BSBADM409ACOORDINATE BUSINESS RESOURCESPRESENTATION 3

PRESENTATION OBJECTIVES

At the end of this presentation you will be able to:

• Measure effectiveness of resource planning

• Develop and implement methods of monitoring resources

• Identify improvements in resource planning

• Maintain records

EFFECTIVENESS OF PLANNING

Measuring effectiveness of the resource planning phase will require

assessment in actual costs versus those initially budgeted as well as

resource surpluses and shortages.

Cost-effectiveness is a measure of how well an organisation uses its

resources to achieve its desired outcomes.

Monitoring is important for accountability both on an individual and

organisational level. It can also act as a warning for potential

problems and performance improvement.

EFFECTIVENESS OF PLANNING

When significant variances are found within expenditures they should

be documented with an appropriate explanation including corrective

action such as:

• Revising plans or budgets to reflect changed circumstances

• Changing or eliminating activities

• Obtaining additional funding

• Modifying goals or objectives

• Correcting transaction errors

• Implementing new control procedures

MONITORING RESOURCES USAGE

A variety of methods exist to monitor resources.

Monitoring and reporting should be accurate yet efficient and should

be easy to compare against business and operational plans.

Variances that may be uncovered during monitoring could include:

Insufficient detail and targets in the business plan

Weak business planning

Inadequate operational planning

MONITORING RESOURCES USAGE

Some techniques to keep in mind when monitoring include:

• Develop and implement a frequent method

• Link to the operating expense budget

• Explain the relationship between the business and operational plans,

service demand and resource allocation

• Consider continuity planning and other implementation guidelines

• Describe strategies to address any imbalance between resource

allocation and the business and operational plans

When monitoring it is always best to use a small, specific number of indicators

that relate to objectives and goals the resources are being used to achieve

IDENTIFYING IMPROVEMENTS

Improvements can also be identified through consultation and

feedback before an implementation plan is developed.

Feedback can come from a variety of sources such as:

• Customer/client response data

• Employee data

• Equipment meter readings

• Financial forecasts

• Sales orders

• Suppliers' invoices

IDENTIFYING IMPROVEMENTS

Feedback should be measureable and actionable, and if qualitative

data is used, quantitative should also be included to validate.

Data should also be gathered from business processes such as

inventory levels, costs, sales, demand, labour hours, lead times and

space allocations.

Once improvements have been identified and approved, they will

need to be implemented in compliance with organisational policies.

MAINTAINING RECORDS

The final piece to monitoring resource usage is making sure records

and reports are properly created, named, stored and saved.

Records could include:

Maintaining records of assets should be a compulsory activity that

includes an asset acquisition form to be completed when an asset is

acquired and is used as a tool to:

Calculate values of assets / Locate assets / Maintain a security register

Financial statements Order Forms

Invoices / Purchase Orders Petty Cash Forms

Maintenance Schedules Stock Lists / Inventory Controls

MAINTAINING RECORDS

When an error occurs regarding assets or resources, the sooner it is

brought to attention, the quicker it can be rectified.

In records, errors or discrepancies may be discovered:

• During a reconciliation processes

• When balancing the debits and credits recorded

• When entering information into the general ledger

• By a supplier or creditor related to an incorrect payment

• When checking liabilities

ADDITIONAL RESOURCES

The following are additional video resources related to this

presentation:

Collecting resource-usage information

PRESENTATION OBJECTIVES

Now that you have completed this presentation, you will be able to:

• Measure effectiveness of resource planning

• Develop and implement methods of monitoring resources

• Identify improvements in resource planning

• Maintain records