608 Manage Innovation and Continous improvement Task 2 Develop options for continuous improvement Remember the year is 2016 and AC Gilbert is continuing to operate the same way as in 1967. What can you do to change the performance? (3 parts) 1. Prepare an one page performance improvement strategy The following elements should be there: ‘s} Wheto our araegi goal ) How are you going to change the cucent proces? ©) Explain how these wilimprove the performance andthe company wllok compete 4) Your new Kas, KP, aret 2. briefing and consultation seston 23) you are going todo tin the cas this the best option), dstrbute the strategy and tak teacher wll observe and mark your work a competed. Aernatiely, ou an provide a crigt ofthe Simla conautation seston 1b) Ashe group to go over the pros & cons and incorporate changes ot sty. 5. For each new option/iden 2) Develop 2 sk anayss 1b} Develop a cost benefit analysis {sample templates and examples ae attached) ©) Getapproval (e.g of new ideas Digta means of advertising Google as /persnaied advertising on social mes: new toys based on movie themes lvge super market sales and not smal retalrs aso on) You can find extra information on the information sheets that are} class (student activity sheets)- “Section 2- Continuous improvement “What skills will you need? In order to work etecthely as 2 manager, you must be able ta: f 1 bre groups on perormenee improvement strategies and Innovstonas 2n ‘seen element of competion 1 foster creative climate and organistlona learning by promoting interaction thn , ‘and between work groups 1 encourage, test and recognise new ideas and entrepreneurial behaviour ‘shore successful 3 accept aur and o an ea curing tain and recogni, celetrateand embed success Into systems Undertake sk management and cost-benefit anal foreach option or ea approved for tal 1 epprve novation trough agreed organisational pocestes Continuous improvement ' Continuous impeovernent i recess of consistent reviewing wnat we doin search ofa : ‘way of improving the organisation in evry aspect fs acts. ‘Tere are various qualy management and continuous improvement theores that ‘organisations subscribe to, to make continuous improvement an essential pat of the way Inwhich they de business. Some ofthese thecie are \ \ '¢ Plan-Do-Check-Act Cycle (POCA Total Quaty Menagement (TQM) Kaizen + Sksigme ‘Lean Mancfecturing/ProdutionPerformance improvement strategies In order for organisations to remain competive, they must be continuous looking for Detar ways to go about thei busines, This inves using cntinuous improvement | theories to identity and develop performance improvement sateses, pusiness perfomance. AK} Potomansiorvonent saoge ft sway tlnahe mag ag sete (Qy/_ strane onda nl kg twtr sa mpovemers an bem sees XN Organisations that refocused on improving the way which they go but thelr business ae continuous asking themselves How can we do this batter? “+ How ele can we do this? (Once an analysis ofthe organisation's ystoms and processes has been completed, thoy ‘can bogin to identty the performance improvement atateges thet wl aliow them to Improve thelr perormance Beomplas O, Derlgnrasce Unprotvend Sake Performance improvement stategles Include: | + Involves analysing existing processes ard identifying aa ees eases ty Process micemeseeats ese Sree | Fon cae eg secon eect sonra | + while implementing new techreogy or equipment can be costly ican often ruin significant Implementing. | improvements to business processes and systems. technology or | Many organisations today invest in techralogy or equipment | equipment io automate business processes, requiting less human resources to completo the tasks. ; ( reaee ean iacr oa oes came oes ee crn esc eane Setar ree nora bar pee | employees have a higher human resource utilisation and capacity rate, which often translates to more efficient eaebn goalies + sxivwestt tr renain sdul Got the audience's attention ANP Ralate a one poked + Akos Communicate performance improvement strategies For organisations to remain compatitv, continuous improvement. andimovaton must become a way ef fe for employes. An ergeisation's employees are the people who Interact wth the syetms and processes ona aly basis, andtherefore a often the best ‘sour of ideas for perfomance improvement stateges, For this esscns val that ‘managers ensure they communicate wit ther eams on 2 regular bass. Tony decies thatthe warehouse employees ate an excellantsource of He8s for developing his performanoa improvement state). He complete coveralemployoo brings, whore he presontathe warehuse ‘operational plan goals and the results of is ena ofthe warehouse asters and processes. Ins briefing he aso communicates to employees that hel caling on tem to aeset In developing his performance improvement strategy. He exlns thatthe B&A Toy Warehouse to achieve is stvtege goal of becoming the number ene tay tbr in Victoria, all employees must partpat in thinking reativelyebout how he business might improve, He aso tas the employoosthatin the coming weeks they wil heer moreabout the warehouse performance improvement strategy, and how theycanpartichate a developing tat strategy. ‘The employees are excited about being glen the opportunity to put formar thelr ideas Con how the business could improve Introduction ‘© Yuropéning is @ kay moment in your presentation. «you doo gain audience attention ad establish your eretity imme, your presentation wit lose impact. Greet your audience ‘= Invoduce yourset + Recte quotation. Your contusion ‘= orton this aftr review ofthe main pols. nur thatthe ausionce knows you sre conduding: refer back your opening comments f possi + tskforagreement. = hak for action. Question time 1 Anpate question, practice answers.Manage new ideas Developing nl implementing specie programs that encourage Inovatin ond continuous Improvement are an excelent way to encourage, test and recognise new eos. rgpisatons that experience the most eucces innovation and continous Improvement are those that have formal programs In pace to manage the way in whieh ideas are captured, assessed and implemented. These programs eso include parameters {or the way n which ideas are rewarded and recognise, ‘Successful programs are aso documented and provide a formal rameweck forthe Talloning. avinga formal process in place ror captunng new ess 6 essential to ‘ensure that lids ee recorded. Mary eganisaton hse good ideas that are thought of during day-to-day actives, escussens or meetings because ther sno formal method for recording than. ‘Te other benef of having formal process fr capturing eae means “thatif an idea cannot be worked on immediately itis not last, or on the \ other han fits captured and assessed as not veble there i sila \ record ofthat assessment for future reference shoul the idea aurface at alatersage. Capturing idea Providing forums for ideas tobe explored though dscusion can bean cfectne way to engage teams to partciate in innovatin and Discussing continuous improvement acts. These cuecona provide an ‘ideas opportunity o refine ideas and agree on next steps. Havhge structured approach to haw end when these dscussone occur and who participates wil hep to ensure ther sucess tis important thatthe cost bones of al innovaion and continuous Improvement actions are considered, Sometimes the ide may be 3 ‘oon but affordably Is not feasible Organisations tat have formal Assessiné programs in place to mange the assessment of costs have a beter ‘thecosts chance of mansging costs associated with inmotion and continuous Improvement programs. This also means tht they increase ther ability ‘real the fll potenti of nancial benefits that ean te eehieved| ‘though such programs. (Obtaining formal approval forthe implementation of nnovstion end continuous improvement ations can agit ergaisatione with managing ‘costs and change within the workplace. provides mansgement team wit the abit to plan cost impacts and also contrl the emount chango oeeuring win te eran: a U(r over 3 period Oe) a ‘Obialninig other words, talons managernent teams to manage inovation and ‘approval cotinuous improvement impacts onthe business as @ whole. Having formal approach to obtaining approval also means that hase reperng and submiting proposals are aware of whats quired This reduces the time pried rom idea to implementation a8 management teams, responsible for approving proposal, wil receive te information they require to make a decsion.[eis important for organisations te haven place a progres for mensing ‘~+inemplmentation fia. Tis wl help to nsure thatthe business rot oferloaded wth acts that have not been propery planned. A progam for managing the plementation of ideas usual consists of Implomeming dese temples and guidelines for documenting and executing Implementation plans ‘change management priniies «+ communiation guldetines. ‘Assessing the success of en lea Is rteal ast determines whether implementation shout continue or not. tao helps t norm simian ‘eas that are generated inthe future When assessing the success of en des ts god practosto assess the rogfams that supported the Implementtion ofthe ies. Sometimes the Suoeess or fale of an ide is largely dependent on the stems and Processes the organisation has in pave for managing imeementaton. Including these Inthe assessment ensures tat tho efleciveness of Implementation programs is aso being considered. To ensue that organisations continue to generate eas kis important to reward an recognise toee involved in implementing anew dea. Reward and recognition programs tht recognise innovate thinking help to encourage mare nova thinking Inovtive thinking f something that organisations wantfrom their ‘employees above ad beyond the day-to-day requirement oftheir role. For this esson organizations need to revar inovatve:hink to fester enthusiasm in employees.Assess ideas ‘ideas that have been approved fr tial or plot must be assessodforrsk and cost benef. This ersures that no time and moneys wasted on ideas that wan't work isk management risk managements the provess of dentition of potential ngatve evens and the development of plans to mitigate or minimis the lklInood ofthe negate event ‘occuring andthe consequences inthe event the risk does occur. b ‘lek othe organisation for implementing new ideas can incase: «+ tnereasod operating costs + Interruption of sence to customers ‘unhappy employees. Managing thoe risks an Important pat implementing perfomance inproverent 1 ‘Svategies which involves the denteation of mitigation measures and the development ‘of @cantngoncy plan. Contingency planing covered in Seton 3 starting on page 104, Toctfectvely manage the risks aaocited wit implementing performance Improvement ‘i stratogis, managers should action the following steps. : Step 1 ~ Identity the rsks ‘Tho et stop in managing skit enti the risks, Le. what can go wren? Risks tothe 1 successful implementation of an crgansation's Installations strategy inclu: ' 1 process changes resultin slower servic to customers ‘= poor change management ruts in dsgruntied employee ‘© now equipment results nan increase of errs. ' Managers should try and kentty as many poterll risks a possible. This could inate 1 ‘+ review of similar past performance improvement actions that have been 1 Implemented ‘+ sookng advo trom specialists, such asthe supplier of new techndlogy of ' equipment ' + obtaining foodback ftom managorsregarcing anteipated employee responses , ‘seeking feedbeck rom employees. Step 2~ Analysing and evaluating risks 0 (Once risks have beon dentied, they need to be assossed wth rogards othe impact and ence oftheir accurenco. Risks ae typically pated es follows:High impact Medium rk lg is ow tak Medium is Low impact Low ivenood ——————— igh tkettood Risk impects can be ether simple to measure, such 2s Increase in ort or inease in eustomer complaints due ta lower procesingimes, or less tangble mpers sucha dsgruted employees. Livenood canbe easy to measure fr stuations that have oecure previusy For example tis highly ikely employees wl be caged ithe changes result ina loss of jote, However, ikeliood canbe equally dficut to messure where Ris unkown tonto tr new ground, and noone eal sure how ky the risk is to coor. “Therefore, nthe assessment process ise! to obtain as much formation regarding proces improvement implementations that have occurred inthe past to mak the best possible educated guess. This wl allow fr isks tobe cone priotsedwthin the risk ‘management pan ‘Step 3~ Identity mitigation measures ‘nce ris have been dented and evaluated, tis important to Kent the miigtion rmeosures to alleviate o elminst those risks. Mrigstion measures can reduce or completely remove a risk, and shouldbe dent for tach sk ented. Mitigation measures are cifleent to coringsncy plans, they are ‘Sevelopedto rand prevent ak rom occuring, wherees a contingency plan details ‘ations to take should a risk our.‘Bample: BBA Toy Warehouse wrap and label errs. ony; the warehouse manager at BEA Toy Warehouse, lente the aon sks and itgstion measures for changing the process to no longer have the dtibuton team ew process. ek Impact | ukennood | Migstion mesures Industialacton tom [High | Medium |» Change managiment plan. empinyes dueto [impact | etnood | Communications pen, removal fobs in litbuten team. ‘+ Prosatve engagement of uion, = Redoply room tat packing team, Delays in processing | Medium [Medium |» Trainngin new process to be orders as employees | impact | iketnoed | completed porto, become familiar wh Implementation, “© Suporisors to bon the ‘warehouse foormonitoring the braces forthe fst two Weeks ‘ter implementation. meticd ror Rel mses ee Oe Dosorve Role a ea salts - frevininaiie Listeg, | tha ° he nena pecwriy | coos ont Donk 52 Continges: meadow Of eeCost-benefit analysis (CBA) tis important tht prior to any performance improvement strategy or idea boing Implemented that te cost bereft tothe organisation is assessed. Sometimes ideas that _2ppear obo fantastic are not woth implementing, 6s they requ largelnvestment of ‘Une and monay that the orgaisation cannot effort or jutiy. Cost benett analysis (or CBA) sa relatively simple and widely used technique for determining whether an option makes franca sence. Ashe name suggests, imply Invoes ang up the value ofthe benefits ofthe epion, and subtracting he costs ot ‘isk asoclted with -Acect benef analysis Involves the folowing stops: 4. State the ideas you ae assessing in each om (column 4}. 2. Determine the tangle costs: intangible risks (losses); negative reaton impact on safety: morale and operational effetvencss, ‘ony the possible bonets of each dea 4. Assess the outcomes agains the sot orteria, '. Decide which ideas are: a. Feasible F) b. Maybe feasiio (MF) ©. Notfeesibe (NF. ee g Amol sis formot Option | (ost ik Benet | F/ME/NFvane & A CB Anolysia rample: BAA Toy Warehouse Costbeneft snails ‘Tony, the Warehouse Manager at B&A Toy Warehouse, compete the clowing cos ‘benefit analysis for Implementing the process change that removed the need for 8 por eae elected] cece oes are SS Se eet ee Sas Ea ; serine |e cereae [rece oo. Process | pactingto | change and plokers and Less trategy. fecee aeees fem lose San) ee a ee eS ‘ proves, ‘salary costs: ‘experience ‘required and ‘venting soos los [oem | et : wee [teeta et. [She : cena [geet | meme Jom ; aon fee oem, | 1 sajna. ‘distribution levels not ae esl : ‘Productivity : ‘gains will not be : ee — ' ‘operations, . (IGain approval for Innovations ‘To encur that management teams re aware of nd agree wh allofthecosts and risks associated with implemetng the innovation; al recommended innovations must be ‘approved roca being implemented. Organisations use various methods to approval Inovalons such 6s: + presentations ‘unten report When subriting imovtions for approval, is important that he submision est outings: + how the innovation wl improv organisational perfomance ‘= he nnoveton Inks tothe organisations strstege and opeatcnal plan goals 1 detaleo ik assesements 1 etal of completed costbenett nhs (CBA) + detas of how the innovation wil be implemented. You shoul also ensure that your submissions: «= supponts by date to help demonstrate the value ofthe ropeses imoveton tothe ‘organisation. Supporting data might include: © product data © customer complaints data ‘human resource deta suchas absentelsm, engagement, tumover, + cones and professional, nsurng that your submission and suppoting documents etal the svetegy and recomendations cleeriy and corlsly,howaver, ae stl ‘resented with enough detall to enable managers to make an informed decision.Werke cuerjtling on a reppit fom Written report setae ee a ‘Soe ren er Nem tena tere acsongrennr eta ext crs a enum a ence tantra naira outros mionmeantoineetteemeaeate been obtained. ° eta tn oe teed aa een Write reports -Areports an organised presentation of factual information or ideas aba a glven ‘subject can very in Fength from one page to several hundred. ‘Tha purpose of reports sto: «+ transmit infomation + summaise events 1 seek approval for proposals + construct plans © anabyse situations + research ond develep propesa's 1 proc ends 1+ soe problems. 1 review progress Reports often provide the bass for important decisions ad therefore bad reports can bo harmful to business. What to avoid in a report Most inefectve reports suffer fem afallureto recognise thet thelr prime purpose Isto communist nformation. They ten ‘+ ro verbose and use unnocessary jargon long sontances, ong psragraphs, ‘cronyms and techrical jargon can make aepor dificult to read «= lack clear structure making elt to folow the argument anidenty the ‘main points ~ lack of heacngs and sub-heacngs can hinder the reader's understanding Include Incorect mater or are mising Important facts, underiring the eredbity ofthe report «+ ‘alto clstingush between verifiable fot and the wrt’ opinion are o0 long because the writer has fled to identity ho precise pupose of ‘the report.