Task 1 – BSBPM522

1. Project initiation and scope document

Project brief:
Max Lionel Realty (MLR), in order to build customer goodwill and satisfy its legal and ethical obligations,
has decided to implement a program to:
 inform agents of legal and ethical obligations (particularly with respect to WHS and anti- discrimination
legislation) and any standards or codes of conduct followed by the organization
 promote high standards in professional conduct (see Real Estate Institute of Victoria (REIV) Code of
Conduct and relevant legislation)
 inform clients, tenants and potential tenants of MLR’s commitments
 achieve employee and client buy-in for initiative.
Project scope:
 Six to eight team members (two to four students plus four virtual team members) who must be utilised
and budgeted for. Operations General Manager (the assessor) will determine composition of project
team.
 The structure of the work should include roles for project sponsor, technical experts, quality assurance
of deliverables, project manager (yourself initially and, after provisional approval, as negotiated with
your team), and roles and responsibilities for each team member to achieve the deliverables according
to standards, etc.
 All reasonable resources (e.g. access to a room, computers, software and templates) will be provided.
Paper and telecommunications costs, for example, to be covered by students. All resources must be
costed and included in your budget.
 Budget: $15,000.
 Project should include design, development, implementation and evaluation stages (with periodic
quality review).
 Project must be coordinated with other organisational projects, operations, etc.
Stakeholder and responsibility:
Max Lionel, CEO
Max is responsible for working with the Board of Directors to oversee the business, set overall strategic
directions, manage risk, and authorise large financial transactions.
Riz Mehra, Chief Financial Officer
Riz is responsible for preparing quarterly financial statements and overall budgeting. Riz Is also
responsible for overseeing budgets for cost centres and individual projects. At the completion of financial
quarters and at the end of projects, Riz is responsible for viewing budget variation reports and incorporating
information into financial statements and financial projections.
Kim Sweeney, Operations General Manager
Kim is responsible for the day-to-day running of the company. Kim oversees the coordination, as well as
the structural separation, of the Residential, Commercial, and Investments centres. Kim is responsible for
sponsoring projects which affect operations of the organisation as a whole. Kim works with the Human
Resources Manager to coordinate systems and projects in order to achieve company-wide synergy.
Les Goodale, Human Resources Manager
Les is responsible for the productive capacity and welfare of people at MLR. With the Operations General
Manager, Kim works to coordinate projects and management systems
such as performance management, recruitment, and induction. Kim will need to ensure aspects
of the recently launched WHS management system, such as risk assessment, management,
consulting, reporting and continuous improvement, are coordinated with all subsequent activities.
Sam Lee, Manager Residential Realty
Sam is responsible for the management of all aspects of residential realty. Sam manages the activities of
residential agents.
Pat Misfud, Manager Commercial Realty
Pat is responsible for the management of all aspects commercial realty. Pat manages the activities of
commercial agents.
Peter Mitchell, Manager Investments
Peter is responsible for the management of all aspects investment realty. Peter manages the activities of
investment agents. Peter works with the Operations General Manager to ensure separation of investment
from obligations to residential and commercial clients.

2. Project Plan
1 Engage with customers/build ● Percentage of brand ● Project to raise awareness of
ethical profile: recognition in sought-after anti discrimination, WHS and
● Raise organizational profile categories in periodic customer other legislation/codes of
by 20% surveys. conduct among agents, clients,

● Improve client satisfaction
performance by 25%.
Increase revenues by
2 20% within the third
quarter.
Reduce direct and
3 indirect costs of
operations by 10%.
● Percentage of customers
with positive view of
organizational responsiveness,
innovation, quality.
● Number of client/tenant
complaints.
● Total income.
● Agent income.
● Investment income.
● General ledger accounts;
financial statements:
● wages
● cost of agent services
● consultancy fees
● wastage and associated
expenses.
tenants.
● Conduct of quarterly surveys:
clients and tenants.
● Training needs analysis and
training of agents.
● Ensure agents disclose
potential conflict of
interest to clients, tenants.
● Development of ethical
charter, including
principles all agents must
follow.
● Investigate resourcing needs:
number of
agents; personnel; office
equipment, cars, etc.
● Fulfil resourcing needs in
accordance with policies and
procedures.
● Renegotiate with suppliers.
● Research potential new
suppliers.
● Management engagement
with employees
to achieve greater employee
support of
organisational goals.
● Include explanation of how
activities work
with organisational strategic
goals in all
communications to internal

Engage workers with
strategic goals of business and
support professional
4 ● Numbers of coaching
development in line with
strategic goals. (Targets to be
set by individual managers.)
5 ● Numbers of injuries
Improve health of
employees (range of specific
areas).
personnel.
● Greater use by managers of
budgets to
encourage restraint.
● Greater focus on budget
restraint in
management of projects.
● Management engagement
with employees
to achieve greater buy in of
organizational goals.
● Include explanation of how
● Percentage completion of activities work with
performance plans and organisational strategic goals in
performance management all communications to internal
process. personnel.
● Regular coaching.
sessions completed. ● Training needs analysis and
Numbers of operational – training.
related training programs ● Strategic goals included in
completed. induction
program for estate agents.
● Employee incentives for
performance in all areas
relevant to operational and
strategic goals.
● Training need analysis and
(Target = 0). training on WHS
● Numbers of absentees and implementation of recently
(Target = <3% of total launched MLR WHS
hours). management system.
● Research incentives for: safe
 work
achievement and healthy
lifestyle.

3. Risk Management Plan

Identified risk Probability Impact Current controls Future actions
Failure to recruit Medium High ● All office equipment ● Industry benchmarking
qualified real estate regularly reviewed and in all areas of
agents due to increased updated as required; IT organisational
competition. security monitored and performance
maintained. ● Conduct periodic
● Appropriate reviews of agent
insurances held and performance to ensure
coverage reviewed professional conduct
annually. ● Staff trained in use
● Managers ncouraged of technology as
and incentivised to follow needed.
performance ● Keep abreast of
management policy. changes in potential
● Employee liabilities.
performance plans align ● Review and develop
with business plan and HR related policies
six monthly review where required.
process in place. ● Development of
● Project to raise ethical charter,
awareness of anti including principles
discrimination, WHS all agents must follow
and other
legislation/codes of
conduct among agents,
clients, tenants
 ● Appropriate HR
policies and procedures
in place.
● WHS management
system in place.

4. Budget
Commissions and agents’ fees for
Commissions, fees from clients $2,566,000
the period.
Investment income $1,567,000 Real estate investment income.
COGS $150,413 Cost of provision of services.
Total Income $3,982,587 Gross profit.
Expenses:
Wages, salaries, superannuation,
Wages, salaries and on costs $1,567,890 work cover insurance,
payroll tax.
Project management: WHS
Consultancy fees $50,000 management system; AD
awareness program.
Communication expenses $42,000 Telephone, ISP costs, IT support.
Staff travel, transport and Cost of staff travel and associated
$55,500
accommodation. costs for sales, etc.
` $250,000 Rent, electricity, maintenance,
cleaning.

Capital expenditure
Depreciation and amortisation
Office supplies
Professional fees (consultants,
legal and audit), insurances,
taxes and charges,
Purchase of new office equipment
$120,000 (90%), vehicles; purchase of
properties, land.
Computers and capital equipment
$177,569
that is depreciated.
Printing and stationery, postage,
$65,068
amenities.
$62,187 Audit fees, external accounting costs,
bank charges,
insurance except workers
subscriptions and
compensation.
memberships.
Total Expenses $2,390,214
Surplus $1,592,373 Net income before tax.