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The Australian Flexible Learning Framework aims to make the vocational education and training (VET) system in Australia more flexible in terms of responding to and anticipating the needs of VET clients. The first stage of the Framework gave priority to building the organisational and individual capabilities of VET providers and systems so that they could meet the e-learning challenge. According to an independent evaluation of its first two years of operation (indexed at TD/TNC 73.199), the Framework has made a substantial contribution to this aim. The evaluation identified strengths and weaknesses. During 2002, the Flexible Learning Advisory Group (FLAG) continued to build on the strengths and to address the main weaknesses. A major project to enhance communications and adoption of e-learning was undertaken. The second stage of the Framework aims to give priority to supporting the take-up of e-learning across the range of VET clients and providers. The implementation plan for 2003 (IP2003) draws key lessons from the first stage and documents directions and priorities for the second stage. It provides details of managing the Framework through five programs in 2003-2004: new practices in flexible learning; professional development; resources for teaching, learning and assessment; policy and research; communication and leadership. This paper outlines the management and operational arrangements for the IP2003. It describes FLAG's role as the national advisory group for flexible learning, its role in overseeing the management of the Framework, program roles and responsibilities, including processes for the allocation and management of IP2003 projects, contractual arrangements between the Australian National Training Authority (ANTA) and managing agents, and reporting arrangements for programs.