Simulated Business JKL Industries

Business and strategic planning FY 2014–2015

Mission

JKL Industries is an Australian-owned company selling forklifts, small trucks and spare parts to industry. We deliver value to customers and investors through our highly trained, motivated, and expert workforce.

Vision

JKL Industries believes in developing and unlocking the potential of its people to allow the company to become the leading supplier of forklifts, small, medium and large trucks in Australia.

Company values

JKL Industries is committed to:

  • performance excellence
  • value for investors, customers and employees
  • personal and professional development
  • diversity

© 2015 Innovation and Business Industry Skills Council Ltd

Strategic planning

Goals

Strategic objectives

Operational objectives

Provide value to investors and owners

Increase overall profitability by 10% over next three years.

Reduce costs through negotiations with suppliers.

Reduce costs through HR management efficiencies.

Goals

Strategic objectives

Operational objectives

Increase revenue by through providing increased customer value.

Exit underperforming markets; JKL Industries will withdraw from the rental market and close the rental division within the next 18 months.

HR partners with business to help business achieve financial goals.

HR completes scan of external conditions and market/industry forces impacting competitiveness and capability development.

Provide value to customers

JKL Industries will continue to sell and service forklifts and expand their market share by 7% within the next 12 to 18 months.

Provide quality customer service.

JKL Industries will expand existing branches to include the sale of medium and large trucks within 18 months.

Goals

Strategic objectives

Operational objectives

HR partners with business to help business meet customer needs.

HR partners with front-line managers to help them meet the needs of customers through motivated, competent and well-equipped staff.

Develop workforce potential

Provide required training to meet workforce needs.

Deliver training to up-skill rental employees.

Deliver ongoing training for employees.

Deliver leadership training for future generation of leadership.

Recruit.

Conduct workforce planning through FY 2016–2017.

Complete implementation of staff planning for FY 2014–2015.

Conduct skills audits and needs analysis for all roles to be filled by recruitment strategy.

Ensure all critical roles are filled to meet revenue targets.

Become an Employer of Choice.

Provide personal development plans for all employees.

Retain managerial talent through rewards, promotion and training.

Provide best in industry programs incentives and HR services.

Enhance employee and industrial relations.

Implement new grievance and dispute resolution procedures.

Complete enterprise bargaining.

Manage performance and adherence to organisational values.

Complete twice-yearly performance reviews.

Communicate organisational values and code of conduct.

Operational plan

JKL Industries intends to implement operational plans to realise strategic objectives. Key aspects to operations include human resources and workforce planning, performance management, physical and financial resources and workflow.

Human resources

Goals

Strategic objectives

Operational objectives

Build culture of excellence: eliminate discrimination and promote diversity in JKL’s workforce.

Promote levels of diversity in workplace proportional to percentage of population.

Continuously improve operations and management

efficiency

Monitor performance in all areas of strategy and operational efficiency.

Monitor management inputs, such as completion of reporting and coaching requirements.

Monitor stock turns of forklifts, trucks, etc.

Monitor HR service delivery efficiency.

The organisation is currently using a HR business partner model with a human resources officer aligned to each of the three key business areas: Sales, Rentals and Service.

The Managing Director reports to the Board of Directors and is based in the Sydney head office, along with the Operations Manager, HR Department and the Finance and Administration teams. The HR Manager reports to the Operations Manager and heads up the HR centres of excellence that include recruitment, learning and development, and employee relations and services. At each of the state-based sites there is a branch office consisting of an office building, warehouse, service department and sales office. The HR officers (Business Partners) report to both the HR Manager at head office and their respective managers in the branches.

JKL Industries employs over 190 personnel in the following categories (see organisation chart on the following page).

simulated business JKL Industries

A summary of human resources at each location in FY 2013–2014 appears below:

Personnel:

30 full-time and casual sales and customer service people (10 sales consultants;

5 rental sales consultants; 5 mechanics; 3 apprentices, 3 HR officers; 3 administrative assistants

accounts manager and 2 accountants

senior management team (3) + 1 branch manager (operations manager, HR manager, finance and administration manager)

CEO and managing directors.

Branches

Each branch employs the following personnel:

30 full-time and casual sales and customer service people (9 sales consultants;

4 rental sales consultants; 5 mechanics; 3 apprentices, 3 HR officers; 3 administrative assistants

branch manager.

Office requirements

Sydney head office

size: 15,000 square metres (~70% space available for sales and rentals; ~25 available for servicing)

large mezzanine office space (occupied by Senior Management Team)

loading bay with large capacity.

Branches

average size: 12,000 square metres (~70% space available for sales and rentals; ~25 available for servicing)

large mezzanine open-plan office space with separate access (was previously rented out to a telemarketing company)

loading bay with large capacity.

Operating capital requirements

JKL Industries requires approximately $13 million in working capital to sustain the business and ensure it meets all opening and ongoing financial obligations.

Operational expenses

Wages, salaries

$6,000,000

Consultancy fees

$150,000

Communication expenses

$120,000

Marketing

$2,400,000

Premises expenses

$3,000,000

Insurance

$356,000

Depreciation and amortisation

$540,000

Office supplies

$180,000

Training

$180,000

Total expenses

$12,926,000

Insurance requirements

JKL Industries will have to incur costs for business liability insurance. The estimated cost for this requirement is $356,000 per year.

Operational workflow

Sales

  1. Negotiate with suppliers.
  2. Receive and warehouse products.
  3. Provide service and information to customers.
  4. Receive payment.
  5. Arrange delivery of items (if required).

Rentals

  1. Conduct market research to determine needs.
  2. Negotiate with suppliers.
  3. Receive and warehouse rental products.
  4. Provide service and information to rental customers.
  5. Receive payment.
  6. Arrange delivery of items (if required).

Service

  1. Conduct market research to determine needs.
  2. Negotiate with suppliers.
  3. Receive and warehouse service supplies.
  4. Provide service and information to service customers.
  5. Receive payment.

JKL Industries accepts cash, EFTPOS and major credit cards. Credit terms are available for trades.

Operating hours

JKL Industries operates Monday to Friday from 9 am to 5 pm, and will be operational year-round except federal and state holidays (as they apply to each branch).

Risk management strategy and plan

Introduction

JKL Industries recognises that risk management is an essential component of good management practice and is committed to the proactive management of risks across the organisation. The strategy is designed to:

  • identify, evaluate, control and manage risks, including environmental risks
  • ensure potential threats and opportunities are identified and managed
  • inform store management, partners and staff members about their roles, responsibilities and reporting procedures with regards to risk management
  • ensure risk management is an integral part of planning at all levels of the organisation.

Guiding principles

JKL Industries is committed to achieving its vision, business objectives and quality objectives. This will be achieved through the proactive management of risk at all levels of the organisation. JKL Industries acknowledges that embracing innovative ideas and practices carries with it risks, but that these are identifiable and measurable and therefore capable of being subject to realistic risk mitigation processes.

Responsibility and authority

  • Store managers/partners have responsibility for ensuring that risk management is in place.
  • Managers/partners have the responsibility of reviewing the Risk Action Plan (outlined in the table at the end of this document) on a monthly basis.
  • Staff have responsibility to support and implement policies approved by the partners.

Key risk indicators will be identified, closely monitored and action taken where necessary, by all employees of JKL Industries.

Risk management framework

This framework encompasses a number of elements that together facilitate an effective and efficient operation, enabling JKL Industries to respond to a variety of operational, financial, commercial and strategic risks.

These elements include:

  • Policies and procedures: A series of policies underpin the internal control process.
  • Reporting: Decisions to rectify problems are made at regular meetings of the partners and management.
  • Business planning and budgeting: The business planning and budgeting process is used to set objectives, agree on action plans and allocate resources. Progress towards meeting business plan objectives is monitored regularly by the partners. Contingency planning is undertaken as required.
  • Risk management review: The partners are required to report monthly.
  • External audit: The final audit of financial statements is controlled by an external chartered accountant who provides feedback to the partners.

Definitions

Risks are identified on a scale of likelihood of occurring in the next 12 months and assigned an impact or consequence of the risk as high, medium or low:

  • High includes either a significant shortfall of around 40% in achieving budget or a significant reduction in ability to function in such a way as to achieve company goals.
  • Medium includes either a shortfall of budget of between 10% and 20% or some reduction in function.
  • Low indicates minor reductions in achieving budget or minimal reduction in performance.

JKL Industries

Risk management action plan

Risk

Risk likelihood

Risk impact

Controls

Monitoring

Timelines

Responsible

JKL Industries fails to meet revenue goals

Medium

High

 Tightly plan and manage skills and capability.

Scorecard results

Financial statements.

Monthly and quarterly reporting

Managers at each level

JKL Industries fails to expand market share

Medium

High

Manage performance and adherence to organisational values.

Regular training.

 Revenue figures  Customers.

Monthly and quarterly reporting

Managers at each level

JKL Industries fails to recruit and retain staff in areas of critical need (management, salesforce, mechanics)

Medium

High

Manage performance and adherence to organisational values.

Take steps to become an Employer of Choice (steps TBD).

Plan strategic approach to workforce and staffing for three years in alignment with organisational goals.

Consult to complete shorter-term (yearly) staffing plans in business partnership with relevant managers in alignment with workforce strategic planning.

HRMS statistics:

training numbers

recruitment figures

turnover

Internal climate survey results.

Monthly and quarterly reporting

Managers at each level

JKL Industries fails to comply with legislative requirements

Low

High

Manage performance and adherence to organisational values.

Regular review of legislative environment and relevant policies.

Complete enterprise agreements.

Implement grievance and dispute resolution processes.

HRMS statistics:

demographics  audit results

organisational climate survey results

Monthly and quarterly reporting

Managers at each level

Individual staff and contractors

© 2015 Innovation and Business Industry Skills Council Ltd 1st edition version: 1

BSBLDR502 Lead and manage effective workplace relationships Page 11 of 20

Policies and procedures

JKL Industries has a number of policies and procedures to support its core values and to ensure compliance with legislative requirements.

Code of ethics

JKL Industries acknowledges its role as a responsible corporate citizen. JKL’s success will result not simply from satisfying specific equipment needs for a quality product at reasonable prices, but from conducting its business with integrity and in accordance with the core values of the organisation.

Employees and officers of JKL Industries are expected to:

  • respect and support the core values of the organisation:

○ performance excellence

○ value for investors, customers and employees

○ personal and professional development

○ diversity

○ sustainability

  • respect and treat others (colleagues, managers, reports, clients, customers and organisational stakeholders) with fairness
  • act in accordance with relevant legislation, standards and industry codes of practice
  • act honestly to protect the reputation of JKL Industries; avoid the fact or appearance of conflict of interest
  • protect the privacy of others in accordance with organisational privacy and recordkeeping policies.

Health, safety and rehabilitation policy

The purpose of this policy is to state the organisation’s commitment to reducing and managing health and safety risks, and delivering workers’ compensation and rehabilitation and first aid training

This policy applies to all officers, employees and contractors of JKL Industries. In accordance with legislative requirements, employees must be consulted on health and safety issues that concern them. Consultation may be direct or indirect.

Applicable legislation includes:

  • Safety, Rehabilitation and Compensation Act 1988 (Cwlth)
  • Work Health and Safety Act 2011 (NSW)
  • state health and safety Acts that apply to each branch (check your state’s legislation)
  • Workers’ Compensation Act 1987 (NSW)
  • Workplace Injury Management and Workers’ Compensation Act 1988 (NSW).

JKL Industries’ health, safety and rehabilitation policy are displayed in all work locations.

Workplace harassment, victimisation and bullying policy

The purpose of this policy is to underscore the organisation’s commitment to the elimination of all forms of bullying and harassment in the workplace. All employees have the right to conduct their work within a fair, supportive, high performance environment.

Harassment, victimisation and bullying in the workplace are illegal and such actions are not tolerated by JKL Industries.

Staff members found to be harassing or bullying other members of staff or customers will face disciplinary action ranging from counselling and performance management to summary dismissal.

This policy applies to all officers, employees and contractors of JKL Industries.

Relevant legislation may include, but is not limited to:

  • Disability Discrimination Act 1992
  • Workplace Gender Equality Act 2012 (Cwth)
  • Racial Discrimination Act 1975
  • Sex Discrimination Act 1984
  • Anti-Discrimination Act 1977 (NSW).

Simulated Business

Anti-discrimination and equal opportunity policy

The purpose of this policy is to underscore the organisation’s commitment to the fair treatment of all personnel and customers.

JKL Industries values the diversity of its team, clients and communities and respects the rights of individuals and groups to operate in an environment free of discrimination. Access and equity (diversity and anti-discrimination) is fundamental to the operations of JKL Industries. It is embedded in policies, practices and forward planning. JKL recognises the importance of diversity in achieving our vision.

JKL Industries understands the business environment and actively assists customers to reach their optimum potential. Our primary objective is to be solution-oriented and focused on customer needs. JKL recognises that valuing diversity is pivotal to achieving its vision.

A welcoming, supportive environment will be provided leading to positive learning and employment, and individuals having the opportunity to reach their optimum potential.

At JKL Industries, anyone engaged in employment or the provision or receipt of training and/or services has the right to operate in an environment that is free from discrimination on the grounds of the following 19 characteristics:

age

breastfeeding

employment activity

gender identity

impairment or disability

industrial activity (complaint about conditions/safety or trade union action)

irrelevant medical or criminal record

lawful sexual activity

marital status

parental or carer status

physical features

political belief or activity

pregnancy

race

religious belief or activity

sex

sexuality

social origin or migration status

personal association with someone who has, or is assumed to have, any of the above characteristics.

Procedures are in place for handling any grievances, including complaints of discrimination, unfair treatment or harassment. Complaints will be taken seriously and every effort will be made to resolve them quickly, impartially, empathically and with appropriate confidentiality. Victimisation of complainants and witnesses is illegal.

Complaints may also be lodged with a relevant government agency or regulatory body.

This policy applies to all officers, employees and contractors of JKL Industries.

Relevant legislation may include, but is not limited to:

  • Disability Discrimination Act 1992
  • Workplace Gender Equality Act 2012 (Cwth)
  • Racial Discrimination Act 1975
  • Sex Discrimination Act 1984
  • Anti-Discrimination Act 1977 (NSW).

Privacy policy

The purpose of this policy is to outline JKL’s commitment to protecting the right to privacy of both employees and customers.

Although not a legislative requirement, JKL Industries’ employees, officers and agents are expected to take all reasonable steps to abide by the Australian Privacy Principles, as set out in the Privacy Act 1988.

The following is an adaptation of the principles to provide guidance to individuals responsible for collecting or using customer information.

1. Open and transparent management of personal information

Employees, officers or agents of JKL Industries must have a policy document outlining its information handling practices and make this available to anyone who asks for it (this document).

2. Anonymity and pseudonymity

Employees, officers or agents of JKL Industries must give people the option to interact anonymously whenever it is practicable to do so. Note this principle would not apply to many internal records; nevertheless, where this principle can be applied without adverse effect to legitimate business interests, such as in employee satisfaction surveys undertaken by HR, it should be.

3. Collection of solicited personal

information

Personal information may not be collected unless it is necessary for JKL Industries’ business activities.

Sensitive information (such as about someone’s health, political opinions or sexual preference), may only be collected with the consent of the individual.

4. Dealing with unsolicited personal information

On occasion, staff, officers and agents of JKL Industries may receive unsolicited personal information. Such information must be afforded the same privacy protection as solicited information.

On receipt of unsolicited personal information, you must:

 determine whether it is the kind of information that could have been collected by JKL Industries in the usual way, and:

○ if the information could have been collected in this way, treat is as you would any other personal information

○ if the information could not have been collected in this way (and is not contained in a

Commonwealth record), you must destroy or deidentify the information as soon as practicable, but only if lawful and reasonable to do so.

5. Notification of the collection of personal information

Employees, officers or agents of JKL Industries must ensure that individuals are aware their personal information is being collected, why it is being collected, who it might be passed on to, and that they can ask JKL Industries what personal information it holds about them and to request corrections if required.

6. Use or disclosure of personal information

Personal information may only be used for legitimate purposes. Legitimate uses include, for example, using information for the purpose of improving operations, strategic planning, or recruitment. Non-legitimate uses would involve direct marketing to friends and families of employees through the use of employee contact information.

7. Direct marketing

Direct marketing is a key part of the JKL Industries’ business plan; however, JKL Industries recognises that direct marketing that is unwelcome to an individual can annoy the individual and ultimately reflect badly on the organisation. Therefore, staff, officers and agents of JKL Industries must be very careful when using personal information for direct marketing purposes.

Personal information may be used or disclosed (excluding sensitive information) for the purposes of direct marketing provided the following criteria have been satisfied:

the information was collected from the individual directly by JKL Industries

the individual would reasonably expect that their personal information would be used or disclosed for direct marketing

JKL Industries has provided a simple means by which the individual can request not to receive direct marketing (such as an ‘unsubscribe’ or ‘opt out’ function or provide contact information where they can make the request)

the individual has not already made such a request to JKL Industries.

8. Cross-border disclosure of personal information

Employees, officers or agents of JKL Industries can only transfer personal information to a recipient in a foreign country in circumstances where the information will have appropriate protection. This principle applies to foreign subsidiaries and strategic partners of JKL Industries. ‘Appropriate protections’ include but are not limited to stipulations in this policy.

9. Adoption, use or disclosure of government-related

identifiers

Generally, JKL Industries employees, officers or agents must not adopt, use or disclose an identifier that has been assigned by a Commonwealth government agency, such as a tax file number, unless for a legitimate business or operational reason, such as the processing of payroll, where tax file numbers may need to be shared.

10. Quality of personal information

Employees, officers or agents of JKL Industries must take reasonable steps to ensure the personal information they collect is accurate, complete, up-to-date and relevant to its purpose.

11. Security of personal information

Employees, officers or agents of JKL Industries must take reasonable steps to protect the personal information it holds from misuse, interference and loss, and from unauthorised access, modification or disclosure. Where required by law after a certain period, employees of JKL Industries must take appropriate steps to destroy or de-identify personal information in certain circumstances.

12. Access to personal information

Generally, Employees, officers or agents of JKL Industries must give an individual access to personal information it holds about the individual on request. Note that some exceptions may apply, such as in cases of misconduct, fraud, criminal behaviour, or dismissal procedures.

13. Correction of personal information

Employees, officers or agents of JKL Industries must take all reasonable steps to correct the personal information it holds about individual when requested by that individual, in a timely manner, and at no cost to the individual.

JKL Industries takes care to respect employees to privacy and fully complies with our obligations under relevant legislation. Employee records are exempt from the Privacy Act. Records include:

  • employee records and personnel files
  • referee reports
  • workplace surveillance and monitoring.

Although such records are exempt from the Privacy Act, JKL Industries is committed to protecting the privacy of employees through:

  • providing access to own records where available or practicable for correction
  • undertaking not to pass on data to others or external parties except for the strict purposes of undertaking JKL business activities or without express permission.

This policy applies to all officers, employees and contractors of JKL Industries.

Relevant legislation may include, but is not limited to:

  • Privacy Act 1988
  • Privacy Amendment (Private Sector) Act 2000.

Recordkeeping policy

The purpose of this policy is to outline the organisation’s approach to recordkeeping.

At JKL Industries, records management systems are based on developing and implementing recordkeeping policies, procedures, and practices to meet the operational needs of the organisation and that comply with externally imposed standards such as legislation.

Implementation strategies for recordkeeping systems include:

  • ensuring the system to meets all of the operational and strategic needs of JKL
  • documenting the system (see procedures)
  • training personnel to create and store records
  • setting standards for recordkeeping and monitoring the use of systems
  • ensuring all legislative requirements are met, including for retention periods.

JKL Industries adheres to the Australian and international standard for recordkeeping, AS ISO 15489: 2002 Records management.

This policy applies to all officers, employees and contractors of JKL Industries.

Relevant legislation may include, but is not limited to:

  • Privacy Act 1988
  • anti-discrimination legislation.

Recordkeeping procedures

File management

Create a personal subfolder within the server (using your name as the subfolder name) to hold your day-to-day working files.

Do not store company data on your C: drive (i.e. do not save work only to your computer, rather than to the network) unless absolutely necessary. Company data should be stored in the appropriate server drive. Unlike the servers, which are backed up automatically, data on your own computer is not backed up and your work may be lost if you experience a system crash.

If you use a laptop and require access to files off-site, you will be set up with remote access to server files away from the office.

When documents are completed, they should be saved to the appropriate ‘completed work’ folder in your department.

To ensure privacy, all employee records and information gathered from employees must only be used for the stated purpose of collection and must be kept on a secure HRMS server.

Filenames

Filenames should include the author’s last name, the title of the report (or abbreviated title of report), and the date of submission.

Back-ups

Back-up copies of all electronic files on the server are made twice weekly.

If you spend an extended time away from the office network using a laptop, it is your responsibility to ensure local copies of company files are backed up.

Performance management policy

The purpose of this policy is to underscore JKL Industries’ commitment to monitoring performance, developing workforce capability and developing its people.

Performance reviews should be held twice yearly by managers. Performance should be monitored against agreed KPIs and feedback provided on a regular basis.

This policy applies to all officers, employees and contractors of JKL Industries.

Relevant legislation may include, but is not limited to:

  • Privacy Act 1988
  • anti-discrimination legislation
  • equal employment opportunity (EEO) legislation.

Grievance policy

JKL Industries supports the right of every employee to lodge a grievance with their manager if they believe a decision, behaviour or action affecting their employment is unfair. An employee may raise a grievance about any performance improvement action taken against them.

Management and employees of JKL Industries should follow the principle that disputes should be addressed at the lowest possible level and should not be escalated either within JKL or to outside bodies until all reasonable avenues for resolution have been explored.

Relevant legislation may include, but is not limited to:

  • Privacy Act 1988
  • anti-discrimination legislation.