Appendix 1 – Case Study Grow Management Consultants

Grow Management Consultants specialises in leadership consultancy. It has been

operational for five years. The company offers a range of services to assist companies to
assess leadership behaviour of existing managers and performance metrics. They also
design and implement customized leadership programs based on the assessment. Services
are offered Australia-wide.

The company employs a General Manager (you), 2 Principal Consultants (who are also
Directors), 1 Senior Consultant, an Administration Officer and Receptionist.

Over the last two years, the company has diversified, and now offers regular professional
development workshops on all aspects of leading and managing staff. These workshops are
conducted approximately every 3 months in all major cities including Sydney, Brisbane and
Melbourne. In 2019 – 2020, the company ran a total of 36 workshops. The company has
also recently produced an E-book about leadership techniques.

The intention is to replace the workshops with the annual conference in the next financial
year, as the workshops were not well attended. Client feedback and continued business
indicates a personalized, company focused approach in the form of consulting services is
the service of choice.

The E-book has had reasonable sales, but there needs to be a wider selection of books, as
well as more marketing. The plan is to generate $10,000 worth of sales for the e-books
during the next financial year and increasing over time.

As the General Manager for the company and with responsibility for finances, you are
currently completing the financial planning for the year ahead. This involves a review of the
company’s business plan, previous year’s profit and loss statement, the current business
plan and strategic directions and cash flow statements. Based on the review, you will be
establishing budgets and allocating funds.

In developing the budget, you are to assume a 5% increase in cost of sales, as well as a
10% increase in sales for consulting services and executive search.

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As set out in the business plan, the company plans to run an annual conference each year
starting in 2021. The costs for the conference have been estimated by the Principal
Consultant and are set out in the Estimated Costs and Income document. Conference
attendance is aimed at 100 people paying $750 each.

The Principal Consultant has also asked you to review the current accounting software used
by business. The company is currently using MYOB but as it has grown, the Principal
Consultant wishes to review whether this is the best accounting software available for their
needs. He has also requested that the software have a cloud feature.

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Appendix 2 – Strategic Business Plan 2021 to 2023

Grow Management Consultant

Welcome

Welcome to the Business Plan for Grow Management Consultants.

This document sets out our vision for the next three years and how we hope to achieve it.

We hope you enjoy reading this document.

Paul Burns

CEO

Grow Management Consultants

Executive Summary

Established in 2010, Grow Management Consultants is a management consultancy

company specialising in providing services to companies to assist them to improve the
leadership performance of their staff.

Grow Management Consultancy draws on its up to date knowledge and skills in best
practice leadership concepts to assist clients with leadership performance

Mission Statement

Our mission is to assist all of our clients to build a strong group of professionals with
commitment to the company and to meeting the needs of the company’s customers.

Values

Core values underpinning our activities are:

 Quality
 Innovation
 Respect
 Reliability

Strategic Priorities
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Key strategies

To be well led, high performing, profitable and accountable

 Ensure that all financial operations, performance indicators and results support the
strategic policies
 Identify new and expand existing sources of revenue
 Achieve profits of at least 10% per annum.

Develop services to meet customer needs and aspirations

 Increase range of services offered to include change management and diversity

 Plan for and establish an annual conference, starting in 2016.
 Increase range of e-books commencing with Organisational Change e-book to be
published during 2021.

Continue building deeper customer relationships

 Customer-centred practice, with a focus on meeting their total needs for a high
quality services
 Strengthen the skills of our people, to better support customers
 Drive innovation to better meet customer demands

Attract, engage and develop the best staff

 Continuing the drive to a customer centred, high performance workforce and culture
 Strengthening the skills of our people, to better support customer needs
 Empowering innovation and responsiveness to change
 Continuing to enhance the diversity of our workforce.
 Employing additional consultants

The Market

The Management Consulting industry has grown weakly over the past five years. Poor
demand from downstream markets constrained industry revenue growth, with financial
services and resources firms cutting spending on management consultants due to economic
uncertainty and falling commodity prices.

However, businesses using management consultants to introduce new business processes

and enhance operating efficiencies have partly offset this trend. Industry operators have also
increasingly incorporated analytics into their services, which offer clients greater

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understanding of their business and clients. Demand for services backed by analytics is
expected to have growth of 3.8% in 2015-16.

Research also shows that there is a need for workers to have strong leadership and
management skills to support collaborative management, managing teams for a distance,
empowering others and business acumen. Thus the demand for leadership consultancy
services is still strong.

Situation Analysis

Strengths Weaknesses

Value and quality Brand name not developed as yet

Strong management Small organisation

Customer loyalty

Friendly organisational culture

Level of available finance for investment

Opportunities Threats

Leadership skills in demand High level of competition

Opportunities to offer a range of services Economic downturn meaning less spent on

consultants

Failing to satisfy clients demands

Marketing Strategies

Our marketing strategies aim to:

 build our brand

 generate leads now
 help to convert those leads quickly
 form the basis of ongoing relationships and referrals

We plan to develop our market share by:

 Improving our marketing and advertising

 Continually improving the quality of service given to clients
 Maintaining effective communication channels with all stakeholders to ascertain
industry requirements and then develop products and manage services accordingly

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  Continually improving communication channels with all our stakeholders, ensuring a
flow of timely and accurate information to facilitate effective planning and decision
making
 Targeting identified growth markets with planned, market appropriate campaigns
employing a variety of promotional strategies and advertising mediums
 Offering attractive fee structures to our clients
 Continually improving the skills, knowledge and effectiveness of Grow Management
Consultants through our commitment to training and development
 Regularly reviewing the effectiveness of all our operations and making improvements
when and where necessary

Estimated conference and e-book costs and income

Conference prices: early bird $425, standard $475

Type Cost

Venue and catering in Sydney CBD $5,000

Speaker fees and travel $10,000

Marketing $5,000

Conference bags $1,000

Staff time (appoint casual Project Officer for 6 $30,000

months, may be permanent depending on
success)

Anticipated numbers: 100 people. Price of conference to be $750.

Estimated E-book costs: book to be sold at $75.00

Type Cost

Contract writer $10,000

Desktop publishing $3,000

Marketing $1,200

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Expected income: $10,000 across both e-books for 2020/21.

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Appendix 3 – Financial performance report

Introduction

Outline purpose of the report.

2019/20 Performance

Analysis of the previous year’s (2019/20) profit and loss statement for Grow Management
Consultant, including revenue generated, cost of sales, as well as gross profit/loss margin
and net profit/loss margin.

Analysis of overall business performance, as well as performance of each of the income

streams for 2019/20.

Outline the reasons for profit or loss based on your analysis of the data and research on
economic conditions and business trends.

Strategic goals and priorities

Outline the goals and priorities for the upcoming financial year as documented in the
Strategic Business Plan and financial resources required to achieve these goals as per the
estimated conference and e-book costs. Include the dates by which these are to be
achieved to information the budget forecasts.

Cash flow statements analysis

Provide your analysis of cash flow trends as per the cash flow statements.

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Financial Software

Provide your review and analysis of at least three other financial software that the business
could use, including the advantages and disadvantages of each, as well as the advantages
and disadvantages of MYOB.

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Appendix 4 – Finance Policy and Procedures

Purpose of the Policy

All finance transactions as noted in this policy are to be authorised by the noted authorised
person prior to the transaction being undertaken.

This policy is to be read in conjunction with other specific finance policies where relevant.

Procedures

Prior to any of the following finance transactions being undertaken, the authorising person
noted must authorise the transaction.

Where additional policy is noted, this policy must also be adhered to when undertaking the
finance transaction.

Finance Transaction Authorised Person

Bank Accounts CEO/Finance Manager

Issuing Petty Cash Senior Managers

Business Credit Card Senior Managers

Authorising New Customers Finance Manager

Authorising New Suppliers Finance Manager

Purchasing Stock Senior Managers

Purchasing Assets/ Equipment CEO

Debt Collection Senior Managers

Payment of Invoices Senior Managers

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Petty Cash Policy

Purpose of the Policy

Petty cash should be used to pay for small business expenses up to $100 where payments
through accounts payable or credit card are not justified or appropriate

Procedures

Issuing Petty Cash

Petty cash vouchers must be completed before any cash is taken from the petty cash float.

Only up to $100 can be disbursed at any one time.

All petty cash vouchers issued must be approved by a Senior Manager.

Once the petty cash is spent, a receipt or invoice should be attached to the voucher and
returned to petty cash with any balance of monies unspent

All completed vouchers must have the following details included:

 Issue date of voucher;

 Name of person who issued the voucher;
 Amount of monies disbursed;
 Details of expense;
 Invoice or receipt
 Signature of approval person,

Reconciling Petty Cash

Petty cash float is to be reconciled at least monthly. This is the responsibility of {insert
relevant job title here}

All petty cash expenditure must be entered into the financial system once the petty cash has
been reconciled.

The balance of monies and vouchers must equal the petty cash float amount before
reimbursement can be made.

Reimbursement of petty cash will be authorised by a Senior Manager.

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Use of Business Credit Card Policy

Purpose of the Policy

This policy provides guidelines for the issue and use of business credit cards.

Procedures

An employee will only be issued a credit card once the Credit Card Authorisation Form has
been completed.

The business credit card can only be used for travel, authorised entertainment and
purchases of small value expenses or equipment up to the value of $500.

No cash advances are to be taken using the business credit card unless authorised by the
Finance Manager.

Where a business credit card is lost or stolen, the owner of this card is to notify the Finance
Manager, who is responsible for notifying the issuing agency and ensuring the card is
cancelled.

The business credit card is not to be used for personal expenses.

All holders of business credit cards are required to reconcile the monthly credit card
statement to the expense form, attach all receipts for payments made on the credit card and
have the expense statement authorised by the Finance Manager.

Upon completion and authorisation of the monthly expense statement, these documents are
to be forwarded to the Finance Manager for payment of the credit card statement.

All business credit cards are to be returned to the business when the person is requested to
by the Finance Manager or where they are no longer an employee of the business.

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New Supplier Policy

Purpose

All new suppliers to the business must be reviewed and accepted in accordance with this
policy to ensure that the supplier service is aligned with the business objectives.

Procedures

Choosing a New Supplier

A new supplier must provide our business with quality products, great service, competitive
pricing and efficient delivery.

The following information table must be completed prior to agreeing to services

Supplier Selection Background Information

Business Name of Supplier:

Location of Supplier:

Products/Services provided by supplier: (Attach a list if necessary)

Name of business owner/ sales representative:

For how many years has the supplier been trading?

Supplier Selection Review Checklist

For each new supplier being considered the following checklist must be completed:

Is the supplier pricing competitive? Attach list to this checklist:

What are the payment terms for this supplier?

What is the return policy for this supplier?

Does the supplier provide warranties, guarantees etc.?

Are the suppliers’ representatives knowledgeable of the products/services and industry?

Is there an alternative to this supplier, has the alternative supplier been considered?

What are the delivery services of the supplier?

Has a credit check been undertaken for the supplier? (attach to this checklist)

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Has the Personal Property Securities Register (PPSR). been reviewed?

Has the supplier been trade checked? (attach this to this checklist)

insert relevant additional information to assist in the decision of appointing a new supplier

Appointment of Supplier

The appointment of a new supplier will be authorised by the Finance Manager.

All relevant details of the supplier will be entered into the financial system by Administration
Assistance once approval is obtained from the Finance Manager.

The Finance Manager will review information entered into the financial system and
independently verify the bank account or other payment details of the supplier to ensure
payments made are to the correct supplier

Supplier Payment Terms

All purchases from suppliers must be supported by a purchase order.

Payment terms for all suppliers must be reviewed by {Insert relevant job title here} every
{Insert timing of review here, recommended at least once a year}. Following this review
each supplier must be approached to seek improved payment terms by Finance Manager.

All supplier payment terms must be a minimum of 30 days.

Any variation to the above must be authorised by Finance Manager.

All supplier payments are to be reviewed once a quarter to ensure that payment terms are
adhered to. For payments made to any suppliers earlier or later than the agreed terms. The
Finance Manager will prepare a report that details the reasons why payment terms have not
been adhered to.

This report will be reviewed and authorised by the CEO.

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Appendix 5 – Financial performance report 2020-2021

Review of overall performance and gross/net profit margins.

Calculation of variation in actual versus budgeted amounts for each income source.

Calculation of variation in actual versus budgeted costs, focusing particularly on

conference costs.

Recommended revisions to the budget for conference costs for 2020/21.

Proposed conference fee for 2021 conference assuming attendance of 70 people and
to make a profit of at least 20%.

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Appendix 6 – Aged Debtor Summary

Grow Management Consultant

Aged Creditors Analysis as of June 2020

Client Name 120+ 90 Days 60 Days 30 Days Current Total

Days

ATO

Totals 0.00 0.00 0.00 0.00 0.00

Grow Management Consultant

Aged Debtors Analysis as of June 2020

Client Name 120+ 90 Days 60 Days 30 Days Current Total

Days

Client 1 $4,356.0
0

Client 2 $2,714.00

Client 3 $3,781.00

Totals $2,714.00 $4,356.0 $3,781.00 0.00 0.00 0.00

0

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