BSBMGT608 Manage innovation and continuous improvement
- 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.
In PWC, With offices in 158 countries and more than 236,000 people, we are among the leading professional services networks in the world. We help organizations and individuals create the value they’re looking for, by delivering quality in assurance, tax and advisory services. Some facts about PwC:
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?
It requires you to effectively review an organisation's programs, systems and processes. You will do this by working through the various sections within this topic. You will establish strategies to monitor and effectively evaluate the performance of organisational key systems and processes and analyse supply chains, operational product, and service delivery systems in order to identify improvement opportunities. You will use performance measures and assessment tools in order to undertake this analysis together with relevant performance reports. You will identify variances in key result areas of the organisation and analyse the impact of the business environment.
Innovative process, program or system:
What is the new innovative continuous improvement will you introduce? This could be a program, process or system improvement.
Our product profitability service offering helps clients design their products for maximized customer and end-user value, while maintaining cost effectiveness in the delivery of that value.
Product profitability cannot simply be about cost reduction. We believe that significant improvements in product profitability, whether from pricing or margin improvement, must begin by capturing real insights into customers and markets, and then understanding, targeting, and delivering the right “value mix.” A comprehensive focus on both top-line and bottom-line levers helps improve product competitiveness and drive increased profitability.
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?
What are the strengths of the current process, program or system?
What are some ideas you could implement to make improvements to the current process, program or system?
What are the threats and risks to the process, program or system?
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)
Plans and implements strategies to review and improve own performance
(Identify the specific objectives to be achieved)
Analyses, evaluates and integrates facts and ideas to construct meaning from a range of text types
Knowledge management system: (What are the knowledge management systems that could be used and their purpose)
Integrates information and ideas from a range of sources, utilising appropriate support materials
(Include references to relevant organisations, government bodies and supporting resources)
Communicates complex relationships between ideas and information, matching style of writing to purpose and audience Oral Communication
Plan innovative and continuous improvement processes
1.4 List and describe three (3) strategies to actively encourage and support team members to share innovative and creative ideas and participate in decision making processes for continuous improvements.
Give employees a reason to care
Empower your employees to make decisions and take action
Don’t make staff jump through hoops
1.5 List two (2) strategies you can implement to recognise the success of the team?
Communicate With Your Staff
Make People Feel Appreciated
1.6 List and describe each member of the continuous improvement team (create hypothetical names), their position and 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;|
|HR||Interview and selection|
|Finance manager||Planning for the budget|
|Marketing manager||Developing marketing strategy|
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?
1) Communicate the Rationale Behind the Need for Change
2) Implement the Change in Phases
3) Evaluate, Review and Report on Change
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 need for constant reinvention is a given in today’s business environment. In addition, while a breakthrough product or concept can catapult an organization ahead of its competitors, in these fast-paced times, that advantage is often short-lived.|
|Strategy for viewing innovation as key to developing a successful business?|
Leaders create the psychological environment that fosters sustained innovation at all levels. The challenge is that as an organization grows, management structures and bureaucracies, designed to channel growth, tend to create barriers to small-scale enhancements.
|Strategy for viewing sustainability as key to developing a successful business?|
Changing cultures involves changing minds, and that takes time. However, as with any initiative, a clear sense of the target helps to speed the journey.
Your organization’s mission helps to organize and direct the creativity of its people. What is the purpose of consistent innovation in your enterprise? Is it to add customer value to existing products and services… to speed delivery… to increase on-time arrivals?
Having a clearly articulated message allows everyone to focus on innovation where it can deliver the greatest value. Innovation, as Peter Drucker has defined it, means creating a new dimension of performance. A sense of mission clarifies the direction of performance and helps determine which new ideas to focus on.
|Strategy for viewing entrepreneurial behaviour as a key to developing a successful business?|
An ownership mentality creates a powerful incentive for inventive thinking. When an individual is clearly aware of how his or her interests are aligned with those of the company, he or she has a strong reason to “go the extra mile” to further the mission.
Stock ownership is a significant, if not essential, incentive for employees. However on its own, profit-sharing doesn’t guarantee your employees will think like owners.
When employees don’t see how their individual efforts affect company profitability, they tend to be passive and reactive. To encourage greater involvement, make sure each employee knows how his or her work affects company performance.
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 are communicated to 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.
e.g. email, training, meeting, newsletter,
What information will you include in the strategy?
|What are the steps that leaders will go to take for effective communication?|
|Meeting||What will be the scope of the communication, which will help to improve the project?|
|Training||What interpersonal skills strategies that the should be included for the scope of improvement?|
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.
(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)|
(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
the enhancement of synergy and cooperation in our respective national innovation systems involving a wide range of actors and stakeholders, and building dynamic, cooperative and inclusive innovation ecosystems.
In order to foster innovation and entrepreneurship, the G20 recognizes the importance of maintaining an enabling legal, regulatory, and policy environment, characterized by openness and transparency, stakeholder participation
Process or Strategy
The G20 agrees to encourage cooperation through policy dialogues, sharing best practices and experience, and promoting collaboration to address common challenges.
The G20 also recognizes the importance of the business sector among others in realizing the benefits of innovation and entrepreneurship, including partnership between public and private sectors and the partnership between large companies and SMEs.
Process or Strategy
The G20 endeavours to eradicate extreme poverty, and reduce inequality and social exclusion by 3 providing, to the greatest extent possible, educational and other opportunities for all, especially addressing the needs of women, youth and the aged through inclusive innovation.
The G20 encourages efforts to strengthen developing countries' capacity in Science, Technology and Innovation (STI) to promote global sustainable development.
Monitoring and Evaluating Performance
1.11 List and describe two (2) ways you could you record work team performance to assist in identifying opportunities for further improvement.
Encourage and support team members to participate in decision-making processes
Ensure continuous improvement processes are communicated to stakeholders
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.
Develop effective mentoring and coaching processes
Ensure knowledge management systems address insights and experiences from business activities
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?
This method is in particular useful for new or redesigned programs with lacking or limited investigation of target populations and other stakeholders. In spite of its upfront costs, investment in this method can be very cost effective in the long run, allowing for the adjustment and refinement of programs before implementation, because programs are likely to be better targeted as a result. Distributional analysis can also provide invaluable information about the political consequences of new programs.
This method is most often used for investment programs where benefits and costs can be easily expressed as a monetary value, such as in infrastructure or agricultural projects. However there have been many innovations in cost-benefit analysis to address this issue. Cost-benefit analysis relies heavily on assumptions and forecasting; it may thus be less suitable for programs planned to be operating in unstable environments.
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 method is suitable for programs that rely on performance indicators to guide management decisions. Higher-level policymakers to identify well and poorly performing programs that are suitable for comparison often use it. Benchmarking supports the adoption of realistic and challenging targets in programs. It can be difficult to find appropriate benchmarks because of data constraints or lack of cooperation from affected programs.
The methods can be very cost effective, helping in particular to enhance M&E capacity in organizations and ensure sustainability of M&E initiatives. A barrier to the use of these methods is that in the context of limited budgets there is often little money left for M&E quality control after evaluations have been completed
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?
Strengths are the internal capabilities that put the business or project
at a competitive advantage
What are the weaknesses of the continuous improvement plan?
|Weaknesses are internal deficiencies that may inhibit or limit achieving the goals|
What are some ideas you could implement to make improvements continuous improvement plan?
|Opportunities on the other hand are events and elements that the business or project could exploit to its advantage|
What are the threats and risks continuous improvement plan?
Threats are unfavourable events and barriers that may have a negative effect on an organization or project
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.
Deciding whether or not to move forward
Human – Illness, death, injury, or other loss of a key individual
|Moderate||Minor||Look for cost-effective approaches – it's rarely sensible to spend more on eliminating a risk than the cost of the event if it occurs. It may be better to accept the risk than it is to use excessive resources to eliminate it|
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|
|Supplies and operation||2000|
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.
Too many continuous improvement projects focus so much on gaining efficiencies that they don’t challenge the basic assumptions of what’s being done. For example, a six sigma team in one global consumer products firm spent a great deal of time streamlining information flows between headquarters and the field sales force, but didn’t question how the information was ultimately used. Once they did, they were able to eliminate much of the data and free up thousands of hours that were redeployed to customer-facing activities.
Assess the impact on company culture. Take a hard look at the cultural implications of continuous improvement. How do they affect day-to-day behaviors? A data-driven mindset may encourage managers to ignore intuition or anomalous data that doesn’t fit preconceived notions. In other cases it causes managers to ask execution-oriented, cost-focused questions way too early, instead of percolating and exploring ideas through messy experimentation that can’t be justified through traditional metrics.
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?
For the Results Agenda to be sustainable in the long term it is vital that the evidence that M&E provides for decision-making is reliable and leads to real improvements. M&E methods are not always applied to the highest standard due, among other reasons, to a lack of infrastructure (high-quality data systems), inappropriate application of methodology (impact evaluation when a process evaluation was needed), or non-integration of findings into decision-making processes. It is important as we move forward that regular quality control of M&E tools themselves and initiatives to improve the quality of M&E are made integral to the Results Agend
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.
1) Continuous Improvement
2) Increased Communication
3) Employee Development
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/594
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.
|Creativity, in the form of the ability to effectively generate novel solutions to relevant problems, can be a source of significant competitive advantage, especially in rapidly changing environments. Creativity is important to entrepreneurs because it is the first stage in the process of innovation, providing the stimulus for opportunity discovery and new venture creation. As new entrants, entrepreneurs often justify themselves upon the same dimensions as creativity: novelty, usefulness, and appropriateness. Arguably, one of the first tasks demanded of an entrepreneur is to manifest creative ability through the conceiving of new product-market opportunities and unique value propositions.|
In addition to the work environment, Amabile's (1983) componential theory of creativity identifies three individual characteristics that must be present for creative output: intrinsic motivation, domain-relevant skills, and creativity-relevant cognitive processes. Of these three, intrinsic motivation
Questionnaires and interviews
|An effective entrepreneurial champion is able to gather resources in support of their vision and ideas (e.g., investment capital, team members), whereas a less capable one is not. Sternberg (2006), in his investment theory of creativity, described how entrepreneurs "buy ideas low and sell them high". Sternberg's argument is that virtually all creative ideas start out of favour, due to their required novelty and inherent delays in acceptance by the others in recognizing their usefulness and appropriateness. As new ideas gain acceptance in a field, their commercial value rises|
Mystery shopping visits
|In early stages, competencies in championing and promoting ideas are key to acquiring resources needed to turn them into market innovations. It is a myth that good ideas sell themselves, and without effective championing, even the best and most creative ones will inevitably remain in the starting blocks. It is the author's observation that many entrepreneurs have promising ideas, however they struggle in their efforts to champion them and need to be reminded of the consequences of this.|
Social media monitoring
|It has been observed that not all creativity is valued, however. For instance, "creative accounting" commonly has a negative association with novelty, whereas "creative finance" might not. The routine and paradoxical rejection of ideas by those that espouse creativity as goal has interested researchers for some time. When people are motivated to reduce uncertainty, Mueller and colleagues (2012) recently found empirical support for not only an implicit bias against creativity, but an impaired ability to recognize it|
|Creativity matters to entrepreneurs because not only must their initial ideas exhibit dimensions of novelty, usefulness, and appropriateness to justify firm formation, but the capacity to sustainably create commercial value from ideas must be demonstrated. There are many perspectives of creativity resulting from its inherent subjectivity, however this does not detract from the need for understanding how to foster it.|
Quantitative employee analysis
|Manage innovation and continuous improvement training and assessment materials package is supported by a Simulated Business intranet site which includes additional “workplace” resources to help you deliver and assess this qualification easily, and offer training to more students. These resources may include materials like policies and procedures, templates, forms, case studies, simulated client files, meeting minutes and more|
- Outline the services that each of the digital specialists provide by completing the table below:
|Business strategy consultants –|
A consultant can help you determine which specific business initiatives are going to get you what you want, and which ones are leading you away from what you want (the what not to do).
|Information technology consultants|
When times are more uncertain and you don't know what to do next, a strategy consultant can help evaluate your different options, figure out which ones are the best for your situation, and help you implement them successfully.
Search engine optimizer can be a consulting company or an individual person doing search engine optimization (SEO) works for websites to facilitate them secure high positions search engine results. An optimizer is the only responsible person for ranking a website. By utilizing latest optimization techniques and tools, he works to increase your website traffic and promote website position for relevant keywords in search engine results.
|Digital marketing specialists|
The increasing demand for online marketing facilities has led to the innovation of traditional Internet marketing methodologies and establishment of new, effective and affordable marketing techniques. The introduction of business globalization has resulted in the increase of number of small and large scale companies globally and the availability of same brand products from different companies at different price range and quality.
- Define performance measures.
Performance measurement is the process of collecting, analysing and/or reporting information regarding the performance of an individual, group, organization, system or component. It can involve studying processes/strategies within organizations, or studying engineering
|Maintaining operational feedback|
1.5 Describe each of the following evaluation tools which can be used to measure performance.
SWOT analysis is a framework used to evaluate a company's competitive position by identifying its strengths, weaknesses, opportunities and threats. Specifically, SWOT analysis is a foundational assessment model that measures what an organization can and cannot do, and its potential opportunities and threats.
Process mapping is used to visually demonstrate all the steps and decisions in a particular process. A process map or flowchart describes the flow of materials
Management by objectives
|Management by objectives (MBO) is a management model that aims to improve the performance of an organization by clearly defining objectives that are agreed to by both management and employees.|
Forced ranking is a controversial workforce management tool that uses intense yearly evaluations to identify a company's best and worst performing employees
|Brainstorming is a way to generate ideas within a group setting. It is usually used in the beginning stages of a project, where the possibilities for the project are not clearly understood or defined|
A trend analysis is an aspect of technical analysis that tries to predict the future movement of a stock based on past data. Trend analysis is based on the idea that what has happened in the past gives traders an idea of what will happen in the future
TASK 2: Refer to your Learner Guide and complete the following:
- What does ‘organisational learning’ refer to?
Organizational learning is the process of creating, retaining, and transferring knowledge within an organization. An organization improves over time as it gains experience. From this experience, it is able to create knowledge.
- What are six (6) areas that successful promotion of organisational learning lead to?
1) Personal Mastery: personal capacity building; encouraging personal and organizational goals to be developed and realized together.
2) Mental Models: challenging and changing our way of thinking about the world around us
3) Shared Vision: Building a shared vision and sense of collective commitment as to where we want to go as an organization and how to achieve that goal
|4) Team Learning: Building a team’s capacity to learn together and develop intelligence and ability together that is greater than the sum of it individual member’s talents|
5) Systems Thinking: developing the ability to see the ‘big picture’ and understanding how changes in one area of the organization affect the system as a whole – it is the overall recognition of the interdependence of, and interrelationships between, the parts of the system and how to leverage and drive change throughout the system as a whole
6)Develop a shared strategy for your learning culture where there is shared accountability across the organization
- Describe the following continuous improvement theories:
Kaizen is an approach to creating continuous improvement based on the idea that small, ongoing positive changes can reap major improvements.
The five foundation elements of Kaizen
Six Sigma is a disciplined, statistical-based, data-driven approach and continuous improvement methodology for eliminating defects in a product, process or service. It was developed by Motorola in early to middle 1980’s based on quality management fundamentals, then became a popular management approach at General Electric (GE) in the early 1990’s. Hundreds of companies around the world have adopted Six Sigma as a way of doing business
2.4 List five (5) methods you could use to inspire and reward innovative and creative ideas?
Hiring Defines the Company
The Work Environment of the Team
Include Mental Exercises and Tools to Provoke the Brain
- Which five (5) steps should you follow when carrying out a risk assessment?
Step 1: Identify hazards, i.e. anything that may cause harm.
Step 2: Decide who may be harmed, and how.
Step 3: Assess the risks and take action.
Step 4: Make a record of the findings.
Step 5: Review the risk assessment.
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?
Creativity, in the form of the ability to effectively generate novel solutions to relevant problems, can be a source of significant competitive advantage, especially in rapidly changing environments. Creativity is important to entrepreneurs because it is the first stage in the process of innovation, providing the stimulus for opportunity discovery and new venture creation. As new entrants, entrepreneurs often justify themselves upon the same dimensions as creativity: novelty, usefulness, and appropriateness. Arguably, one of the first tasks demanded of an entrepreneur is to manifest creative ability through the conceiving of new product-market opportunities and unique value propositions. From these initial acts of creativity, entrepreneurs must build effective organizations that can repeatedly bring ideas to commercially valuable forms in order to survive and grow.
3.2 What is the relationship between innovation and creativity?
Creativity is most often defined as the mental ability to conceptualize (imagine) new, unusual or unique ideas, to see the new connection between seemingly random or unrelated things.
Innovation on the other hand, is defined as the process that transforms those forward-looking new ideas into real world (commercial) products, services, or processes of enhanced value. The result of such a transformation can be incremental, evolutionary or radical in its impact on the status quo. In other words, it can represent a natural step forward in a concept’s development, a leap to the next generation of that concept, or a completely new and different way of doing something altogether.
3.3 Do you think that you need to be creative to have sustainable practices? Explain your thoughts.
It is important to critically reflect on your practice and look at ways to meet both these elements. These ideas cannot be superficial. You must give deep, meaningful consideration to ways that you can improve your practice and work towards or maintain an exceeding rating, and you must embed these targeted ideas and vision into your Quality Improvement Plan
Centre Support visits and talks to many Services across Australia and we often hear about the compost bin, recycling of craft materials and veggie garden. This is a good start in implementing sustainable practices but services need to continue to implement other options Promoting environmental responsibility in children means engaging children in environmental activities which result in meaningful learning opportunities,.
3.4 Briefly explain Kirton’s theory about creative problem solving.
Creative leadership incorporates the full spectrum of change and cognitive style, from innovative/exploratory to adaptive/developmental. Leadership literature and measures tend to describe characteristics at the innovative/exploratory end of the spectrum, while management literature and measures portray characteristics at the adaptive/developmental end of the spectrum. The purpose of this study was to examine the relationship between cognitive style and leadership behaviors. Two popular measures were used: the Kirton Adaption-Innovation Inventory and the Leadership Practices Inventory.
Creative leadership incorporates the full spectrum of change, as well as the full spectrum of cognitive style, from innovative/exploratory to adaptive/developmental. At the innovative/exploratory end of the spectrum are the fundamentally different kinds of change, and people who prefer to do things in fundamentally different ways. At the adaptive/developmental end of the spectrum are incremental types of change and people who prefer to improve upon existing ways of doing things. Literature on leadership tends to depict characteristics at the innovative/exploratory end of the spectrum, while literature on management describes characteristics at the adaptive/developmental end of the spectrum. Innovative/exploratory and adaptive/developmental represent the two poles of cognitive style that manifest as leadership behaviour.
The purpose of this study was to empirically examine the relationship between cognitive style and leadership behaviours, to either confirm or disprove the apparent bias in the literature and measures. Two widely used measures were utilized: the Kirton Adaption-Innovation Inventory (KAI) and the Leadership Practices Inventory (LPI). The KAI measures cognitive style and the LPI measures “best-practice” leadership behaviours. The authors used the KAI to explore three hypothesis:
Hypothesis 1: There is a relationship between leadership behaviours and cognitive style as measured by the LPI and KAI.