An Innovation and Continuous Improvement Plan
For this task, you are required to choose a hypothetical workplace (or use your own real workplace) and develop an innovation and continuous improvement plan for an area of the business.
Identify the workplace
- Briefly describe your chosen workplace and the need for innovation and continuous improvement by completing the table below:
Briefly describe your chosen workplace. E.G. Organisation details, products and services.
|The company which has been selected in the current research is a coffee selling company which sells coffee products to the customers and also they can avail the coffee and other products at the store of the company. The products of the company is not confined to coffee only, but also snack products such as sandwich, ice creams and pastries. The services of the company provide building of a social connection between the people who visit the stores and also with the employees.|
|Process, program or system to be reviewed|
Describe the existing process, program or system that needs to be reviewed. What is the need for reviewing this process, program or system?
|Despite the good facilities provided by the company, a few things are there that are required to be changed. As such the company aims to provide fine quality coffee to the customers, however, there are a number of companies growing up in the industry and pose certain amount of threats to the concerned company. Along with that, the huge turnover of the employees is also a major issue contributing to the productivity issue faced by the company.|
|Innovative process, program or system: |
What is the new innovative continuous improvement will you introduce? This could be a program, process or system improvement.
|The innovative system which shall be integrated in the company includes the appointment of Human resource department and also a marketing manager for the understanding of the distinctive needs of the customers to initiate a range of new products in the market. Moreover, the HR manager would look after the needs and specifications of the employees. In order to decrease the turnover of the employees, they shall be provided with rewards and incentives which would contribute to the betterment of the performance of employees. That would help gain their positive confidence.|
Review existing programs, systems or processes
- Review the existing program, system or process by completing the following SWOT analysis:
What are the strengths of the current process, program or system?
|The current process pays excessive focus to only building a strong relationship with the customers. The company has a chain of employees who look after the brewing process of the coffee which helps in ensuring that the coffee qualities are healthy and safe for the customers. Therefore, this has helped the company gain the confidence of the customers.|
What are the strengths of the current process, program or system?
|The current program has paid excessive focus to the customers and therefore, has neglected the needs and demands of the employees. As a result of that, the company has lacked the confidence and positive impact of its employees resulting in huge employee turnover. Thus, in order to provide a better service and facility to the customers, it is important to have an adequate production facility for the customers. However, the dearth of employees has been somewhat down trodden for the company, thereby, creating a dearth of the production process. Moreover, this has also resulted in facing a huge competition from some of the growing companies in the sector.|
What are some ideas you could implement to make improvements to the current process, program or system?
Henceforth, some of the opportunities which can be implemented for the betterment of the currently prevalent program are segmenting the market demographics on the basis of their needs and demands. This would help the company provide service and facilities to the consumers to meet their demand. Moreover, providing rewards to the employees, works as a motivational factor for the employees which helps them better their performance. Furthermore, the betterment of performance of employees shall add to the service and facilities provided to the customers and as a result, the company shall enjoy competitive advantage in the long run.
What are the threats and risks to the process, program or system?
|The new program which shall be initiated in the company has a number of risks such as the reward system shall sometimes be monetary which is likely to incur an economic adversity on the company. In addition to that, the plan is to also understand the demands of the market on the basis of the segmentation. That might lead to the misunderstanding of the exact needs of the customers.|
Develop options for continuous improvement and innovation
1.3 Completing the following ‘Innovation and Continuous Improvement Plan’ template to help you to plan for the implementation of your new innovation.
|Innovation and Continuous Improvement Plan|
|Innovative process, program or system: |
(This should be consistent with task 1.1. What is the new innovative continuous improvement will you introduce? This could be a program, process or system improvement)
|The newly initiated innovative system that would be started by the company includes the appointment of Human resource department and also a marketing manager for the understanding of the distinctive needs of the customers to initiate a range of new products in the market. Moreover, the HR manager would look after the needs and specifications of the employees. In order to decrease the turnover of the employees, they shall be provided with rewards and incentives which would contribute to the betterment of the performance of employees. That would result in motivating the employees and earn better performances from them.|
|Specific Objectives: |
(Identify the specific objectives to be achieved)
The objective of the aforementioned plan is to create an impact on the customers and employees. At the very beginning, the focus would be given on motivating the employees and better their performance. The second step is to initiate products and services as per the varied demands of the customers. The objective is to gain competitive advantage.
|Knowledge management system:(What are the knowledge management systems that could be used and their purpose)|
At the very beginning, there would be a platform developed on the website of the company where the customers would be asked to share their feedback and opinions regarding the products and services of the company. This would be further analysed to understand the trend in the demands of the customer. Along with that, in order to have information on the employees’ performance to provide them incentives, the intranet of the workplace would be used. That would help in understanding the performance of the employees and analyse the employee with the best performance.
|Other resources: |
(Include references to relevant organisations, government bodies and supporting resources)
Some of the important resources needed for the customer service are continuous communication and also a medium of communication between the company and customers.
The resources important for employee rewards and incentives are involvement of employees in decision making process. It would also be helpful to assess the feedback of the managers and the leaders of the company regarding the performance of employees.
Plan innovative and continuous improvement processes
1.4 List and describe three (3) support team strategies to actively encourage and members to share innovative and creative ideas and participate in decision making processes for continuous improvements.
|One of the most important strategies to support team innovation is diversified cultural members in a team. The presence of diversified cultural members would help discussing the varied ideas and aspects. Moreover, customers of a company also belong to different backgrounds and it shall only be helpful for the company to understand the needs of the customers in presence of a diversified cultural team.|
|The company can also build a comment box on its website for the customers to share their opinions, ideas and feedback. In that way, it shall be favourable for the company to understand the services and facilities they need to integrate from the end of the customers.|
|It is also important to involve the employees in the important decision making ideas process of the company. The involvement of many employees would result to many ideas which would result in innovativeness of the newly formulated idea.|
1.5 List two (2) strategies you can implement to recognise the success of the team?
|At the very beginning, it is important to set goals and objectives for the team members individually. The setting of goals and objectives would allow the members to perform in that specific way and therefore, proceed accordingly. At the initial level, the outcome of the team would be measured to the extent to which the goals and objectives of the team have been met.|
|The second strategy would be to recognize the team as a whole and not any individual member. Therefore, on the basis of that, their performances would also be measured collectively.|
1.6 List and describe each member of the continuous improvement team (create hypothetical names), their positionand their roles and responsibilities in implementing the innovative continuous improvements.
|Team Member’s Name||Position||Roles and Responsibilities|
|e.g. Jill||Team Leader||Monitor the staff and track progress; report on any deviations to the plan;|
|Business development manager||The role of this position is to pitch to the customers and increase the marketing and sales of the company. Moreover, the new products and services that are being initiated in the business shall also be informed to the customer with the help of a Business development manager.|
|John ||Customer relationship manager||The responsibility that the Customer relationship manager is entrusted with is to analyse the needs and specifications of the customers and report that to the business development manager. Moreover, he shall also look after the issues faced by the customers and must find mitigating measures for the resolution of those issues. He maintains a harmonious relationship between the company and its customers.|
1.7 Imagine that your new innovative change is very different and imposes huge changes to the role and responsibilities of the people in your team. What are three (3) change management strategies you can implement to ensure the team are all on board?
|At the very beginning, it is important to prepare the employees mentally to make them resistant towards change. Therefore, in accordance with this, it would be paid focus to that the employees are well informed of the changes that would be integrated in the company. This would also help making them emotionally prepared and share their viewpoints and ideas in case they face any issue.|
|There would also be establishment of cultural values in the company. This would help in involvement of the employees in the change emotionally.|
|The third strategy would be to understand the emotional aspect of the employees and continuously communicating with them. This would help in analysing the continuous impact of the change incurred on the employees.|
1.8 What are three (3) strategies you can implement to promote continuous improvement, innovation, sustainability and entrepreneurial behaviour as key to developing a quality business and an essential element of competition?
|Strategy for viewing continuous improvements as key to developing a successful business?||The first strategy would be performance management which allows evaluate and monitor the performance of employees at regular intervals. In that way, the employees also remain assured of the management process and seek to develop continuously.|
|Strategy for viewing innovation as key to developing a successful business?||The appointment of diversified cultural people would be the strategy for driving innovation.|
|Strategy for viewing sustainability as key to developing a successful business?||The understanding of the strengths and weaknesses of the competitors and using that for better strategy implementation is the strategy for sustainability.|
|Strategy for viewing entrepreneurial behaviour as a key to developing a successful business?||Application of leadership and managerial skills and involving communicational techniques in all spheres.|
1.9 In order to implement new innovations, you will need to communicate the plan to the team.
Develop a communication plan to ensure that the continuous improvement strategies arecommunicatedto all stakeholders. Include the stakeholder, communication strategy (e.g. newsletter, email, meeting etc.) and then describe what you will include in the strategy.
e.g. staff, general manager, team leader, project manager etc.
|Communication Strategy |
e.g. email, training, meeting, newsletter,
What information will you include in the strategy?
|Employees ||Intranet, emails||There would be one to one interaction which would make the employees more comfortable in sharing their views.|
|General manager||Formal letters, meetings||The general manager must be informed of the numbers and statistics regarding the performance of employees.|
|Project manager||Emails and meetings||The project manager must know about the time and the total budget of the project. Moreover, he must also know the aims, objectives and the people who shall be benefitted from the project and thus, he shall work accordingly.|
1.10 In order to implement new innovations, you will need to develop an Action Plan for the team.Develop an Action Plan to ensure that all stakeholders are clear about their roles and responsibilities. Use the following template to document your plan.
|New Innovation: |
(This should be consistent with 1.1)
|Process or Strategy (This should be consistent with task 1.1. What is the new innovative continuous improvement will you introduce? This could be a program, process or system improvement)||Objectives|
(This is what you want to achieve)
(what will help to measure and evaluate the success of the new innovation process or strategy?)
(Who is responsible for implementing the processes or strategies?)
(When would you like to achieve the new process or strategy?)
|Process or Strategy|
Creating a market segmentation and catering their needs accordingly
To gain a huge number of customers and gain profitability
Increased demands of products and services and economic prosperity of the company
The board of directors and the investors would be benefitted from this process
|Process or Strategy||Objectives||Success Measures||Who’s responsible?||Timeframe?|
|Process or Strategy||Objectives||Success Measures||Who’s responsible?||Timeframe?|
Monitoring and Evaluating Performance
1.11 List and describe two (2) ways you could you record work team performance to assist indentifying opportunities for further improvement.
|The conflicts among the employees must be addressed and ensured that there is collaborative work for the achievement of team goals.|
|During team outcomes, each of the individuals in the team would be held accountable|
1.12 List and describe two (2) processes you would create to ensure that team members are informed of the outcomes of continuous improvement efforts.
|There must be continuous feedback provided to the employees to keep them informed of their performance; its betterment of deterioration.|
|Moreover, rewards and incentives would also be an effective way of keeping the team members informed of their improvements.|
1.13 Develop a flow chart for the team to show the process of implementing your new innovation.
1.14 What are two ways that you can use the flow chart to help monitor and evaluate the performance and sustainability of the new key systems and processes?
|The tasks that have been developed in the flow chart shall be analysed in compliance with the performance and improvement of the employees.|
|The second step is to analyse how far the goals and objectives stated in the flow chart have been met.|
1.15 Describe two (2) other types of reporting or evaluation techniques you can use to analyse the performance of your continuous improvement plans.
|The best way to analyse the performance of employees, it is important to set goals that would be informed to the employees as well. They must be asked to evaluate their own performance and in that way, it would be most appropriate for the management to evaluate.|
|The second technique would be implementing software for the purpose.|
Develop risk management and cost-analysis for your innovation and continuous improvement plan
1.16 Complete a SWOT analysis on the continuous improvement plan you have developed to identify the potential risks. This includes looking at all areas of the plan, including operations (such as under-performance) and outcomes.
What are the strengths of your continuous improvement plan?
|There would be betterment of the performance of employees and productivity. The primary purpose is to analyse the performance of employees and thus, this would ensure that the employees are continuously bettering their performance.|
What are the weaknesses of the continuous improvement plan?
|The weakness of the plan includes the excessive focus on the employees’ performance and thus, there is no scope on customer service.|
What are some ideas you could implement to make improvements continuous improvement plan?
|There could be improvement of productivity which would help in better profitability and therefore, the shareholders and investors would be benefitted.|
What are the threats and risks continuous improvement plan?
|There shall be similar tasks performed by the employees and therefore, individual performance analysis shall be difficult |
1.17 List each of the risks identified in the SWOT analysis on the Risk Management tool below. Then, assess the level of risk by assessing the likelihood and the possible consequence by using the Matrix below. Once you have assessed the level of risk, suggest one control measure you could implement to help manage the risks.
|Individual performance analysis||Moderate||Dearth of performance betterment||There would be more face to face interaction|
|Customer service||Moderate||Lack of confidence of customers||Low profitability|
Source: National Museum Australia, retrieved from,http://www.nma.gov.au/about_us/ips/policies/collection_care_and_preservation_policy
1.18a Develop a cost-analysis of your continuous improvement plan by completing the following tables. Include the cost of human resources, equipment etc.
|Estimated costs of implementing the plan|
|Use of technology||$14 million|
|Arrangement of meetings||$21 million|
|Recruitment and selection||$9 million|
|Training and development||$15 million|
|Customer services and facilities||$25 million|
|Employees’ rewards and incentives||$30 million|
|TOTAL AMOUNT||$114 million|
1.18b Justify the costs of your innovative continuous improvement to the hypothetical CEO of the organisation. You may do this in any format you choose, such as a table or chart.
The costs stated in the previous section are kept in accordance with the need and importance of each of the factors and their resultant impact on the betterment of the organization. The highest cost is the rewards and incentives of employees because that would contribute the most to the betterment of employees’ performance.
1.19 If you were to really implement this plan, who would you need to seek approval from? When seeking approval, how would you go about presenting the continuous improvement plan to management?
|The management shall be presented the negative factors that are harming the business growth in the current organization. Therefore, they would be made to understand the importance of the development plan and its resultant impact on the profitability of the company.|
1.20 List three (3) major benefits of the innovations and improvements you have come up with that you can communicate to the relevant stakeholders.
|There would be betterment in the production process.|
|The operational cost would decrease and as a result, the customers would be able to avail lower cost product.|
|The company would gain competitive advantage in the market.|
PART 2: ASSESSMENT ACTIVITY: KNOWLEDGE TEST – 20 MARKS
The activities and questions in this PART 2 Knowledge test require short answers either in point form or short paragraphs. Please use your own words to answer the questions and avoid directly copying your responses from your learning resources. You must attempt all activities.
You will need access to the following resources:
- BSBMGT608 Learner Guide
- Technology Innovation Management Review, 2016, ‘Creativity, Linking Theory to Practice for Entrepreneurs’, retrieved from: http://timreview.ca/article/59
TASK 1: Refer to your Learning Guide and complete the following:
- Describe the following methods of analysing and evaluating programs, systems and processes in an organisation to ensure sustainability.
|Benchmarking||Benchmarking is the process of evaluating one factor by comparing it to another factor|
|Financial Analysis||The evaluation of the different costs and expenditures of a business and the budget of the company|
|Questionnaires and interviews||A direct face to face interaction with the aim of gaining qualitative data|
|Mystery shopping visits||Use to analyse the position and service of competitors|
|Social media monitoring||Extraction of information from the different social media blogs such as facebook, twitter.|
|Business Meetings||A direct face to face interaction between the internal stakeholders of a business|
|Quantitative employee analysis||Numerical answers are derived from the respondents and statistical analysis is done.|
- Outline the services that each of the digital specialists provide by completing the table below:
|Business strategy consultants –||Strategic planning, growth, innovation|
|Information technology consultants||Computer consultancy, technology consultancy.|
|SEO experts||Web design, internet marketing|
|Digital marketing specialists||Conversation rate optimization, social media promotion|
1.3 Define performance measures.
|It is the process of analyzing the performance of individuals by gathering data and information of their performance in a certain period of time.|
- What are three (3) reasons for monitoring performance?
|Assessing the customer service quality|
|Contributing to profitability of an organization|
|Ensuring meeting of needs of employees|
- Describe each of the following evaluation tools which can be used to measure performance.
|SWOT analysis||An analysis of the strengths,, weaknesses, opportunities and threats of a particular factor or organization.|
|Process mapping||It is a tool that helps in analysing the flow in which a work is being done.|
|Management by objectives||It establishes some aims and objectives and analyses the extent to which the employees and members are working towards the fulfilment of those aims.|
|Forced ranking||Forced ranking is the process of performance management where a systematic process is integrated to mark the best employee on top and worst employee at bottom.|
|Brainstorming||It is the process of involving a number of members in a meeting and taking idea from each of them.|
|Trent Analysis||It helps in assessing the future position of stock.|
TASK 2: Refer to your Learner Guide and complete the following:
- What does ‘organisational learning’ refer to?
|It is the process of gaining and transferring data and information in a business.|
- What are six (6) areas that successful promotion of organisational learning lead to?
|Development of knowledge|
|Transfer of knowledge|
|A positive environment|
|Resolution of barriers|
|Constituting to profitability|
- Describe the following continuous improvement theories:
|Kaizen||This theory states that small changes would lead to the success of an organization.|
|Six Sigma||It analyses the numerical variables and aims to decrease the different variations in the business process of a company|
2.4 List five (5) methods you could use to inspire and reward innovative and creative ideas?
|Time management skill|
|Diversified varied cultural team|
|Toleration of mistakes|
- Which five (5) steps should you follow when carrying out a risk assessment?
Identification of issue
|Analysing the issue|
|Implementing certain steps and solutions|
|Monitoring the impact|
|Implement the best solution|
TASK 3: Refer to your Learning Guide and complete the following:
Read the following article ‘Creativity, Linking Theory to Practice for Entrepreneurs’, and answer the following questions.
Go to: Technology Innovation Management Review, Robert J. Sternberg, 2016, ‘Creativity, Linking Theory to Practice for Entrepreneurs’, retrieved from: http://timreview.ca/article/594
3.1 According to Robert Sternberg, what is creativity most commonly described as?
|Robert Sternberg states the factor determining creativity is the mental position of people and with the proper use of it, one can get creativity.|
3.2 What is the relationship between innovation and creativity?
|There is a common relationship between creativity and innovation and as such, the first factor leads to the other.|
3.3 Do you think that you need to be creative to have sustainable practices? Explain your thoughts.
|Creativity is the most important factor in sustainability as that allows an organization to stand in a market with competitive advantage.|
3.4 Briefly explain Kirton’s theory about creative problem solving.
|Kirton stated that in order to solve a problem, an individual must always implement his cognitive ability and implement the steps he thinks to be appropriate for problem solving.|