Operational Plan for AusNet Services Ltd

This article discusses the operational plan for AusNet Services Ltd, an energy delivery business in Australia. It covers the background of the organization, scope and purpose of the plan, key deliverables, consultation strategy, resource requirements, budget, key performance indicators, contingency plan, staffing plan, and more.

Running head: OPERATIONAL PLAN
Operational Plan
Name of the Student:
Name of the University:
Author’s Note

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Table of Contents
Section 1..........................................................................................................................................3
Task 1...............................................................................................................................................3
Background of the Organization..................................................................................................3
Operational Plan- Scope and Purpose..........................................................................................4
Operational Plan- Key Deliverables............................................................................................4
Consultation Strategy...................................................................................................................6
Resource Requirements.............................................................................................................10
Budget........................................................................................................................................11
Budget Monitoring.....................................................................................................................11
Key Performance Indicators......................................................................................................12
Contingency Plan.......................................................................................................................14
Implementation of Contingency Plans.......................................................................................14
Staffing Plan..............................................................................................................................15
Record Keeping.........................................................................................................................15
Section 2........................................................................................................................................16
Task 1.............................................................................................................................................16
Recruitment of Human Resources.............................................................................................16
Task 2.............................................................................................................................................17
Physical Resource Requirements...............................................................................................17

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Section 3........................................................................................................................................17
Scenario 1..................................................................................................................................17
Scenario 2..................................................................................................................................18
Questionnaire.................................................................................................................................19
Requirement 1............................................................................................................................19
Requirement 2............................................................................................................................20
Requirement 3............................................................................................................................20
Requirement 4............................................................................................................................21
Requirement 5............................................................................................................................21
Requirement 6............................................................................................................................21
Requirement 7............................................................................................................................22
Reference.......................................................................................................................................22

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Section 1
Task 1
Background of the Organization
The main purpose of this assessment is to develop an operational plan for a company and
analyzing various aspects for the same. The company which is considered for this assessment is
AusNet Services ltd which operates in Australia. AusNet Services is one of the leading energy
delivery businesses which operates in Australia. An estimate suggest that the company works
with around $ 12 billion of electricity and gas distribution assets for both domestic and foreign
use. The company is a leading brand in the energy sector and employs around 2500 employees.
The strategic plan of the business is to supply energy and serve as many customers as
possible providing them with improved quality and timely services. The company strictly
adheres to safety programs for employees and delivery partners. The company follows
missionZero Safety vision which requires the businesses to follow their long-term objective to
develop an efficient and safe working environment. The main purpose of the business is to
empower the consumers and their future energy requirements. The business wants to expand the
scale of operations for which the business is undergoing expansion
Operational Plan- Scope and Purpose
The operational plan of the business aims to ensure that specific strategies are followed
so that the management is able to achieve the strategic goals and objectives of the business
(Ullah and Lai 2013). The management of AusNet services aims to achieve growth in the
operational structure and also increase the scales of operations of the business for which an
operational plan is to be developed.

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The operational plan of the business will be incorporating activities and roles which
every department has to play in order to contribute towards the strategic goals of the business
(Ward 2016). The operational plan will also be incorporating recruitment strategies and also
strategies to acquire physical resources in order to ensure that the human resources and physical
resources requirements of the business are met.
Operational Plan- Key Deliverables
Deliverable/Key
activity and
objectives
Details Purpose Key success criteria
Introducing new
software and
programs for the
Business
The new program and
software implementation
will help the business to
be more effective and
efficient in its operations
Provide assistance to
the business in order to
manage the business in
a better manner.
Better management
of operational
activities of the
business and also
efficient monitoring
of the same.

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Deliverable/Key
activity and
objectives
Details Purpose Key success criteria
Recruitment of
skilled labour
force
The business will be
requiring additional
human resources in
order to meet the
expansion plan of the
business.
To meet the
requirements of the
expansion plan in order
to continue to provide
quality services to the
customers (Blackburn,
Hart and Wainwright
2013).
Increase in the
number of skilled
workers of the
business in order to
successfully follow
and implements the
projects of the
business.
Acquiring
physical resources
for supporting
expansion plan of
the business
The physical resources
will be consists of
energy distribution
assets, gas pipelines,
other support assets
The purpose of the
physical resources is to
support the operational
plan of the business and
also provide the
efficiency in the
distribution of energy
Increase in the
physical assets of
the business
Consultation Strategy
The consultancy strategies of the business focus on securing approvals from the top-level
management regarding the operational plan and other requirements which are necessary for the

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purpose of bring about growth and development (Uhl and Gollenia 2016). The requirement of
the business to various resources and activities needs to be confirmed from the management
which is shown in the template which is shown below:
Plan/
Activity
Details Approval
From
Method of
Approval
Document
Required
Timing
Operational
Activities
and Roles of
Different
Departments
The different
operational
activities and
different roles
which are to be
performed by
different
departments
adhering to the
strategic
objectives of
the business in
order to
achieve the
goals and
vision of the
management of
AusNet
Operational
Manager
and Board
of
Directors
of the
company.
General
Meeting of
the Board of
directors with
the help of
presentations.
Documents of
Proposals,
presentation,
charts
referring to
different
responsibilities
of different
departments.
After
publishing
the annual
report of the
business.

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Services.
Requirement
of Human
Resources
The business
will be
requiring skill
labour in order
to ensure that
the activities of
the business
are carried out
diligently and
efficiently
(Griffin 2013).
Moreover, the
expansion plan
of the business
will be
requiring
adequate
labour supply
to meet the
plans and
strategies of
Human
Resource
Manager of
the
business
Departmental
Meetings
with Human
Resource
Manager
Recruitment
plans and
employee
vacancy report
of different
departments
Quarterly
Reports

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the business.
Requirement
of Physical
Resources
The physical
resources of
the business
comprise of
distribution
assets,
pipelines for
gas distribution
which will be
necessary for
bringing about
development in
business and
achieving the
strategic
objectives.
Operational
Manager
and Board
of
Directors
of the
company.
General
Meeting of
the Board of
directors with
the help of
presentations.
Asset
Management
register and
Blue prints of
the pipelines
which are to
be developed.
During the
first half of
the year.
Stakeholders Register
Stakeholder name Role/Dept. Communication needs and strategy
Geraldine Leslie HR Manager/HR Recruitment and selection of employees
considering the needs of business and the

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Stakeholder name Role/Dept. Communication needs and strategy
expansion plan. Communication can be
initiated with the help of e-mails, weekly
reports, vacancy requirements.
Adam Newman Chief Financial
Officer
Requirements of funds to initiate different
projects of the management. Communication
can be made with the help of presentation or
financial proposal for funds.
Mario Tieppo Technological Expert
and Manager
Requirement of updated software and
reporting programs for efficient control and
supervision program.
Resource Requirements
The operational plan which the management of AusNet Services want to incorporate in
the business which is to expand the scale of operations of the business keeping the quality of the
services provided intact and also maintain the long-term safety objectives of the business. In
order to achieve and successfully implement the operational plan the management will be
requiring both human resources and physical resources as well.
The HR manager of the company needs to recruit new employees who are skilled and
competent for the jobs in order to meet the human resources requirements of the business. In
addition to this, physical resources will also be a requirement for the business which will be both

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assets which will be used internally and externally. A template showing different resource
requirements of the business is shown below:
Resource type Details Key timelines Estimated cost
Human Resources Handling distribution
and handling and
maintenance of
energy distribution of
assets.
March 2018 to May
2018 and September
2018 to December
2018
$ 1,00,000
Physical Resources Different energy
distribution assets
and pipelines
March 2018 $ 10,00,000
Budget
Item Price/Unit Quantity Total
Recruitment of Employees $ 1,000 100 $ 1,00,000
Energy Distribution Assets $ 100000 3 $ 3,00,000
Pipeline for Gas Distribution $ 500000 1 $ 7,00,000
$ $
Sub-Total $ 11,00,000
Contingency - % $ 1,10,000

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Item Price/Unit Quantity Total
Total Budget $ 12,10,000
Budget Monitoring
The different expenses which are covered in the Budget of the business are to be
considered for the company and proper monitoring for the same is to be established. The targets
which are set in the budget are to be monitored by the operational manager of the business and
the same can be done by incorporating performance and progress report plan which will help the
operational manager to keep track of the goals and objectives of the business are being followed
or not under the operational plan of the business.
Key Performance Indicators
The key performance indicators of a business refer to the factors which represents the
overall success of a business (Mathrani, Mathrani and Viehland 2013). The key performance
indicator will help the management of the company to decide whether the plans of the business
are implemented and whether the business is moving in the right track towards achieving the
strategic objectives of the business. The key performance indicators of the business as per the
operational plan of the business is shown in template below:
KPI – Type Details Measure Monitoring
Efficiency Efficiency in the
business process and
management of the
activities of the
The measures which
can be adopted to
bring about efficiency
is by incorporating
The management of
the company can
monitor the activities
of the business by

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KPI – Type Details Measure Monitoring
company strong internal
control, recruiting
efficient employees
for the business and
better management
framework of the
business (Belov and
Kravets 2013).
incorporating
performance reports
in order to review the
performance of the
business.
Profitability The profitability of
the business depends
on the practices of the
management to
follow the operational
plan of the business.
The expansion of the
business and also
increase in the scale
of operations of the
business will
automatically
increase the profits
and revenue
generation of the
business.
The profits of the
business can be
monitored by
adopting practices
such budgeting and
performance
management.
Increase in the
Customer base
With the expansion
of the scale of
operations of the
More and more
customers can be
attracted by the
The services and
quality of the services
can be monitored by

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KPI – Type Details Measure Monitoring
business, there will
also be a better
coverage of area and
thereby customer
base of the business
will increase.
company by
providing the best
quality of services to
the customers
the management with
performance reports,
feedback analysis of
customers.
Contingency Plan
Risk Priority Contingency plan
Risk of Liquidity High The management needs to prepare a contingency
plan which will avoid liquidity crisis (Graham and
Kaye 2015). The management will be keeping
aside some funds as reserves which will be
tackling such a situation.
Safety risks High The management is very strict on maintaining
safety of the employees of the business and has
Safety mission incorporated in the corporate
structure of the business (Morecroft 2015).

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Implementation of Contingency Plans
The contingency plans are prepared by the business for providing for risks which the
business faces and as a source for a back up plan in the face of severe risks which are faced by
the management. The contingency plans are to be implemented by the operational manager on
the advises of the board of directors in case any risks which are mentioned in the plan surface.
The contingency plans are to be implemented considering the risks depending on the
departments which are most vulnerable to such risks.
Staffing Plan
The staff who are newly recruited by the company needs to be trained in order to ensure
that they can handle the system and requirement of different process in an efficient manner. The
coaching plan of the business will be sub-divided in three phases which are shown below in point
form:
 Training period: The training period will comprise of the basic training which the
employees need to undergo before joining respective teams and the individuals will also
be coached to handle assets and systems which the management uses in day to day
business.
 On Job Training: The employees in this stage will be provided an experience of on job
training process and also an experience what the employees will be facing in team.
 Team Training: This process will be providing the staffs with experience of team
atmosphere.

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Record Keeping
The record keeping process which will be keeping a track record about the performance
of the business since the implementation of operational plan of the business. The management
has incorporated performance management criteria according to which every department needs
to prepared and submit a performance report to the operational manager so that performance of
each department and individual wise performance cab be established.
Example for Record Keeping
An example can be provided for the service department as they have to maintain a record
of different and numbers of sales made during the month for which report is to be submitted to
the board of directors and operational manager. Another common example which is provided is
for the record keeping system is for accounting information. The accounting information were
earlier keep in Journal and Ledger books of accounts which needed to be prepared and
maintained by the accounting departments manually. The business in present times uses NetSuite
ERP system to record accounting information and mainly handle the recording for cash of the
business. The management has implemented the same in order to ensure that the management
can save time in real time decision making process.
Section 2
Task 1
Recruitment of Human Resources
The human resources of the business will be appointed by the human resource manager
of the business and the recruitment will be based on the vacancy requirements of the business.
The staffs will be firstly invited for job applications which will require a level of educational

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qualification. The potential candidates will then be selected with the help of interviews which
will be of different rounds and the same will be depending on the designation of the post which
is offered by the company (Anderson 2013).
The short-listed employees will be moving forward for the induction ceremony where the
norms and regulations of the organization will be explained to the candidates and also overview
of the company and its visions and mission will also be provided to the candidates (Rao 2014).
The candidates will also have a formal training before they are introduced to the teams.
Induction Ceremony Checklist
Activities Checklist
Introduction Session 
Explaining the Norms and regulations of the
business

Vision, Mission and Strategic Goals of the
Business

Facilities available to the employees including
perquisites, leaves, holidays, bonus plan,
promotion strategy

Feedback session 

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Task 2
Physical Resource Requirements
The physical resources which includes both assets and intellectual property should be
acquired by the business in order to follow the strategic objectives and goals of the business. The
intellectual properties which the business needs to acquire includes patents, copyrights and
software installations (Tukker 2015). The management can acquire such resources from other
business or third parties. The physical resources which are used by business are essential to
ensure that the operating process of the business remains uninterrupted.
The intellectual property of the business needs to be protected by the management of the
company by taking a legal status for the same in case some one tries to copy the intellectual
property of the business. The management also needs to ensure that the business does not copy
any other business’s intellectual property.
Comparison Between Suppliers
Suppliers Equipment Purchase price option
Frank and Company Drillers, energy equipment Tender price
ABC ltd Drillers, energy equipment, Open market price
Nick and Corporation Drillers, energy equipment, Contract Basis (Bulk
Purchases)

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Section 3
Scenario 1
The KPI which has not been achieved considered the case study which is provided in the
question is the overall efficiency in the operations of the business. The management can monitor
the KPI by incorporating effective supervision and control with induced focus on efficiency of
the departments and its process (Calabrò, Lonetti and Marchetti 2015). This can be done with the
help of CCTV Cameras and also performance reports. In order to achieve efficiency a framework
needs to be set which can guide the actions of the employees and promote efficiency in the work
process. Any incident of inefficiency needs to be investigated and corrective action on the basis
of the same is to be taken. In order to bring about efficiency in the operations senior managers
and board members can be consulted to bring about efficiency in the management of the
business.
One of the major risks which can affect the implementation process is the liquidity risks
which can severely affect the changes taking place in the business. This risk can be avoided with
the of predicting the same and taking necessary actions such as creation of a reserve specially for
such a situation so that lack of funds does not hampers the implementation process.
The employee needs to be retrained immediately so that the unproductiveness can be
rectified and with proper training and dedication from the employee part positive results can be
achieved.
The management needs to take strict action against the employee as the error has resulted
in leakage of information to third parties and therefore is considered to an offence. The
management can bring about improvements in reporting framework by introducing computerized

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system of reporting and the access to such information is to be only provided to the senior
accountants of the business.
Scenario 2
The company which is considered for this part is Webjet ltd which is engaged in
providing airline services to the customers. As per the annual report of the company for the year
2018, the revenue which is earned by the business has increased significantly as the same is
shown $ 751,783,000 for the year 2018 while the figure was around $ 199,219,000 in 2017
which shows tremendous improvements in the sales of the business (Webjetlimited.com. 2018).
This also suggest that the management is following aggressive sales strategy. However, the
profits of the business are lower than figures of 2017 which is due to the higher costs which is
incurred by the business during the year.
The areas of non-performance which can be identified are the higher costs which is not
effectively managed which reduces the profitability of the business. In addition to this, the
current liabilities are more than the current assets of the business which also suggest that the
business is facing problems regarding liquidity of the business.
Areas of Underperformance and Corrective Actions Taken
Area of under-
performance
Solutions/Actions
Maintaining the
Liquidity position of the
Business
The management of the company needs to reduce the cash
outflows of the business and improve the liquidity position which
can be done taking additional loans or equity capital in order to

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Area of under-
performance
Solutions/Actions
meet the current obligations.
Improvement of
Profitability
The annual report shows that even though the sales increases
significantly in 2018, the profits were still lower than 2017 results
which is due to the high cost of operations of the business which
the management of the company needs to reduce. This can be
done by following a proper supervision and control plan which
can identified productive and unproductive costs, necessary and
unnecessary costs and reduce the same.
Meeting the Expectations
of the Shareholders
The Earning per share of the business has fallen significantly as
compared to previous year and the management of the company
needs to meet the expectation of the business. The managements
to follow effective governance policies in order to improve the
shareholders of the business.

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Questionnaire
Requirement 1
The organization which is selected for this assessment is AusNet Services which is one of
the leading energy delivery businesses operating in Australia. An estimate suggest that the
company works with around $ 12 billion of electricity and gas distribution assets for both
domestic and foreign use.
Requirement 2
The two models which are followed in operational planning of the business are Basic
Strategy Planning Model and Issue Based Planning Model. Basic Strategy Planning Model
follows strategies which allows businesses to frame an operational plan which meets the basic
needs of the business and are formulated in businesses for a short period of time. In case of Issue
based planning model, plans are formulated specifically for a problem which the business faces
during the year.
There are various methods which can be used for the formulation of an operational plan.
One of the method is Brainstorming method which requires the management to come with
creative ideas which can be used by the management for formulation of plans which the business

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can used for the operational plan of the business. Another method is problem tree approach
which allows businesses to follow the problems which the business faces and formulate a plan
accordingly.
Requirement 3
In the case of AusNet Service ltd the development of an appropriate operational plan will
help the management to achieve its goals and objectives effectively. Operational plan in AusNet
Ltd will allow the management to set targets and develop a list of activities which are to be
conducted by different departments for the purpose of achieving the goals of the business
(Ausnetservices.com.au. 2018). An example can be given about the expansion plan which the
management has undertaken for the purpose of expanding the business further and penetrating
new markets. In such a situation operational plan is required for the purpose of ensuring that the
requirement of resources, funds and proper monitoring of the plans of the business are
undertaken.
Requirement 4
Budgeting is one of the most used tools in companies which allows the businesses to
formulate plans, forecast targets, monitor the targets and also identify variances in performance
of the business. The process of budgeting enables a business to forecast the revenues and
expenses for the business which the management will be incurring in future. The budgeting
process is also used for the purpose of comparison of financial information which are shown in
the budgets. In addition to this, budgeting process also helps in providing variance analysis
which are difference between actual and budgeted performance.

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Requirement 5
The management of a company can develop key performance indicators of the business
by developing a proper monitoring plan which will bring about efficiency in the workers of the
organization and also improve the skills and reduce the processing time of the business. The
processing time of the business will be considered to be key financial indicator of the business.
In addition to this, management also develop financial plan which can also create key
performance indicators for the business.
The KPI of AusNet services is the sustainability management practices of the business
for the purpose of generating revenues for the business.
Requirement 6
The operational plan of the business will be considering the regulatory framework of the
business. The operational plan will be considering policies, rules and regulations which are
developed by the business for the purpose of ensuring the objectives of the business are fulfilled.
The plans and policies which are formulated by the business needs to be verified by the board of
directors of the business.
Requirement 7
The policies of the AusNet Services allow the business to follow sustainable practices
which allows the business to fulfill the objectives of the business considering the requirements of
the society and management. The company follows missionZero Safety vision which requires the
businesses to follow their long-term objective to develop an efficient and safe working
environment.

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Reference
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strategy and owner-manager characteristics. Journal of small business and enterprise
development, 20(1), pp.8-27.

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