From Max Lionel Realty business plan FY 2012/13
About Max Lionel Realty
Max Lionel Realty (MLR) was founded in 2008 by property developer Max Lionel. The company
currently employs approximately 100 people, 80 of whom are licensed real estate agents.
Through its client agents, the organisation manages property sales and rentals (both residential
and commercial) on behalf of a range of clients. The organisation also separately engages in
investment activities, such as property and land development.
Max Lionel Realty has been a member of the Real Estate Institute of Victoria (REIV) since 2008 and
proudly follows the REIV Code of Conduct.
Mission:
? to achieve the highest returns for our clients and to deliver a client experience that is
second to none in the industry.
Vision:
? to establish, within five years, the MLR brand ? the highest ethical standards with
best-in-breed performance for clients.
Values:
? integrity
? client-focus
? active encouragement of excellence, innovation and continuous improvement
? teamwork
? recognition of the diversity and expertise of MLR employees and agents.
Strategic directions:
The strategic context in which Max Lionel Realty will achieve its mission and vision is through:
? engaging with customers and clients
? building goodwill and reputation for integrity
? supporting innovative thinking, management and leadership skills.
? creating a high-performing, highly profitable organisation.
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Chapter 2 ? Organisational chart and management profiles
Max Lionel Realty organisational chart
Board of Directors
and CEO
Max Lionel
Chief Financial
Officer
Riz Mehra
Operations General
Manager
Kim Sweeney
Human Resources
Manager
Les Goodale
Manager
Residential Realty
(Sales and Rentals)
Sam Lee
Manager
Commercial Realty
(Sales and Rentals)
Pat Mifsud
Manager
Investments
Peter Mitchell
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Chapter 3 ? Management responsibilities
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.
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Chapter 4 ? Budget summary
Max Lionel Realty 2012?13 budget by activities to be undertaken
Income:
Commissions, fees from
clients
$2,566,000 Commissions and agents? fees for 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 and on costs $1,567,890 Wages, salaries, superannuation, work
cover insurance, payroll tax.
Consultancy fees $50,000 Project management: WHS management
system; AD awareness program.
Communication expenses $42,000 Telephone, ISP costs, IT support.
Staff travel, transport and
accommodation.
$55,500 Cost of staff travel and associated costs for
sales, etc.
Premises expenses $250,000 Rent, electricity, maintenance, cleaning.
Capital expenditure $120,000 Purchase of new office equipment (90%),
vehicles; purchase of properties, land.
Depreciation and
amortisation
$177,569 Computers and capital equipment that is
depreciated.
Office supplies $65,068 Printing and stationery, postage, amenities.
Professional fees
(consultants, legal and audit),
insurances, taxes and
charges, subscriptions and
memberships.
$62,187 Audit fees, external accounting costs, bank
charges, insurance except workers
compensation.
Total Expenses $2,390,214
Surplus $1,592,373 Net income before tax.
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Chapter 5 ? Operational plan
Max Lionel Realty operational plan (summary) FY 2012/2013
Objectives: Performance measures Tasks:
1 Engage with
customers/build
ethical profile:
raise
organisational
profile by 20%
improve client
satisfaction
performance by
25%.
? Percentage of brand
recognition in sought-after
categories in periodic
customer surveys.
? Percentage of customers
with positive view of
organisational
responsiveness,
innovation, quality.
? Number of client/tenant
complaints.
? Project to raise awareness of antidiscrimination,
WHS and other
legislation/codes of conduct among agents,
clients, 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.
2 Increase revenues
by 20% within the
third quarter.
? Total income.
? Agent income.
? Investment income.
? Investigate resourcing needs: number of
agents; personnel; office equipment, cars,
etc.
? Fulfil resourcing needs in accordance with
policies and procedures.
3 Reduce direct and
indirect costs of
operations by
10%.
? General ledger accounts;
financial statements:
? wages
? cost of agent services
? consultancy fees
? wastage and associated
expenses.
? 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 personnel.
? Greater use by managers of budgets to
encourage restraint.
? Greater focus on budget restraint in
management of projects.
4 Engage workers
with strategic
goals of business
and support
professional
development in
line with strategic
goals. (Targets to
be set by
individual
managers.)
? Percentage completion of
performance plans and
performance management
process.
? Numbers of coaching
sessions completed.
? Numbers of operational ?
related training programs
completed.
? Management engagement with employees to
achieve greater buy in of organisational
goals.
? Include explanation of how activities work
with organisational strategic goals in all
communications to internal personnel.
? Regular coaching.
? Training needs analysis and training.
? Strategic goals included in induction program
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Max Lionel Realty operational plan (summary) FY 2012/2013
Objectives: Performance measures Tasks:
for estate agents.
? Employee incentives for performance in all
areas relevant to operational and strategic
goals.
5 Improve health of
employees (range
of specific areas).
? Numbers of injuries (Target
= 0).
? Numbers of absentees
(Target = <3% of total
hours).
? Training needs analysis and training on WHS
and implementation of recently launched
MLR WHS management system.
? Research incentives for: safe work
achievement and healthy lifestyle.
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Chapter 6 ? Operational risk register
Max Lionel Realty risk register FY 2012/2013
Identified risk Probability Impact Current controls Future actions
Failure to recruit qualified
real estate agents due to
increased competition.
Medium High ? All office equipment
regularly reviewed and
updated as required; IT
security monitored and
maintained.
? Appropriate insurances
held and coverage
reviewed annually.
? Managers encouraged
and incentivised to
follow performance
management policy.
? Employee performance
plans align with
business plan and sixmonthly
review process
in place.
? Project to raise
awareness of antidiscrimination,
WHS
and other
legislation/codes of
conduct among agents,
clients, tenants
? Appropriate HR policies
and procedures in place.
? WHS management
system in place.
? Industry
benchmarking in
all areas of
organisational
performance
? Conduct
periodic reviews
of agent
performance to
ensure
professional
conduct
? Staff trained in
use of
technology as
needed.
? Keep abreast of
changes in
potential
liabilities.
? Review and
develop HR
related policies
where required.
? Development of
ethical charter,
including
principles all
agents must
follow.
Failure to realise revenue
gains due to recent slump in
real estate prices.
High High
Inadequate insurance cover. Low High
Non-compliance on antidiscrimination.
Medium High
Perception of discriminatory
practice reducing client and
tenant base.
Medium High
Poor organisational culture;
low level of staff engagement
and morale.
Medium Medium
Loss of knowledge and
capability through departing
staff.
Low High
Failure to meet occupational
health and safety
requirements.
Low High
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Chapter 7 ? Work Health and Safety (WHS) Policy
Max Lionel Realty WHS policy
Max Lionel Realty recognises its responsibility to provide a healthy and safe working environment for
employees, contractors, clients and visitors. Max Lionel Realty is committed to the continued wellbeing of its
employees and to ensuring that all employees are safe from injury and health risks whilst undertaking workrelated
duties, including home-based work.
Purpose The purpose of this policy is to ensure the acquisition of resources is carried
out consistently, fairly and transparently and in accordance with
organisational requirements.
In order to ensure a healthy and safe working environment, Max Lionel
Realty will (in accordance with the WHS management system):
? undertake risk assessments and implement procedures to
adequately manage any risks in the working environment
? provide written procedures and instructions for safe working
practices
? ensure compliance with all relevant legislation
? maintain safe systems of work including the work premises and
environment
? provide appropriate support, instruction, training and supervision
to employees to ensure safe working practices.
Scope The scope of this policy covers employees and contractors of Max Lionel
Realty (MLR).
Resources Specific procedures for the implementation of this policy are available below
and on the company intranet.
Responsibility Max Lionel Realty management and employees are ultimately responsible
for ensuring that safe systems of work are established, implemented and
maintained.
Management is responsible for:
? the effective implementation and regular review of WHS
procedures
? consultation with employees regarding health and safety issues
and changes to legislation and/or working practices which may
affect the health, safety or welfare of employee
? providing and maintaining a safe system of working practices
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? providing support, training, and supervision to employees to
ensure safe and healthy workplace practices are carried out,
including relevant first aid training where appropriate
? the provision of adequate resources for employees to meet the
WHS commitment, including an up-to-date first aid kit.
Individual employees are responsible for:
? following all WHS policies and procedures
? ensuring they report all potential and actual risks to partners or
managers/supervisors
? taking care to protect their own health and safety and that of
their colleagues at work
? ensuring their own or others health and safety is not adversely
affected by the consumption of drugs or alcohol
? encouraging others to follow healthy and safe working practices
in the workplace.
Policy
Implementation
and Review
This policy has been established and implemented through the human
resource functions of the organisation and will be reviewed regularly in
consultation with MLR management and employees to ensure compliance
with legislation, industry standards and organisational changes.
Relevant
legislation, etc.
? Privacy Act 1998 (Cwlth)
? Estate Agents Act 1980
? Equal Opportunity Act 2010 (Vic)
? Occupational Health and Safety Act 2004
? Dangerous Goods Act 1985
? AS/NZS 4804:2001 Occupational health and safety management
systems ? General guidelines on principles, systems and
supporting techniques
Updated/
authorised
10/2012 ? Riz Mehra, CFO
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Chapter 8 ? Anti-discrimination policy
Max Lionel Realty Anti-discrimination Policy
Purpose The purpose of this policy is to ensure transactions with clients, tenants
and other employees is handled fairly and transparently and in
accordance with organisational and legal requirements. Generally it is
unlawful to discriminate on the basis of the following 16 characteristics:
? sex
? relationship status
? pregnancy
? parental status
? breastfeeding
? age
? race
? impairment
? religious belief or
religious activity
? political belief or
activity
? trade union activity
? lawful sexual activity
? gender identity
? sexuality
? family responsibilities
? association with, or
relation to, a person
identified on the basis
of the above.
Scope The scope of this policy covers all employees and contractors of Max
Lionel Realty (MLR).
Resources Specific procedures for the implementation of this policy are available
below and on the company intranet.
Responsibility Responsibility for the implementation of this policy rests with all
employees, contractors and management of Max Lionel Realty.
Relevant
legislation, etc.
? Privacy Act 1998 (Cwlth)
? Equal Opportunity Act 2010 (Vic)
? Age Discrimination Act 2004
? Australian Human Rights Commission Act 1986
? Disability Discrimination Act 1992
? Racial Discrimination Act 1975
? Sex Discrimination Act 1984.
? Estate Agents Act 1980
Updated/
authorised
10/2012 ? Riz Mehra, CFO
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Chapter 9 ? Procurement policy and procedures
Max Lionel Realty procurement policy
Purpose The purpose of this policy is to ensure the acquisition of resources is
carried out consistently, fairly and transparently and in accordance with
organisational requirements.
Scope The scope of this policy covers the purchasing and acquisition of
resources by employees and contractors of Max Lionel Realty (MLR).
Resources Specific procedures for the implementation of this policy are available
below and on the company intranet.
Responsibility Responsibility for the implementation of this policy rests with employees
and management of Max Lionel Realty with responsibility for purchasing
resources.
Relevant
legislation etc.
? Privacy Act 1998 (Cwlth)
? Estate Agents Act 1980
? Equal Opportunity Act 2010 (Vic)
? Australian Securities and Investments Commission Act 2001
(Cwlth)
? Corporations Act 2001 (Cwlth)
? A New Tax System (Goods and Services Tax Administration)
Act 1999 (Cwlth)
? A New Tax System (Goods and Services Tax) Act 1999 (Cwlth)
? Income Tax Assessment Act 1997 (Cwlth)
? Fair Work Act 2009 (Cwlth)
? Occupational Health and Safety Act 2004 (Vic)
Updated/
authorised
10/2012 ? Riz Mehra, CFO

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14 Principles governing the Max Lionel Realty procurement process
1. Probity and ethical behaviour
The principle of probity and ethical behaviour governs the conduct of all procurement activities. Employees
who have authority to procure goods and services must comply with the standards of integrity, probity,
professional conduct and ethical behaviour. Employees or directors must not seek to benefit from supplier
practices that may be dishonest or unethical.
2. Value for money
Value for money is the core principle underpinning procurement. Contracted organisations must be cost
effective and efficient in the use of resources whilst upholding the highest standards of probity and integrity.
In general, a competitive process carried out in an open, objective and transparent manner can achieve the
best value for money in procurement.
3. Non-discrimination
This procurement policy is non-discriminatory. All potential contracted suppliers should have the same
opportunities to compete for business and must be treated equitably based on their suitability for the
intended purpose.
4. Risk management
Risk management involves the systematic identification, analysis, treatment and, where possible, the
implementation of appropriate risk-mitigation strategies. It is integral to efficiency and effectiveness to
proactively identify, evaluate, and manage risks arising out of procurement related activities. The risks
associated with procurement activity must be managed in accordance with the organisation?s risk
management policy.
5. Responsible financial management
The principle of responsible financial management must be applied to all procurement activities. Factors that
must be considered include:
? the availability of funds within an existing approved budget
? staff approving the expenditure of funds strictly within their delegations
? measures to contain costs of the procurement without compromising any procurement principles.
6. Procurement planning
In order to achieve value for money, each procurement process must be well planned and conducted in
accordance with the principles contained in this document and comply with all of the organisation?s policies
and relevant legal and regulatory requirements.
When planning appropriate procurement processes consideration should be given to adopting an approach
that:
? encourages competition
? ensures that rules do not operate to limit competition by discriminating against particular suppliers
? recognises any industry regulation and licensing requirements
? secures and maintains contractual and related documentation for the procurement which best
protects the organisation
? complies with the organisation?s delegations policy.
7. Buy Australian Made/support for Australian industry
Employees who are involved in procurement activities must make a conscious effort to maximise opportunities
for Australian manufacturers and suppliers to provide products where there is practicable and economic value.
In making a value for money judgement between locally-made and overseas-sourced goods, employees are to
take into account:
? whole-of-life costs associated with the good or service
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? that the initial purchase price may not be a reliable indicator of value
? the quality of locally made products
? the record of performance and delivery of local suppliers
? the flexibility, convenience and capacity of local suppliers for follow on orders
? the scope for improvements to the goods and ?add-ons? from local industry.
8. Pre-registered list of preferred suppliers
Max Lionel Realty shall maintain a pre-registered list of preferred suppliers, following a request for expressions
of interest and an evaluation of the submissions. Suppliers can request to be evaluated for inclusion on the
existing pre-register list at any time.
All purchases under $5,000 may be made from preferred suppliers without undertaking a competitive process.
Purchases above $5,000 where a preferred supplier exists should include a competitive process if practicable.
This list is reviewed at regular intervals with admission of interested parties on a rolling basis. Care should be
taken to ensure that such lists are used in an open and non-discriminatory manner. Max Lionel Realty
encourages new contractors to provide information on their experience, expertise, capabilities, pricing, fees,
and current availability. It is in the interest of the organisation that the pool of potential suppliers is actively
maintained and updated. Employees should be encouraged to provide reports of their experiences in working
with each contractor/consultant to assist future decisions concerning commissioning suitable contractors and
consultants.
9. Avoid conflict of interest
Employees and directors are required to be free of interests or relationships in all aspects of the procurement
process. Employees and directors are not permitted to personally gain from any aspect of a procurement
process.
Employees and directors shall ensure that to the best of their knowledge, information and belief, that at the
date of engaging a contractor no conflict of interest exists or is likely to arise in the performance of the
contractor?s obligations under their contract.
Should employees or directors become aware of potential conflicts of interest during the contract period, they
must advise the CEO and the Board of Directors immediately.
Prior to any situation arising with potential for a conflict of interest, complete disclosure shall be made to the
CEO and the Board of Directors to allow sufficient time for a review.
10. Report collusive tendering
Employees should be aware of anti-competitive practices such as collusive tendering. Any evidence of
suspected collusion in tendering should be brought to the attention of the CEO and the Board of Directors.
11. Competitive process
It is a basic principle of procurement that a competitive process should be used unless there are justifiable
circumstances. For purchases under $5,000, the list of preferred suppliers may be used. The type of
competitive process can vary depending on the size and characteristics of the contract to be awarded.
12. Direct invitation (selective or restricted tendering)
A process of direct sourcing to tender may be used. This may involve:
? an invitation to organisations deemed appropriately qualified for a particular product or service
(this may be appropriate for specialised requirements in markets where there is a limited number
of suppliers or service providers)
? an invitation to tender to organisations on MLR?s pre-registered list of preferred suppliers if
applicable.
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13. Evaluation and contract award
For projects being awarded, consideration will be given not only to the most economically advantageous
tender, but also to the track record of the tender respondent and the degree of confidence that the panel has
in the quality if the bid. It will be the normal practice to have the evaluation of tenders carried out by a team
with the requisite competency.
14. Results of tendering process
All tender respondents should be informed in writing of the result of a tendering process immediately after a
contract has been awarded.
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Summary of procurement policy delegations
Authority Purchase amount Required number of
quotes
Comment
CEO and one Director Authority to sign
contracts for products
and services over
$75,000.
Two or more
competitive quotes for
contracts over $75,000.
Detailed services
contract required.
CEO Authority to sign
contracts for products
and services up to
$75,000.
Two or more
competitive quotes.
Detailed services
contract required for
contracts over
$20,000.
General Managers
Delegated authority
only through CEO
Authority to sign
contracts for products
and services under
$30,000.
One or more
competitive quotes
preferred.
Provided they are
within the approved
budget and
consistent with
business/operational
and strategic
planning.
Managers Authority to sign
contracts for products
and services under
$10,000.
One or more
competitive quotes
preferred.
Follow MLR
purchasing
procedures.
Agents Authority to sign
contracts for products
and services under
$5,000.
Must use preferred
suppliers list.
Follow MLR
purchasing
procedures.
Contractors and
external consultants
No authority. One or more
competitive quotes
preferred.
Must use preferred
suppliers list.
Contractors and
external consultants
must follow MLR
purchasing
procedures and
must seek approval
for purchases from
person holding
relevant authority.
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Chapter 10 ? Max Lionel Realty current tenants list
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