BSBSLS501

There is 3 task in which task 1 is report writing of around 1500 words. Task 2 is presentation in which there are 7 points which needs to be covered. Task 3 is question answer with around 80 words each questions and there is Appendix, Case study as well in last pages of question booklet.

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BSBPMG522

Undertake project work
Learner Guide

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Table of Contents

Unit of Competency ………………………………………………………………………………………………………….. 5

Application …………………………………………………………………………………………………………………………. 5

Performance Criteria ……………………………………………………………………………………………………………. 6

Foundation Skills …………………………………………………………………………………………………………………. 8

Assessment Requirements ……………………………………………………………………………………………………. 9

1. Define project …………………………………………………………………………………………………………….. 12

1.1 – Access project scope and other relevant documentation …………………………………………………… 13

Project management………………………………………………………………………………………………………….. 13

Accessing scope ………………………………………………………………………………………………………………… 14

Project management framework …………………………………………………………………………………………. 15

Activity 1A

………………………………………………………………………………………………………………………… 16

1.2 – Define project stakeholders ……………………………………………………………………………………………. 17

Who are stakeholders? ………………………………………………………………………………………………………. 17

Activity 1B

………………………………………………………………………………………………………………………… 19

1.3 – Seek clarification from delegating authority of issues related to project and project parameters

…………………………………………………………………………………………………………………………………………… 20

Seeking clarification of issues ……………………………………………………………………………………………… 20

Activity 1C

………………………………………………………………………………………………………………………… 22

1.4 – Identify limits of own responsibility and reporting requirements ………………………………………… 23

Identifying limits of own responsibility …………………………………………………………………………………. 23

Escalation …………………………………………………………………………………………………………………………. 24

Activity 1D

………………………………………………………………………………………………………………………… 25

1.5 – Clarify relationship of project to other projects and to the organisation’s objectives …………….. 26

Relationship between projects ……………………………………………………………………………………………. 26

Broader organisation strategies and goals ……………………………………………………………………………. 27

Relationship between

the project

and broader organisational strategies and goals …………………… 28

Activity 1E…………………………………………………………………………………………………………………………. 29

1.6 – Determine and access available resources to undertake project …………………………………………. 30

Resources …………………………………………………………………………………………………………………………. 30

Activity 1F

…………………………………………………………………………………………………………………………. 33

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2. Develop project plan ……………………………………………………………………………………………………. 34

2.1 – Develop project plan in line with the project parameters …………………………………………………… 35

Developing a project plan …………………………………………………………………………………………………… 35

What are project deliverables? ……………………………………………………………………………………………. 37

Estimating the duration and effort of your project ………………………………………………………………… 37

Sequence and dependencies of tasks …………………………………………………………………………………… 38

Legal obligations ……………………………………………………………………………………………………………….. 39

Activity 2A

………………………………………………………………………………………………………………………… 41

2.2 – Identify and access appropriate project management tools ……………………………………………….. 42

Project management tools ………………………………………………………………………………………………….. 42

Activity 2B

………………………………………………………………………………………………………………………… 46

2.3 – Formulate risk management plan for project, including Work Health and Safety (WHS) ………… 47

Effective risk management …………………………………………………………………………………………………. 47

Risk management plan ……………………………………………………………………………………………………….. 48

Activity 2C

………………………………………………………………………………………………………………………… 50

2.4 – Develop and approve project budget ………………………………………………………………………………. 51

What is a project budget? …………………………………………………………………………………………………… 51

Developing a project budget ……………………………………………………………………………………………….. 53

Top-down approach …………………………………………………………………………………………………………… 54

Bottom-up approach ………………………………………………………………………………………………………….. 54

Activity 2D

………………………………………………………………………………………………………………………… 56

2.5 – Consult team members and take their views into account in planning the project………………… 57

Consulting with team members …………………………………………………………………………………………… 57

Activity 2E…………………………………………………………………………………………………………………………. 59

2.6 – Finalise project plan and gain necessary approvals to commence project according to

documented plan ………………………………………………………………………………………………………………….. 60

Finalise project plan and gain approvals ……………………………………………………………………………….. 60

Project management plan approval …………………………………………………………………………………….. 61

Activity 2F

…………………………………………………………………………………………………………………………. 62

3. Administer and monitor project ……………………………………………………………………………………… 63

3.1 – Take action to ensure project team members are clear about their responsibilities and the

project requirements …………………………………………………………………………………………………………….. 64

Reporting lines ………………………………………………………………………………………………………………….. 64

Subordinates …………………………………………………………………………………………………………………….. 65

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Task descriptions ……………………………………………………………………………………………………………….. 66

Team culture values …………………………………………………………………………………………………………… 66

Activity 3A

………………………………………………………………………………………………………………………… 68

3.2 – Provide support for project team members, especially with regard to specific needs, to ensure

that the quality of the expected outcomes of the project and documented timelines are met ………. 69

Supporting team members …………………………………………………………………………………………………. 69

Identifying strengths and weaknesses and monitoring progress ……………………………………………… 69

Training needs …………………………………………………………………………………………………………………… 70

Resolving conflict ………………………………………………………………………………………………………………. 71

Activity 3B

………………………………………………………………………………………………………………………… 74

3.3 – Establish and maintain required recordkeeping systems throughout the project ………………….. 75

Recordkeeping systems ……………………………………………………………………………………………………… 75

Recordkeeping tasks ………………………………………………………………………………………………………….. 77

Maintaining, disposing and updating requirements ……………………………………………………………….. 78

Maintain and update records ……………………………………………………………………………………………… 78

Activity 3C

………………………………………………………………………………………………………………………… 80

3.4 – Implement and monitor plans for managing project finances, resources and quality …………….. 81

Managing project finances ………………………………………………………………………………………………….. 81

Cost-estimating methods ……………………………………………………………………………………………………. 83

Resource levelling ……………………………………………………………………………………………………………… 84

Managing project quality ……………………………………………………………………………………………………. 85

Activity 3D

………………………………………………………………………………………………………………………… 87

3.4 – Implement and monitor plans for managing project finances, resources and quality …………….. 88

Complete and forward project reports …………………………………………………………………………………. 88

Preparing and producing reports …………………………………………………………………………………………. 89

Writing reports ………………………………………………………………………………………………………………….. 91

Activity 3E…………………………………………………………………………………………………………………………. 92

3.6 – Undertake risk management as required to ensure project outcomes are met …………………….. 93

Risk management ………………………………………………………………………………………………………………. 93

Activity 3F

…………………………………………………………………………………………………………………………. 94

3.7 – Achieve project deliverables …………………………………………………………………………………………… 95

Achieving project deliverables …………………………………………………………………………………………….. 95

Activity 3G

………………………………………………………………………………………………………………………… 96

4. Finalise project ……………………………………………………………………………………………………………. 97

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4.1 – Complete financial recordkeeping associated with project and check for accuracy ……………….. 98

Project finalisation activities ……………………………………………………………………………………………….. 98

Legal requirements ……………………………………………………………………………………………………………. 98

Financial obligations ………………………………………………………………………………………………………….. 99

Activity 4A

………………………………………………………………………………………………………………………. 101

4.2 – Ensure transition of staff involved in project to new roles or reassignment to previous roles . 102

Change management ……………………………………………………………………………………………………….. 102

Staff transitioning…………………………………………………………………………………………………………….. 103

Activity 4B ………………………………………………………………………………………………………………………. 104

4.3 – Complete project documentation and obtain necessary sign-offs for concluding project …….. 105

Completing documentation ………………………………………………………………………………………………. 105

Activity 4C

………………………………………………………………………………………………………………………. 107

5. Review project ………………………………………………………………………………………………………….. 108

5.1 – Review project outcomes and processes against the project scope and plan ……………………… 109

Reviewing project outcomes……………………………………………………………………………………………… 109

Outcomes evaluation ……………………………………………………………………………………………………….. 110

Post-implementation review …………………………………………………………………………………………….. 111

Activity 5A

………………………………………………………………………………………………………………………. 112

5.2 – Involve team members in the project review ………………………………………………………………….. 113

Involving team members ………………………………………………………………………………………………….. 113

Measuring outcomes ……………………………………………………………………………………………………….. 114

Continuous improvement …………………………………………………………………………………………………. 115

Activity 5B

………………………………………………………………………………………………………………………. 116

5.3 – Document lessons learned from the project and report within the organisation ………………… 117

Lessons learned ……………………………………………………………………………………………………………….. 117

Input into future projects …………………………………………………………………………………………………. 118

Activity 5C

………………………………………………………………………………………………………………………. 119

Summative Assessments ………………………………………………………………………………………………………. 120

References …………………………………………………………………………………………………………………………. 121

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Unit of Competency

Application

This unit describes the skills and knowledge required to undertake a straightforward project or a section

of a larger project. It covers developing a project plan, administering and monitoring the project,

finalising the project and reviewing the project to identify lessons learned for application to future

projects.

This unit applies to individuals who play a significant role in ensuring a project meets timelines, quality

standards, budgetary limits and other requirements set for the

project.

The unit does not apply to specialist project managers. For specialist project managers, the other units

of competency in the project management field (BSBPMG) will be applicable.

No licensing, legislative or certification requirements apply to this unit at the time of publication.

Unit Sector

Management and Leadership – Project Management

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Performance Criteria

Element
Elements describe the
essential outcomes.

Performance Criteria
Performance criteria describe the performance needed to
demonstrate achievement of the element.

1. Define project 1.1 Access project scope and other relevant documentation

1.2 Define project stakeholders
1.3 Seek clarification from delegating authority of issues related

to project and project parameters
1.4 Identify limits of own responsibility and reporting

requirements
1.5 Clarify relationship of project to other projects and to the

organisation’s objectives
1.6 Determine and access available resources to undertake

project

2. Develop project plan 2.1 Develop project plan in line with the project parameters
2.2 Identify and access appropriate project management tools
2.3 Formulate risk management plan for project, including Work

Health and Safety (WHS)
2.4 Develop and approve project budget
2.5 Consult team members and take their views into account in

planning

the project

2.6 Finalise project plan and gain necessary approvals to

commence project according t

o documented

plan

3. Administer and
monitor project

3.1 Take action to ensure project team members are clear about
their responsibilities and the project requirements

3.2 Provide support for project team members, especially with
regard to specific needs, to ensure that the quality of the
expected outcomes of the project and documented time
lines are met

3.3 Establish and maintain required recordkeeping systems
throughout the project

3.4 Implement and monitor plans for managing project finances,
resources and quality

3.5 Complete and forward project reports as required to
stakeholders

3.6 Undertake risk management as required to ensure project
outcomes are met

3.7 Achieve project deliverables

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Element
Elements describe the
essential outcomes.
Performance Criteria
Performance criteria describe the performance needed to
demonstrate achievement of the element.

4. Finalise project 4.1 Complete financial recordkeeping associated with project

and check for accuracy
4.2 Ensure transition of staff involved in project to new roles or

reassignment to previous roles
4.3 Complete project documentation and obtain necessary sign-

offs for concluding project

5. Review project 5.1 Review project outcomes and processes against the project
scope and plan

5.2 Involve team members in the project review
5.3 Document lessons learned from the project and report

within

the organisation

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Foundation Skills

This section describes language, literacy, numeracy and employment skills incorporated in the
performance criteria that are required for competent performance.

Reading

 Organises, evaluates and critiques ideas and information from a range of complex texts

Writing

 Develops plans, reports and recommendations using vocabulary, structure and

conventions appropriate to text

 Establishes and maintains records according to organisational requirements

Numeracy

 Uses formal and some informal, oral and written mathematical language and

representation to prepare and communicate budgetary and financial information

Oral communication

 Participates in verbal discussions using clear language and appropriate features to

present or seek information

 Using listening and questioning skills to seek information and confirm understanding

Navigate the world of work

 Recognises and responds to organisational and legislative/regulatory requirements

Interact with others

 Selects and uses appropriate communication protocols and practices to ensure shared

understanding of project roles and expectations

 Uses collaborative techniques to engage stakeholders in consultations and

negotiations

Get the work done

 Develops and implements plans to manage projects that involve diverse stakeholders

with potentially competing demands

 Systematically gathers and analyses all relevant information and evaluates options to

make informed decisions

 Evaluates outcomes of decisions to identify opportunities for improvement

 Uses digital technologies and applications to access, organise and share information

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Assessment Requirements

Performance Evidence

Evidence of the ability to:

 Define the parameters of the

project including:

o project scope

o project stakeholders, including own responsibilities

o relationship of project to organisational objectives and other projects

o reporting requirements

o resource requirements

 Use project management tools to develop and implement a project plan including:

o deliverables

o work breakdown

o budget and allocation of resources

o timelines

o risk management

o recordkeeping and reporting

 Consult and communicate with relevant stakeholders to generate input and

engagement in planning, implementing and reviewing the project

 Provide support to team members to enable them to achieve deliverables and to

transition them as appropriate at completion of the project

 Finalise the project including documentation, sign-offs and reporting

 Review and document the project outcomes.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

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Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

 Give examples of project management tools and how they contribute to a project

 Outline types of documents and other sources of information commonly used in

defining the parameters of a project

 Explain processes for identifying and managing risk in a project

 Outline the organisation’s mission, goals, objectives and operations and how the project

relates to them

 Explain the organisation’s procedures and processes that are relevant to managing a

project including:

o lines of authority and approvals

o quality assurance

o human resources

o budgets and finance

o recordkeeping

o reporting

 Outline the legislative and regulatory context of the organisation in relation to project

work, including work health and safety (WHS) requirements.

Assessment Conditions

Assessment must be conducted in a safe environment where evidence gathered demonstrates

consistent performance of typical activities experienced in the management and leadership – project

management field of work and include access to:

 Relevant legislation, regulations, standards and codes

 Relevant workplace documentation and resources

 Case studies and, where possible, real situations

 Interaction with others.

Assessors must satisfy NVR/AQTF assessor requirements.

Links

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Companion volumes available from the IBSA website: http://www.ibsa.org.au/companion_volumes –

https://vetnet.education.gov.au/Pages/TrainingDocs.aspx?q=11ef6853-ceed-4ba7-9d87-4da407e23c10

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1. Define project

1.1. Access project scope and other relevant documentation

1.2. Define project stakeholders

1.3. Seek clarification from delegating authority of issues related to project and project parameters

1.4. Identify limits of own responsibility and reporting requirements

1.5. Clarify relationship of project to other projects and to the organisation’s objectives

1.6. Determine and access available resources to undertake project

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1.1 – Access project scope and other relevant documentation

By the end of this chapter the learner should be able to:

 Access documentation such as project scope, concept proposal, information on prior

projects, etc.

 Understand the purpose of project initiation documentation.

Project management

Project management was first introduced in the 1950s when large organisations with a number of

different departments and business activities realised that they needed structured and formal

management plans to co-ordinate their various projects. Projects vary in size and duration, but all go

through the same processes from the conception to the completion.

Before you can even think about making a general plan for a project, essential information is required to

determine the nature of the project. A project initiation document (PID) is the foundation of the project;

it sets out what the project is about, why it is being undertaken, and what will be delivered, by when, by

which methods, and by whom. It is the premise of the project that is agreed by the project manager and

the client/sponsor/steering committee.

Careful consideration and time should be taken when compiling the PID as it will save time and

resources later in the project. The PID should be sufficiently detailed and relevant to your project, not

just a generic box ticking exercise, to ensure that all relevant stakeholders understand what the project

is about.

The purpose of a project initiation document is to provide the following information:

 Why the project is being undertaken

 What will be delivered

 Who will be responsible for relevant aspects

 How the project will be delivered

 When the project will be delivered

 The risks, constraints and potential issues

 Estimated cost of

the project.

The PID would take shape from the business plan. A project management team is not usually the author

of the business plan as companies often bring in project managers to bring to life their goals in a more

cohesive and expert manner than they could manage to achieve themselves. The business plan may be

the first piece of information the project management team will look at.

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Accessing scope

You should find out where information on the scope of a project can be found in your

organisation.

This

is because a scope will be needed to guide you during the project. A scope statement is a written

document that sets out the limits of the project to which all that are involved agree, prior to the project

beginning.

The scope would include:

 Justification – why the project is necessary and valid

 Deliverables/objectives – what the project will produce

 Acceptance criteria – conditions to which the project and all those involved must

adhere for the completion of the project

 Project exclusions – what the project will not do or produce

 Constraints – any envisaged issues that may hinder the project

 Assumptions – how anomalies within the life of the project will be addressed.

Other relevant documentation

There are other types of documents and other sources of information commonly used in defining the

parameters of a project.

Project initiation documentation may include:

 Agreed project management framework

 Agreed project methodology

 Client or customer requirements

 Concept proposal

 Contract documentation

 Executive team instructions

 Feasibility study

 Life cycle approval gateways

 Output from prior project.

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Project management framework

The framework is the way in which a project is managed from start to finish, or the life cycle of the

project.

It is commonly agreed that the five stages in the life cycle of the project are:

 Initiation

 Planning and design

 Execution

 Monitoring and controlling

 Closing.

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Activity 1A

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1.2 – Define project stakeholders

By the end of this chapter the learner should be able to:

 Understand who a stakeholder is

 Identify stakeholders relevant to their project

Who are stakeholders?

A stakeholder is anyone who has a serious interest or concern in something (in this case, your project).

So, a stakeholder in your project is someone who stands to have their interests impacted by your

project.

Stakeholders are those whose interests are impacted by the project, and may include:

Associated organisations

Clients

Community

Internal and external parties

Sponsors

Suppliers

Team

members

 Users.

Associated organisations

The organisations that are tied into your project are stakeholders classified as external stakeholders.

Their interest in the project is usually that it is delivered on time and that financial goals are met. They

are not part of your organisation, but they will often have a

business.

So, for example, if your project creates a saleable product, the organisations that sell your product to

consumers (retailers) are stakeholders – if you don’t create the product for them, they can’t sell it and

their income will decrease.

Clients

These stakeholders have an interest in using your product or service. They also want to buy it at the

best price and quality available.

Community

The community are stakeholders as they may be affected directly by your project – for example,

becoming an employee of your organisation. They may also be indirectly affected by your project – for

example, increased traffic and noise due to deliveries or other business related to your project.

P a g e | 18

Internal and external parties

Internal stakeholders are those which exist within an organisation. They have a vested interest in the

project reaching its financial goals and deadlines.

Examples of internal stakeholders include managers, supervisors and workers in the organisation, as

they have an interest in the project doing well as it will likely increase their income (especially if there is

a profit-sharing arrangement.

External stakeholders are those that have an interest in the project – usually that it is delivered on time

and that financial goals are met. They are not part of your organisation, but they will often have a

business.
Sponsors

These are the people or companies that start a project and are typically said to ‘own’ it. The sponsor can

be an individual (manager/supervisor) or a group (team/partnership).

They have an active interest in the inception of a project and may require reports to update them on its

progress. For a project to proceed, you often need authorisation from sponsors.

Suppliers

These stakeholders have an interest in your project

being successful so they have a continued relationship

with your organisation – for example, selling them

materials and other services that help them complete

future projects.

Team members

These are the people responsible for carrying out a project to completion and are employed to do so.

Naturally, they have an interest in the completion and success of a project, as it will ensure their

continued employment and see an increased income for themselves.

Users

Like clients, users will be interested in using your product or service. They also want to buy it at the best

price and quality available. They will also be concerned with what you can offer them that other similar

services/products cannot.

You will need to identify stakeholders that relate to your project and rank them in terms of importance.

While you will need to consider all of their interests, you must prioritise those which will have the

greatest impact on the success of your project. Be aware that the importance of stakeholders can differ

between projects, so you will need to analyse each stakeholder with regards to the impact your project

will have on them.

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Activity 1B

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1.3 – Seek clarification from delegating authority of issues related to project
and project parameters

By the end of this chapter the learner should be able to:

 Identify delegated authorities

 Know who to approach about different issues relating to the project and its parameters

Seeking clarification of issues

Good decision making is paramount to a successful project and processes and procedures should be in

place to make rational and considered decisions promptly. The three constraints to any project are

time, scope and cost; any variations to the values of these constraints that were stipulated at the

beginning of the project will affect its overall success. Decisions made, therefore, need to be swift,

involving as few steps and authorities as possible, and about the project objectives.

Delegated authorities

Throughout the life of your project many decisions will have to be made about endless issues, some of

which may have been planned for and some may not. Before the project begins, it is important to

identify the delegated authorities within your project that will have decision-making capabilities on

different areas within the project so that every member of the team is clear on how and who will be

making critical decisions so that they can be made as quickly and effectively as possible.

Types of decisions include:

 Client liaison – these decisions may take the most time

to make because the client has the most personal

interest in the project. Problems that may be

encountered include:

o indecisiveness

o hidden agenda

o fear of making a decision

 Financial expenditure – this is possibly the easiest way of coming to a decision as the

constraints are simple; does it comply with budgetary requirements? All project

activities and resources will have been allocated a budget prior to the beginning of the

project, and these budgets will have been assigned to designated personnel to manage.

There may even be hierarchies of authorities within each budget area and if so it is

important to ensure a clear escalation path is in place

P a g e | 21

 Process decisions – project management is essentially about making the right decisions

throughout the life of the project. It is the project manager’s role to ensure decision-

making processes are in place and that all involved are aware of the processes. Process

decisions include risk analysis and management strategies so that potential issues that

will require a decision to be made have already been identified and pre-determined

solutions highlighted prior to the problem being encountered. For all decision-making

processes the following should already be identified:

o the information required to make the decision

o a time frame in which the decision must be made

o persons required to be involved in and/or make the decision

o other actions needed to ratify the decision

 Purchasing/procurement – procurement is about purchasing or acquiring the best

possible resources required for the project at the best possible price. Budgets will be

allocated for all procurement activities, and spending and the procurement team have

to source vendors and resources that meet:

o Project objectives

o Stakeholder expectations

o Budgetary requirements

o Specific supplier selection criteria

 Stakeholder engagement – if a decision has to be made that affects the stakeholders of

your project they may be asked to help in the decision process. Because the term

stakeholders refers to a wide-reaching and diverse group of people, only the relevant

types of stakeholders’ engagement may be required. For example, if a decision

regarding the location of a new supermarket in a specific town needed to be made, it

would be prudent to engage the views of the local community it would serve, likewise

if the project needed to invest in new technology or equipment, it would be wise to

obtain the views from the employees who would be operating it. Stakeholders do not

necessarily make the decisions, but they are instrumental to the decision-making

process.

Different decisions will require different delegated authorities according to their needs.

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Activity 1C

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1.4 – Identify limits of own responsibility and reporting requirements

By the end of this chapter the learner should be able to:

 Understand the limit of own role

 Know who to go to about different issues

 Understand escalation procedures

Identifying limits of own responsibility

Every project and organisation has a hierarchy structure with specific authorities bestowed upon each

rank or level of seniority. There will be a limit to your own responsibilities and times where you will

need to report an event or issue to someone in a higher position or delegated authority.

Delegated authority means that activities may:

 Be conducted routinely or as changing circumstances dictate

 Be done independently within broad guidance

 Involve consultation with other project members, teams and internal stakeholders

 Involve taking a lead role in a team where required

 Involve the selection, use and supervision of appropriate communication-management

methods and tools

 Take into account internal organisational change and external environmental change.

Responsibilities

Certain roles have associated responsibilities – these can vary in importance, but it is vital that these are

taken seriously and carried out.

Responsibilities may include:

 Ensuring safety in the workplace

 Working to deadlines

 Working to budget

 Managing a team

 Acting out contingencies

 Customer service

 Punctuality

P a g e | 24

 Workplace behaviour

 Decision making.

Assigned responsibilities are created so that all the required tasks in a project are covered – if you fail to

carry out your responsibilities, it can lead to the whole project falling apart, as others are relying on you.

You will need to use teamwork and communication skills to acquire and disseminate relevant project

information, as well as articulating specific responsibilities.

Escalation

Sometimes situations occur that are beyond the control and expertise of the delegated authority which

gives rise to escalating the issue to the next appropriate level. As with all other procedures within your

project governance plan, the escalation management procedure should be completely unambiguous so

as to avoid any disasters in what is quite possibly an already challenging situation.

Sometimes people panic and escalate matters before they have completed all actions that may resolve

the issue and negated the need to escalate.

The following might be considered as pre-escalation guidance:

 Have all channels to resolve the matter been considered and implemented but failed to

achieve a resolution?

 Is the matter something with which the delegated authority would be expected to deal

alone?

 Is the delegated authority qualified to resolve the issue or is specialist knowledge from

other authorities or stakeholders required?

 Can assistance be obtained directly, without having to go through escalation

procedures?

 Is escalation the only way to avoid delay which would seriously compromise project

objectives and/or deliverables?

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Activity 1D

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1.5 – Clarify relationship of project to other projects and to the organisation’s
objectives

By the end of this chapter the learner should be able to:

 Clarifying deliverables with the people working on those tasks

 Identify inter-project dependencies

 Identify organisation’s objectives

 Identify the link between the organisation’s objectives and the project deliverables.

Relationship between projects

Organisations can have multiple projects on the go. You can show the relationship between multiple

projects using inter-project dependencies in Microsoft Project.

‘When you link one project to another by creating dependencies between tasks in those projects, you

aren’t necessarily combining two projects into one. You are facilitating the management of two

separate projects.

For example, your corporation’s manufacturing environment may dictate that a process in one project

depends on the scheduling of a process step from another project, such as the attachment of wings for

an aeroplane being dependent upon a separate process in another facility that builds the wings.

Perhaps other tasks in the other projects are also beyond your control’.

Source: https://support.office.com/en-gb/article/Goal-Create-relationships-between-projects-

d1c54e93-7a35-41b4-bad2-d71ecefc7991

You will need to show that a step in your project relies on another project having completed a

deliverable. You can do this by setting up inter-project dependencies to record and track related

projects.

For more information on using Microsoft Office Project to link different projects together, please go to

the following link.

Source: https://support.office.com/en-gb/article/Create-and-manage-inter-project-dependencies-

2312f1a0-e7c1-4421-8015-10c95a931857?ui=en-US&rs=en-GB&ad=GB

If your organisation does not use Microsoft Office Project or a similar type of system where you can

track and monitor project progress, you could achieve clarification through researching the different

related projects and clarifying deliverables with the people working on those tasks. You might be able to

use a calendar or set reminders of targets and due dates which you are relying on.

https://support.office.com/en-gb/article/Goal-Create-relationships-between-projects-d1c54e93-7a35-41b4-bad2-d71ecefc7991

https://support.office.com/en-gb/article/Goal-Create-relationships-between-projects-d1c54e93-7a35-41b4-bad2-d71ecefc7991

https://support.office.com/en-gb/article/Create-and-manage-inter-project-dependencies-2312f1a0-e7c1-4421-8015-10c95a931857?ui=en-US&rs=en-GB&ad=GB

https://support.office.com/en-gb/article/Create-and-manage-inter-project-dependencies-2312f1a0-e7c1-4421-8015-10c95a931857?ui=en-US&rs=en-GB&ad=GB

P a g e | 27

Broader organisation strategies and goals

Project objectives should relate directly to the broader organisational strategies and goals as the project

is intended to enhance the business in these areas and this forms part of the justification of the project.

The project may not relate to all of the strategic goals, particularly if it is a small, niche project, but it

must relate to at least one.

Broader organisational strategies and goals may include:

 Market focus – the area of the market your organisation serves. It could be that your

organisation wants to increase its share in the market or expand into a different market

and the project is a vehicle to start or complete this expansion

 Organisational mission statement – the mission statement is a broad definition of the

purpose of the organisation and its over-riding vision and/or goals. It is designed to

unite and motivate stakeholders towards a common goal and usually sets out the

company’s values and beliefs. It contains:

o the target market of the organisation

o the geographical limits of the organisation

o how the organisation intends to survive, grow and prosper

o the organisation’s philosophy

o the desired image of the organisation

 Strategy plans – the strategic plan is the medium to long term and overall objectives of

an organisation, often correlating with the mission statement but an extended version.

That said, it is not a detailed or lengthy document, rather it serves as a framework for

more detailed business plans and projects. It gives direction and thought to the future

of the organisation that would be lost without it. Many businesses either fail or tread

water without strategic planning as they exist in the here and now without any thought

for future existence. Strategy plans should be reviewed regularly and modified to

reflect changes within the organisation. A strategy plan should:

o set out goals for the medium term (two to four years)

o be completed by the organisation’s director or owner

o contain strategic goals and not

focus on day to day issues

o be realistic, balanced and critical

o be regularly reviewed

o documented

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 Values and ethics – the values and ethics of an organisation underpin the way in which

it conducts its business, the expectations of the behaviour of employees and other

representatives, and its mission statement and strategic goals, in non-monetary terms.

It is often referred to as corporate social responsibility and includes consideration for:

o the environment

o the community

o diversity

o charity work

o Global issues.

Relationship between the project and broader organisational strategies and goals

The project should have been conceived as a result of the organisation’s strategic plan and mission

statement. It will also be related to the market focus of your organisation. The whole project will be

governed by the values and ethics of your organisation, for example, if your organisation is committed

to improving environmentally sustainable working practices a constraint placed on the project may be

that all resources must be locally sourced. In many ways, all of the broader organisational strategies are

intrinsically linked because they reflect the ideology and beliefs of the organisation. The project is an

extension of these goals thus all project activities must reflect all of them wherever possible.

It is important that the project team, if external to the organisation, must understand the broader

organisational strategies and goals in relation to the project and keep them at the forefront of their

minds throughout the life of the project. The project governance plan will ensure that this is monitored

carefully at all stages in the life cycle of

the project.

If the project stakeholders, including investors and sponsors, are new to the organisation, they should

also understand and agree to the organisational strategies, mission statement and values, and ethics.

Discrepancies at the beginning of the project over these issues will cause much greater problems later

on in the project. If stakeholders do not buy into the overall aims of the organisation, you should

seriously question their inclusion within the project.

If the project has been initiated to bring about a change in organisational strategies and goals, such as

to expand into a different market area or to introduce a new form of corporate social responsibility in a

venture to employ groups of disadvantaged people in a new store in the local area, for example, the

strategy plan and mission statement must be changed to reflect this in order to keep the project in line

with the organisational goals.

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Activity 1E

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1.6 – Determine and access available resources to undertake project

By the end of this chapter the learner should be able to:

 Identify resources needed to undertake the project

 Identify considerations for accessing each resource

 Obtain the resources needed.

Resources

The resources you need will vary from project to project. In the early stages of planning, you should

determine what resources are available to you and others so that you can plan the project around

them.

Resources may include:

Materials and supplies

 Technology

Financial resources

 Human resources.

Materials and supplies

Sometimes materials and supplies are needed for a project – for example, paper, ink cartridges, bricks,

wood, etc. What materials you need for a project will vary quite significantly depending on the type of

project you are involved with. If you are involved with a building project, bricks, cement, paint and

specialist tools might be needed, if your project involves creating a website you would need computer

equipment – for example, a PC, keyboard, mouse, laptop, tablet, etc.

To access this resource, you might need to speak to the procurement department.

Technology

Technology is most commonly used for communication within a project. You will need to find out from

stakeholders their communication requirements/capabilities. Try and choose the most widely available

communication technologies and ensure you use them within policies and procedures e.g. respect

privacy and confidentiality agreements.

Consider access to:

 Shared storage drives

 Video conferencing

 Telephone

 Email.

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Other more specific technology may also be needed, depending on the type of project –for example,

you might need specific software to create an animation, game or website.

To access this type of resource you might need to speak to the digital or I.T team.

Financial resources

Estimating the cost of resources is very important, as this will determine whether the project is viable in

the first place and will allow you to budget effectively for the resource expenditure.

When estimating the cost of the resources required for the project, you will need to take into
account:

 The cost of the resources

o Overall cost

o Agreed allowance for overrun

o Possible fluctuations in price

o Is the price likely to rise during or before the project?

o Is there room in the budget to allow for fluctuations in price?

 Resource availability

o Are you guaranteed to be able to access the required resources for the duration
of the project?

o What will happen if the availability of resources is affected?

o Is there an alternative?

o Can we secure all of the required resources before the project begins?

It is good practice to have a contingency plan in place to deal with resource problems, such as a price

rise or lack of availability; this allows you to prepare your project budgets accordingly and to prepare for

such problems.

To access this type of resource you might need to speak to the financial/accounting team.

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Human resources

All projects need a team of people, called the project team, to realise the project. The human resources

manager is responsible for organising the project team and attending to their welfare.

The project team needs to be:

 Recruited and acquired

 Trained where and when necessary and records

kept of courses undertaken and qualifications

obtained

 Organised into categories with designated roles

and responsibilities – an organisation chart is a

useful tool

 Motivated and empowered

 Kept updated with project news and information

 Performance managed including professional development plans

 Re-allocated to other project activities where

necessary

 Kept safe and well according to Work Health and Safety legislation

 Treated fairly in alignment with anti-discriminatory legislation.

You will need to know who the people working on the project are and their individual responsibilities.

To access this type of resource you might need to speak to the human resources department.

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Activity 1F

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2. Develop project plan

2.1. Develop project plan in line with the project parameters

2.2. Identify and access appropriate project management tools

2.3. Formulate risk management plan for project, including Work Health and Safety (WHS)

2.4. Develop and approve project budget

2.5. Consult team members and take their views into account in planning the project

2.6. Finalise project plan and gain necessary approvals to commence project according to
documented plan

P a g e | 35

2.1 – Develop project plan in line with the project parameters

By the end of this chapter the learner should be able to:

 Calculate baselines for scope, cost and schedule

 Plan for and set contingencies

 Estimate the effort and duration of the project

 Sequence tasks effectively.

Developing a project plan

A project plan is a living document that is expected to change throughout the project. It gives the

project manager and staff working on the project a general guide or direction to follow.

The project plan contains all the planning documents including:

 Baselines/performance measures – scope, cost, schedule

 Scope statement

 Roles and responsibilities of people involved

 Staffing plan – shows the time different people are

expected to work on the project

 Quality plan – shows the standards and metrics to be used.

Project parameters to consider may include:

 Project scope – a statement that sets out the limits of the

project to which all that are involved agree, before the project beginning

 Project stakeholders, including own responsibilities – who stakeholders are, own role

and responsibilities and the limit of those responsibilities

 Relationship of project to organisational objectives and other projects – for example,

dependencies between tasks and up inter-project dependencies

 Reporting requirements – who you report to and in what circumstances

 Resource requirements – for example, equipment, staff, etc. needed for the duration of

the project.

Scope baseline

Your scope baseline is your approved project scope. You can use it during scope change management to

determine and prevent the occurrence of scope creep.

Your scope baseline will encompass:

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 Your project scope statement

 Your WBS

 Your WBS dictionary.

Cost baseline

Your cost baseline is a component of your project management plan, and it is a time-phased budget.

You can use your cost baseline as a basis to measure, monitor and control the overall cost performance

of your project against.

Schedule baseline

Your schedule baseline is a specific version of your project schedule. This chapter will look into what a

schedule baseline is and the ways in which you can communicate this with your stakeholders.

Regardless of the size of your project, a project schedule is a key part of project management. It is used

in the planning stage of your project and uses estimation, educated guessing and prediction to reflect all

the work that is associated with delivering your project on time. Due to this uncertainty, your project

schedule should be updated constantly. Your project schedule is a tool that can be used to

communicate what work needs to be done within your project, which resources the work requires and

the timeframes in which it needs to be performed. It will also show you the sequence in which the

project work should be done as well as the work has already been done.

You will need to take a flexible approach and prepare for the inevitability of change. If you make your

plan flexible and include contingencies into it, you are going to be able to respond efficiently when you

need to change something.

A good project plan should answer the following questions:

 ‘What are the major deliverables?

 How will we get to those deliverables and the deadline?

 Who is on the project team and what role will they play in those deliverables?

 When will the team meet milestones, and when will other members of the team play a

role in contributing to or providing feedback on those deliverables?’

Source:

https://www.teamgantt.com/guide-to-project-management/how-to-plan-a-project/

Communication is extremely important in project management, and this goes for the planning phase of

the project too. You should work with everybody involved in the project to devise a project plan,

discussing and clarifying points in the plan with the different stakeholders.

Project milestones may include:

 Submission and approval of project

 Securing funding

 Hiring of personnel/selecting personnel to work on the project

https://www.teamgantt.com/guide-to-project-management/how-to-plan-a-project/

P a g e | 37

 Receiving equipment for project

 Release of formal communication such as status reports

 Final product/demonstration to the client.

What are project deliverables?

Project deliverables are the building blocks of your overall project and are the tangible, measurable and

specific results of the process of your project. Deliverables are the reason projects are created, and they

may contain a number of smaller deliverables. They are the products and/or services you give to

customers, clients and employees and they normally have a date for when they are due. A project

deliverable can be either an outcome that is to be achieved or an outcome that is to be provided.

Although they are closely related to objectives, deliverables and objectives are not the same things. To

achieve your project objectives, you will need to identify your project deliverables in order to help you.

Examples of project deliverables:

 Reports

 Documents

 Server upgrade

 Consumer goods

 Hardware

 Software

 Design documents

 User manuals

 Training program

 Systems

 Milestones.

In order to achieve these project deliverables, you should estimate the duration and effort, sequence

and dependencies of the project tasks.

Estimating the duration and effort of your project

You should estimate the duration and effort of your project in order to assign resources, determine how

long your project will take and estimate costs.

Effort is concerned with the work that needs to be done within the project. Duration is how long the

project is estimated to take. You can work out the duration estimate by taking the estimated effort and

dividing this by the estimated resources.

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For example, if you had to produce a 300-page report and you know you can roughly write 10 pages a

day, you can estimate that the duration of your project will be 30 days as 300 ÷ 10 = 30.

Sequence and dependencies of tasks

Sequence is concerned with the order of the tasks and activities within your project. Dependencies are

the relationships among the tasks within your project which determine the order in which the activities

need to be performed. They are the relationships of preceding tasks to succeeding tasks.

Once the tasks are created within your project, they need to be linked to show the relationships

between them. Linking your tasks will create the task dependencies. The relationships between the

project tasks drive the schedule for the project.

Sequence and dependencies may include:

 Deliverable milestones

 Preferred, logical or required order of task completion

 Relationship between tasks impacting on start and finish times and dates.

Dependencies can be mandatory, discretionary or external.

Mandatory dependency

A mandatory dependency is a project activity that must be carried out at a particular time within the

project’s life cycle. The nature of your project will dictate the order in which some activities should be

performed. Mandatory dependencies may be requirements of the project’s contract, physical

limitations or the laws that are in place.

Discretionary dependency

Discretionary dependencies are activities within your project that don’t necessarily have to be carried

out at a particular time, but they should be. These dependencies are usually based on the project

team’s knowledge as well as best practices. They outline how and in what order the project team would

like the activities to be done; they enable to team to optimise the flow of work.

As a project progresses and adjustments are needed, these dependencies are often reviewed and

altered if necessary.

External dependency

External dependencies are outside of the project and the team’s control; they are not part of the project

activities. These dependencies should still be reflected in a project schedule as they will impact on the

actual project activities.

Example

Imagine your project is to build an extension on a house; a bathroom. Before you start anything you will

be required to gain permission to build the extension; without this permission, your project cannot

begin. This would be an external dependency that should be accounted for within your schedule. To

paint the walls of the new bathroom, they will need to be built and plastered first. These are examples

of mandatory dependencies; they must be done in that particular order. When it comes to the final

P a g e | 39

touches, such as the floor; should the skirting go on before or after? This would be an example of a

discretionary dependency as it will depend on the knowledge and experience of the project team. One

project team would put them on before; another project team would put them on after.

Legal obligations

Trade Practices Act Competition and Consumer Act

The Trade Practices Act 1974 was superseded by the Competition and Consumer Act on January 1st,

2011 and is contained within Australian Consumer Law (ACL).

The Consumer Law website offers this overview:

“Since 1 January 2011, Australia has one national law for fair trading and consumer protection—the

Australian Consumer Law. This means that Australian consumers and businesses have the same rights

and obligations wherever they are in Australia”.

The Australian Consumer Law fulfils key reforms in the Council of Australian Government’s National

Partnership Agreement to Deliver a Seamless National Economy, and will help to reduce regulatory

complexity and duplication for businesses and consumers.

The ACL includes:

 A national unfair contract terms law covering standard form

consumer contracts;

 A national law guaranteeing consumer rights when buying

goods and services;

 A national product safety law and enforcement system;

 A national law for unsolicited consumer agreements

covering door-to-door sales and telephone sales;

 Simple national rules for lay-by agreements; and

 New penalties, enforcement powers and consumer redress.”

Source:

http://www.consumerlaw.gov.au/content/Content.aspx?doc=fact_sheets/FAQ.htm

Organisation for Economic Co-operation and Development (OECD) International Guidelines for
Consumer Protection in the Context of Electronic Commerce

These came into effect on December 9, 1999 and exist to ensure an equal level of protection for

consumers when purchasing online to in a store. It concerns business to consumer transactions and

helps remove uncertainties in the buying and selling processes.

They help ensure online consumer protection without needing barriers to trade to do so; they are

reflective of existing legal protection for standard commerce. They require emphasis on the need for co-

operation among governments, businesses and consumers.

The aims of the guidelines are as follows – to encourage:

 Fair business practices

http://www.consumerlaw.gov.au/content/Content.aspx?doc=fact_sheets/FAQ.htm

P a g e | 40

 Fair advertising practices

 Fair marketing practices

 Clear information on the identity of a business, what it sells and any terms of conditions

for transactions

 Transparency in the confirmation of transactions

 Secure payment methods

 Timely, fair and affordable dispute resolution/redress systems

 Privacy protection

 Education for businesses and consumers.

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Activity 2A

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2.2 – Identify and access appropriate project management tools

By the end of this chapter the learner should be able to:

 Identify project management tools

 Understand the use of Gantt charts and project management systems

 Access and use project management tools

Project management tools

Organisation is vital to managing projects, and a number of tools and technologies will be used to

maintain the smooth running of the project including GANTT charts and a project management

information system.

A Gantt chart is a visual representation of a project schedule that shows you what has to be done within

your project and when it needs to be done by. By laying out the project tasks and events in the order

they should be completed in, the Gantt chart helps to sequence those events and tasks. It will show the

project activities displayed against time and the time is broken down into increments; days, weeks or

months. To the left of the chart is the list of activities, and along the top there is a suitable time scale.

The activities are represented by bars, and the position and length of that bar reflects the start date,

duration and end date of each activity. This chart uses the horizontal lines to show the amount of work

that is done in certain periods of time in relation to the amount of time that was originally planned for

those periods.

A Gantt chart allows you to easily see:

 The start and end date of the whole project

 What the various activities are

 When each activity begins and ends

 How long each activity is scheduled to last

 Where activities overlap with other activities, and by how much.

The Gantt chart is the most common and easiest way to create dependencies and to show predecessor

and successor relationships.

W/C 1st W/C 8th W/C 15th W/C 22nd W/C 29th W/C 6th

Briefing

Research

Writing

Editing

Distribution

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Week 1 Week 2 Week 3 Week 4 Week 5

Task A

Task B

Task C

Task D

Task E

Week 1 Week 2 Week 3 Week 4 Week 5 Week 6

Task A

Task B

Task C

Task D

Task E

Week 1 Week 2 Week 3 Week 4 Week 5 Week 6

Prepare

Research

Write

Check

Send

Project Management Information Systems (PMIS)

You will probably use a project management information system to assist you in reporting on

performance and issues arising from governance arrangements. A project management information

system is a database that provides project managers with techniques and tools to collect, combine and

disseminate information through electronic and manual channels during the planning, execution and

closing stages of a project.

A PMIS is the vehicle through which senior and middle leaders of the project communicate with one

another. It can be as simple as a Microsoft Office file to a bespoke PMIS enterprise package. There are

also web-based PMISs.

During the planning stage, a PMIS is used to set all the frameworks for the project and defines the scope

baseline. It is used to set out the objectives and timelines of the project so that during the execution

stage all of the accomplishments of the project can be measured against the initial plan at different

stages and reports generated for stakeholders. It also enables project managers to manage materials,

keep a record of financial data, and keep a record for auditing and reporting purposes. At the close of

the project, the PMIS is used to review the project against the goals and objectives to check if all

objectives have been achieved and also to highlight areas for improvement in efficiency for future

projects. It can then be used to produce a final report on the project.

P a g e | 44

A project management information system:

 Is a means of communicating knowledge about the project, including:

o scope

o timeframes

o financial costs

o quality assurance
o human resources

o communications

o risk

o procurement

o governance

o change and issues management

o stakeholders

 Provides a systematic approach to the storage, searching and retrieval of information

relevant to the project so that information is easily accessible. A PMIS automatically

controls the following processes in relation to data:

o input

o storage

o processing

o output

o control/security

 May include:

o access authority levels

o complex computer-based systems

o data ownership considerations

o modified systems to cater for unique project requirements

o privacy considerations

o simple manual systems.

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A PMIS sets a standard protocol for storing information ensuring that it is gathered, collated and

recorded in a consistent manner throughout the life of the project. Procedures and formats for

documenting information will be dictated by the PMIS so that all who input information will do so to the

agreed standard. The consistency makes analysing and comparing information throughout different

stages of the project much more efficient and accurate.

A PMIS will usually be managed by a designated person or a team of designated people responsible for

different areas of the project. The information within the PMIS will be quality assurance checked by

them to ensure accuracy and relevance of information communicated to stakeholders.

A PMIS helps to keep information relevant and up to date. When reporting during the project, the

information that is communicated must be real-time and accurate at the time of reporting. A PMIS can

generate automatic updates of specific measures within the project. A simple manual system does not

have this facility and is open to human error.

Having access authority levels, data ownership and privacy considerations all help to preserve the
integrity of the information held on the PMIS.

The following governance report is taken from the website of Best Outcome, a project management

software manufacturer, and can be found at: http://www.bestoutcome.com/project-governance-

gateways.html

Examples of project management tools

Further examples of project management tools include:

 Deliverables – what the end product/outcome of the project is

 Work breakdown – a breakdown of the project into smaller, manageable sections to

identify the resources needed for each activity and to allocate roles and responsibilities

for each project team and member

 Budget and allocation of resources – overall budget and breakdown e.g. for different

departments, items

 Timelines – deadlines for different milestones

 Risk management – identification of the potential risks and plan for dealing with them

 Recordkeeping and reporting – for example, recording, storing and disposing of records

and confidentiality procedures.

http://www.bestoutcome.com/project-governance-gateways.html

http://www.bestoutcome.com/project-governance-gateways.html

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Activity 2B

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2.3 – Formulate risk management plan for project, including Work Health and
Safety (WHS)

By the end of this chapter the learner should be able to:

 Identify potential risks and workplace hazards

 Communicate

risks

 Analyse risks by assessing the likelihood and consequence

 Plan a response to risks

 Devise a risk register to monitor risks

Effective risk management

Risk management is an incredibly important aspect of project management and should be embedded

thoroughly into the project plan.

A hazard is the threat of potential injury, harm to a person, property, environment; it is also the threat

of damage to your business, be it profits, reputation or inadequate working practices. This provides the

opportunity for other organisations to step in and take a share of your business, which further damages

your organisation’s ability to bounce back.

Businesses that plan and document their risk management, and review this regularly for effective

management of risks, are better placed for successful operations. By staying alert and ahead of any

risks, they take the necessary preventative actions to divert negative impacts.

Even the most thoughtfully and carefully considered plans will face potential hazards and risks during

the life cycle of the project because nobody can predict the future. Dealing proactively with potential

risks and issues by minimising threats to the project and maximising opportunities that arise is the key

to risk management, and in some cases can enhance the success and prosperity of the project.

Effective risk management should include

the following:

 Make risk management part of the project plan – risk management should be

embedded in the plan and risks and issues expected, not hoped that they will not be

encountered. It should also be included in daily briefings, team meetings and reviews

throughout the life of the project

 Identify risks early in the project – accepting that your project is going to encounter

risks and issues allows you to identify potential risks in the planning stages. Use lessons

learned from previous similar projects, members of the project team, and external

experts to identify potential risks. Also consider possible risks in the documentation of

the project

P a g e | 48

 Communicate risks – every member of the team should be responsible for

communicating risks to the relevant authority as soon as they emerge. Risks can only

be dealt with if the project manager is aware of them. Risks should be included on the

agenda of all meetings with all stakeholders and serious threats should always be

communicated to the sponsor

 Consider threats and opportunities – some issues that

occur can be golden opportunities to improve the

project. Don’t always take risks to be negative

 Designate ownership of risks – once you have identified a

potential risk, assign accountability to a member of the

project team. This makes those members more aware of

the risks and subsequently more proactive in dealing

with them, especially if a lot of money is at stake

 Analyse and prioritise risks – you will not have time to

deal with each risk in the same manner; identify the most serious risks and deal with

these first and thoroughly

 Plan and implement a risk response – put in place procedures for dealing with risks and

issues. Responses include risk avoidance, risk minimisation, and risk acceptance

 Maintain a risk register/log – keeping a register allows you and your project team to

review and monitor risks and is useful when completing the lessons learned report. A

risk register should contain:

o a description of the risk

o cause and effect of the risk

o ownership of the risk

o risk response

o outcomes.

Risk management plan

A risk management plan is a document used to foresee risks and their impacts, as well as identify the

standard response to them.

Risk management plan may include:

 Audit trail for risk management over project life cycle

 Format of information

 Organisation systems and risk methods

 Manual and computerised systems

 Risk register

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 Summary outcome of risk processes.

The risk management plan will contain a risk assessment matrix, such as below:

RISK MATRIX

Likelihood

Rare Unlikely Possible Likely
Almost
certain

C
o

n
se

q
u

en
ce

Catastrophic M H H E E

Major M M H H E

Moderate L M M H H

Minor L L M M H

Negligible L L L M M

A risk matrix can help you to decide what action to take regarding a risk and how to prioritise your

actions regarding risks.

The following key indicates the level of risk:

 E = Extreme

 H = High

 M = Medium

 L = Low.

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Activity 2C

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2.4 – Develop and approve project budget

By the end of this chapter the learner should be able to:

 List the costs related to your project

 Understand the difference between direct costs and indirect costs

 Use top-down approach or bottom-up approach for estimating budget

What is a project budget?

A project budget is a key element of your project proposal and is an essential tool that will be used by

many different groups of people that are involved with your project.

For example:

 A project manager will use the project budget to determine whether the project is on
track

 To monitor particular project milestones, the project personnel will use the project
budget as a guideline

 The client will use your project budget to assess the overall success of the effort.

Ultimately, your project budget should be a detailed estimate of all the costs that are required to

complete your project tasks. It should be an amount that you can spend without having to report back

and ask for more money. Your project budget can help to manage expectation and can give the relevant

information needed to develop a cost/benefit analysis for your project. You can also use your project

budget throughout the life cycle of your project to check that it is on track financially.

Your budget will need to specify all of the costs of your project. There are two types of costs involved

with your project budget: indirect and direct. Although costs will vary depending on the nature of your

project, they are necessary to complete your project budget. One of the major components of your

project budget will be the necessary human resources and their salaries, wages or commissions. This

only involves the people that are directly engaged with your project.

Examples of direct costs include:

 Labour/human resources

 Raw materials

 Equipment

 Travel costs

 Training costs

 Software licences

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 Consultant fees.

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Examples of indirect costs include:

 Office expenses, such as:

o Equipment

o Rent

o Telephone

o Internet

o Insurance.

Developing a project budget

Your project budget should be linked to the key outcomes of your project. You should establish a set of

reference baselines. As your project progresses, you should monitor the project work then analyse your

findings. The end result should be forecasted and compares with your reference baselines. If the end

result is not satisfactory, you may need to make adjustments to the project and repeat this cycle at

suitable intervals.

How much detail should your project budget have? This will depend on the nature of the project itself

and the organisational policies that may be in place. However, it is recommended that you provide the

details of each individual supply item and its cost within your project budget. Remember that your

project budget is different from your project costs. You should start developing your project budget by

identifying your project costs.

A good estimate will clearly define:

 What your project will accomplish

 The assumptions that you have made

 How long your estimate is valid for

 How much the project will cost based on current information.

When identifying your project costs, you need to be realistic. It is sometimes helpful to look at past

projects that you have been involved with to give you an idea of how to identify the project costs. There

are many techniques that can be used to identify your project costs.

For example:

 Ballpark estimation

 Budget estimation

 Definitive estimation

 Three-point estimation

 Historical project estimation

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 Resource cost rates estimation software.

Assessing risks

The assessment of potential risks is very important for your budget to be successful.

Risk items include unknowns, such as:

 Team experience

 Obscurity of technology

 Location of development

teams

 Planning time shortages.

There are two main approaches that are used when developing a project budget:

 The top-down approach

 The bottom-up approach.

Top-down approach

The top-down approach to project budgeting often starts with senior management deciding on how

much an overall project should cost. Then, this amount needs to be divided between each task involved

with the project. This process should be more than just guessing; you need to give details on how you

will complete each task within the allocated budget. This approach allows you to use any previous

experience to judge whether the project budget looks realistic.

An advantage of this approach is that it focuses on completing your project within the allocated budget.

This can reduce the chance of any wasteful practices, leading to a more efficient way of working.

However, a disadvantage is that it relies on previous experience to judge the budget; assuming that the

person that is developing the budget has the required knowledge to make reasonable estimates.

Bottom-up approach

The bottom-up approach looks at the cost of the lowest-level project tasks. From this, you will have to

work upwards to estimate the total cost of your project. You should start by identifying the tasks that

are involved in your project and then calculate the direct and indirect costs for each task. From this, you

will be able to estimate the total cost of your project.

An advantage of this approach is that it is an accurate method of developing a project budget. Also, this

approach can be good for team morale as it usually involves everyone. A disadvantage of this approach

is the difficulty of creating the list of tasks involved in your project. If any task is forgotten about and

missed out; this will throw your budget out.

Using project management software

It is important to choose the right project management software to use.

Although it will not eliminate any cost overruns, it can help you to manage

them. The correct project management software can show you where your

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project stands at any point in its life cycle and can highlight exactly how much money has been spent.

Contingencies

There are many common strategies for developing your project budget, for example:

 You should plan for the worst

 Points within your project where changes are likely to occur need to be identified

 Once identified, these areas should be closely watched

 Develop a contingency budget – just in case things go a bit wild.

The expenses that are involved in your project may seem straight forward. However, there are many

unknowns that can affect your project, how and when it is carried out and how it is completed. A

contingency reserve should be added to your project to cover any possible risks. This fund can then be

used for the occurrence of any unexpected events during your project life cycle. You should adjust your

contingency level to match the risk level that you have identified for your overall project.

Contingencies that may relate to your project budget can include:

 Project’s unknowns or risks contingency

 Cost estimating contingency

 Design contingency

 Bid contingency

 Construction contingency

 Cost escalation contingencies.

Although your budget should be based on the best knowledge that is available, you should remember

that it is only an estimate.

Who should approve your project budget? You should know the answer to this before you start

developing your budget. It could be the project manager, the head of finance or the project manager’s

supervisor.

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Activity 2D

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2.5 – Consult team members and take their views into account in planning the
project

By the end of this chapter the learner should be able to:

 Communicate with team members either through verbal communication or written

communication

 Use a variety of different methods appropriate to task e.g. email, meeting, phone call

Consulting with team members

Frequent and appropriate communication with all involved is essential to the smooth running of the

project.

You may need to consult with specific members of the project team to determine realistic deliverables

because you may not have the expertise and/or knowledge to understand what sub-deliverables are

required for each main deliverable. By consulting in the planning stages, you ensure that all necessary

deliverables are identified before work begins. You may also wish to consult lessons learned reports and

other documentation from previous similar projects about the deliverables employed and how effective

they were on the success of the project.

Bear in mind when consulting with stakeholders about their expected deliverables that their

expectations are relevant to the project’s objectives and not just beneficial to them.

A communications strategy may include:

 List of which team member is responsible for particular communication activities

 Methods and protocols for communicating information which may include:

o verbal communication:

 on site in person

 at meetings

 informal briefings

 brainstorming sessions

 over the telephone/internet/video conferencing

 press conferences

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o written communication:

 email

 letters

 update reports

 audits

 inventories

 newsletters

 Which stakeholders need what information and their responsibilities within the

communication flow

 When information is communicated – the frequency of regular forms of communication

throughout the life of the project

 How sensitive and confidential information is handled taking into account the Privacy

Act 1988

 Potential constraints affecting the flow of communication

 The resources allocated to communication

 Standard forms or templates for specific forms of communication

 A procedure for channels of communication hierarchy

 Processes for resolving any communication-based conflicts or issues

 Communications networks and their uses.

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Activity 2E

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2.6 – Finalise project plan and gain necessary approvals to commence project
according to documented plan

By the end of this chapter the learner should be able to:

 Negotiate with stakeholders

 Complete the project plan

 Ask appropriate people to check and sign approval of individual documents and

elements of the plan

Finalise project plan and gain approvals

Before the project can begin, the project plan needs to be approved and signed off by the sponsor and

other key stakeholders. The approval of the project plan means that the objectives and deliverables

have been reviewed and agreed to. The signing off of the project plan indicates the completion of the

planning and design stage and can be regarded as a project milestone. It also represents a commitment

from the sponsor and key stakeholders to continue with the project under the agreed constraints.

Having consulted the sponsor and key stakeholders about their requirements for the project objectives

and deliverables during the initiation stage the project plan should reflect their expectations and the

approval should be a simple process.

Gaining approval of the project plan from project authorities may mean you have to:

 Review project plan document and ensure accuracy and completion

 Disseminate the project plan to the relevant stakeholders in an agreed

format and to an agreed timescale

 Arrange a meeting with the relevant stakeholders to review and discuss

the proposed project plan. Minute the meeting and use

the minutes to amend the project plan if and where

necessary

 Amend the project plan according to the requirements of the relevant stakeholders and

re-submit the plan to an agreed timescale, arranging another meeting if necessary to

review and discuss the amendments

 Request a decision from the relevant stakeholders as to whether or not the plan has

been approved in order for the project to continue. If the plan has not been approved,

the reasons should be documented by the relevant stakeholder

 Obtain signatures from all relevant stakeholders on a separate project plan approval

document which should be an appendix to the project plan.

Good negotiators

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Negotiating is a skill that can take a long time to perfect with the ideal outcome being a win-win

solution for both parties. It is a process that can take a long time.

Best practice for negotiations:

 Identify the factors upon which each stakeholder is insistent

 Identify areas for negotiation on all sides

 Identify with whom the balance of power lies regarding bargaining strength between

the stakeholders and the project team – which has more evidence for their case than

others?

 Be prepared for all eventualities when you enter negotiations with stakeholders, so you

are not caught off guard

 Always use reliable facts and figures that are accurate and cannot be questioned

 Prepare an agenda before the meeting and ensure all members of your team are

briefed and provided with sufficient information so as not to compromise the

negotiations

 Start with a wide-ranging proposal as opposed to small details to leave plenty of room

for manoeuvre

 Do not continue the meeting if communications or negotiations are breaking down –

call a recess or rearrange the meeting for another time

 Be fair and reasonable

 Ensure all negotiations are documented and recorded clearly, and wherever possible

signed by all parties, so that you have an audit trail and an accurate record of the

agreement should it be disputed when the project plan is re-submitted.

Project management plan approval

The approval document should be signed and dated by all relevant stakeholders with their name, title

and role clearly documented.

Relevant stakeholders may include:

 Project manager

 Project sponsor

 Investors

 Business steward.

The approval document will be simple and contain just a paragraph that states all the signatories have

reviewed the project plan and agree to the approaches and schedule it sets out. It may also have a

clause that states how any changes to the plan should be approved and documented.

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Activity 2F

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3. Administer and monitor project

3.1. Take action to ensure project team members are clear about their responsibilities and the
project requirements

3.2. Provide support for project team members, especially with regard to specific needs, to ensure
that the quality of the expected outcomes of the project and documented time lines are met

3.3. Establish and maintain required recordkeeping systems throughout the project

3.4. Implement and monitor plans for managing project finances, resources and quality

3.5. Complete and forward project reports as required to stakeholders

3.6. Undertake risk management as required to ensure project outcomes are met

3.7. Achieve project deliverables

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3.1 – Take action to ensure project team members are clear about their
responsibilities and the project requirements

By the end of this chapter the learner should be able to:

 Allocate tasks to team members

 Communicate tasks and responsibilities to team members

 Communicate project needs

Reporting lines

When assigning roles and responsibilities for reporting lines you will need to liaise with the

communications manager as the communications team will be instrumental in preparing and delivering

reports to relevant stakeholders. The communications plan should be determined in close collaboration

with project governance policies and procedures.

Project reports

During the life of the project there will be a number of reports to prepare, produce and release for

different aspects of the project and for different stakeholders which must be taken into account when

negotiating roles and responsibilities for reporting lines.

Reporting lines need to be established for the following project reports:

 Project status reports – this report details the progress of the project including:

o current status

o next steps necessary to move the project along

o any obstacles or problems that are preventing progress

o key metrics of the project

 Risk register – self-explanatory, the risk

register is an ongoing document that reports

the following:

o potential risks to the life or progress of

the project

o the extent of the potential negative

impact on the project caused by the

risks

o contingency plans to deal with the risks

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 Issue log:

o a document that reports and records risks that have been realised and

unexpected events that have occurred and interrupted the project

o it documents the way in which the incident has been dealt and the impact it has

had on the project

o the accuracy of these reports is important for auditing purposes

 Executive summary – a detailed report that provides in-depth information about the

status of the whole project and the impact it is envisaged to have on the bottom line of

the organisation

 Everything else report – these reports are specific to each project and can be about

anything and everything associated with it.

Subordinates

Subordinates are the people that make up the project team; the employees, the contractors, the

subcontractors, and possibly volunteers, and are the people who get the job done. They may consist of

general assistants, team leaders, middle managers and departmental managers, depending on the size

of your organisation. They may be outsourced third parties. It is important that each member of the

project team has their role and responsibilities made clear to them at the start of the project.

Organisation chart

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An organisational chart is a diagram that depicts the structure of an organisation regarding authority

and hierarchy. It also demonstrates the relationships between each member of the organisation. They

are usually pyramid shape with the director at the top followed by senior management, middle

management and employees at the bottom. People are usually denoted by a rectangle; the bigger the

rectangle, the more authority that person has. An organisational chart can be used to map out roles and

responsibilities of each member of the project team and each department if your project is on a large

scale. It might be that you have more than one organisational chart for different functions within the

project.

This organisational chart is taken from the website of the University of Saud:

http://pharmacy.ksu.edu.sa/en/pages/departments/quality/?page_id=16

Work breakdown structure (WBS)

A WBS is a way of breaking down the project into smaller, manageable sections in order to identify the

resources needed for each activity and to allocate roles and responsibilities for each project team and

member. Making it a visible diagram, like the organisational chart above, ensures that subordinates

know their roles and responsibilities. It also enables you to identify potential risks in each section and

put in place contingency plans should the risk be realised.

Task descriptions

Within a project task descriptions could be written for a variety of purposes including:

 Specific project activities

 Evaluations and reporting on project activities and progress

 Job descriptions for individuals that determine their roles and responsibilities including

all stakeholders

 Task descriptions for use on requests for quotation, proposal, or tender in order to

furnish potential suppliers with sufficient information about the brief.

Deciding who should write each task description should take into account their knowledge on the

subject and their authority within the organisation. For example, a procurement officer would not write

a task description for the communications team.

Team culture values

Determining and promoting team culture values is an important role within a

project team to ensure that each member of the team is working towards

common goals with the same positive work ethic. The team culture values can

also be described as a code of conduct or business ethics which determines the

expectations of acceptable behaviour and underpins the core values of the

organisation.

http://pharmacy.ksu.edu.sa/en/pages/departments/quality/?page_id=16

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Business ethics are the moral principles that govern an organisation to ensure corporate responsibility,

quality assurance and customer satisfaction. When combined, a code of conduct and business ethics

defines the morality of an organisation and sets the standard for the behaviour and work ethic of its

members. It should incorporate that all members of the organisation will be given equal opportunities

and treated equally and fairly regardless of any differences.

A code of conduct and business ethics policy will normally be a written document that can be easily

accessed by all members of the organisation. It should form part of the induction process for all new

employees and be used for existing employees for refresher training at regular intervals.

A code of conduct and business ethics policy must be enforced consistently if it is to have any effect or if

it is going to be valued by those it governs. If employees that breach the code in any way are not dealt

with accordingly, other employees will have no faith in the system and may lead to increased unethical

behaviour.

Determining team culture values

When deciding upon what the team culture values will be, the team must be consulted and be an

integral part of establishing and agreeing on the values. If the team culture values are not their own,

based on their experiences in the workplace, and do not reflect what they believe to be important, they

will have a negative and demotivating impact on the workforce. The person tasked with establishing

and promoting the values should be someone in authority but in touch with the project team at ground

level whom the team respects and should embody all of the core values important to the team.

Team culture values will vary according to each organisation, but general values include:

 Accountability and responsibility for own actions

 Integrity

 Respect

 Maintaining healthy work-life balance

 Collaboration and empowerment

 Quality

 Community, embracing diversity, equal

opportunities for all

 Innovation, continuous improvement, efficiency

 Team is valued by management.

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Activity 3A

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3.2 – Provide support for project team members, especially with regard to
specific needs, to ensure that the quality of the expected outcomes of the
project and documented timelines are met

By the end of this chapter the learner should be able to:

 Identify strengths and weaknesses in team member’s skills and knowledge

 Plan training needs

 Resolve issues and conflict

Supporting team members

You will need to provide individualised support for project team members to ensure high-quality

outcomes and timelines are met.

Support may include:

 Identifying strengths and weaknesses of individual team

members/monitoring progress

 Providing additional training

 Resolving conflict.

Identifying strengths and weaknesses and monitoring progress

Performance reviews and self-assessments are a good way of identifying strengths and weaknesses of

individuals.

Self-assessment is often used as part of performance feedback, including 360 – this is a formal review of

performance and can involve both a self-assessment and a manager’s or trainer’s opinion on your

performance.

To a certain extent, a discussion of the results of a self-assessment with trainer or assessor can be used

to check whether they agree with you, but it can also help to guide you on how to improve or make the

most of your skills and knowledge. Constructive feedback both positive and negative is given to the

employee/learner to motivate them and improve their work. Some organisations have a rating system

on a scale e.g. 1-10 and a list of responsibilities, traits, and goals and then score the employee on those.

One way to tackle performance related issues is to encourage team members to participate and feel like

a group working together to reach their end goal. You should try to encourage team members to

identify ways to improve.

You can do this by providing opportunities for discussion and feedback through:

 Meetings – involve a group of people who come together to discuss their progress,

solve issues and present information.

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 One-to-one sessions – involve two people conversing about elements of work one in

a more senior role than the other giving guidance and advice.

 Drop-in sessions – involve one or more people who are seeking support, advice, a

quick word with a manager (there is usually a set time for drop-in sessions e.g. a

manager will set 30 minutes aside every Tuesday to answer questions and discuss

issues).

 Brainstorming sessions – is a creative process involving a group of people who come

together to share their ideas and solutions to problems

 Suggestion boxes – can provide an opportunity for staff to anonymously confront

problems or issues.

Training needs

To plan training, you should first develop an evaluation of your team members’ strengths and

weaknesses. You should ascertain any gaps in their skills or knowledge that could be rectified by

additional training.

You should identify, plan and implement ongoing development and training of project team members

so that you can support personnel and project performance. Identifying areas that personnel need

additional help with and having ongoing support in place will help improve project performance.

Types of training include:

Action learning sets

 Coaching and mentoring

Performance feedback

 Team building

 On job training

 External training

 Self-directed learning.

You may be able to give the individual(s) concerned a choice of development opportunities so that they

can decide which best suits them. Alternatively, it may be necessary for you to choose the best method

to suit the time and budget of the organisation.

Action learning sets

An action learning set is a small group of peers who come together with a learning facilitator to discuss

work issues. The group will meet a few times a year and get a chance to report on various issues they

are dealing with. After reporting the other members will get a chance to ask questions to open-up the

problem or situation and help to analyse it. Each member then gets the chance to discuss what they

have learned from the session. The members take what they have learned and apply it to the

workplace.

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Coaching and mentoring

Coaching and mentoring can overlap. Coaching involves creating an optimum environment for learners

to perform to the best of their abilities. It allows the learner to dissect a situation and discover their

own solutions. A coach does not necessarily have to be in a similar role to that of the learner, though

may well be. Mentoring involves regular contact with a person in a similar or higher position. The

learner will be able to draw on the experience of the mentor to help them handle issues that arise in the

workplace.

Performance feedback

Performance feedback has a more formal approach. It involves a regular ongoing assessment of an

employee’s performance by a manager or supervisor. Constructive feedback both positive and negative

is given to the employee to motivate them and improve their work. Some organisations have a rating

system on a scale e.g. 1-10 and a list of responsibilities, traits, and goals and then score the employee

on those.

Team building and group activities

Team building and group activities aim to help team members develop a skill e.g. problem-solving skills,

or get to know each other, become more motivated or adaptable. Team building activities can be

performed internally or externally and can be as simple small group exercises held in a conference room

or more adventurous outdoor pursuits. To be most effective they should be held regularly e.g.

weekly/monthly.

Training

Training provides an employee with the knowledge and skills to do the job. Training can occur at

different stages in employment, for example, induction training occurs when people start a job or are

new to a role, refresher courses can be provided for those that need a boost, and formal qualifications

can be obtained for those who are aiming for promotion.

There are various ways to train people for example:

 On-the-job training – involves learning the aspects of a job through doing the tasks
related to that job.

 External training – this involves an external body and can be formal with an assessment
leading to a qualification.

 Self-directed learning – this involves a learner studying in their own time.

Resolving conflict

A good project manager will prevent conflicts by using effective communication strategies throughout

the life of the project. The meeting schedules set out in the project plan should be adhered to, and if

more communication is needed, should be amended. Project managers should encourage a two-way

communications process between them and their project team to raise any issues or potential sources

of conflict before they arise. This is why the initiation, planning, and monitoring and controlling stages

are so crucial to the smooth running of the project. Involving the project team and stakeholders in

relevant consultation processes such as open forums, questionnaires, and meetings allows them to air

their concerns and for you to address potential conflicts before they arise. It also makes the project

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team feel valued and take ownership of the project which results in a more cohesive and productive

work force.

Constant assessment allows sources of potential conflict to be addressed and resolved before it

becomes a huge issue that may delay the project, or worse, compromise completion.

Where conflict is unavoidable, it must be addressed swiftly and thoroughly to ensure the issues are

resolved and for the project to continue. There are a number of steps in conflict resolution models

which are generally accepted as the norm and adopted by organisations as their resolution of conflict

procedures. The number of steps you have to take to resolve the disagreement will depend upon the

needs and expectations of the disgruntled party. Some conflicts are easier to resolve than others;

submissive personalities will usually be easier to please than dominant individuals.

Steps in a conflict resolution model include:

 Negotiation – you have already covered negotiation in a previous chapter, and this is

the lowest level of conflict resolution. It is a voluntary process in which proposals are

passed back and forth from each party until an agreement is reached. Both parties can

negotiate for themselves or can involve a third party to perform the negotiations for

them, but ultimately each party makes their own decisions in the process. Negotiations

can be:

o quick and inexpensive

o informal and unstructured

o private and confidential

o resolved informally

 Mediation – if negotiations fail, mediation is the next step. Again, this is a voluntary

process that all parties agree to enter to try and resolve the dispute informally without

having to involve legal or trade union action. A third, impartial party is invited to act as

the mediator and chair the informal meeting between the parties involved. While the

meeting is informal it does run to a set format; the mediator will explain the situation

at the beginning of the meeting and lay down the ground rules to which party must

abide, such as “do not talk when another party is talking”. Each party is given the

opportunity to give their version of the dispute and the reasons for the conflict. After

each party has listened to the other, the idea is that they resolve the dispute together

by suggestions solutions to the problem. When mediation works, many creative and

innovative solutions are found that actually strengthen the relationship between the

parties involved. Mediation can be performed by a member of the project team, the

project management team or if necessary, a lawyer. All mediation meetings must

record minutes, the agreed solutions documented and signed by all parties involved.

Mediation:

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o promotes communication and cooperation

o allows disputes to be proactively resolved by the parties involved

o can eliminate hostility and preserve relationships

o avoids time and expense of going through legal proceedings

o may create an even more acceptable and innovative solution than that originally
proposed

o is voluntary, informal and flexible

 Arbitration – if negotiation and mediation fail to secure resolution, the matter will

require a more formal resolution. Arbitration is the process of submitting the case to an

impartial third party, the arbitrator, to hear both sides of the dispute in order for a

decision to be made. (It is an out of court method of resolving legal and trade union

disputes.) Arbitration:

o can be voluntary

o is private

o is conducted as a hearing in which all parties present evidence to the arbitrator

o is usually quicker and less expensive than going to court

o allows the parties involved to select an arbitrator with expert knowledge of their
area of dispute

o results in a decision made by the arbitrator that is final and can be enforced in
court

 Litigation – if the dispute becomes so serious and all steps taken to resolve the dispute

have failed, you may have to go to court. A trial will be held, during which both parties

and their respective lawyers will present evidence to a judge who will then make a

decision based upon applicable legislation. Litigation is:

o involuntary – all parties must present evidence

o a formal and structured process

o public – all court proceedings and records are open to

the public

o based upon relevant legislation

o final and binding

o expensive and can be a lengthy process

o open to appeal.

The conflict should not usually become so serious that arbitration and litigation are necessary, as most

conflict can be resolved informally and internally with negotiation and mediation.

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Activity 3B

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3.3 – Establish and maintain required recordkeeping systems throughout the
project

By the end of this chapter the learner should be able to:

 Analyse core business activities

 Create a list of documents you will need a record for

 Recognise system requirements

 Complete record keeping tasks

Maintain and update records

Recordkeeping systems

A recording system can be either manual or electronic, but should be simple, easy to understand and

use. Managing and monitoring business or records systems involves determining requirements or

modifications. This can be achieved by researching core business, supporting activities, resources and

business and social context. Research can be done through observing and consultation with head office,

local management, principals and staff.

There are many reasons why records are produced and updated during a project. Not only is it

imperative for the general communication between team members, clients, and stakeholders, but also

for administrative duties, planning and resource obtainment.

Records need to be maintained to ensure the most recent information is available to everyone working

on a project.

Also, records need to be maintained to ensure:

 Team has a way of communicating in general

 Ease of problem identification

 Evidence of contracts and agreements

 Plans, schedules and budgets to use as a guide

 Human resource allocation and designated authorities.

Core business activities

You should first think about documenting the core activities of the business. Core activities are non-

routine (administrative) activities that improve customer value, provide profits and are strategic for

example, customer service, designing a product or marketing activities. After identifying your

organisation’s core activities, you should document them.

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Documenting core business activities may involve identifying:

 Diagrammatic representations

 Formal documents

 Handwritten documents

 Informal communications

 Online instructions or computer-based format instructions that can be updated

 Paper-based manuals

 Other texts.

System requirements

You will also need to think about the system requirements. System requirements will differ between

organisations and will have to meet certain standards and provide certain functions.

Some example requirements:

 Records should be retrievable

 The integrity of the record should be able to be preserved

 Records disposal should only occur when authorised

 Records that need to be held long-term can be archived.

You will need to select an appropriate scale and number of business or record systems using

information regarding the scale and nature of business operations at the organisation. To determine the

scale, you should first consider what data needs to be stored and how e.g. electronic or paper based.

How information is stored depends on upon the purpose of the task; long-term storage may need to be

in a secure location, either in the office, storage facilities, or on the computer, whereas short-term

storage tasks will vary from task to task.

 Established procedure: this may be implemented by organisational stipulation or

through how your workplace works.

 Organisational stipulation will likely be company-wide and is in place to ensure that

legal obligations are met and that a uniform system is used across the company.

 Workplaces may have their own system that revolves around the space, layout, and

staffing of the office, for example:

o The use of filing cabinets

o Whether all staff have access to the same files on the computer

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o Whether staff have pigeonholes or trays

o Whether there is a member of staff employed

to manage the information system or whether

everyone does their own work

o Security restrictions:

 Who has access to the computer?

 Who has access to the filing cabinet?

 Who has access to the office area?

Recordkeeping tasks

There are many possible record-keeping responsibilities which may include:

 Storing, indexing and classifying records

 Developing filing systems and ensuring they meet the required organisational and legal

standards

 Create schedules for retaining and disposing of records

 Managing paper and electronic based information

 Maintaining and reviewing records systems

 Identifying record resources

 Advising colleagues and other management on recordkeeping issues including areas of

controversy or complexity such as those involving the Freedom of Information Act and

other legislation

 Setting up a policy framework to help guide staff

 Ensure staff comply with regulations and legislation when recordkeeping

 Managing the transition from paper to electronic systems

 Regulating access to information

 Resolving information management problems

 Helping with internal and external queries

 Manage and monitor budgets and resources

 Organise and take part in training and supervising records staff.

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Maintaining, disposing and updating requirements

The first step here is to determine your requirements:

 What processes do you need to maintain and dispose

of records?

 Do you need an I.T department for example and will

this be onsite or offsite?

 Do you need storage space and does this require

human resources e.g. for security, shredding, deleting files?

 Will you need to buy or renew equipment e.g. computers, printers, shredders, etc?

 How often will the system be updated?

Record continuum theory

The record continuum is compared to a life-cycle of records. This lifecycle contains creation of a record,

use of a record and then either authorised disposal of a record or further storage and administration of

a record (see the below diagram).

All records generated during the project should be kept for future reference if necessary. All required

information should be filled in and all documents checked for accuracy. Decide which records need to

be kept and collate all the documentation in chronological order ensuring you create a contents page

that documents the author, the date and the version history number of the document.

Maintain and update records

Maintaining and updating records against project deliverables will involve documenting any changes or

additions to your baselines. Intervals will vary on the type of plan and your organisation’s requirements.

If you are using project software such as Microsoft Projects, then you should access this and alter it

accordingly.

You many need to update the following areas:

 Time worked – can be collected through timesheets e.g. at the end of each week. The
project manager should estimate the time worked each week and compare this to the
actual time worked each week to see if the schedule is running as planned.

 Costs – can change over time for example:

o Changes to materials or the cost of materials e.g. if there is an offer

o Changes to contractors e.g. using different companies, switching suppliers, etc.

o Changes to pay of staff e.g. if someone is promoted.

 Scope – changes to scope can be complex and require approval, so any changes should
be identified and implemented as quickly as possible. You may have contingency scope
plans that you can use for reference.

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You should have in place a quality assurance policy that instructs you in how to keep records updated in

an accurate and timely way.

Generally, records are held in electronic systems that deliver a report based on the inputted

information. These may be stored in a computer based file or folder. A computer directory is a

computer-based filing system that is organised into files and folders on a computer. You may have

several files and folders in use on your computer, and you should ensure that you manage these

appropriately so that the information can be stored for ease of access again. You may have specific

guidelines regarding titles or codes for naming files and folders. You will be given specific procedures in

order to manage this system correctly and according to your organisational requirements.

To manage this filing system, you may need to:

 Create new folders

 Copy folders or files within folders and move to other

locations

 Change the name of a file or folder

 Delete files and folders.

To be given the above options you should right click on the folder or

file with your mouse to bring up the drop-down list of options.

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Activity 3C

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3.4 – Implement and monitor plans for managing project finances, resources
and quality

By the end of this chapter the learner should be able to:

 Create an action plan for managing finances, resources, and quality

 Use cost-estimating methods

 Use resource levelling

 Test for resources and processes against standards for performance, suitability,

consistency, reliability, and functionality.

Managing project finances

You will need to create a financial action plan for managing

project finances.

This action plan should include:

 Your recommended action – goals you need to achieve to strengthen your finances

 The purpose of achieving the goals – what is the outcome/benefit?

 Timescales – you will need to ensure there are target dates for the goals to be

completed.

You may also need to consult with financial experts or colleagues when implementing a plan to manage

project finances.

Failure to account for problems in resource availability and price can mean that your project cannot be

completed at all or that the budget is overspent.

For example, if your project involved building 500 houses, how would you cope if the supplier ran out
of bricks?

 Would you be able to source the same product elsewhere?

o Would this cost more? How much more?

o Would you be able to wait for the bricks to come back
into stock?

What if the cost of the bricks raised significantly mid-way through the
project?

 Will the budget allow for the additional expenditure?

 Would it make more sense to secure the entire resource
requirement before the project commences?

 Can the same product be bought elsewhere for the same or

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lower price?

Contingency plans can be put in place to deal with the cost or availability of resources. Without a

contingency plan, the whole project could collapse if an essential resource became unavailable or

considerably more expensive.

Overrunning problems can cause significant problems, regarding the business’ operation and the cost of

the project.

In cost-management terms:

 How much will it cost to pay the staff and contractors for their additional time?

o Will this attract a higher rate?

 Will you have to pay staff and contractors emergency

overtime?

 How much will the business lose in takings from being closed / partially closed?

 How much will any additional resources cost?

You should identify what could possibly go wrong, estimate a cost for this and budget for it accordingly.

For example, if the builders from the earlier example overran on their project for building the 500
houses:

 How much will it cost to pay the staff and contractors for their additional time?

The builders cost $25,000 a week, so four additional weeks would cost an additional

$100,000.

You could budget for an eight-week overrun, costing $200,000. Then, if the build does

overrun for any reason, the money is budgeted for this, and it will not be financially

ruinous for the project.

 Will you have to pay staff and contractors emergency

overtime?

The builders will charge the same rate of $25,000 a

week, so the price won’t rise unless they are required to

do emergency overtime in order to get the project

finished quickly.

 How much will the business lose in takings from being
closed / partially closed?

Not applicable, as the houses are going to be sold to buyers and this will be the same
amount whether or not the houses are finished two months later.

 How much will any additional resources cost?

Not applicable, but you would budget for additional resources anyway in the resource
budget.

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Cost-estimating methods

To implement a financial plan, you will need to calculate the costs associated with the project. There are

several different ways of estimating the costs associated with a project.

These cost-estimating methods may be:

 Allowance for contingency and risk

o Allowing additional budget space to cover contingencies. By allowing time and
money to be available in the event of a problem, your planning is more flexible
and more able to cope with issues

 Cost of Quality (COQ)

o The costs associated with maintaining the required or desired quality level of the
project that you should budget for. You need to factor these costs into your cost-
management plans.

o Bear in mind the cost of failure!

 Expert opinion

o Experts and specialists can give you advice on costs, quantities, qualities and
durations

o This can mean that your estimations are more accurate and well-informed

 Organisational budget and cost-control policy

o Your organisation may have set or advised budgets, targets, and limits to help
you with your cost-estimation process, by providing a framework and a guide

 Organisational chart of accounts

o The chart of accounts defines different
types of expenditure the organisation
has and can be used to assess the
financial state of the business

o Assessing the financial state of the
business can help with cost-estimating
because you can build your budget
around the organisation’s current
position

 Parametric estimating

o Parametric estimating is a technique that uses statistics from historical data and

project variables to estimate the cost and duration of projects

 Prior project history

o Prior project histories are useful because you can use any lessons learned in your

current and future projects. You can also examine previous budgets and

contingencies in order to better prepare your estimations this time around

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 Reserve analysis

o A reserve analysis is a technique that determines whether and how much

reserve should be allocated to cover contingencies, regarding cost, budget and

time

 Review of organisational records

o Reviewing organisational records can allow you to identify what went wrong ad

what went well in previous projects.

o Organisational records may also be related to income, expenditure, and budgets

and can assist you in cost-estimating.

 Top-down estimating

o Top-down estimating involves looking at the project as a whole and estimating

the cost as one overall figure; for example, the whole cost will be $1.1 million.

This method is not usually as accurate as bottom-up estimating, but is

advantageous in that it allows you to see the bigger picture.

 Bottom-up estimating

o Bottom-up estimating breaks the whole project up into smaller elements and

components and allows you to estimate costs for each of these steps. This can be

a more accurate way of estimating costs, as it allows you to look in more detail at

each part of the project.

The methods you use will depend on the information you have and the nature of the project. Your

organisation may make stipulations about which methods should or should not be used and may

provide templates.

Resource levelling

This is when you ensure that teams are only given work they can realistically achieve within a given

deadline.

So, for example, tasks are spread out over a specific schedule, so the team is not overloaded with work

all at once. Also, tasks can be split into phases and responsibilities delegated, to spread the workload

across the team.

You can use programs like Microsoft Office Project to automatically do this for you.

Microsoft Office Project has features to help you distribute work, including:

 Task ID

 Scheduling dates

 Available slack

 Task priority

 Task dependencies

 Task constraints.

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What the program does is split tasks or delay them to a later date; it will not alter their information or

who/what resources are assigned to. These tasks could be done manually, without using Microsoft

Project, but you will need to consider the time it will take versus the cost of implementing an

automated system. Don’t over-allocate resources; it will mean the assigned team cannot complete the

given tasks by deadlines.

Be aware that Microsoft project will not account for the availability of resources when assignment tasks,

but just the requirements for it. Therefore, you will need to keep an eye on over-allocations and resolve

them accordingly.

Managing project quality

Successful quality management throughout a project ensures that the end product and outcome meets

or exceeds the expectations and needs of the clients and stakeholders which are determined during the

initiation and planning stages of the project. Quality management is an ongoing process and may result

in changes being made to a number of factors within the project such as timescale and allocated

resources, both of which may impact on all of the other eight project functions.

Effective quality project management will include the following:

 Definition of quality – the definition of expected quality will be determined by the
stakeholders at the beginning of the project and will refer to the end result ad the
deliverables, and also the processes and procedures adopted during the project

 Quality characteristics – the deliverables, technology and equipment used to produce
the deliverables, and the processes and procedures used during the project will be
measured against certain characteristics such as:

o performance

o suitability

o consistency

o reliability

o functionality

 Quality plan – a clear quality management plan
should be set out that determines all the
activities required to meet the determined
quality standards including:

o quality definitions

o management responsibility

o design and document control procedures

o purchasing requirements

o procedures for inspection testing, non-conformance, and corrective actions

o how quality records are kept and maintained

o quality assurance – schedule for quality audits and procedures for reporting back
to stakeholders

o training requirements

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 Quality improvement (or continuous improvement) – this is the process of constantly

evaluating the quality of a product, system, process, procedure or material to find ways

to make it better and more efficient. It is the responsibility of every member of the

project team to strive to improve the quality of every aspect of their work

 Quality control – the evaluation of the quality of the end result regarding the

expectations of the stakeholders. If the quality expected is not met the end result may

be rejected and more work will need to be undertaken to meet the requirements. This

is why continuous improvement and quality audits are important throughout the

execution of the project

 Cost of quality – this relates to the methods and procedures used to produce

deliverable to the expected level of quality and also the costs of failing to meet

expectations and any waste in the course of the project.

Quality assurance refers to the process of monitoring quality throughout the duration of the project to

ensure that it is maintained. Quality assurance allows any issues and problems to be detected early so

that they can be resolved promptly and therefore minimise impact to the rest of the project.

Quality assurance may include:

 Systematic review of the project management process to ensure compliance with

organisational policy and guidelines

 Project finalisation process to capture lessons learned and to

enable continuous improvement.

Quality assurance audits may include:

 Conformance to plan

 Conformance to standards

 Governance and decision making

 Independence and valid processes

 Maintenance of project records.

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Activity 3D

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3.4 – Implement and monitor plans for managing project finances, resources
and quality

By the end of this chapter the learner should be able to:

 Plan a report on an element of the project

 Use presentation tools

 Structure a report

 Proofread and check the report

Complete and forward project reports

You will need to complete and forward project reports to stakeholders who need to be informed. You

might need to complete regular reports – it will depend on what you have decided. Regular reports can

help to keep stakeholders informed about the status of the project. A final report is also needed at the

end of the project.

When creating reports:

 Be honest and objective with the data

 Note success for use in other projects

 Use hindsight to document potential problems to look for in other projects

 Avoid blame and focus on the learning process and future improvements

 Try to create an open-minded learning culture, so people are willing to share

 Be aware of obstacles to reviews e.g. resistance from team members, dishonesty,

subjectivity

 Look at positives and negatives to learn from

 Make recommendations for applying successful points of the project.

By listening to the opinions of your team and analysing these documents, you can decide on the

important lessons

to learn from the project.

A report format includes:

 Overview or summary

 List of tasks (possibly a prioritised list)

 Financial reports

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 Progress report e.g. tasks completed versus to do

 Workload – how much work is assigned to a task, or on a regular basis e.g. daily or per

resource?

What tools can you use to help?

 Presentations

 Flow charts

 Diagrams

 Bar charts

 Statistical data.

Preparing and producing reports

When preparing and producing a report, there are some things you have to keep in mind.

Initial planning:

 Make sure you understand the topic of the report

 Purpose of the report – persuade, inform, argue, evaluate, advise

 Audience of the report

 Format required.

If you are given instructions and guidelines to follow, make sure you do.

Planning and researching:

 Determine the key aspects of the report to understand what information is required

 Keep the topic in mind when researching and reject any information that is irrelevant

 Keep records of sources used.

Report structure:

 Determine the format of the report – is there a specific template used by your
organisation?

 Determine the content. Does the report require any of the following:

o title page

o contents page

o terms of reference

o introduction

o main body

o supporting evidence

o summary/results

o evaluation

o conclusion

o recommendations

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o glossary/references/bibliography/appendices

 Language style – is the tone of the report formal or informal?

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Proofreading and checking the finished document for:

 General layout and style

 Coherence of the text

 Grammar, spelling and punctuation

 Whether it has met the brief?

Writing reports

Ensure documentation is written in the active voice rather than the passive, as this gets the message

across more directly and helps with concise writing.

Documents should:

 Be concise

 Be objective

 Appropriate in language (no slang, unless recording

direct speech)

 Include only necessary information.

Being concise means including the right amount of information – not

too little or too much. You need to get to the point in as few words as possible; use appropriate words,

sentence structures and avoid frivolous information that is not relevant.

Being objective involves only including the facts in documentation and no opinions or bias affecting

what is recording. Subjective information is based on assumptions and feelings and will not accurately

portray the incident.

Ensure documentation is dated so that it can be filed chronologically and used in accordance with other

documents relative to the same time period.

 What are your organisation’s requirements for documentation?

 What things need to be documented?

 Are there standard reports for performance against KPIs?

 Do certain visual representations (graphs, charts, etc.) need to be included?

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Activity 3E

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3.6 – Undertake risk management as required to ensure project outcomes are
met

By the end of this chapter the learner should be able to:

 Detect and respond to risks

 Conduct risk review processes

 Know how to prevent further risk

Risk management

To manage risks, you will need to review risks regularly to maintain the currency of the risk plan and

ensure project outcomes are met.

Risk review processes may include:

 Ad hoc due to emergency events

 Gateway or stage transition reviews

 Ongoing through team member assigned responsibility

 Regular risk discussions at project meetings

 Scheduled formal reviews.

The process can either be informal, or a formal, structured process – which of these it is will depend on

the size and complexity of your project.

A structured approach would include review systems, checklists and measurement tests to ensure the

currency of risk plans.

Further risk review processes may include:

 Risk control audits

 Risk insurance review

 Contract reviews (internal and external)

 Review of internal processes

 Incident debriefs

 Test/trial events.

Monitoring and controlling project risks should be a

cyclical process and should continuously occur.

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Activity 3F

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3.7 – Achieve project deliverables

By the end of this chapter the learner should be able to:

 Identify the outcomes of the project

 List deliverables you should have achieved

 Check to see if they have been achieved.

Achieving project deliverables

Before you can finalise the project, including obtaining sign-offs for the concluding of the project, you

will need to demonstrate you have achieved the project deliverables. Project deliverables will obviously

vary depending on the industry you work in and the specific project.

They are the building blocks of your overall project and are the tangible, measurable and specific results

of the process of your project. Deliverables are the reason projects are created, and they may contain

some smaller deliverables. They are the products and/or services you give to customers, clients and

employees and they normally have a date for when they are due.

Deliverables can sometimes be called outputs. The output is something that a project has delivered and

should be easily measurable, for example, a content management system, a redesigned website, a

product, etc.

Project deliverables may include:

 Definable product, service or document

 Discrete components of the overall project outputs

 Specified products of the project

 Time, quality and cost.

You may have a checklist for deliverables that makes it easy for you to see if you have provided them.

You can now look down the list and check that you have achieved each deliverable. You may also

consult with different people in the project team and stakeholders to determine whether the

deliverables have been met.

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Activity 3G

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4. Finalise project

4.1. Complete financial recordkeeping associated with project and check for accuracy

4.2. Ensure transition of staff involved in project to new roles or reassignment to previous roles

4.3. Complete project documentation and obtain necessary sign-offs for concluding project

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4.1 – Complete financial recordkeeping associated with project and check for
accuracy

By the end of this chapter the learner should be able to:

 Check what you need to record

 Check how you need to record it

 File the document according to your recordkeeping system procedures

 Check you have recorded and filed it correctly

Project finalisation activities

You are reaching the completion of your project and you now need to complete the final activities in

preparation for the handover to the client.

Project finalisation activities may include:

 Completing financial transactions

 Consolidating and storing project data

 Documenting outstanding project issues

 Obtaining or providing certifications

 Preparing final project reports

 Updating organisation knowledge management.

All financial transactions need to be completed and recorded appropriately and in compliance with legal

and accounting requirements and also for auditing purposes. The project cannot be handed over to the

client with any outstanding monies owed. Financial transactions may include payments to suppliers,

wages for the project team; rent for premises, utility bills and many others specific to your project.

Legal requirements

‘For financial reporting, Australian Securities and Investments Commission (ASIC) breaks reporting

requirements down by business type.

Personal financial records must be kept for five years, whereas the following records must be kept for
seven years:

 Financial records for your company

 Most employee records

 All records of fringe benefits and capital gains’.

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Source: https://www.business.qld.gov.au/business/starting/starting-a-business/record-keeping-

business/basic-record-keeping-requirements

You should look into details of your specific industry and state requirements but should at least meet
basic legal requirements such as:

 A cash book or financial accounting program – that records cash receipts and cash

payments

 Bank accounts – cheque books, deposit books, and bank statements

 Employment records – hours of work, overtime, remuneration or other benefits, leave,

superannuation benefits, termination of employment, type of employment, personal

details of workers, employee personal contact and employment details

 Occupational training records – for both you and employees to comply with work, health

and safety laws including evacuation and emergency training attendance.

 Sales records – invoice books, receipt books, cash register tapes,

credit card documentation, credit notes for goods

returned and a record of goods used by the business

owner personally

 Proof of purchases – cheque butts (larger purchases),

petty cash system (smaller cash purchases), receipts,

credit card statements, invoices, any other documents

relating to purchases including copies of agreements or leases

 Work, health and safety (WHS) records – workplace incidents, risk register and

management plan, names of key WHS people (e.g. WHS representative, trained safety

advisor (TSA), first aid attendant), chemical storage records, first aid incident register,

workplace assessments, material safety data sheets (MSDS).

Source: https://www.business.qld.gov.au/business/starting/starting-a-business/record-keeping-
business/basic-record-keeping-requirements

Financial obligations

Dependent on the scale of your project you may have financial obligations to finalise both internally and

externally.

Internal financial obligations may include the final accounting for the overall spend of the project,
broken down into the following project areas:

 Cost management plan – reconciliation of planned expenditure and actual expenditure

 Work breakdown structure – how did the actual spend compare to the budgets

allocated to each component of the WBS?

 Change and risk management – how did changes to the project affect budgets?

 Procurement records and accounts need to be finalised and recorded appropriately

 Payroll needs to be finalised and records stored/handed over appropriately

https://www.business.qld.gov.au/business/starting/starting-a-business/record-keeping-business/basic-record-keeping-requirements

https://www.business.qld.gov.au/business/starting/starting-a-business/record-keeping-business/basic-record-keeping-requirements

https://www.business.qld.gov.au/business/starting/starting-a-business/record-keeping-business/basic-record-keeping-requirements

https://www.business.qld.gov.au/business/starting/starting-a-business/record-keeping-business/basic-record-keeping-requirements

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 Vendors should be given their final payments and accounts update accordingly; there

should be no outstanding invoices.

External financial obligations relate to outside borrowing; funds that have been lent by sources other

than the stakeholders and investors, such as bank loans or contracts for services (utilities for example).

It is important to finalise these external financial obligations as, if the obligation is not honoured or paid

in full, it could result in court action and the seizure of assets of the project and/or the organisation.

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Activity 4A

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4.2 – Ensure transition of staff involved in project to new roles or reassignment
to previous roles

By the end of this chapter the learner should be able to:

 Inform staff of any changes and reasons why

 Provide staff with additional training or refresher courses to support transitions

 Debrief the team

 Retain people if needed or reassign them to new tasks.

Change management

If not handled appropriately, change can be met with resistance from staff. To manage the transition,

you will have to plan a tactical approach to encourage a positive experience and reaction to change.

Consulting with staff/stakeholders can help to assess the impact of making changes. There may be

advantages and disadvantages to the changes. Theses should be discussed with the relevant

stakeholders.

It is important to keep all stakeholders informed of changes and how it will affect them and the

everyday operations of the business.

You may need to reassure staff and provide them with additional training. Refresher courses can be

provided for those that need a boost, but additional training will be needed for any changes to

operations.

You should identify, plan and implement ongoing development and training of team members so that

you can support personnel and organisational performance. Identifying areas that personnel need

additional help with and having ongoing support in place will help improve performance.

Think about making changes gradually; once employees have become accustomed to one or two

changes, you can introduce more. This ensures a smoother transition into the whole process and allows

time to tackle any early day problems.

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Staff transitioning

The end of a project is signified by having completed all stages of the project, and the outputs have

been acknowledged by the project director or sponsor. Disbanding a team occurs at the end of a project

and is similar to de-briefing. It is sometimes overlooked but needs consideration because it can help you

to learn from the project.

Disbanding helps you to:

 Recognise the effort and success of team

members

 Learn from what you have achieved

 Become a better team and better at working in

teams

 Look towards the future and other projects.

Procedures for disbanding teams

You may have organisational policies and procedures to follow, and you should refer to these guidelines

as organisational procedures will vary. The project manager, sponsor or steering committee may have a

responsibility to disband the team; you should check whose role this is.

Procedures may include:

 How to decide who to retain

 The process for retaining workers

 Reassigning staff

 How to tackle the financial ends of a project

 The structure of the formal conclusion.

It can be difficult to disband teams, especially if some workers are retained and not others.

Retaining people for future work

Teams who are productive and work well together should be retained where possible and used for

other projects. These types of teams that reflect the culture of the organisation can also help to set an

example for others and can help teach the qualities that are most valued at the organisation.

You can also learn from the teams that work well and analyse why that might be. You should look at

how teams communicate and collaborate on projects. What attitudes to team members have? They

may be results driven, for example, empathetic, can handle conflict particularly well, etc.

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Activity 4B

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4.3 – Complete project documentation and obtain necessary sign-offs for
concluding project

By the end of this chapter the learner should be able to:

 Gather relevant documentation/logs

 Use organisational templates to complete documents

 Ask a delegated authority/stakeholder to sign-off on aspects of project.

Completing documentation

All aspects and requirements in each stage must be completed, and usually signed off by a delegated

authority before the project can progress to the next stage.

What documentation needs to be completed by the conclusion of the project will depend on the size if

your project. You may not need to include everything from the following list if you are conducting a

small project.

Documentation which needs to be completed may include:

 Project brief

 Issue list

 Project schedule

 Project plan

 Deployment plan

 Technical specification

 Quality assessment plan

 Change log

 Communications plan.

The specific key requirements for stage completion within your project will be determined by client

expectations and the project objectives. These will vary the most from one project to another in the

execution and controlling stages as project activity is unique to each project.

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Generic key requirements to the completion of the closing stage are:

 Producing a closing report that includes:

o sign off

o budget analysis

o schedule analysis

o releasing project staff

o lessons learned from the project

o overall outcome of the project

 Redistribution of resources and/or equipment used in or leftover from the project

 Completing any relevant administrative work for the project

 Recording any next steps for the next or future projects.

Logs and registers act as tools to record elements of a project. They may be necessary as part of an

auditing process and make it easy for both internal and external audits to be taken. There are many

different logs and registers used on projects.

Project logs and registers may include:

 Change log

 Correspondence log

 Daily log

 Issues log

 Non-conformance log

 Quality log

 Risk register

 Task completion log

 Version control log.

These allow easy access to specific information about the project, for example, if you need to check the

quality of something you can access the quality log. These logs will be accessible to everyone involved in

the project and are therefore a great communication tool. Your organisation will have templates for the

logs and registers which make them easy to use and understand.

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Activity 4C

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5. Review project

5.1. Review project outcomes and processes against the project scope and plan

5.2. Involve team members in the project review

5.3. Document lessons learned from the project and report within the organisation

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5.1 – Review project outcomes and processes against the project scope and plan

By the end of this chapter the learner should be able to:

 Assess the benefits of the project

 Evaluate outcomes (long-term and short-term, expected/unexpected)– for example:

o was the project within its scope?

o did the team complete on time and on budget?

Reviewing project outcomes

At the end of every project, it is important to spend time reviewing, evaluating and assessing how

successful and effective each aspect of the project has been in order to identify areas of improvement

for future projects.

Project review assessments may include:

 Benefits realisation review

Outcomes evaluation

Post-implementation review

 Project lessons learned.

Benefits do not just happen as soon as the project is finished. Time should be invested in embedding the

procedures and practices that will lead to full realisation of benefits. The true benefits may not be seen

for five years after completion of the project. For example, in a landscape gardening project, you would

not expect the gardener to rotovate and prepare the land, plant seeds, bulbs and saplings and then

leave them to bloom alone without any aftercare and cultivation. The same principle applies to all

projects.

Benefits realisation includes:

 Delivering training

 Carrying out demonstrations

 Preparing training manuals

 Providing help desks and troubleshooting

 Soliciting feedback from employees and the client

 Making changes to the project after it has been completed.

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Benefits realisation may not take place immediately after the completion of the project. It might not

occur until six months after the project implementation review to allow the project time to establish

itself.

The benefits realisation review may include the following:

 Purpose of the review – to determine whether the expected benefits of the project

have been realised and whether any issues or problems have occurred

 Expected benefits that were documented in the original business case and project

initiation document

 How the benefits have been measured

 Resources used in benefit realisation – what support has been implemented since the

completion of the project?

 Resources required to complete the review

 Actual benefits realised after project handover:

o do they meet the expected benefits, if not,

how far off are they?

o are they different to the expected benefits?

o are there more benefits than

expected?

o were the benefits realised faster than

expected?

o are there further benefits to be made?

o do changes need to be made to the support structure in order to realise benefits

and if so, is this cost effective?

 What non-benefits have been realised and what problems have they caused?

Outcomes evaluation

The outcomes evaluation will be very similar to the benefits realisation review as outcomes are very

similar to benefits. Outcomes and benefits are the result of your work within the project and directly

related to the project objectives.

The outcomes evaluation may state:

 Expected and agreed project outcomes set out at the beginning of the project, short

and long-term

 Key performance indicators to measure the outcomes

 Actual outcomes and whether they meet the initial expected outcomes, including:

o changes to knowledge within the organisation

o changes to actions and behaviour of the organisation itself and its employees

o changes to conditions

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 Any unexpected and unwanted outcomes that are detrimental as opposed to beneficial

 Any unexpected but welcome outcomes that have improved the organisation

 No change at all.

Post-implementation review

A post-implementation review (PIR) is the final step in the life-cycle of the project. It is a critical

evaluation of the entire project that determines whether or not the project was a success and the

reasons for this. It is usually conducted by somebody impartial and usually between three and six

months after the completion of the project. This allows the project work time to settle into the

organisation and enables the benefits substantial time to be realised. It assesses each aspect of the

project to determine whether or not the project has met its objectives.

A PIR performs the following functions:

 Measures the objectives, benefits, and outcomes

 Determines whether or not the project was within its scope

 Assesses the quality and accuracy of the final deliverables

 Reviews the project against the schedule

 Compares the actual expenditure against the budget

 Identifies the key achievements of the project and milestones

 Provides information and evaluation for lessons learned

 Is a method of reporting the findings to the stakeholders

 Evaluates the outcome of the project.

A report of lessons learned is vital to help to improve project management in future projects. This is

covered in section 5:3.

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Activity 5A

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5.2 – Involve team members in the project review

By the end of this chapter the learner should be able to:

 Arrange opportunities to review project with team e.g. a team meeting

 Use quality management tools to measure outcomes

 Track continuous improvement

Involving team members

Involving team members in the project review can be helpful because they may have seen things from a

different angle, or have particular experience in an area of the project. You should also think about the

performance of the team and individuals. You will need to allocate adequate time for reviewing the

performance of your team to ensure that everyone is working together as effectively as possible. You

may need to organise regular opportunities for feedback for everybody involved e.g. all internal and

external stakeholders).

Methods to elicit feedback include:

 Team meetings

 One-to-one sessions

 Workshops

 Group sessions

 Surveys.

It is important to record team member’s ideas and make minutes in any meetings you have so that you

have a document to refer to when planning improvements.

Sometimes it can be difficult for people to come forward with ideas. Staff need to have the confidence

to do this. Therefore, supervisors and other members of the team need to be accommodating of

mistakes and encourage people to try new things within the limits of their responsibilities. Supervisors

need to be approachable so that staff will share their ideas with them and trial them out. Stakeholder

satisfaction should be measured and analysed to gauge the success of the project. This information can

be used to improve the quality of future projects.

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Measuring outcomes

Project outcomes and deliverables are usually based on the goals and desires of stakeholders; the

achievement of these goals and desires is the whole point of a project. To achieve stakeholder

satisfaction, these goals will need to be attained to an extent; the success of the project and its

outcomes, as well as its quality, will be a major contributing aspect to stakeholder satisfaction.

Quality management tools may include:

 Cause and effect diagram:

o Fishbone

o Ishikawa

 Control charts

 Flowcharting

 Histogram

 Pareto chart

 Root cause analysis

 Run chart

 Scatter diagram.

Quality management methodologies may include:

 Continuous improvement process

 Lean management

 Six Sigma

 Total Quality Management.

Assessing the effectiveness of quality management in an ongoing manner contributes to continuous

improvement; where issues are identified and resolved, an improvement has been made. Identifying

poor performance and implementing a resolution prevents standards slipping and project quality

becoming habitually poor. Each project should be examined regarding quality to gain the maximum

benefit of continuous improvement.

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Continuous improvement

Continuous improvement is the constant determination to improve products, services or processes. This

can be a result of an idea and happen instantly, or it can be a gradual progression over time. It is

important to document what you learned from the process to support continuous improvement.

Continuous improvement can be tracked using a variety of methods:

 Regular audits and spot checks

 Notes or minutes from meetings with staff

 Ask staff regularly for ways to improve

 Complaints forms

 Feedback and suggestion forms

 Staff incentives/rewards documentation

 Disciplinary documentation.

 By listening to the opinions of your team and analysing these documents, you can

decide on the important lessons to learn from the project.

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Activity 5B

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5.3 – Document lessons learned from the project and report within the
organisation

By the end of this chapter the learner should be able to:

 Collate information from the review process

 Draw conclusions from the information

 Record lessons learned and communicated within organisation

Lessons learned

A report of lessons learned is vital to help to improve project management in future projects. Every

strategy employed by the project team throughout the project should be evaluated, reported on and

fed back to project authorities or senior management within your organisation at the end of the project.

Record essential information

To put all the strategies into context, it is important to record details of the project.

Essential information includes:

 Project objectives, benefits, and outcomes

 Project manager and leaders

 Description of the client/customer/sponsor/investors – understanding their needs and

expectations regarding governance will have a bearing on the review

 Dates of the project

 Deliverables.

Document a complete picture

If lessons are going to be learned, the mistakes need to be included as much, if not more, than the

successes to prevent them happening again. Include what worked, what didn’t work, and why. It is as

important to document the reasons for strategies not working because they may work well in

alternative projects but just were not suited to this particular one. Suggest more efficient methods of

management in the scenarios you have experienced within the project and what you would do

differently in hindsight.

You should have a plethora of documents and reports that have been generated throughout the life of

the project from which to compile your lessons learned report. Capturing and recording information as

you go through the project allows you to analyse successes and failures at different points within the

project and enables a more balanced and accurate review of governance effectiveness. If you haven’t

kept records throughout the project, this in itself could be a valuable lesson learned for the next project.

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Think about the following questions:

 What did you learn?

 Did you identify best practices?

 Could you use what you learned for other projects?

 What recommendations would you make for the future?

 What are the main elements contributing to this project’s success or failure?

Be honest

To get a full picture of how effective project management was, ascertain honest and open feedback

from all involved. Feedback should be sought from all team members from top to bottom in the chain of

command and all information, however small, should be noted and reported to make the best

improvements to future processes. Seek feedback from all other internal and external stakeholders in

the same manner. Asking for the opinions of your stakeholders makes them feel valued and more

motivated.

Embrace the negative comments and treat them with respect. These are the most critical aspects of the

report that, if used appropriately, could transform the efficiency of project management processes.

Always searching for continuous improvement keeps an organisation dynamic and at the forefront of

improving efficiency; this mentality makes an organisation attractive to work with and keeps employees

motivated and committed.

Input into future projects

All of the project review assessments should be used to compile one report that highlights areas of

project management and project activities that worked well and should be employed in future projects.

It also highlights room for improvement and serious errors that could have been avoided, and as such

what should not be employed in future projects.

Keeping accurate records, logs, and registers from the initiation stage through to the completion of the

project will enable a much more accurate evaluation and review of the success of the project. Record

keeping may be a lesson learned in itself; there are numerous logs, registers, and databases to keep

updated, but ultimately they are telling the story of how successful or unsuccessful your project was. If

there are gaps or inaccuracies in the records, the evaluation of your project will not be complete. This

not only has an impact on the project itself, but could tarnish the reputation of the project management

team, particularly the project manager, and that of the client and stakeholders involved.

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Activity 5C

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Summative Assessments

At the end of your Learner Workbook, you will find the Summative Assessments.

This includes:

 Skills assessment

 Knowledge assessment

 Performance assessment.

This holistically assesses your understanding and application of the skills, knowledge and performance

requirements for this unit. Once this is completed, you will have finished this unit and be ready to move

onto the next one – well done!

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References

These suggested references are for further reading and do not necessarily represent the contents of

this unit.

Websites

Planning a project:

https://www.teamgantt.com/guide-to-project-management/how-to-plan-a-project/

Australian Consumer Law:

http://www.consumerlaw.gov.au/content/Content.aspx?doc=fact_sheets/FAQ.htm

Governance report:

http://www.bestoutcome.com/project-governance-gateways.html

Example organisational chart:

http://pharmacy.ksu.edu.sa/en/pages/departments/quality/?page_id=16

All references accessed on and correct as of 26/09/2016, unless other otherwise stated.

https://www.teamgantt.com/guide-to-project-management/how-to-plan-a-project/

http://www.consumerlaw.gov.au/content/Content.aspx?doc=fact_sheets/FAQ.htm

http://www.bestoutcome.com/project-governance-gateways.html

http://pharmacy.ksu.edu.sa/en/pages/departments/quality/?page_id=16

Learner Guide

BSBSLS501

Develop a Sales Plan

This leader guide is a copyright of RTO Materials.

Table of Contents

Unit of Competency …………………………………………………………………………………………………………. 5

Application …………………………………………………………………………………………………………………………. 5

Performance Criteria …………………………………………………………………………………………………………….. 6

Foundation Skills …………………………………………………………………………………………………………………. 7

Assessment Requirements ……………………………………………………………………………………………………… 8

1. Identify organisational strategic direction …………………………………………………………………………. 9

1.1 – Obtain and analyse assessment of market needs and strategic planning documents ……………………. 10

Strategic direction of the organisation ……………………………………………………………………………………. 10

Business plan……………………………………………………………………………………………………………………… 10

Marketing plan …………………………………………………………………………………………………………………… 11

Gathering information about the market ………………………………………………………………………………… 12

1.2 – Review previous sales performance and successful approaches to identify factors affecting

performance ………………………………………………………………………………………………………………………….. 14

Previous sales performance ………………………………………………………………………………………………….. 14

Factors affecting performance ………………………………………………………………………………………………. 15

1.3 – Analyse information on market needs, new opportunities, customer profiles and requirements as a

basis for decision making ………………………………………………………………………………………………………… 17

Market segmentation …………………………………………………………………………………………………………… 17

New opportunities ……………………………………………………………………………………………………………… 18

Identifying consumer attributes …………………………………………………………………………………………….. 18

How to gather data ……………………………………………………………………………………………………………… 18

Examples of attributes…………………………………………………………………………………………………………. 19

2. Establish performance targets ………………………………………………………………………………………. 21

2.1 – Determine practical and achievable sales targets…………………………………………………………………… 22

Determining sales targets ……………………………………………………………………………………………………… 22

Estimating potential revenue ………………………………………………………………………………………………… 22

2.2 – Establish realistic time lines for achieving targets …………………………………………………………………. 24

Time lines for achieving targets …………………………………………………………………………………………….. 24

Multiple time lines ………………………………………………………………………………………………………………. 24

Considering times of year …………………………………………………………………………………………………….. 25

2.3 – Determine measures to allow for monitoring of performance ………………………………………………… 26

Measures for monitoring performance …………………………………………………………………………………… 26

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Customer/client based feedback …………………………………………………………………………………………… 26

2.4 – Ensure objectives of the sales plan and style of the campaign are consistent with organisational

strategic objectives and corporate image …………………………………………………………………………………….. 28

Planning sales operations……………………………………………………………………………………………………… 28

Establishing business objectives ……………………………………………………………………………………………. 28

Ensuring style is in line with corporate image ………………………………………………………………………….. 29

3. Develop a sales plan for a product …………………………………………………………………………………. 30

3.1 – Determine approaches to be used to meet sales objectives …………………………………………………….. 31

Sales approaches to meet objectives ………………………………………………………………………………………. 31

Client centred approach ………………………………………………………………………………………………………. 31

Increasing average spend ……………………………………………………………………………………………………… 32

Attracting new customers …………………………………………………………………………………………………….. 33

3.2 – Identify additional expertise requirements and allocate budgetary resources accordingly …………….. 34

Expertise requirements ………………………………………………………………………………………………………… 34

Budgetary resources ……………………………………………………………………………………………………………. 34

3.3 – Identify risks and develop risk controls ………………………………………………………………………………. 35

Identifying risks ………………………………………………………………………………………………………………….. 35

Developing a contingency plan/risk controls ………………………………………………………………………….. 35

3.4 – Develop advertising and promotional strategy for product ……………………………………………………. 37

Developing advertising and promotional strategy …………………………………………………………………….. 37

Types of promotions …………………………………………………………………………………………………………… 38

Using displays and stands …………………………………………………………………………………………………….. 38

3.5 – Identify appropriate distribution channels for product ………………………………………………………….. 40

Product distribution channels ……………………………………………………………………………………………….. 40

Types of channels ………………………………………………………………………………………………………………. 41

3.6 – Prepare a budget for the sales plan …………………………………………………………………………………….. 42

Preparing a budget ……………………………………………………………………………………………………………… 42

Previous budgets ………………………………………………………………………………………………………………… 43

3.7 – Present documented sales plan to appropriate personnel for approval …………………………………….. 44

Proposals for resource requirements ……………………………………………………………………………………… 44

Approval for plan ……………………………………………………………………………………………………………….. 45

4. Identify support requirements ………………………………………………………………………………………. 46

4.1 – Identify and acquire staff resources to implement sales plan ………………………………………………….. 47

Identifying staff resources ……………………………………………………………………………………………………. 47

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Size of the sales team…………………………………………………………………………………………………………… 47

Acquiring staff …………………………………………………………………………………………………………………… 48

4.2 – Develop an appropriate selling approach ……………………………………………………………………………. 50

Developing a selling approach ………………………………………………………………………………………………. 50

4.3 – Train staff in the selling approach selected ………………………………………………………………………….. 51

Training staff ……………………………………………………………………………………………………………………… 51

4.4 – Develop and assess staff knowledge of product to be sold …………………………………………………….. 52

Knowledge of product details ……………………………………………………………………………………………….. 52

Sources of information ………………………………………………………………………………………………………… 52

Assessing knowledge …………………………………………………………………………………………………………… 53

5. Monitor and review sales plan ……………………………………………………………………………………….. 54

5.1 – Monitor implementation of the sales plan …………………………………………………………………………… 55

Monitoring implementation ………………………………………………………………………………………………….. 55

Observing response to products ……………………………………………………………………………………………. 55

5.2 – Record data measuring performance versus sales targets ……………………………………………………….. 57

Recording data …………………………………………………………………………………………………………………… 57

5.3 – Make adjustments to sales plan as required to ensure required results are obtained ……………………. 58

Adjusting the sales plan ……………………………………………………………………………………………………….. 58

Providing feedback to employees ………………………………………………………………………………………….. 58

Summative Assessments ………………………………………………………………………………………………………….. 60

References…………………………………………………………………………………………………………………………….. 61

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Unit of Competency

Application

This unit describes the skills and knowledge required to develop a sales plan for a product or service for a

team covering a specified sales territory based on strategic objectives and in accordance with established

performance targets.

It applies to individuals working in a supervisory or managerial sales role who develop a sales plan for a

product or

service.

No licensing, legislative or certification requirements apply to this unit at the time of publication

Unit Mapping Information

BSBSLS501A Develop a sales plan – equivalent unit

Unit Sector

Business Development – Sales

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Performance Criteria

Element
Elements describe the essential
outcomes.

Performance Criteria
Performance criteria describe the performance needed to demonstrate achievement
of the element.

1. Identify

organisational
strategic direction

1.1 Obtain and analyse assessment of market needs and strategic
planning

documents

1.2 Review previous sales performance and successful approaches
to identify factors affecting performance

1.3 Analyse information on market needs, new opportunities,
customer profiles and requirements as a basis for decision
making

2. Establish
performance targets

2.1 Determine practical and achievable sales targets
2.2 Establish realistic time lines for achieving targets
2.3 Determine measures to allow for monitoring of performance
2.4 Ensure objectives of the sales plan and style of the campaign

are consistent with organisational strategic objectives and
corporate image

3. Develop a sales

plan

for a

product

3.1 Determine approaches to be used to meet sales

objectives

3.2 Identify additional expertise requirements and allocate

budgetary resources accordingly
3.3 Identify risks and develop risk controls
3.4 Develop advertising and promotional strategy for product
3.5 Identify appropriate distribution channels for product
3.6 Prepare a budget for the sales plan
3.7 Present documented sales plan to appropriate personnel for

approval

4. Identify support
requirements

4.1 Identify and acquire staff resources to implement sales plan
4.2 Develop an appropriate selling approach
4.3 Train staff in the selling approach selected
4.4 Develop and assess staff knowledge of product to be

sold

5. Monitor and review
sales plan

5.1 Monitor implementation of the sales plan
5.2 Record data measuring performance versus sales targets
5.3 Make adjustments to sales plan as required to ensure required

results are

obtained

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Foundation Skills

This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are
required for competent performance.

Reading

 Analyses and interprets workplace documentation
 Recognises information in job specifications and work processes related to sales requirements.

Writing

 Accurately records information according to organisational requirements
 Composes and edits texts, selecting appropriate vocabulary and structure for audience and purpose.

Oral Communication

 Presents information to a range of audiences using appropriate structure and language
 Uses questioning and active listening to request feedback or to clarify or confirm understanding.

Numeracy

 Uses a wide range of mathematical calculations to enter or analyse information related to sales plans,
targets and performance.

Navigate the world of work

 Considers organisational goals when determining and developing sales plans and strategies.

Interact with others

 Identifies and uses appropriate conventions and protocols when communicating with a range of
personnel

 Demonstrates sophisticated control over oral, visual and/or written formats, drawing on a range of
communication practices to achieve training goals.

Get the work done

 Sequences and schedules complex activities, monitors implementation and manages relevant
communication

 Uses systematic, analytical processes in complex, non-routine situations, setting goals, designing
strategies, gathering relevant information and evaluating options

 Uses formal and informal processes to monitor implementation of solutions and reflect on outcomes
 Develops new and innovative ideas through exploration, analysis and critical thinking.

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Assessment Requirements

Performance Evidence

Evidence of the ability to:

 Analyse information from a range of sources to develop a sales plan for a product and sales territory
that meets organisational strategic direction including:
o resource requirements and budget
o achievable sales targets
o performance measures
o approaches to be used to meet objectives
o risk management
o advertising and promotional strategy
o product distribution channels

 Acquire staff, develop selling approach and provide training support on product knowledge and sales
approach

 Monitor and evaluate performance and adjust the plan as appropriate.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

 Outline principles and techniques for selling
 Outline methods for monitoring sales outcomes
 Explain the statistical techniques for analysing sales and market trends
 Outline internal and external sources of information that are relevant to identifying organisational

strategic direction and developing a product sales plan.

Assessment Conditions

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent
performance of typical activities experienced in the business development – sales field of work and include
access to:

 Relevant workplace documentation and resources
 Case studies and, where possible, real situations
 Interaction with others.

Assessors must satisfy NVR/AQTF assessor requirements.

Links

Companion Volume implementation guides are found in VETNet –

https://vetnet.education.gov.au/Pages/TrainingDocs.aspx?q=11ef6853-ceed-4ba7-9d87-4da407e23c10

https://vetnet.education.gov.au/Pages/TrainingDocs.aspx?q=11ef6853-ceed-4ba7-9d87-4da407e23c10

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1. Identify organisational strategic direction

1.1. Obtain and analyse assessment of market needs and strategic planning documents

1.2. Review previous sales performance and successful approaches to identify factors affecting
performance

1.3. Analyse information on market needs, new opportunities, customer profiles and requirements as a
basis for decision making

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1.1 – Obtain and analyse assessment of market needs and strategic planning
documents

By the end of this chapter, the learner should be able to:

 Outline pieces of information that should be obtained from strategic planning documents

to help inform their sales approach

 Identify sources of information which they may be required to research in order to establish

market needs.

Strategic direction of the

organisation

When developing a sales plan for a product or service, it is vital to consider the wider strategic direction of

the organisation. The marketing and sales approach used should be in line with the wider goals and objectives

of the organisation, while taking finances and resources into account.

Prior to developing a sales plan for a particular product or service, it is good practice to carefully read

through your business plan and wider marketing plan. The business plan should outline the business mission,

vision, values and objectives, while the marketing plan should include a range of information in regards to

how products are and services are brought to market and the sales forecast and budget.

Business plan

Mission and vision

The mission statement briefly defines the purpose of the

organisation and the reason for its existence. It provides the

framework to help guide the company’s strategies. The vision

statement dictates the direction you want the company to move in.

The vision and mission statements ought to guide the everyday

activities of each person involved in the business. To be effective,

your statements need to be short and simple, capturing the essence of what you want to accomplish.

Goals

Goals are general statements of what you want to achieve. This means they need to be combined with your

vision. They also need to be integrated with your mission of how you are going to achieve your vision.

Examples of company goals are:

 To improve profitability

 To increase efficiency

 To capture a bigger market share

 To provide better customer service

 To improve employee training

 To reduce carbon emissions.

Goals should meet the following criteria:

 Suitable – does it fit with the company vision and mission?

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 Acceptable – does it correspond with the values of the company and employees?

 Understandable – is it stated in a simple manner?

 Flexible – can it be altered if needed?

Source: Creating A Mission Statement, Setting Goals And Developing Strategies,

http://rvcog.org/Creating%20a%20Mission%20Statement (access date:

20/07/2017).

Business objectives

In comparison to goals, objectives are precise, quantifiable, time-sensitive statements of what is going to be

achieved and when it will be achieved. They are signposts along the path of achieving your goals.

Examples of company objectives are:

 To earn at least a 15 percent after-tax rate of return

on our net investment during the next fiscal year

 To grow market share by 10 percent over the next

two years

 To reduce operating costs by 20 percent over the

next three years by improving the efficiency of the

manufacturing process

 To reduce the call-back time of customer inquiries and questions to no more than three

hours.

Marketing plan

A marketing plan is a document that most organisations should create which outlines the advertising and

marketing plans for the coming year. The marketing plan will usually be generated in accordance with or as

part of the overall business plan. While a business plan will state the overall direction and goals of the

business, the marketing plan often sets out how the goals of the organisation can be reached, such as

increasing market share and increasing customer loyalty.

Sections that may be contained within your marketing plan could include:

 Market research approaches – the methods required to gather information about the market

 Target customers – the customers that are targeted by the organisation, including their

wants and needs

 Unique selling point – establishing what sets apart your products and services to those that

are offered by other organisations

 Pricing strategies – the current prices for various items and offers or special deals

 Marketing materials – the means of promoting your business or products and services, such

as a website, catalogue, billboard,

etc.

 Conversion strategies – methods of converting potential customers into paying customers.

You will need to consider all of the above when planning your sales activities e.g. it is no good trying to sell

something using an expensive method if it won’t fit with your budget requirements.

http://rvcog.org/Creating%20a%20Mission%20Statement

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Gathering information about the market

Once you have a clear picture of the direction of the business and the current approaches used for bringing

products or services to market, it will be important to view the wider industry and establish current trends

and customer preferences.

Marketing responsibilities

The responsibility of recognising and satisfying the needs of customers while

meeting the objectives set out by the organisation is a crucial aspect of

marketing. Entire teams are often given the duty of conducting market analysis

so that a greater understanding can be built regarding the types of products or

services that should be brought to market and the quantity

required.

Recognising the market that a company exists in is not always straightforward.

The place of sale has altered substantially for many businesses with the increase

in online purchasing, which creates additional marketing requirements.

Additionally, many businesses attempt to diversify their product range and philosophy in order to reach a

wider target market. This has implications in terms of how promotional activities will take place.

When a new product or service is being launched, or a new or updated version of an existing item is being

introduced, a detailed picture should be built regarding the market that it will exist in. This should be

conducted in accordance with the organisational marketing plan.

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Types of information you might be required to research may include:

 The size of the market:

o volume – this states the total number of goods or services sold within a certain area

over a given period. it can be easier to comprehend for some people in comparison

to dealing with large amounts of revenue

o value – the total revenue of goods sold

 The market growth – percentage change in sales volume or value over a given period of

time

 Market share – the percentage of total sales in the market belonging to the business

 Customer tastes and preferences.

Further information on how to obtain this information will be looked at in the upcoming chapters.

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1.2 – Review previous sales performance and successful approaches to identify
factors affecting performance

By the end of this chapter, the learner should be able to:

 Outline types of financial information which they may need to gain access to in order to

review previous sales performance

 Highlight questions that could be asked to establish the performance of previous sales

events to help prepare them for future levels of demand

 Identify three different factors that could be used to assess the successfulness of previous

sales approaches.

Previous sales performance

One of the first steps that should be taken when considering sales approaches for new products or services is

looking back at previous marketing and sales campaigns to establish what worked well and what hindered

performance. Aspects that worked well can be adapted to the new product or service launches while aspects

that were deemed unsuccessful could be avoided or altered.

Reviewing your past sales performance will usually involve looking at financial results over a given period of

time. Monitoring performance, especially in terms of financial matters, is an extremely important aspect of

any business, no matter how large the company.

It is crucial to measure the following in relation to a particular
product or service:

 Revenue – the total income received by the business

for the product or service. Be careful to look out for

whether this is displayed as ‘net revenue’ i.e. excluding

things such as discounts or refunds, or ‘gross revenue’,

which can be described as the total value of goods or

services sold

 Costs – the finances that had to be spent by the

organisation in order to operate and maximise income

 Profitability – this is the income that is counted as ‘profit,’ after costs and other

expenditures have been deducted from overall revenue.

Accessing financial documents

The processes involved in accessing existing financial information are likely to be impacted by the role of the

employee and the location where such information is stored. Someone within the organisation may regularly

distribute operational and financial documents to all senior management figures or to the wider workforce,

for example through email or physical reports. Alternatively, this information could be stored in a central

location such as within a storage room or on the company’s computer system. When access to important

financial information is restricted, you should communicate the reasons why you require the documents to

the

appropriate personnel.

You may need to access the following financial information:

 Account summaries and balances

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 Bank statements

 Business activity statements

 Invoices

 Profit and loss statements.

Reviewing sales events

If an organisation sell its product or services at events, it should be possible to review sales figures from

previous events. This will involve accessing a report or sales summary that should have been completed at

the conclusion of the event.

Establishing the following could help prepare you for future levels of demand:

 How many goods or services were sold?

 What was the total value of sales?

 Was there enough stock present or was there an

excess?

 How many patrons were at the event?

 Were sufficient numbers of employees present to

meet consumer demands?

 How many people are expected at future events?

If you can answer these questions, then a much clearer picture can be built regarding what the needs of
people at future events.

Factors affecting performance

Once you have a range of figures in relation to how a product or service performed on the market, it will

then be necessary to establish why this was the case. Simply recognising that a product performed well

previously is not enough to conclude that a similar product would also be profitable; various factors could be

pertinent as to why a product or service performed well in the market at a given period in time.

Gaining performance information on particular product or service launches will involve analysing the above

financial sources and also reviewing any explanatory documents, such as sales reports and communications

between marketing personnel.

Factors affecting performance to analyse may include:

 Marketing of the

product or service

o advertising

o direct marketing

o distribution

o e-marketing

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o loyalty programs

o market research

o marketing communications

o pricing

o product development, including pre- and post-launch

o salesforce

 Consumer responses to marketing communications, such as:

o finding out the number of people who turned up to an event that was promoted

o establishing the quantity or value of goods or services sold following a promotion

o assessing the number of people who have entered a competition

o analysing previous customer feedback

o viewing the source of pay per click advertising

o reviewing sales data, including;

 if promotional codes have been used at the point of sale that were part of a

promotional campaign

 whether customers stated where they heard about the product or service

 Consumer digital footprints and engagement journeys

 Response to consumer demand, such as if demand could be met at all times

 Sales team responsible for launching and selling product or service:

o the size of the sales team

o the skillset and experience of team members.

When considering the approaches to be taken when selling a new product or service, incorporating your

findings from a range of the above will increase the likelihood of the sales process being a success.

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1.3 – Analyse information on market needs, new opportunities, customer
profiles and requirements as a basis for decision making

By the end of this chapter, the learner should be able to:

 Provide reasons why a company may conduct market segmentation

 Outline actions that could be taken to identify new opportunities

 Highlight sources of information that could be used to gain an understanding of customer

profiles

 Identify customer attributes which could be used to guide their sales plan.

Market segmentation

Businesses must gain as detailed a picture as possible about their potential customers. This information is

crucial in order to establish an effective pricing strategy and market items to maximise uptake.

Market segmentation is one method regularly applied by organisations to establish the types of customers

who will buy particular products and respond to certain promotions. This involves classifying customers or

potential customers into categories or sub-categories, where each one shares at least one common

characteristic. Customers placed into a certain market segment will usually respond to a marketing strategy or

promotion in a known way, different to other market segments.

Segmentation analysis, meanwhile, is where quantitative and qualitative data analysis is used to try and

establish the characteristics of consumers. This will be looked at in more detail in the following section.

Reasons for market segmentation may include:

 To increase market share by identifying segments which

have not been reached by other products or campaigns

 To assess the need for new

products

 To transfer existing products into new markets

 To find the most effective way of advertising a product or

service to reach the target group.

There are issues with market segmentation though, such as:

 Recognising the most distinct segment to market towards is not always obvious

 Knowing the most effective method to reach your target segment can be difficult, especially

when customer characteristics vary substantially

 Changes to preferences may take place among customers and they can quickly lose interest

products

 Focusing your marketing on particular segments can result in potential customers being lost

who also have an interest in your product or service.

Overcoming these problems will need to be discussed between marketing employees or with senior

managers.

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New opportunities

Use new technologies and media

Using new technologies and media to create selling opportunities is valuable in society today. More and more

people are using social media to advertise and sell products and services. To do this successfully, you will

need to be in the right place at the right time and this will involve maintaining a regular awareness of

technology and media trends.

Consider the following to identify new opportunities:

 Using Tweetdeck and Google alerts and set up

searches that pick up key phrases that you could use to

your advantage

 Join groups that you think have the right

qualities/profiles

 Follow organisations that you think could benefit

from your products or services

 Offer your opinions e.g. on related blogs to

demonstrate your knowledge and get your

organisation noticed

 Research the approaches being taken by competitors, including product or service choices,

pricing, branding, loyalty schemes, etc.

Identifying consumer attributes

There are a wide range of attributes that might distinguish consumers and result in them being separated into

separate market segments. Marketing is increasingly driven by the significant amounts of data that is created

through the internet, social media, and from interactions with existing clients. Information can be gained

regarding the behaviour of customers, including what they want and when they want it.

Knowing who your existing customers are and what they want will not help to improve their satisfaction and

make them more likely to return for further business, but it can support your marketing to entice new

customers and increase sales. You should try to find out about their opinions and preferences, as well as their

purchasing habits.

How to gather data

Market research reports

Market reports are often found freely available and can provide a useful starting point for analysing the types

of consumers in the market. They may offer information from a large dataset which you would struggle to

gather yourself through primary research. Reports can provide information about sales figures, customer

demographics, and current trends.

There should be a sense of caution when reading market research reports and applying the data to your

marketing activities. The data might not be applicable to your exact target market. For example, a report may

contain details about the sports drinks market, including customer preferences and their demographics.

However, there are many different types of sports drinks, and general information in relation to the whole

industry may not be accurate for a product your organisation is planning to introduce. Additionally, the

research may be out of date or could have been based on a particular locality.

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Customer surveys and feedback

Gaining feedback from customers should be something that is frequently performed in order to support

continuous improvement of all aspects of the business. As well as discovering opinions regarding your

advertising, products, and customer service, previous surveys that you have conducted will provide personal

details about your consumers.

Types of feedback may include:

 Personal interviews – conducted by an interviewer, who

asks questions and notes down the responses of the

interviewee

 Questionnaires – handing customers a list of questions for

them to complete within the store or in their own time

 Postal surveys – these are sent to the addresses of known

customers, but rely on a high response rate in order for the

data to be representative

 Telephone questioning – a higher response rate can be

gained when calling known customers to gain further

information about their needs and preferences, but can lead to customer resentment due to

the surge in telesales.

Competitions or promotions

Organisations often make the most of competitions in order to gather information about their customers.

Products might be offered as a prize or customers could be given a voucher if they are selected as the winner.

Not only can such competitions increase the awareness of the company, through word of mouth or social

media, but they could be designed so that customers or potential customers have to share a number of

personal details. These can then be analysed and considered alongside other sets of data to establish

consumer attributes.

Online users/accounts

Your website can act as a crucial platform for discovering information about consumers. If you sell goods

and services online, customers can be asked to create an account or fill in a variety of details before their

transaction is completed. All of this information can then be held in a centralised database. This provides you

with the opportunity to look at all customers at once and update their details when necessary.

Examples of attributes

Your organisational database may contain some of the following attributes regarding customers;

Age

Many organisations will segment customers and potential customers on the basis of age. Tastes and

preferences differ dramatically between different age groups. Take the example of clothing; some companies

will exist purely to target children, or people over the age of 60, while others will attempt to have multiple

campaigns and clothing lines to cater for more than one age group.

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Gender

Many products and services will be directed entirely at either males or females. Cosmetic products are for

example aimed at females, while computer gaming products are predominantly aimed at males. However, it is

important to recognise the potential in including the other gender and not overlooking potential customers.

Lifestyle

Data about the lifestyle choices of consumers can be gained from

their buying history and based on customer feedback. The pattern

of their spending can be analysed and predictions can be made

about how they will respond to new products or services.

Income

The income of potential customers will have implications on the

amount of money they can spend on your products or services.

High-end items will be aimed at particular people and advertised

using different methods to low and middle-end items.

Geographic

Tastes and preferences may differ depending on the geographic

location of consumers. The market could be segmented into cities,

states, regions, or countries if operating on an international scale. Divisions could also be made between

rural, suburban and urban areas, as the needs, wants, and cultural characteristics of consumers may be

different.

Generating geographic segments is relatively straightforward and can provide businesses with an opportunity

to solely target a particular area before launching elsewhere.

Frequency of purchase

Customers could be separated in relation to when they purchase items and how frequently they do so. For

example, some customers might like to purchase new products as soon as they are released, while others tend

to buy them later on. Consumers could also be segmented based on how often they visit the business

premises or use the website, as frequent purchasers could be targeted in different ways to occasional ones.

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2. Establish performance targets

2.1. Determine practical and achievable sales targets

2.2. Establish realistic time lines for achieving targets

2.3. Determine measures to allow for monitoring of performance

2.4. Ensure objectives of the sales plan and style of the campaign are consistent with organisational
strategic objectives and corporate image

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2.1 – Determine practical and achievable sales targets

By the end of this chapter, the learner should be able to:

 Outline actions which may be required in order to set practical and achievable sales targets

 Identify the crucial pieces of information required to estimate revenue when observing past

sales

figures.

Determining sales targets

During the process of developing a sales plan for products or services, it is crucial to establish a range of

targets and performance measures. This will not only influence the budget for the product or service, but will

also give the sales team something to strive for and compare performance with throughout the process.

Setting sales targets which are practical and achievable will require you to:

 Analyse past sales figures and performance

 Determine the resources available to market the

product

 Assess current market trends

 Identify economic growth rates

 Establish competitor activity

 View customer engagement rates, such as response

rates to social media followers.

Creating sales targets ought to take place in consultation with others in the organisation. Meetings could take

place where all of the above factors are taken into account and various different managers or sales personnel

can put their views across on targets and objectives. Allowing a number of people to contribute to the target

setting process should limit the chances of mistakes being made such as greatly over or under projecting sales

figures.

Targets might be set in a variety of formats, and this will depend on the type of products or services being

offered by the organisation.

For example, you might decide to set the following targets:

 Gross revenue – the total incoming revenue from the product or service

 Gross profit – the total revenue minus total cost of goods sold

 Gross profit margin – the gross profit as a percentage of

the gross revenue

 Volume – the total number of products or services sold

 Customer quantity – the number of customers to

purchase goods or use a service.

Estimating potential revenue

Estimations are not exact and are based on assumptions and projections, but can be useful to understand the

sort of potential revenue you could be looking at.

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To estimate revenue, you will have to find out:

 Average sale per customer (the average amount spent in a single transaction)

 The number of sales in a given time e.g. yearly

 The number of potential customers per year.

You may need to consult with colleagues such as colleagues in different departments, other sales colleagues

and managers. You will also need to discuss what your estimated expenses are. You will need to total up the

expenses involved and take it away from the revenue to get a more accurate picture of the potential profit.

To help you plan for all situations, you should work out:

 What is the best possible revenue you can achieve?

 What is the worst revenue outcome?

Considering both of these will help you to plan for how to respond to

actual sales rates. For examples, estimating your best possible revenue

outcome could then enable you to plan possible actions such as how

the money will be reinvested, e.g. into further stock, advertising,

product development, etc.

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2.2 – Establish realistic time lines for achieving targets

By the end of this chapter, the learner should be able to:

 Identify factors that may influence the setting of time lines for achieving sales targets within

their workplace

 Provide examples of sales targets that are time bound.

Time lines for achieving targets

When developing sales targets, there will need to be a focus on how long it will take for these targets to be

achieved. Setting realistic time lines can help businesses to plan resource requirements over the given period

of time and will also provide a greater insight into when revenue will be coming into the company.

The time line for achieving your targets will depend on a number of factors.

For example:

 How frequently customers tend to purchase the product or service

 How often a new or revised type of product or service is brought to market

 Whether the product or service is only purchased at particular times of year

 The time lines set for achieving wider organisational

objectives.

Multiple time lines

More often than not when developing a sales plan, it may be

necessary to create a variety of timelines for a product or service.

Rather than aiming to reach a certain level of revenue after one

period in time, targets could be set at multiple different times. For

example, you may seek to reach $10,000 gross revenue within the

first month of sales, $25,000 after two months, and $100,000 after

six months. Figures should not just be created in the hope of

achieving them; they ought to be realistic and based on past sales

figures and trends in the market.

In addition, time lines could be created for each of the types of targets set out in the previous chapter, e.g.

gross revenue, gross profit, gross profit margin, volume, and customer quantity.

Examples of time lines for achieving targets may include:

 To achieve $150,000 worth of gross revenue over the course of the first year

 To gain $80,000 worth of gross profit within eight months

 To reach a gross profit margin of 30% after ten months

 To sell 12,000 items over a 15 month period

 To have 1,000 customers using a service within the first two months of operation.

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Considering times of year

Seasonal demand is another crucial aspect to consider when developing products and setting sales targets.

There may be certain goods or services within your organisation that do not have demand all year round and

are only popular at particular times. For example, a travel agency will experience customers wanting to visit

places based on the climate at certain times of the year, and this will result in them altering their pricing and

advertising to match consumer needs.

If the organisation does not generally expect high rates of sales at certain months in the year, then this should

be incorporated into the sales targets. For example, rather than setting a target revenue figure for each

month, this should be altered based on expected levels of demand.

Other fluctuations in demand could occur at:

 Christmas

 Easter

 Valentine’s Day

 Mother’s Day

 Father’s Day

 Bank Holidays.

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2.3 – Determine measures to allow for monitoring of performance

By the end of this chapter, the learner should be able to:

 Outline sales based measures that could be used to monitor performance

 Identify factors which it may be useful to gain feedback from customers in relation to when

monitoring performance.

Measures for monitoring performance

The measures used to monitor the performance of the products or services that are being sold will also need

to be clarified during the planning process. This will depend on what is being sold and the preferences of the

organisation. For example, some companies will purely use sales figures as a measurement of how well a sales

campaign is going, while other will focus on the quality of what is being delivered and the feedback received.

Where possible, a range of sales based and quality based measures should be used to determine the

successfulness of sales.

As outlined in chapter 2.1, the following sales based measures could be used:

 Gross revenue – the total incoming revenue from the

product or service

 Gross profit – the total revenue minus total cost of goods

sold

 Gross profit margin – the gross profit as a percentage of

the gross revenue
 Volume – the total number of products or services sold

 Customer quantity – the number of customers to

purchase goods or use a service.

When sales targets have been set, these should be monitored regularly and can be used as an indication of

whether performance is going better or worse than expected. There may be a need to revise targets or the

marketing strategy and sales approach being used when they are not currently being achieved.

Customer/client based feedback

Regardless of whether your organisation primarily sells products, services, or a combination of both, it is

good practice to plan how customer or client feedback will be used as a basis for the performance of the

organisation. Even when you have achieved your sales targets, it is important to still consider feedback as it

will dictate future levels of customer interest and ultimately sales.

Customer or client feedback could be gained through multiple avenues, such as through face-to-face

conversations, personal interviews, questionnaires, postal surveys, telephone calls, online surveys, etc.

You might aim to gain information in relation to a variety of different factors, such as:

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 The cost of the product or service

 The functionality of the product

 The aesthetics of the product

 The quality of service provision

 Customer service levels

 Discounts and loyalty schemes.

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2.4 – Ensure objectives of the sales plan and style of the campaign are
consistent with organisational strategic objectives and corporate image

By the end of this chapter, the learner should be able to:

 Identify how they can ensure objectives of the sales plan are consistent with organisational

objectives

 Recognise what might be involved in ensuring the style of the campaign is consistent with

corporate image.

Planning sales operations

Planning sales operations must take account of the overall business or departmental goals and priorities. As a

sales manager or supervisor, it is almost impossible to plan how you are going to achieve sales without a full

understanding of the direction the business is taking.

A wide range of factors will affect the business goals. There are external factors such as the overall market,

the competition, technological advances, social aspects, etc. Internally, factors such as staffing, products and

services, etc. will affect your sales plans. For example, the competition may be launching a new product to

rival yours, and so your sales efforts will need to respond accordingly.

Establishing business objectives

You need to ensure that you are fully briefed about the priorities and objectives for the forthcoming period.

You can achieve this by asking to see the business plan or departmental plans, and by having conversations

with your own manager to establish their expectations of your sales team for the period ahead.

You also need to have a good understanding of the marketing and

sales strategies for the period and be aware of any trends or

developments that will affect the sales operation. There may be a

new product launch planned for later in the year, for example, and

this will impact on your team in terms of their training

requirements and the information that they can give to customers

before and after the launch.

You can ensure that your objectives are consistent with
organisational objectives by:

 Reviewing organisational documents

 Attending any relevant briefings, meetings or training sessions

 Meeting with people responsible for developing organisational objectives

 Reviewing your draft objectives with your line manager and those responsible for marketing

and sales strategies, etc.

Only when you have this information can you plan the sales operations for your team. The projections that

are made for product or service sales should be in line with those of the wider organisation. For example, if

the company is aiming to increase revenue by 15% over the next two years, the objectives for individual

products or services ought to contribute towards this aim.

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Ensuring style is in line with corporate image

When developing the overall style of a sales campaign, it is crucial to consider the wider corporate image. In

general, the style should be in line with the wider corporate image as a lot of considerations should have gone

into ensuring this image is unique to the company and appealing to its target market. Although there may be

occasions where the style of a campaign will differ to try and attract a wider audience, you should usually aim

to incorporate aspects of the organisational image into the product or service design and marketing.

For example, ensuring the style of the campaign is consistent with the
corporate image may involve:

 Using a particular colour scheme in advertisements

 Incorporating company slogans or catch phrases

 Placing the logo of the company on displays and promotions

 Using a universal font type.

By following these recommendations, the brand is also more likely to develop its

own unique identity and customers will become familiar with its marketing style

and products or services.

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3. Develop a sales plan

for a product

3.1. Determine approaches to be used to meet sales objectives

3.2. Identify additional expertise requirements and allocate budgetary resources accordingly

3.3. Identify risks and develop risk controls

3.4. Develop advertising and promotional strategy for product

3.5. Identify appropriate distribution channels for product

3.6. Prepare a budget for the sales plan

3.7. Present documented sales plan to appropriate personnel for approval

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3.1 – Determine approaches to be used to meet sales objectives

By the end of this chapter, the learner should be able to:

 Describe the sales approach that is or could be used to meet sales objectives for a product

or

service

in their organisation

 Identify the key considerations when offering a client-centred approach.

Sales approaches to meet objectives

One of the most fundamental tasks that you need to plan is the sales approach to be used in order to meet

your objectives. As highlighted previously, types of objectives can be wide ranging, and might include efforts

to maximise revenue, product or service sales, or customer numbers.

Sales approaches will be dependent on the type of product or service and the platform that they are being

sold on.

For example, products and service may be sold:

 In the business store

 At the place where a service takes place

 At a sales event/market

 Online

 Over the phone.

All of the above platforms will require high levels of customer service in order for sales figures to be

maximised. Even in an online format, where a verbal conversation may not take place, customers may require

support via live chats, social media, or email. Developing your customer engagement strategy will therefore

go a long towards maximising sales; after products and services have been produced and marketed, it is often

the engagement with employees which will determine whether or not a purchase is made and the quantity of

goods purchased within the transaction.

Client centred approach

Customers are savvier than in the past and they are less interested in your products and services, and more

interested in how their needs are going to be met. Customers are nowadays less interested in the traditional

‘Features and Benefits’ approach to selling where simply giving them information about the product/service

and why it’s worth buying, just isn’t enough.

A client-focused approach is when the sales person:

 Focuses on the customer’s needs

 Recognises that every customer is unique

 Sells solutions, not products

 Talks with the customer, rather than presents to them.

Focus on the customer’s needs

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Turn the traditional approach to selling on its head and shine the spotlight on the customer, not your

products and services. You need to find out what the customer wants, what they care about, and what

objectives they are trying to achieve. For example, instead of explaining the features and benefits of a new

software package, a client-focused approach would establish what the customer uses software for, what’s

important to them in terms of reliability, ease of use, etc., and current problems they have in relation to their

current systems. By taking this approach, you can tailor your offering to meet the customer’s needs.

Every customer is unique

You need to be totally focused and immersed in helping your

customer. You need to be focusing on how you can deliver as

much benefit as possible toward helping the customer to achieve

their objectives. This may involve exploring a large number of

complex factors that are of concern to the customer. For example,

when selling to retailers, a traditional approach was to focus on

how well the product will sell, Nowadays though, retailers are

interested in how well the product will complement their existing

range, how it will affect their budget, how reliable deliveries will

be, etc. Understanding the customer’s individual concerns will

enable you to tailor your proposition accordingly.

Sell solutions, not products

A client-focused approach concentrates on how your product and service can solve a customer’s problem or

meet their needs, rather than simply selling the features and benefits of the product. To do this, you need to

adopt a mindset that you are like an external consultant helping your customers to achieve their objectives

using the tools (your products and services) that you can provide them with.

Talk with the customer, rather than present to them

Customers don’t want to hear about how great your company is or how wonderful your products are. They

want to know how you can help them to achieve their objectives. This means that a standard, generic

presentation is not enough – instead, customers want to see that you have understood their needs and can

offer a viable solution to help them. This can only be achieved through dialogue so that clients can have their

concerns answered. A presentation may still be a valuable part of your selling tactics, but it should be tailored

to the customer and be part of an overall dialogue, not a substitute for it.

Source: Sales Presentations: Adapt to Your Customers’ Needs, Business Needs,

https://businesstown.com/articles/sales-presentations-adapt-to-your-customers-needs/ (access date:

20/07/2017).

Increasing average spend

Two of the most effective methods of encouraging customers to spend more are up-selling and cross-selling.

Up-selling is where you suggest they buy a higher-quality and more expensive product or item to the one they

are considering. This may involve telling them of the additional qualities of the alternative product and

reminding them that their money could go further, i.e. the product is less likely to break and will last longer.

Be careful not to be critical of the item that the customer is intending to buy though; they might have a set

amount of money in mind that they are planning to spend, and could look elsewhere if you make them

believe the lower priced item is of poor quality.

https://businesstown.com/articles/sales-presentations-adapt-to-your-customers-needs/

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Cross-selling involves convincing a customer to buy an additional product or service in addition to what they

were intending to purchase. For example, when a customer arrives at the point-of-sale terminal, you might be

able to point their directions towards additional items on sale.

You could also consider ways of combining multiple items so that customers are more likely to buy them all

together.

Attracting new customers

In order to meet sales objectives in relation to increasing customer numbers, you will need to consider a

range of approaches to increase the number of customers who hear about the business and its product

and/or decide to enter the place of sale.

Methods of attracting new customers or clients could include:

 Effective advertising – raising awareness of your company and the products it sells is

highly significant. Think about the method of advertising that will most likely reach your

target market. Should you conduct extensive online advertising? Will leaflets and billboard

advertising result in increased traffic? Whatever the choice of advertising, make sure that

your company seems attractive; highlight offers when appropriate and use an attractive

display style

 Providing high customer service – when your

customers are left satisfied with their experience of

visiting your business, they are much more likely to

recommend you to others, therefore increasing the

chances of new clients being drawn to the

company. Common customer needs and

expectations include:

o friendliness – speaking politely to customers

and greeting them upon the start of a

conversation

o empathy – the ability to understand and appreciate the circumstances of the

customer by placing yourself in their shoes

o fairness – being able to treat all customers with the same level of respect, regardless

of their circumstances

o clear instructions and information – the ability to provide the customer with the

information that they are seeking

o options and alternatives – when the needs of the customer cannot be immediately

met, it is important to provide them with alternatives

 Front of shop display – do not underestimate the importance of having an appealing front

of store. When customers are not necessarily seeking a particular product, having an

attractive or interesting display at the entrance to your premises will make people more

likely to enter. This is especially important in an area where there are a large number of

stores such as on a busy street or in a shopping centre. You could display some of your

premium products or highlight offers in order to draw in potential customers.

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3.2 – Identify additional expertise requirements and allocate budgetary
resources accordingly

By the end of this chapter, the learner should be able to:

 Identify types of expertise which may be required during the sales planning process in their

organisation

 Highlight questions that should be asked to establish the budgetary resources that need to

be allocated for experts.

Expertise requirements

When preparing for a sales campaign, you will need to incorporate the additional support which will be

required from outside the sales team. Not only will this information be required to organise when certain

actions and processes need to take place, but will also need to be incorporated into budgeting considerations.

It may be necessary to draw up a list of all tasks that may be needed conducted throughout the sales process

and identify the relevant personnel who will be required.

Examples of expertise required may include:

 Graphic designers

 Store layout specialists

 Construction workers

 Website designers

 Media producers

 Advertising executives.

Budgetary resources

You could ask yourself the following:

 Identifying budgetary information may involve asking the following:

 What level of expertise is required?

 Can internal employees be utilised, such as from other departments?

 Does the organisation have partnerships with other agencies or organisations who can

supply specialists?

 How long would support be required for?

 What expenses would be involved?

Answering these questions should give you an idea of where expertise can be sourced from and costs that

will need to be included in your sales budget.

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3.3 – Identify risks and develop risk controls

By the end of this chapter, the learner should be able to:

 Identify risks that might arise when developing a sales plan for a particular product or

service in their organisation

 Highlight pieces of information that should be contained within a contingency plan.

Identifying risks

Various situations could arise during the sales process which may result in the sales team needing to revise

their strategy. Failing to react to issues could result in products or services failing to launch and the

organisation facing large financial difficulties.

Risks could be wide ranging depending on the type of product or service that the organisation is developing

and selling.

For example:

 The product may not be produced to the expected

quality

 Advertising does not reach the intended customers

 Customers disagree with the pricing strategy

 Competitors release similar or improved version of the

product

 There is an economic downturn

 Natural disasters (i.e. floods, earthquake, etc.)

 Theft, fraud or other security issues

 Broken/malfunctioning equipment.

Developing a contingency plan/risk controls

Contingency plans need to be present in sales plans and budget forecasts, in the event that things do not go

to plan and the initial plan needs to be altered. Contingency plans should be flexible enough that last minute

changes can be implemented. They should provide an opportunity for action to take place so that an

immediate solution can be found and utilised.

When unforeseen changes occur that have a negative on business finances, it is recommended that you have

a contingency plan and risk controls in place to deal with them. Examples of actions you could take are

detailed below.

Amending stock allocation

There are various actions you could take to alter stock when revenue is lower than expected. You might

attempt to manoeuvre items on the shop floor to bring them to the attention of customers. Alternatively, you

might have to make amendments to ordering procedures so that fewer items are received in the following

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stock deliveries. This way, you are less likely to have items getting backed up in storage, and the money can

be budgeted elsewhere.

Introducing sales promotions

A further contingency plan that could be implemented in response to lower than expected sales is to place

items on offer. Although this may result in revenue being lower than originally intended when budgeting, it

can help to prevent items going to waste, particularly when they have a time-bound shelf life.

Altering recruitment strategies

Management figures should be able to alter recruitment practices at

short notice in order to respond to financial circumstances. This may

involve coordinating recruitment themselves or communicating with

another individual or team who leads the process.

The recruitment strategies used will depend on the type of financial

circumstances being experienced and the believed causes of these.

Setting aside a contingency fund

Setting up a contingency fund can prove to be a valuable decision

within a sales environment. This is a certain amount of money that is

set aside to cover any unexpected costs or lost income. As budgets are constructed based on the projected

levels of revenue, some funds should be set aside in case sales are lower than originally intended or in the

case of damage or theft of products.

Failure to make payments can result in fines or interest building up, so being able to pay creditors

immediately can help prevent further charges being incurred. A further benefit of having a contingency fund

set aside to cover costs is that you may build a reputation for paying on time, which could lead to favourable

deals with suppliers in the future.

Contingency plans may need to include the following information:

 The situation needing action

 Personnel to be involved

 Contact numbers for personnel, resources, etc.

 Legislative, organisational and ethical requirements to consider

 How it will impact on the organisation

 Costs that may occur – including how to resolve the issue

 Solutions – these can be as many as necessary for different outcomes

 How the solution will be implemented and by who

 A deadline.

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3.4 – Develop advertising and promotional strategy for product

By the end of this chapter, the learner should be able to:

 Outline questions that may need to be answered in a business meeting to establish the

required advertising strategy

 Identify a range of above-the-line and below-the-line promotional strategies.

Developing advertising and promotional strategy

Advertising is a form of marketing communication with the purpose of trying to persuade an audience to

respond in some way. Commercial organisations use advertising to associate their brand with quality to

increase public consumption of their product or service. Not-for-profit organisations, such as political

parties, use advertising to promote other activities that require public support in some way. Advertising can

also be used as reassurance that a company is reliable or stable.

Holding a meeting to discuss marketing strategy

Many organisations will hold workplace meetings between employees of varying roles to agree upon overall

marketing approaches. This will not only involve building a detailed picture of who the target market is,

which has been discussed previously, but should incorporate the methods that will be adopted to best catch

the attention of these consumers and lure them into purchasing your products or services.

The following will need to be considered when reviewing or developing advertising strategies:

 What information has been gained through market research to inform you about customer

needs?

 What is your USP?

 How can the USP be demonstrated in any communication with consumers?

 Why do existing customers want to buy your products or services?

 What methods of promotion are most likely to influence consumers?

 Which influences play the biggest part in your consumer’s decisions?

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Types of promotions

Above-the-line promotions involve advertising through media, and may include:

 Television adverts

 Radio adverts

 Magazines

 National or local newspapers

 Billboards or displays

 Web-based advertising.

Below-the-line promotions include all other promotions, such
as:

 Sales promotions, such as competitions or free offers

 Sending direct mail to intended consumers

 Making door-to-door deliveries, such as catalogues

 Trade events or exhibitions

 Sending emails and text messages.

A range of these strategies might be used and this will generally be decided based on the resources available

and the target market; if you were aiming a product at those aged between 16-30, then using social media

advertising might be the best option to use.

Using displays and stands

Promotional displays and stands are used in a wide variety of business and retail contexts to deliver a message

to customers and wider members of the public. Types of display differ substantially; the size, material, and

content used to convey a message will depend on a number of factors, such as the intended target audience,

the resources available, and the amount of accessible space.

Stands and displays are commonly used in retail environments, such as in window displays, on store walls,

and located sporadically on a shop floor. Larger companies also choose to create displays for use at trade and

consumer shows, or to be placed on billboards across cities.

Stands are used to capture people’s attention and deliver a particular message or information to them. The

content that ought to be included should be based on what you are promoting. The major objective that will

form the basis for most displays and stands is to increase sales and customer numbers. This might be through

convincing existing customers to increase their spending on new or relaunched products and services, or

enticing new customers to your business.

The following are often promoted through a display or stand:

 Products – particularly if a new product has been introduced to raise awareness about its

existence and benefits

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 Groups of products – when a new range of goods have been collectively created or

rebranded

 Services – such as banking, insurance or energy providers, with the aim of convincing

customers to use the service being advertised

 Events – to raise awareness of their occurrence and convince people to attend. Examples

include music, sporting, or cultural events.

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3.5 – Identify appropriate distribution channels for product

By the end of this chapter, the learner should be able to:

 Identify types of businesses or intermediaries who may be involved in a distribution channel

for a product

 Describe the main types of distribution channel for products.

Product distribution channels

What is a distribution channel?

A business channel refers to a chain of organisations or intermediaries through which a product is transferred

until it reaches the end consumer. During business deliberations on how products should be brought to

market, you will need to consider what will be the most effective and efficient distribution channel for a

product or range of products that you are introducing.

Businesses or intermediaries that may be involved in a distribution channel include:

 Producer

 Wholesaler/Distributor

 Value-Added Reseller (VAR)

 Consultant

 Dealer

 Broker

 Sales agent

 Retailer.

Distribution channels can vary in length and will depend on a number of different factors. You will need to

consider the best pathway for your company and the product type in order to deliver the product to the

highest number of consumers in the most cost effective manner. In general, channels with greater numbers

of intermediaries requires the organisation to distribute money to a higher range of places. However, this

does not mean that having short distribution channels is a recommended cost saving idea; many wholesalers

and retailers can add value to a product and increase the customer base who are likely to view and purchase a

product.

Choosing an appropriate distribution channel will involve taking the following into account:

 The nature of the product:

 The market

 The business

 Legal matters.

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Types of channels

Although a range of the above organisations and intermediaries could be involved in distribution channels,

there are three main channel types which you should consider. They include a combination of producer,

wholesaler, retailer and consumer.

The first channel is the longest and contains two channels between the producer and the end consumer. A

wholesaler will buy and store a large quantity of goods from the producer and then supply a number of

smaller retailers. This will often make economic sense for smaller retailers who can build relationships with

wholesalers.

The second channel does not include a wholesaler and instead takes the form of retailers acquiring products

directly from producers and then selling them to consumers. This will often be the method used by large

retailers such as electronics retailers who can purchase large quantities of goods from major electronics

corporations. Some producers will be selective over the retailers they will supply as they need to be confident

that high volume orders will be continuously made.

The third example does not include intermediaries, and instead includes consumers buying directly from the

producer. This might be the case when producers only make a small quantity of goods and supply the local

area, for example, a local pottery company producing and selling goods to the local area. Alternatively, large-

scale producers may sell goods directly to their consumers, such as Amazon creating and selling their own

branded products, such as the Kindle and Fire TV Stick.

Source: Distribution Channel, Investopedia, http://www.investopedia.com/terms/d/distribution-channel.asp

(access date: 18/07/17).

http://www.investopedia.com/terms/d/distribution-channel.asp

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3.6 – Prepare a budget for the sales plan

By the end of this chapter, the learner should be able to:

 Highlight actions that could be taken to familiarise themselves with the budgeting process

in their organisation

 Recognise questions they need to ask themselves when developing their budget for a sales

plan

 Explain why it might be useful to look at the previous year’s budget when developing a

budget for a sales plan.

Preparing a budget

It is likely that you will have a budget process in place which determines what you have to do and by when. It

would be usual to develop a sales plan and budget after the sales team’s draft objectives have been approved,

or as part of the overall approval process.

If you are unfamiliar with the budget processes in your
organisation, you can:

 Ask for training

 Ask your line manager for

information and advice

 Speak to personnel in the finance department for

information and advice

 Review your organisation’s budget procedures

 Review last year’s budget and identify any lessons learnt,

etc.

When planning your budget for the period ahead, it is important to be realistic. It wouldn’t be appropriate to

ask for 10 more sales staff without a valid and thoroughly-researched proposal behind it, for example. Having

agreed your sales team’s objectives, the next step is to develop a sales plan which will enable you to deliver

those objectives and the budget that you think you need to do this. This isn’t simply a matter of looking at

last year’s budget and increasing it by 10%, which is a surprisingly common practice.

To develop your budget for a sales plan, ask yourself:

 What resources do I need to deliver the objectives (i.e. people; money; equipment;

materials; etc.)?

 What activities does the sales team need to engage in to deliver the objectives (e.g. sales

events, customer visits, marketing activities, sales administration, etc.)?

 How will the sales team be organised (e.g. what are the territories, how is experience within

the team to be used, etc.)?

 What support does the sales team need in order to deliver the objectives (e.g. training,

mentoring, compensation, access to people/equipment, etc.)?

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 How can costs be controlled (i.e. what are the essential items of expenditure, how can those

be kept to a minimum, where is waste occurring, etc.)?

A useful calculation is to look at the average amount of effort required to achieve a sale. If it takes on average

five attempts to speak to a customer, and two conversations to get a meeting with them, four meetings to

achieve a sale, you can calculate the time and other resources required to achieve one sale.

Having considered the above questions, you should be in a position to formulate a sales plan with an

associated budget setting out what sales you expect to achieve and the budget you will require to deliver your

objectives.

Previous budgets

A useful place to look when drawing up a proposed budget would be last year’s budget.

You may ask:

 Were there any areas of over – or under – spend? If so, why was this?

 Were there any unexpected expenses during the year?

 How can any overspends be avoided in the forthcoming period?

 What lessons can be learnt from last year’s budget?

The budgeting process is important as it’s your opportunity to

ask for the budget that you predict that you’ll need in order to

deliver your sales plan. It’s vital, then, that it is realistic. You may

find that the budget proposed and the actual budget allocated are

two very different figures. This is normal practice as the overall

company finances need to take into account all of its activities,

not just sales, and budgets are balanced out accordingly.

In the likely event that the actual budget is different from what

you asked for, then you will need to revisit your sales plan, and

perhaps your objectives and make adjustments accordingly. This may involve cutting out some activities and

finding lower-cost methods of achieving similar results, for example. It may be helpful to consult with your

manager when it comes to revising your sales plan and objectives. You wouldn’t want to commit to

delivering a sales plan which is unrealistic given the budget allocated, and then you find later that you have to

quickly make significant savings to avoid going over budget.

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3.7 – Present documented sales plan to appropriate personnel for approval

By the end of this chapter, the learner should be able to:

 Identify people who it might be useful to gain specialist advice from when gaining approval

for a sales plan in the workplace

 Provide examples of tips that they should consider when presenting their sales plan to

appropriate personnel.

Proposals for resource requirements

Proposals will likely need to be presented to senior management or other stakeholders in the organisation.

You will need to show them that the benefits of it outweigh the costs and that they should invest in it.

In order to succeed, your proposals will need to align with the overall strategic goals of the organisation. You

may also need to outline what sort of return will be achieved, such as profits or higher customer retention.

When you present proposals for sales to your organisation, you will need to be supported by a variety of

information. This will make your claims more credible and more likely to be accepted by those who allocate

resources.

Information sources could include:

Specialist advice

 Data from previous sales

 Risk analysis and contingency plans

 Opinions of others within the organisation.

Specialist advice

If you need respected, specialist advice, you may be able to consult a range of people inside or outside your

organisation. They should be able to give you information that will support your plan and can be used to

convince stakeholders. Be careful not to twist the meaning of information or take it out of context, as this

will often weaken your argument when it is discovered.

Specialist advice can come from:

 Managers

 Financial consultants

 Marketing experts

 Accountants

 Suppliers

 Internal and external customers

 The sales team

 External experts.

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Approval for plan

Presenting a proposal correctly is essential to obtaining approval for a plan from the relevant party. This is

often done as a presentation to stakeholders, senior management, committees and other interested people.

The formality of this will vary on the scope of resources you are requesting.

Tips to improve presentations are:

 Providing your audience with copies of the plans so they can read it through as you

continue

 Using PowerPoint to visually demonstrate key points

 Using graphs to put costs and savings in context

 Including contingency plans and risk managements plans to show you have considered all

possibilities

 Making a conclusion which sums your facts and information up

 Closely following the organisational goals and explaining how it will benefit the business.

You will likely need to wait for parties to review the plan in detail once you have made your proposal. They

may also recommend it to other bodies (e.g. board of directors) that are responsible for making decisions.

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4. Identify support requirements

4.1. Identify and acquire staff resources to implement sales plan

4.2. Develop an appropriate selling approach

4.3. Train staff in the selling approach selected

4.4. Develop and assess staff knowledge of product to be sold

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4.1 – Identify and acquire staff resources to implement sales plan

By the end of this chapter, the learner should be able to:

 Identify the factors that are likely to influence the resources required to implement a sales

plan

 Highlight how the structure of the work team might be altered to facilitate the sales process

 Outline the process required when they need to recruit staff to support the sales plan

implementation.

Identifying staff resources

Once you have a detailed understanding of the direction to be taken with a sales plan and the performance

targets, it will be necessary to identify the support requirements needed in order to bring the product or

service to market and for it to be a success in terms of objectives being met.

The resources you need will be dependent on multiple factors, such as:

 The current revenue of the organisation

 The number of employees available

 The product or service in question

 The customer base of the organisation

 The potential number of customers

 The skills required to market the product or

service.

Size of the sales team

If your sales team is too large, it will be more difficult to manage, there will be insufficient work for them to

do, there may be competition between staff, and they will become frustrated and some may leave. On the

other hand, if the sales team is too small, people will be working under pressure, sales might be missed due to

the lack of time to close the deal, and they may also become frustrated and leave. So, getting the size and

composition of the team right is important.

One method for establishing the size of the sales team is to divide the expected sales revenue by the average

amount of revenue generated per salesperson. So if your target is to achieve $500,000 in sales over the year

and the average salesperson generates $100,000 per year, then you’ll need five salespeople. However, this

calculation does not take account of differences in skills and expertise, differences in the size of territories,

nature of the customers, etc.

When considering the structure of the sales team, you should ask yourself the following questions:

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 Will all salespeople be of equal status or will there be junior and senior roles? How would

the different levels of roles relate to each other? What would be the differences in their

responsibilities, if any?

 Will all roles be full time and permanent, or will there be any part-time or temporary roles?

 Are there opportunities for flexible working arrangements (e.g. home-working; annualised

hours; etc.)?

 What will be the responsibilities of each person (e.g. will admin duties be performed by a

dedicated Admin Assistant, or will salespeople take care of their own admin)?

 What will be the reporting structure (e.g. should all roles report directly to you or should

there be a layer of supervision within the structure, etc.)?

Acquiring staff

When developing the sales plan for the period ahead, it is often tempting to just stay with the way things are

currently. However, developing the new sales plan and objectives provides an ideal opportunity to review

your current staffing arrangements and look at ways of improving the structure.

For example:

 Can you bring in a secondee from another internal

department if you need to temporarily increase the

number in your team?

 Can you find an internal secondment if you need to

reduce your headcount?

 Similarly, can you bring in a temporary recruit on a

work-experience or contract basis for a short period

of time?

 Can you shuffle geographical coverage to enable people to work from home either all of the

time or for a few days per week?

 Can you allow people to work annualised hours to enable them to work flexibly across the

year?

 Can you subcontract any of the work of your team, etc.?

When you feel that employee numbers currently will not meet the demands of the sales process for a new or

revised product or sales campaign, then it may be necessary to look at temporary recruits or hiring new full-

time staff. This is particularly true when the company is going through a growth phase and aims to

continually grow its employee base.

To recruit staff, you will often have to go through the following process:

 Create a job purpose and person specification

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 Advertise the vacancy

 Review applications

 Conduct testing/ assessments

 Shortlisting

 Interview

 Make a selection decision

 Make appointment.

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4.2 – Develop an appropriate selling approach

By the end of this chapter, the learner should be able to:

 Highlight aspects of a selling approach which it may be necessary to outline to the sales

team.

Developing a selling approach

The selling approach that employees need to be made aware of will be dependent on the types of goods and

services being sold and the platform they are being sold on. Employees may be given various different roles

and will need to be informed about what these are.

In chapter 3.1 sales approaches referred to how to work with a client centred approach, how to increase the

average spend by customers, and how to attract new customers. These ought to be incorporated into the

selling approach that employees are made aware of.

It may be necessary to hold a meeting among all personnel within the sales team to outline the approach to

be taken and their duties as a salesperson.

Aspects of a selling approach to outline may include:

 How to greet customers

 How to inform the customer of the product or service features and benefits

 How to use technology during the sales process

 How to meet the needs of the customers

 How to provide high levels of customer service

 How to respond to issues and concerns.

Employees should be fully clear on the sales approach to be taken, and the actions that may need to be taken

to train employees on how to act on these approaches will be discussed in the next chapter.

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4.3 – Train staff in the selling approach selected

By the end of this chapter, the learner should be able to:

 Identify methods that could be used to train staff in the necessary selling approach.

Training staff

Staff members involved in the sales process may require training prior to the product or service being placed

on the market. Even when they have been involved in sales campaigns in the past and are experienced in

customer engagement, it may still be necessary to conduct training and coaching in relation to the approach

needed for this current product or service.

There are a wide range of training methods that you could use in your initial training programme.

Training methods may involve the use of:

 Audiotapes

 Case studies

 Computer packages

 Lectures

 One-on-one instruction

 Role plays

 Simulations

 Teleconferencing

 Videoconferencing.

It is good practice to provide a mix of different training methods in a programme. This is because people

have different learning styles and preferences. One person may be quite happy listening to lectures all day

long, but this might send another off to sleep as their preference is for more active, hands-on learning. Using

a mix of different methods means that there will be something to suit everybody.

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4.4 – Develop and assess staff knowledge of product to be sold

By the end of this chapter, the learner should be able to:

 Identify product and service details which it may be necessary for staff be aware of

 Highlight sources of information on products or services to be sold

 Identify methods that could be used to assess staff knowledge of the product to be sold.

Knowledge of product details

Any staff member that is part of the sales team and will be responsible for communicating with customers,

suppliers, the media, retailers, etc. will need to have a detailed knowledge of any products that are being sold.

Being able to provide key information to others in a prompt manner demonstrates that employees are

passionate about the product and this could be the difference between making a sale and not. Although

customers will usually understand if an employee has to go and clarify something about the product or

service, this could result in a loss of sale if the details cannot be established quickly.

Product details to confirm may include:

 Dimensions

 Weight

 Colour

 Durability

 Functions

 Cost and discounts

 Materials

 Specifications.

The actions that are required to obtain and study information regarding

products and services will vary depending on the type of organisation that you work for.

Service details may include:

 What is involved in the service

 The length of service delivery

 Who delivers the service

 The experience or skillset of the person delivering the service

 The costs involved.

Sources of information

If you want all employees in the sales team to have a detailed knowledge of product or service details, then it

is a good idea to inform them of where they can acquire the knowledge from and the level of detail that is

required.

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It may be necessary for employees to:

 Read an employee handbook

 Study a product or service information book

 Locate and read product or service details on

website or intranet

 Read product labels

 Locate and read marketing plan

 Become familiar with catalogues

 Read product or service promotional

documents

 Speak with supervisors or specialists.

Assessing knowledge

Before employees are left responsible for conveying product or service information to others, it may be a

requirement for them to undertake a test. You might decide to inform them in advance that this will be

taking place or implement it randomly to see whether they have taken the time to memorise the key

information. The level of formality may dictate the assessment type that you choose to use. If you inform

employees that it is an informal test they might look upon it in a more positive manner, as some individuals

might find a formal test pressurising.

Methods of assessing knowledge could include:

 A multiple choice test

 A written question and answer test

 An individual verbal assessment

 A group verbal assessment

 A role play or simulation.

You will also need to establish whether there needs to be a pass rate or certain knowledge level for employees

to reach. If necessary, staff members may have to further revise the product or service details and repeat the

assessment until their knowledge is deemed acceptable.

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5. Monitor and review sales plan

5.1. Monitor implementation of the sales plan

5.2. Record data measuring performance versus sales targets

5.3. Make adjustments to sales plan as required to ensure required results are obtained

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5.1 – Monitor implementation of the sales plan

By the end of this chapter, the learner should be able to:

 Highlight aspects of the sales plan which ought to be monitored

 Identify systems that could be used to evaluate sales effectiveness.

Monitoring implementation

Once the sales plan has been finalised and everyone is aware of their responsibilities, it will be necessary to

monitor and review the sales plan. This should take place throughout the sales process so that any issues or

concerns can be addressed before they escalate.

You could choose to monitor multiple aspects of the sales process which have been looked at throughout the

unit.

For example:

 Market research

 Product development

 Advertising and promotion

 Resource acquisition

 Product placement

 Sales figures and customer interest.

Observing response to products

You will need to try and establish both the interest in the product or service that you are offering, and

crucially, the sales figures once it has been placed on the market. The actions to do this will be similar to

those highlighted in relation to reviewing previous sales figures.

You may have a range of systems for evaluating sales effectiveness, such as:

 One-to-one performance reviews

 360˚ feedback and review

 Sales performance review e.g. revenue, gross

profit, customer numbers

 Observations of activities e.g. customer visits,

sales presentations

 Scrutiny of written work e.g. proposals; letters;

emails

 Review of third party feedback on performance e.g. from customers; colleagues; senior

managers

 Performance meetings

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 Self-assessments against performance standards.

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5.2 – Record data measuring performance versus sales targets

By the end of this chapter, the learner should be able to:

 Describe organisational expectations in relation to recording data measuring performance

versus sales targets.

Recording data

After obtaining information which states how the sales process is progressing and whether targets are being

met, your organisational requirements may state that data needs to be recorded. Records can act as a useful

tool to indicate how performance is improving or degrading over time, and can be implemented into

presentations and reports to provide key personnel with an exact understanding of how well sales are going.

The requirements within your workplace for recording data may be contained in handbooks or workplace

guidelines, but could include details being entered into a spreadsheet or specialist software system. When

time-bound objectives were set at the start of the process, these could be placed alongside the data to

demonstrate expectations versus reality. For example, a line graph could be used where the total revenue for

a product is placed alongside the expected revenue. If actual sales are higher or lower than expected, then

further actions can be taken to rectify the situation or enable continued success.

You will need to clarify the following in terms of recording performance data:

 The measures of performance that should be used

 Where sales and performance data can be obtained

 The regularity of sales monitoring and recording, e.g. daily, weekly, monthly

 The method that should be used to record data

 How current sales should be presented or compared to expected sales

 When interventions or escalations should take place.

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5.3 – Make adjustments to sales plan as required to ensure required results are
obtained

By the end of this chapter, the learner should be able to:

 Identify adjustments that could be made to a sales plan to ensure required results are

obtained

 Describe how confirming and corrective feedback could be provided to staff members to

ensure required results are obtained.

Adjusting the sales plan

Managers and supervisors may be responsible for altering the sales plan once they start receiving

performance based evidence on a product or service. This could happen at various stages, such as in response

to customer feedback during product development, or after sales have started to take place. Remember that

altering the sales strategy does not necessarily mean that sales are lower than expected; when sales are higher

than forecasted, you might also need to make adjustments, such as altering your contract with a supplier in

order to receive a greater quantity of goods, or recruiting new staff members to handle the demand.

Adjustments could refer to the possible contingency plans as highlighted in chapter 3.3, as well as others.

For example, you might have to:

 Change stock ordering

 Manoeuvre stock placement

 Introduce sales promotions

 Alter pricing strategy

 Alter recruitment strategies

 Make changes to the product or service

 Modify advertising and promotion method.

Providing feedback to employees

Where you have come to the conclusion that the sales plan is in someway not reaching its potential due to

employee performance, it may be useful to provide them with feedback and suggestions. The use of feedback

is a method of supporting the work team and ensuring that they can continually improve their performance

in order to increase profits.

Confirming feedback

Conforming feedback is that which merely informs the recipient that they are doing the correct thing and

that they should continue as they are. This approach should be utilised instead of simply allowing employees

to carry on without any communication, as it can build confidence and lets them realise that they are on track

in meeting objectives.

Corrective feedback

Corrective feedback is that which informs the recipient that they need to correct certain actions in order to

perform as desired. They are usually given specific examples of the desired behaviour or result they are

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required to correct to. Where necessary, further training could be provided to employees who are struggling

to engage with customers and convince them to purchase the product or service.

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Summative Assessments

At the end of your Learner Workbook, you will find the Summative Assessments.

This includes:

 Skills Activity

 Knowledge Activity

 Performance Activity.

This holistically assesses your understanding and application of the skills, knowledge and performance

requirements for this unit. Once this is completed, you will have finished this unit and be ready to move onto

the next one – well done!

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References

These suggested references are for further reading and do not necessarily represent the contents of

this unit.

Websites

Calculating revenue: http://www.investopedia.com/ask/answers/09/how-companies-calculate-

revenue.asp

Creating A Mission Statement, Setting Goals And Developing Strategies:

http://rvcog.org/Creating%20a%20Mission%20Statement

Distribution Channels: http://www.investopedia.com/terms/d/distribution-channel.asp

Increasing transaction value: http://marketingwizdom.com/strategies/value

Sales Presentations: Adapt to Your Customers’ Needs: https://businesstown.com/articles/sales-

presentations-adapt-to-your-customers-needs/

All references accessed on and correct as of 20/07/2017, unless other otherwise stated.

http://www.investopedia.com/ask/answers/09/how-companies-calculate-revenue.asp

http://www.investopedia.com/ask/answers/09/how-companies-calculate-revenue.asp

http://rvcog.org/Creating%20a%20Mission%20Statement

http://www.investopedia.com/terms/d/distribution-channel.asp

9 Higher Transaction Value Strategies

https://businesstown.com/articles/sales-presentations-adapt-to-your-customers-needs/

https://businesstown.com/articles/sales-presentations-adapt-to-your-customers-needs/

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