Diploma in Energy ManagementJanuary 2008

Contents

Introduction

Prior Learning

Relationship to Management and Leadership National Occupational Standards

Assessment

Guided Learning Hours

Support and Help

Qualifications Frameworks and Credit Transfer

Units

DEM 1 Planning to Meet Customer & Quality Requirements

DEM 2 Developing Your Management Style

DEM 3 Managing Performance

DEM 4 Identify Scope for Improvement; Development and Implementation of Energy Policies; Promote Energy Efficiency

DEM 5 Monitor, Evaluate and Identify Improvements to Energy Efficiency; Development of Energy Efficient Practices

DEM 6 Systems Development and Implementation which Measure Energy Usage in Support of Improving Energy Efficiency

DEM 7 Managing Marketing Activities

DEM 8 Managing Financial & Non-Financial Resources

DEM 9 Energy Management Project

Diploma in Energy Management

This is one of a series of progressive management qualifications designed by the Chartered Management Institute. This guide is written primarily of candidates for the qualification, and is focused mainly on the content of the programme and the learning outcomes that will be achieved.

Introduction

The emphasis of this programme is on the tactical aspects of energy management. The programme is designed for the hands-on manager who has the authority and personal skills to direct operations and to contribute towards organisational strategy. It is equally valuable for the person who aspires to such a role. In the units that follow, the role is described as "the manager" and the members of staff who report to the candidate are described as "team members" or "personnel".

The aim is to enable the operational manager to improve the effectiveness and efficiency of the management of energy resources by means of:

optimum tactical utilisation of resources

effective communications

development of the team as a coherent, mutually-supportive and motivated group of people who, with the manager, share a common vision and purpose as to the nature of their business.

Prior learning

This programme expects candidates to have knowledge and experience of middle management or technical operations to the same level as a middle manager. This will enable candidates to cope with the level, breadth and depth of this qualification. In some instances, candidates may have evidenced prior learning which will enable the centre to determine whether any credit for it can be given against the requirements of this qualification.

Relationship to Management and Leadership National Occupational Standards

The units in this qualification relate to the general knowledge and understanding specifications of the Management and Leadership National Occupational Standards units. You can find out more about the National Occupational Standards for Management and Leadership and how they can help you develop your management performance in the workplace at www.management-standards.org.uk.

Assessment

Chartered Management Institute awards are professional qualifications that demand high standards of knowledge, understanding, reasoning and judgement, coupled with clarity of expression. Our approach to assessment for all our qualifications is built on the following principles:

a) the assessment should, wherever possible, use work-based evidence drawn from the candidate’s own organisational experience

b) approved centres will have clearly identified how the organisational dimension to the candidate's evidence and assessment will be incorporated into the assessment process

c) the assessment process will be sufficiently flexible to allow for the diversity of candidate organisational experience to be used, and will take into account special needs of any candidate for whom work-based evidence will be difficult to obtain

d) the assessment process will not compromise or present any risk to candidate, organisational or commercial confidentiality

e) the assessment process will recognise equal opportunity issues, will take due account of the values and ethics of management, and will focus on the application of the concepts of management in practice

f) the assessments must be valid, reliable and fair

We encourage our Centres to develop approaches to assessment which are flexible to meet the needs of their candidates, but we need to be assured that practice and outcomes are consistent in rigour and quality between centres.

All the learning outcomes will be assessed by the Approved Centre to a specification agreed with the Institute, and checked by the Institute’s External Verifier. The External Verifier will sample candidate work throughout the programme to ensure that all the requirements are met.

For the Diploma in Energy Management, the Institute requires candidates to complete a project (DEM 9), of a minimum 4500-5000 words, as part of the Centre assessment programme. You should check with your Centre what the agreed assessment programme is.

Guided Learning Hours

These are used as a notional measure of the substance of a qualification, and help Centres determine what teaching and learning resources are going to be needed to support candidates. They are based on an estimate of the time that might actually be spent by the candidate being taught or instructed, as well as time candidates spend on structured learning such as directed assignments, assessments on the job or supported individual study or practice. So as a candidate you can use these Guided Learning Hours to help you plan the effective use of your time to achieve the unit outcome.

Diploma in Energy Management GuidedLearning

HoursDEM 1 Planning to Meet Customer & Quality Requirements 20DEM 2 Developing Your Management Style 30DEM 3 Managing Performance 30DEM 4 Identify Scope for Improvement; Development and Implementation of

Energy Policies; Promote Energy Efficiency20

DEM 5 Monitor, Evaluate and Identify Improvements to Energy Efficiency; Development of Energy Efficient Practices

30

DEM 6 Systems Development and Implementation which Measure Energy Usage in Support of Improving Energy Efficiency

30

DEM 7 Managing Marketing Activities 20DEM 8 Managing Financial & Non-Financial Resources 20DEM 9 Energy Management Project 20

Qualification total 225

Suggested reading

As a student member of the Institute, you can access a wide variety of help, information, reading lists and management texts, via our website www.managers.org.uk/students.

Qualifications frameworks and credit transfer

Qualifications at this level: recognise the ability to increase the depth of knowledge and understanding of an area of

work or study to enable the formulation of solutions and responses to complex problems and situations.

involve the demonstration of high levels of knowledge, a high level of work expertise in job roles, and competence in managing and training others.

are appropriate for people working as higher grade technicians, professionals or managers.

Qualifications at this level are at the same level as intermediate Higher Education qualifications such as Certificates of Higher Education, Foundation and other degrees that do not typically provide access to postgraduate programmes.

The qualification you will achieve on successful completion of this programme is the CMI Diploma in Energy Management

Unit DEM 1 - Planning to Meet Customer & Quality Requirements

Overview

This unit is about the need for managers to have a customer focus and to participate in planning to meet customer and stakeholder needs within organisational constraints, and the wider environment in which the organisation operates.

It focuses your role in maintaining standards, raising awareness of, and assessing Health, Safety and Quality, and includes risk assessment and quality audits, as well as the broad concepts of change management and continuous improvement.

Aims

To help you learn how to:1 Plan to meet stakeholder requirements2 Promote healthy and safe working3 Encourage a philosophy of quality and undertake a quality audit4 Understand the purpose of risk assessment, and the concepts of change management and

continuous improvement.

Unit Content

You, your organisation and clients, customers and stakeholders

Understanding: Your role and responsibilities in relation to;

a) the mission, aims and objectives or your organisationb) clients, customers and stakeholders

How to: identify your internal and external customers and the difference between them monitor on-going customer needs to guide planning

Healthy and safe working

Understanding: the importance of health and safety at work and your role and responsibility in relation to this associated legal requirements and their implications relevant industrial/professional Codes of Practice the factors which promote a productive and safe work environment the potential for conflict between organisational demands and legal constraints the principles of risk assessment the health and safety procedures to follow

How to: carry out risk assessment to identify areas for action or improvement keep your team with you on health and safety matters and to be risk-aware provide advice and support on health and safety issues encourage a safe and productive work environment monitor to ensure health and safety requirements continue to be identified and met deal with, and record, health and safety contraventions

Quality of products, services and processes

Understanding: the meaning and importance of quality and your role within it national and organisational quality systems, their purpose and value quality concepts – TQM, benchmarking, quality assurance and quality control quality standards and how they apply to the work for which you are responsible

How to: contribute to setting quality standards implement your organisation’s quality policies encourage your team members to contribute ideas for improvements in quality interpret your organisation’s policies and determine their implications for quality assurance conduct a full quality audit and make recommendations identify likely quality shortfalls and appropriate remedial actions monitor and record quality in your area of responsibility

Continuous improvement and change

Understanding: the concepts of continuous improvement and change the factors affecting the successful implementation of change the principles of change management

How to: Assess current work activities and identify areas for improvement Help others to understand and view change positively and encourage their ideas Identify the broader implications of change for the work of the organisation and its component

parts

Learning Outcomes

Following completion of this unit, you will know how to:

1. Explain the value of quality awareness and quality management to organisations and describe the ways in which quality management is introduced;

a) using these quality concepts, devise a set of quality standards for a given area of work, conduct a full quality audit and report your findings

2. Provide information, guidance and support to others to promote a healthy, safe and productive work environment, which meet legal and organisational requirements

3. Use a range of planning techniques and operational plans to address the customer needs you have identified, demonstrate how your plans add value (for customers and the organisation) and guide others on how the objectives are to be achieved

4. Use a range of change, quality methods, models and techniques

Unit DEM 2 – Developing Your Management Style

Overview

This unit is about how to manage your own skills and development to help meet your own performance objectives and developing effective working relationships to help you deal with a variety of situations, including conflict.

It is also about the functions, limitations and conduct of meetings.

Aims

To help you to learn how to:1. Develop yourself2. Manage our own resources3. Develop the trust and support of others4. Handle conflict effectively5. Organise, lead and contribute to meetings

Unit Content

Developing yourself

Understanding: the importance of continuing self development Ways in which you can assess your current skills and competence as a manager (for example,

using benchmarking, 360º feedback) The range of skills you require for effective managerial performance The types of development activities open to you and their relative advantages and

disadvantages The types of support available to you from team members, colleagues and others Who you should seek feedback from on your performance and ways to encourage this

How to: assess your own current skill levels as a manager, using standards and competencies as

appropriate make opportunities to encourage feedback and use it constructively develop your on-going personal action plan with achievable but challenging goals review your development progress and update your plan

Managing your own resources

Understanding: The processes of setting and reviewing personal objectives The importance of reviewing your work regularly and re-scheduling to achieve your objectives The importance of time management to you in your management role and the techniques to use The skills and pitfalls of delegation

How to:

set SMART (specific, measurable, achievable, realistic, time-related) objectives for yourself which make effective use of your personal resources

estimate the time you need to achieve them and plan accordingly, avoiding unhelpful interruptions

use e-communication as a time-saving tool, organise estimate the time you need to achieve them and plan accordingly, avoiding unhelpful

interruptions use e-communication as a time-saving tool, organize e-mail, avoid over-informing, etc delegate work to others and monitor their progress

Developing the trust and support of others

Understanding: the lines of accountability, authority and control which govern decision making in organisations methods of effective communication which help you develop the trust and support of your team

members, colleagues and manager the strategies and styles of working which encourage effective relationships how people work and behave in formal and informal groups the need to keep others informed on activities, organisational plans, emerging threats and

opportunities relevant to them when your support is needed to help others achieve their objectives ways in which to provide constructive and meaningful feedback the importance of honouring promises and commitments made to others

How to: consult in an open and frank way with team members, colleagues and others select methods of communication which are appropriate and sufficient to your audience and the

context provide feedback which is constructive, valued and used acknowledge when you need advice and additional information, and select appropriate sources work effectively with your own manager, handling disagreements and resolving issues as they

arise

Handling conflict in your own working relations with others

Understanding: conflict and the situations, behaviour and interactions between people which cause conflict the importance of giving others opportunities to discuss problems affecting their work

relationships Strategies for preventing minimizing and handling conflict What to record, when and how, whilst maintaining confidentiality When and how to involve others – the organisational requirements on conflict management

How to: recognize the symptoms of conflict in their early stages identify potential conflict situations between individuals apply strategies to prevent or minimize conflict set an agreed action plans and monitor it

Organise, lead and contribute to meetings

Understanding: procedures for calling meetings, preparing for them and determining the attendees

the value and limitations of meetings, determining when a meeting is appropriate and the type (internal/external)

how to set objectives for a meeting, the importance of effective agendas and preparation the importance and principles for making clear, relevant and concise contributions; identifying

and analyzing the issues discussed and contributing to their clarification and resolution the importance of acknowledging the contribution of others to the meeting

How to: consult in advance with those who you are representing convey information on decisions and recommendations from the meeting to others and verify it

has been done identify and choose appropriate leadership styles, manage discussions and ensure decisions are

taken within authority level

Learning Outcomes

Following completion of this unit, you will know how to:

1. Use a range of tools and resources to analyse your own knowledge/skills; devise and review your development plan which addresses both personal and job-related learning needs

2. a) Agree your action plan for managing your own resourcesb) Set SMART objectives which make the best use of both your time and, through effective delegation, the skills of others

3. Explain the value and process of giving and seeking constructive feedback; describe ways in which giving feedback may differ according to the needs of the individual

4. Review communication, colleagues, and the methods you use to develop trust and support; improve the way you communicate with others (including your manager).

5. Describe the situations and behaviours which can cause conflict and explain how its presence can be recognized; devise a set of strategies to prevent/minimize conflict in your area of work keep appropriate records and maintain confidentiality

6. Describe four different types of meeting, explaining the purpose of each and identifying typical objectives for each type. At least one type of meeting described should relate to an energy issue.

7. Explain four different styles of leadership and describe typical scenarios encountered in meetings where they could be used.

8. Describe four decisions which are best made during a meeting of managers and explain why. At least one of the decisions described should relate to energy.

Unit DEM 3 – Managing Performance

Overview

This unit is about your allocation and assessment of the work required for you and your team to meet objectives.

It is also about talking over performance issues with your team and how you should manage a remote team.

Aims

To help you learn how to:1. Agree objectives and allocate work to your team2. Assess performance and provide feedback3. Handle poor performance4. Manage remote workers

Unit Content

Agree objectives and allocate work

Understanding: the organisational policies and values which have a bearing on your team’s objectives and the

allocation of work the importance of effective work allocation to your team’s performance and your role within that factors which you need to consider when allocating work (eg objectives, resources, skills and

experience, learning and support needs, workload, motivation) the potential impact of changes to work plans on costs, time and convenience when and with whom you discuss/negotiate issues of resource allocation and change the difference between someone whom you manage and someone for whom you have functional

responsibility, and the implications for work planning

How to: identify and devise SMART objectives and work plans for the short, medium and long term link team and individual objectives to those of the wider organisation match work allocated to learning needs and individual development plans communicate individual responsibilities clearly, and develop and present work plans in a variety

of ways which ensure understanding support team members on areas of work where they need advice and guidance prioritise and re-prioritise work in relation to resources and objectives negotiate changes to plans to minimize potential difficulties/costs encourage team members to offer ideas on work allocation and define their own contribution to

objectives consult your team on work plans and objectives and gain their understanding, agreement and

commitment

Assess performance and provide feedback

Understanding: why performance should be continually monitored and assessed the organisational constraints which may affect the achievements of objectives the methods available for monitoring and assessing performance the information needed to assess performance against the standards/criteria set ways in which to achieve fair and objective assessments why team members should self-assess their own performance why performance feedback is important the principles of maintaining confidentiality throughout the performance assessment process

How to: gather valid information and monitor and review performance involve team members in assessing their own performance and suggesting improvements give timely feedback on performance in a way that motivates, encourages positive change and

rewards effort make and record fair and objective assessments of performance agree and monitor an individual/team action plan

Handle poor performance

Understanding: what constitutes poor performance the importance of promoting a constructive response towards poor performance the need to respect the individual the organisational procedures relevant to poor performance the legal requirements relevant to disciplinary and grievance procedures the types of problems that individuals may experience and your role in addressing these the range of support services available within and beyond the organisation how the disciplinary and grievance procedures operate in your organisation and the role you play the importance of fairness, impartiality, timeliness and confidentiality when dealing with

disciplinary and grievance matters how issues of performance and discipline affect other members of the team the need to keep accurate records throughout any performance issue or disciplinary process

How to: inform your team members of the standards of work and behaviour expected of them encourage team members to discuss performance problems frankly identify poor performance and address it promptly with the individual work with them to clarify the problem and agree a course of action provide ongoing support and review to help the individual address the problem decide when the problem is beyond your remit and where to seek additional support decide when it is necessary to invoke the formal disciplinary procedure and how to contribute to

this process

Manage remote workers

Understanding: the differences in working out of office or at home e.g. maintaining motivation and meeting

targets

the needs to provide a ‘lifeline’

How to: encourage effective communication with and between remote staff to combat isolation promote good self-management by remote workers plan and delegate effectively for a remote team

Learning Outcomes

Following completion of this unit, you will know how to;

1. set SMART objectives and devise a work plan for your area which acknowledges organisational goals/requirements and the factors which need to be considered when allocating work

2. apply practical steps to encourage team members to become involved in work allocation, in monitoring and evaluating their own work and in discussing with you any issues of concern

3. identify and meet individual development needs and provide support within the work plan; re-negotiate objectives to minimize problems

4. explain the process of setting performance objectives and demonstrate ways to achieve fair and objective assessment of performance within your team

5. define what might constitute poor performance, the options for addressing this within your organisation and the possible wider impact on others. Prepare an action plan to address a performance issue, including involving other support services available to you as a manager; monitor and record progress

6. a) outline the disciplinary and grievance procedures in your organisation; and the legislation which underpins themb) define your role in a disciplinary issues, and identify the support on which you would be able to draw

7. identify the difference in managing, supporting and assessing performance of a dispersed team

Unit DEM 4 – Identify Scope for Improvement; Development and Implementation of Energy Policies; Promote Energy Efficiency

Overview

This unit is about how an organisation manages energy, encouraging a culture of energy efficiency through sound policies and strategies.

Aims

To help you learn how to:1. Develop and implement energy policies and management strategies2. Evaluate strategies and seek continual improvements3. Encourage an organisational culture of energy efficiency and promote achievements internally

and externally

Unit Content

Develop and implement energy policies and management strategies

Understanding: the laws which affect the use of energy; safety legislation; systems and procedures organisational structure; roles and responsibilities for energy efficiency; the importance of increasing awareness internally and externally the need for clear/concise methods of communication in relation to energy efficiency the process for implementing energy policies and procedures – advantages and disadvantages

of various methods Resources available; money, people, equipment, energy, premises, materials; estimating scale of resources required

How to: explain the benefits of energy efficiency internally thereby promoting an understanding of, and

enthusiasm for, identified opportunities promote the benefits of achievements and encourage/respond to feedback influence and gain support and commitment through the use of sound reliable information implement energy policies and procedures

Evaluate strategies and seek continual improvements

Understanding: the importance of gathering information and record keeping to support the evaluation of the

strategies energy audits; use of findings; assessment of potential savings; measuring effect of staff

commitment; setting goals and targets; monitoring achievements.

How to: present performance indicators and a case for improvements validate information; establishing sufficiency and currency

Promote an organisational culture of energy efficiency

Understanding: energy suppliers; tariffs and fuel costs; different sources and their suitability and effectiveness the effect of activities on efficiency; estimating potential benefits from energy management;

energy efficiency initiatives and their development

How to: promote achievements in energy efficiency through the use of techniques and technologies

Learning Outcomes

Following completion of this unit, you will know how to:

1. Justify the benefits of an efficient energy policy and encourage a culture of energy efficiency within an organisation.

2. Develop an energy policy for an organisation.3. Collect and analyse information on energy uses in an organisation and make recommendations

to improve efficiency, justifying them on a cost/benefits basis.4. Conduct a survey to establish the attitudes and commitment of staff to improving energy

efficiency.5. Analyse the different energy supply options for an organisation and make recommendations,

justifying them both qualitatively and quantitatively.

Unit DEM 5 – Monitor, Evaluate and Identify Improvements to Energy Efficiency; Development of Energy Efficient Practices

Overview

This unit is about how an organisation develops, monitors and evaluates performance in energy efficiency. It is also about identifying opportunities for improvements and implementing them.

Aims

To help you learn how to: Monitor energy usage Develop a culture of energy awareness Identify opportunities and implement for improvements

Unit Content

Monitor energy usage

Understanding:

the importance of monitoring energy usage within the business impact of energy usage on the environment systems to measure organisational performance on energy usage the effects of Health & Safety legislation on energy usage and savings the importance of recording, storing and providing accurate and up-to-date information

How to: develop effective communications across the organisation to advise teams on energy usage motivate employees in the process of energy management

Develop a culture of energy awareness

Understanding: factors affecting energy usage within the business sources, suppliers, features and benefits of energy planning requirements for new systems; sustainable developments

How to: increase and monitor employee awareness levels on energy usage

Identify opportunities and implement for improvements

Understanding: best practice in energy efficiency and the methods available the process for agreeing an organisational implementation plan on energy management opportunities to improve organisational performance on energy management new products/services and technological innovations to assist energy management and the

advantages and disadvantages external support programmes available to organisations

How to: plan and gain approval for resources

Learning Outcomes

Following completion of this unit, you will know how to:

1. Analyse the factors which affect energy usage within an organisation2. Establish policies, procedures and responsibilities with respect to energy management, taking

into account Health & Safety & Environmental Legislation3. Collect and record energy management information for a given situation4. Design systems to plan, monitor and evaluate energy usage5. Make a case for implementing measures to improve energy efficiency

Unit DEM 6 – Systems Development and Implementation which Measure Energy Usage in Support of Improving Energy Efficiency

Overview

This unit focuses on developing, improving and implementing energy management systems which measure and communicate energy usage in a way which assists team and individual involvement in energy efficiency activities and action.

Aims

To help you learn how to:1. Establish, develop, implement and support energy management systems

Unit Content

Understanding: the organisation’s energy objectives, policies, strategies and procedures and the structures,

responsibilities, processes, procedures and documentation required to achieve them roles, responsibilities and resource available which may either constrain or enhance energy

efficiency energy management in context

How to: assess and develop the knowledge, understanding, skills and competencies required by those

who undertake energy efficiency planning and application develop, set targets, measure, record, assess, and improve energy performance, usage and

efficiency establish methodologies, processes and procedures which seek to develop explicit criteria for

the application of energy measuring systems benchmark examples of good practice in energy efficiency and the application of best practice

initiatives establish systems and procedures which effectively and clearly communicate progress, findings

and areas for improvement encourage and provide constructive feedback, provide advice and support, and which encourage

team and individual involvement in the ongoing improvement and application of energy usage and energy efficiency

identifying methods which seek out information and analytical procedures and assess changes to work practices and activities indicated by trends and developments in the use of energy

focus on procedures which prevent/resolve poor performance in energy usage, and seek energy efficiency

Learning Outcomes

Following completion of this unit, you will know how to:

1. Enhance energy efficiency by building on organisational strengths and overcoming weaknesses.2. Introduce energy management systems, tools and techniques, with a particular focus on

applications improvement of energy performance, usage and efficiency.3. Establish effective and efficient energy information and communications procedures which seek

to establish partnerships between those concerned and through it commitment to the continuous improvement of the efficient use of energy.

4. Select appropriate monitoring and evaluation methods which identify poor uses of energy and lead to corrective action.

Unit DEM 7 – Managing Marketing Activities

Overview

This unit is about the need for managers to have a customer focus, identifying the requirements of stakeholders and planning to meet those needs within organisational constraints.

It is also about the role of ecommerce and its implications for the manager.

It also requires you to develop an understanding of organisational culture and diversity, by developing a clear understanding of the differing needs of stakeholders.

Aims

To help you learn how to:1. Understand you role in relation to your organisation, clients, customers and stakeholders, and

the wider environment in which your organisation operates2. Identify, predict and monitor the needs of customer/stakeholders3. Plan to meet stakeholder requirements

Unit Content

Marketing

Understanding: the theories and models of marketing and e-commerce how organisations are structured and operate, and the differing needs of stakeholders your organisation’s position in the sectors and markets in which it operates

How to: manage and encourage the communication process with your customers and colleagues identify your internal and external customers and the difference between them research and predict your customers’ needs, wants and expectations monitor on-going customer needs to guide planning

Planning to meet stakeholder requirements

Understanding: the principles and models of organisational planning the types of information you need to inform the planning process the records you need to keep

How to: set planning objectives plan to meet the identified needs, wants and expectations of your stakeholders taking account of

your organisation’s plan balance internal and external customer needs with organisational objectives and how to proceed

if there are conflicts communicate and gain support for plans Identify how alterations to plans may affect the organisation record and review the process

Learning Outcomes

Following completion of this unit you will know how to:

1. Identify your organisations’ values and objectives and how they affect your planning2. Identify your organisation’s stakeholders and explain how their needs affect your role3. Explain the different ways organisations can be structured and operated for optimum efficiency4. Apply the principles of marketing to research, analyse and determine your customers’

expectations and needs5. Use a range of planning techniques to address the customer needs you have identified,

demonstrate how your plans add value (for customers and the organisation) and guide others on how the objectives are to be achieved

6. Monitor plans which have been implemented and adjust them as necessary to ensure that the required results are achieved

Unit DEM 8 – Managing Financial & Non-Financial Resources

Overview

This unit is about the generic principles, methods and techniques for planning, managing and analysing the use of any and all resources available to the manager. This includes physical, financial and human resources, and the factors affecting their use – organisational, legal, ethical and environmental.

Aims

To help you learn how to:1. Manage non-financial resources2. Manage financial resources

Unit Content

Non-financial resources

Understanding: the range of non-financial resources available to you the principles and techniques underpinning their effective use relevant organisational objectives and legal requirements and your responsibilities the importance of continuity of supplies trends and developments which could impact on your use of resources the theories and models for purchasing and supply, and the procedures you need to follow the legal/organisational requirements governing selection of suppliers and identifying the

implications for your work problems associated with efficient resource use and options for action

How to: analyse trends and how these impact on resource planning identify your resource requirements by applying analytical techniques select from a range of suppliers and establish effective agreements which take account of legal,

ethical, environmental and organisational requirements develop short, medium and long term resource plans manage relationships with suppliers and address problems that may arise obtain supplies, ensuring availability, continuity, consistency, quality and value for money adjust your plans if the resources you need are unavailable control, record and monitor efficient use of resources using agreed targets and measures

Financial resources

Understanding: the importance of sound financial management and budgetary control the differing ways in which organisations manage their finances sources of funding available to organisations the financial interdependency of the different parts of an organisation commonly used financial terminology (income/expenditure, assets/liabilities, cost centre/cost

codes, stock, ration analysis, break-even, debtors/creditors, cost/profit centre, overheads, variances etc)

how budgets are built, expenditure managed and your role in that process

the principles and systems of effective expenditure control including comprehensive record keeping

methods of handling budgetary variances effectively types of expenditure requests which are outside your remit and the procedures to follow

How to: analyse financial information using a range of techniques forecast expenditure based on the trends and developments you identify identify/evaluate alternative expenditure options using techniques such as cost benefit and

break-even analyses make a well-argued and costed business case for expenditure control the budget/expenditure within your area of responsibility identify corrective actions in response to budget variances

Learning Outcomes

Following completion of this unit, you will know how to:

Analyse non-financial resource use in your area; prepare short/medium term resource plans to meet the needs of your customers and markets using the principles of purchase and supply and taking account of legal and organisational requirements and show how this plan would be monitored/adjusted

Forecast expenditure based on trends/developments and show how this budget links with the rest of the organisation; monitor and adjust your budget as appropriate

Evaluate expenditure options using a range of appropriate financial tools/techniques, prepare and present a business case for expenditure in your area

Define a process which encourages others to take and share responsibility for identifying and communicating resource requirements, planning, recording and monitoring resources use

Understand the purpose of budgetary systems and financial responsibilities Define the requirements for the selection of suppliers