakdown document development and
implementation storage processes
Annually General OM
Kim (OM)
Regional
managers
ERP

3. Ensure that:
a. your plan uses language appropriate for your target audience
b. you keep copies of your work for your records and in line with
the document storage processes you have described in your
plan.
4. Identify areas of employee underperformance, determine
possible remedial actions and prepare to performance
manage underperforming employees. Refer to, follow, or
adapt, existing contingency plan for underperforming
employees (developed in Assessment Task 1).
5. Contingency Plan
6. Company name: BBQfun
7. Name of person developing the plan:
8. Who was consulted as part of this plan?
9. Name Position
10.
Risk identified ( Underperforming section): Sales and Marketing
Strategies/activities to minimise the risk By when By whom
Introduction of e-commerce Immediat
ely
All
departmen
ts
Training of all employees in sales for e-
commerce
June 2014 Lee
(Marketing
)
Regional
manager
Acquisition of new employees July (end) HR (
Mehra
(Financial
dept.

Approved variations to the plan based on
contingencies faced
Change management Immediat
ely
Operations
manager/
HR
Appointment of sales team leaders July Lee (Sales)
Adoption of new website with marketing
software apps
May Lee, legal
consultant
11. Follow your contingency plan and the BBQfun performance
management policy to coach and performance manage an
underperforming employee.
a. Arrange with your assessor to role-play the coaching
session. You may wish to use the performance
management plan template and coaching plan template
(provided in Appendices 3 and 4 of this task) to prepare
for the coaching session.
OM: I have been looking at your performance for the past quarter and you
seem to be the least performing in online sales. During your interview you
proved to be the best candidate in communication skills, is there anything
BBQfun can do to improve your performance?
Employee: I enjoy engaging customers online but I think I need more
training on how to use online content for generating sales.
Appendix 3: Performance management
plan template
Name/position: Online
sales
Manager: lee Review period:
May 2014

Reference
from
operational
plan
Key result area Indicator of
success/
performance
By
whe
n
Status
report
Low
percentage
performance
-Quality online
communications
-Financial sales
generation
-% of
informational or
order mistakes
-average time of
report completion
Mont
h end
incomplet
e
Manager’s comments: incomplete
report of marketing opportunities.
Employee has great communication
skills. Needs additional training
Signature:
Date:
Staff member’s comments: Signature:
Date:

Appendix 4: Coaching plan template
Employee: BBQfun
Coach/Manager: Online marketing consultant
Date of session: 29 May 2014
Questions
Goal As the operating manager, I encourage further skills
development for the employee to gain KPI. However:
How can this employee gain competence as an individual
in order to support better team work efforts?
How can the team leader engage the employee in regular
coaching on targets for professional development and
improved performance?
Reality Employee has greater potential for best performance in
online sales according to KRA. Can the new employee
match up to expectations by reaching the target
engagement time with reduced errors?
Options Coaching the employee for better performance is cheaper
than hiring a new worker. The latter would have to go
through fresh induction and integrating. Despite negative
performance in customer engagement is the employee a
good team player?

Will Continue sales skills and guidance to monitor online
engagement. Encourage creative content use and
evaluate progress after one month

b. Make sure you begin a coaching session with an
explanation of your role as a coach in supporting the
employee to meet BBQfun organisational goals.
12. Analyse operational performance as described in scenario,
and produce an operational plan status report based on the
information provided in Appendix 1. You may wish to use the
Operational Status Report template (provided in Appendix 5).
You will also need to include in your report:
a. a description of budgetary and financial performance
b. a description of productivity performance
c. an analysis of milestone achievement and performance against
targets
d. three recommendations for operational improvement.
Answer in Appendix 5 Template

13. Arrange a time to meet with your assessor to role-play the
presentation of your report to the Operations General
Manager and negotiate recommendations – involving, for
example, changes to plans, changes to implementation of
plans, changes to budget, etc. – and seek approval for the
implementation of your recommendations.
OM: After monitoring the operational report, I think the company has
potential but may need to make some major changes in order to improve
financial performance. Risk reduction is prime on the agenda because of
the budget overrun. I suggest and overhaul of the organizational plan to
incorporate regular training, improve quality of online services and its
speed.
GOM: Does this mean changes in budget allocations?
OM: Definitely, BBQfun needs to invest more in e-commerce strategy
including winning more customers, improving brand market position and
driving traffic to site.
GOM: Have you discussed these with the marketing team?
OM: Yes. Mr. Lee agrees that change in marketing strategies is necessary
but he suggests professional development and use of online sales
strategies like coupons
14. Amend your report to include any variations you have made
to your contingency plan as a result of issues you
encountered or may have overlooked.
New Report in Appendix 6
15. Submit a portfolio of your implementation documents as
outlined in the specifications below. Keep copies of your work
for your records.

Specifications
You must:
● participate in two role-plays:
○ coaching an underperforming employee
○ presentation of report to Operations General Manager
● submit a portfolio that includes:
○ a monitoring plan
○ a contingency plan (amended from Assessment Task 1) for
managing employee underperformance
○ a coaching and performance management plan
○ an operational plan status report, including:
– a description of budgetary and financial performance
– a description of productivity performance
– an analysis of milestone achievement and performance
against targets
– three recommendations for operational improvement.
– an outline of any variations made to your contingency plan.
Your assessor will be looking for:
Underperfoming employee
GOM reportRole
Plays
monitoring plan
Contingency plan
coaching and perfomance
operational plan status report
Portfolio

● reading and writing skills to access, interpret and use workplace
information and to write a practical monitoring plan and management
report
● oral communication skills to present information in a clear and
professional manner to underperformers and management, listen and
comprehend information and confirm understanding through
questioning and active listening
● planning and organisational skills to take responsibility for monitoring
an operational plan to determine performance against operational
goals
● leadership skills to communicate with and motivate underperformers,
facilitate performance management discussions and collaborate to
achieve business outcomes
● numeracy skills to monitor expenditure of 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.
Adjustment for distance-based learners
● The role-plays can be adjusted for distance learning. The role-plays
for this task can be varied to take place using Skype conferencing (or
any other video conferencing tool available to both you and the
assessor).
● A follow-up interview may be required (at the discretion of the
assessor).
● Documentation can be submitted electronically or posted in the mail.

Appendix 1: Scenario – e-Commerce
performance monitoring
Background to scenario
The BBQfun 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 BBQfun’s e-commerce strategy.
Under the strategy, BBQfun would offer all products in an online store.
Stock could be stored at no extra cost at existing stores. Customers would
cover delivery costs.
The BBQfun website now has e-commerce functionality. The website has
been redeveloped to incorporate this functionality in line with relevant
technical specifications after you consulted with specialist managers.
Existing infrastructure, such as office and store configurations, has been
adapted to the new strategy. Additionally, assets such as delivery vehicles
have been acquired. New staff has been recruited and existing staff
retrained or informed of the e-commerce strategy and associated
operational and performance targets.
All resourcing should have been acquired and operations undertaken in
accordance with relevant external standards, such as legislation and codes
of practice, and internal standards, such as organisational policies and
procedures and performance targets.
It is now 1 January 2014. e-Commerce operations are expected to be
underway by 1 October 2014.
Scenario task
You will need to plan monitoring activities for ongoing customer service
activities, website maintenance, and revenue generation over the financial
year from the start of implementation.
You will then need to analyse performance data for the second quarter of
the financial year.
You will then need to coach an underperforming employee in accordance
with the BBQfun performance management policy and previously
developed contingency planning (the planning developed for Assessment
Task 1).

Finally, you will need to prepare and present a report with
recommendations for operational improvement to the Operations General
Manager.
Note: You may consider the management team of BBQfun including team
leaders in warehouses to be resources for the monitoring of performance.
Use description of their roles in operational planning when assigning
responsibilities.
Note: Financial reporting is completed by the CFO at the end of each
quarter of the financial year. Employee performance is gathered by store
managers, sales and marketing managers (online staff) and compiled by
the HR Manager at the end of each quarter.
Individual performance data
The following performance data is available for Lee Waters:
KRA Target KPI Result
Quality of
online sales
and service
1% error rate % of informational
or order mistakes
10%
Speed of
service
(online)
<10 minutes per
interaction
Average time to
completion
20
minutes
Financial $30,000 sales $ sales $20,000
Professional
development
Participate in 2 hours of
sales training per month.
Training hours 0 hours
Organisational performance
Information from the Sales and Marketing Manager
A discussion with the Sales and Marketing Manager has provided you with
the following information.
The Sales and Marketing Manager has been tracking progress against the
following key performance indicators (KPIs):
1. Quality of online sales and service is measured in: % of mistakes
made by a customer service employee when providing information or

making an order. The target is 1%. Currently the rate of mistakes
made is 10%.
2. Speed of online sales and service is measured in average time to
resolve a customer enquiry. The target is <10 minutes. Currently, the
average time to complete an online enquiry is 20 minutes.
3. Average delivery speed is measured in the average time in days from
the order being made to the customer receiving delivery of the
product. The target is three days from order to delivery. Currently,
the average delivery speed is three days.
4. Revenue success is measured in the amount of revenue generated in
dollars. The target is $300,000 in sales per quarter, which would
make an $80,000 profit per quarter. In the second quarter this
financial year, we generated $250,000 in revenue, providing a profit
of $40,000 for the quarter.
Further to the KPIs, the Sales and Marketing Manager provides more
information on each area of performance.
Quality of online sales and service:
● Staff not familiar with product line, even after training.
● Staff do not understand CRM (customer relationship management)
systems and ordering processes.
● Staff do not understand product line. Unable to locate information.
● Poor communication lines.
● No job aids or support from management.
● No ongoing performance management as per company policy.
● Low staff morale: complaints of back pain and distractions in
environment.
Speed of online sales and service:
● Many customers abort interaction due to length of time for order
completion.
● Some extra time taken because of lack of skills and knowledge.
● Some time taken because of poor website maintenance and
occasional downtime.
Speed of delivery:
● Driver team leader is exceptional motivator.
● Driver morale is high.
● Driver attendance of routine training and team briefings is at 100%.

Online sales and revenue
● Some lack of sales may be due to poor customer service.
● Sales may pick up as awareness of online option through marketing
actions increases.
In terms of our key actions, we’re tracking well. The website
redevelopment has been completed on time and to budget. The delivery
trucks and forklifts have been acquired and put into operation on time. In
terms of recruitment, staff have been recruited on time, and the planned
training has been completed.
Information from the Chief Finance Officer (CFO)
A discussion with the CFO has provided you with the following information:
The CFO has been tracking progress against the following key performance
indicators (KPIs):
1. Budget success is measured in % overrun/underspend. The target is
0% overrun. Currently there is a budget overrun of 10%. Cost
overruns are due to:
○ wastage from order mistakes and over-stocking due to misuse of
system
○ overtime due to overly long customer interactions.
2. The timeline for the e-commerce project is to have the e-commerce
activities implemented by 1 October 2014. Currently the
implementation is on track.
In addition to these key performance indicators, we have identified a
number of risks that all need immediate action:
● The training program has not been adequate to cover required skills
and knowledge. Training has been too short and insufficient to be
effective.
● Staff are unable to perform roles due to lack of support in job roles
and ongoing training, coaching.
● Website downtime contributes to increased service and sales
disruptions.
● Sales continue to perform under target.
On that last risk, I think sales may need to be more closely monitored.
Customer needs and changing market conditions/competition may need to
be reassessed and addressed.

Appendix 2: 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)

Appendix 3: Performance management
plan template
Name/position: Manager: Review
period:
Reference
from
operational
plan
Key result area Indicator of
success/
performance
By
whe
n
Statu
s
repor
t
Manager’s comments: Signature:
Date:

Staff member’s comments: Signature:
Date:
Appendix 4: Coaching plan template
Employee:
Coach/Manager:
Date of session:
Questions
Goal
Reality
Options

Will

Appendix 5: Operational Plan Status Report template
BBQfun operation plan status report Date:
Plan goal Implement e-commerce strategy Department Operations
Plan
objective/s
● redevelop website and acquire
physical resources
● recruit and train staff
● achieve profit targets
● adhere to budget
● adhere to timelines.
Person
responsible
Project Officer
Key performance indicators Current status
(Red, Green,
Amber)
Comments
Percentage sales $20,000 -Performance is below target $30,000
-There is need to implement e-commerce strategy
of achieving profit target

Key performance indicators Current status
(Red, Green,
Amber)
Comments
Training hours 0 hours Reduction in productivity due to failure to
participate in 2 hours of sales training per month.
% of informational or order mistakes 10% error rate There is compromised quality of online sales and
marketing strategies. This is higher than the
expected 1% failure rate
Average time to completion 20minutes Speed of service (online) is OK because it goes
beyond target 10 minutes. This could be a sign of
better performance by the technical team or
software installations
Key action update
Key action Accomplishments Comments
Improve profit target through sales A budget overrun of 10% is not good
because of poor sales. Inadequate
training program shows the root
cause of the ineffectiveness
Revenue success starts with new
generation of cash. Improved
targets per quarter indicates the
weak points, especially in the
first quarter

Risk update
Risk Contingency Comments
1. Budget overrun Improving the revenue
collection strategy
Support better service delivery in e-commerce
through improved speed delivery and quality
services
2. Order mistakes Preventive measures
against errors through
proficiency in online
service delivery
Engage employees in further training for top
notch services
3. Delays Improve service delivery
through speed
Boost online technical systems and employee
response rate

General comments
Gaps in the budgetary and financial performance describe the level of productivity performance to reveal gaps. An
analysis of milestone achievement and performance against targets indicates strategic measures for operational
improvement1.
NEW REPORT
Appendix 6: New Operational Plan
BBQfun operation plan status report Date:
Plan goal To improve financial performance, risk
reduction and incorporate change
Department Operations
Plan
objective/s
● regular training
● improve quality of online services
Person
responsible
Project Officer
1
Peter Joseph O'Neill, Amrik Sohal and Wei Chi Teng, Quality management approaches and their impact on firms'
financial perfomance-An Australian study, (2016), International Journal of Production Economic, 171, 381-93

● Improve speed of service delivery
● recruit and train staff
Key performance indicators Current status
(Red, Green,
Amber)
Comments
Percentage sales $20,000 Move target to $30,000
Improve e-commerce strategy to target more profit
Brand market position low Plan to improve market presence through rigorous
marketing strategies
Improved team work No team work Encourage team work activities for effective online
marketing through branding strategies
Online sales strategies Nil Introduce online sales strategies like coupon sales,
adverts and offers

Key performance indicators Current status
(Red, Green,
Amber)
Comments
Key action update
Key action Accomplishments Comments
Improve profit target through marketing
strategies
Identified risk potential in low
marketing strategies
e-commerce thrives through
marketing strategies that
enhance revenue collection
through customer strategies
Risk update
Risk Contingency Comments
Online fraud Prevent fraud by offering
a secure website for
customers to use e-
E-commerce has opportunities and risks.
Authenticity calls for integrity and security
measures in transactions2.

payment systems
effectively
General comments
Change of budget allocation to include e-commerce strategy for more customers, improved brand position and drive
traffic. Customers are looking for a brand that they can trust. The OM works together with regional managers and
marketing team for this change management.
2 Jen-Chung Chen, David C. Yen, Wannasri Pornpriphet and Andree E. Widjaja, E-commerce website loyalty: A cross cultural
comparison, (2015), Information Systems Frontiers) 17, n 6, 1283-99