BSBSTR601 Learner Workbook

Page 0 of 131
Structure of the workbook
Unit of Competency: BSBSTR601 Manage innovation and continuous improvement
Part 1 - The workbook is structured to provide knowledge component in the first part including the introduction
to the theoretical aspects of the unit and detailed description of the unit of competency knowledge
development.
Part 2-The development of your skills and knowledge which are sectioned to cover the unit elements and
performance criteria to apply your skills and knowledge to gain competency for effective vocational outcomes.
How to use the workbook

First develop your knowledge Read the workbook starting with the introduction to the subject of unit of
competency and the details to develop your knowledge application.
1. Once reading is complete, attempt the review questions to ensure you develop your knowledge related
to knowledge evidence required.
Then develop your skills and apply skills and knowledge for vocational outcome
1. Actively read the workbook sections which are sectioned in line with unit elements and performance
criteria to confirm the application of skills and knowledge related to achieve effective and efficient
vocational outcome.
2. Attempt and complete all the learning activities in the workbook in relevant sections to develop your
competency including use of foundation skills.
Copyright
© 2021 Dynamics Learning Pty Ltd. 2/23 Foster Street Surry Hills NSW 2010 Australia.
(www.dynamicslearning.com.au).
This publisher holds the copyright of its reproduction and adaptation. All rights are reserved for publisher and
authors including total or partial reproduction or adaptation and the Institute is provided with a license for use
and sharing with learners for educational purposes.
Edition 1
Compiled by : A K Don (MBA (UK), MPA (Aus.), Dip L & M, DipM, FAIM (MCIM, Chartered Marketer – Fmr))
Developed in : June 2021
Review by : June 2022
Disclaimer
The information contained in this manual is drawn from sources believed to be valid and reliable. The writer,
the firm, its employees, agents, and contractors do not warrant the correctness of the sources used and accept
no responsibility to any person or commercial body for any errors or omissions or for any loss or damage
however caused from the use of this manual. Every effort has been made to ensure that this publication is free
from duplication, errors, or omissions. Information used from various sources including online materials, books
and journals are tested for their validity, reliability, currency, and rephrased, adapted, quoted, and referenced.
However, if unsure, users should conduct their own enquiries and seek professional advice before relying on any
fact, statement or matter contained in this book. Information in this unit is current at the time of publication.
Some images, charts and graphics appearing in this resource have been developed by the writer and some are
accessed and used from various freely available online sources.
Copyrights © 2021 Dynamics Learning Pty Ltd Page 1 of 131

Table of Contents
Unit Overview.............................................................................................................................................. 3
Introduction to............................................................................................................................................. 4
What is innovation?.............................................................................................................................................4
What is continuous improvement.....................................................................................................................15
Cost-benefit analysis methods..........................................................................................................................20
Knowledge management systems.....................................................................................................................28
Continuous improvement systems and processes............................................................................................31
Creativity and innovation theories and concepts..............................................................................................35
Organisational learning principles.....................................................................................................................49
Quality management and continuous improvement theories..........................................................................52
Relevant risk management concepts.................................................................................................................57
Key aspects of supply chains, and operational, product and service systems..................................................61
Method for conducting gap analysis.................................................................................................................63
Changing trends and opportunities in workplace.............................................................................................66
Skills development and application guidelines............................................................................................. 69
Section 1..................................................................................................................................................... 71
Establish ways of working within team........................................................................................................ 71
Identify relevant team members and communicate ways of working objectives, expectations and desired
outcomes...........................................................................................................................................................71
Identify and establish strategies to monitor and evaluate performance and sustainability of key systems and
processes...........................................................................................................................................................73
Consult and seek advice from stakeholders, to identify opportunities for improvement................................76
Communicate with and mentor team members on ways of working that contribute to continuous
improvement.....................................................................................................................................................78
Communicate with and coach team members how they can be innovative....................................................80
Section 2..................................................................................................................................................... 81
Identify improvements............................................................................................................................... 81
Analyse performance reports and variance from organisational plans within workplace...............................81
Identify and analyse changing trends and opportunities relevant to the workplace.......................................86
Collect data and analyse areas for improvement in supply chains, and operational and service systems......89
Conduct a gap analysis of supply chains, and operational and service systems and identify improvement
needs and opportunities....................................................................................................................................92
Communicate with and agree on team members identified improvement needs and opportunities.............97
Identify learning opportunities for team members...........................................................................................99
Section 3................................................................................................................................................... 101
Implement innovative processes............................................................................................................... 101
Confirm objectives, timeframes, measures and communication plans are in place to manage
implementation...............................................................................................................................................101
Address the impact of change and consequences for people and implement transition plans.....................107
Implement contingency plans in the event of non-performance...................................................................109
Follow up failure by investigation and analysis of causes and manage emerging challenges and opportunities
........................................................................................................................................................................ 113
Confirm that learnings from activities are captured and managed using relevant knowledge management
system..............................................................................................................................................................115
Section 4................................................................................................................................................... 117
Develop workplace culture and tools for continuous improvement, innovation and learning.....................117
Evaluate continuous improvement systems and processes and innovation on a regular basis.....................117
Identify and communicate with stakeholders costs and benefits of innovations and improvements...........119
Establish rewards for continuous improvement, innovation and learning.....................................................121
Seek and respond to feedback from relevant stakeholders’ systems and processes for continuous
improvement, innovation and learning...........................................................................................................126
References................................................................................................................................................ 128

Application of the unit Unit Overview
This unit describes the skills and knowledge required to sustain and develop an environment in
which continuous improvement, innovation and learning are promoted and rewarded.
The unit applies to individuals with managerial responsibilities who aim to build a better and more
effective work environment. Continuous improvement and innovation have links with the model of
the learning organisation and people working at this level play an important role in building the
culture, values, and attitudes of the organisation.
Unit Elements
The following elements describe the essential outcomes:
1. Establish ways of working within team
2. Identify improvements
3. Implement innovative processes
4. Develop workplace culture and tools for continuous improvement, innovation, and learning
Learning Activities
This learner workbook is designed with learning activities. At the end of each training session,
learners must do learning activities to confirm the application of skills and knowledge that are
developed to ensure learning objectives are achieved. Activities are indicated with following icons:
Icon Activity/Description Icon Activity/Description

Group Activity Written task
 Group discussions  Written questioning
 Teamwork  Written activities
 Report writing
Verbal Questioning Presentation
Trainer directs verbal questioning Learner makes presentations

at learner/s
Individual verbal presentation Project work
Learner present learning Learner undertakes project work

Learner undertakes research
Role-play Case study

Learner plays an assigned role Lerner undertake a case study

Introduction – BSBSTR601 Manage innovation and continuous
Introduction
Manage innovation and continuous improvement
What is innovation?
The term "innovation" comes from the Latin verb Innovare, which translates as "to renew."
Essentially, the term has retained its meaning to the present day. The term "innovation" refers to
the process of improving or replacing something, such as a process, a product, or a service.
However, in the context of businesses, the term requires definition. A definition is required in the
complex world of business. ‘Innovation is the process by which a domain, a product, or a service is
renewed and brought up to date through the application of new processes, the introduction of new
techniques, or the establishment of successful new ideas that generate new value.'
Here are some paraphrased selections from an article by Nick Skillicorn based on interviews with 15
innovators:
1. Application of ideas that are novel and useful

2. It is about staying relevant
3. Great idea, executed brilliantly, and communicated well
4. Feasible, relevant offering with a viable business model perceived as new and adopted by
customers
5. Introduction of new products and services that add value to an organisation
6. If it includes “new” and addresses customer needs, any variation goes
7. Fundamental way companies bring constant value to their customers
8. Work that delivers new goodness to customers in new markets and radically improves
the profitability equation
9. Implementation of something new
10. Implementation of creative ideas to generate value
11. Anything new, useful, and surprising
What is your definition of “innovation”: Turning an idea into a solution that adds value from a
customer’s perspective?
What common blunder do businesses make when discussing it? They talk about it being a
company value without committing the necessary resources to make it a reality. While coming
up with ideas is relatively simple, quick, and inexpensive, they must then be implemented. This
is where businesses frequently fail, by failing to allocate the necessary time and resources to
take a rough idea, refine it, experiment with it, and finally transform it into a viable solution.
Additionally, businesses typically consider it solely from an internal perspective, such as whether
they believe the offering is improved because of the update. If the customer does not perceive
the changes as adding value, they will resist purchasing them. Thus, it is entirely dependent on
the customer's perceived value.
What simple thing can a business do to alter its conversation / perspective on the subject?
Invert it and examine each new experiment from the perspective of various customers.
-Nick, founder and CEO of Improvides Innovation Consulting and chief editor of Idea to Value.
Page 4 of
What is your definition of “innovation”: The application of ideas that are novel and useful?
Creativity, the ability to generate novel and useful ideas, is the seed of innovation but unless it
is applied and scaled it is still just an idea.
What common error do businesses make when discussing innovation? They consider products
or technological advancements. Innovation encompasses more than a single product or
technological platform. And, in fact, it is organisational and management innovations that
precede product and technology innovation. Great leaders innovate the factory, not the
product.
What simple action can a business take to alter its conversation / perspective on innovation?
Change the subject? To begin, let us have a conversation. The term "conversation" refers to a
two-way exchange of information. Informing employees that "we require additional great
ideas" almost never works...yet it is almost always done. Rather than that, let us begin a
conversation with everyone in the organisation about how we can improve our ability to
discover, test, and implement great ideas that already exist. - David Burkus is a best-selling
Example definitions
The followings are some of the definitions, descriptions and experiences by authors, researchers,
and innovators:
The actions required to create new ideas, processes, or products which when implemented lead to
positive effective change. While invention requires the creation of new ideas, processes or products,
innovation moves one step further and requires implementation of the inventive act. Innovation also
implies a value system which seeks to derive a positive outcome from the inventive act. For example,
actions which lead to a negative performance metric would not be considered innovative, even if they
met the requirements of novelty and enabling actions.
— Marc Chason, Motorola Labs
Innovation is creating new value and/or capturing value in a new way. Value is the key word,
stressing the difference between innovation and invention. The definition is simple, easy to memorize
and also good enough to encompass innovation in all the value chain.
— Victor Fernandes, Natura
Innovation is something new to your business that fills an untapped customer need. Ideally, the
innovation builds a new market.
— Jonathan Rowe, Gene Express Inc.
An innovation is an idea that has been transformed into practical reality. For a business, this is a
product, process, or business concept, or combinations that have been activated in the marketplace
and produce new profits and growth for the organisation. I differentiate radical and disruptive
innovation from the incremental kind, since the latter can happen if the company is simply great at
what it already does. True innovation is far more than an extension of what is done normally, and
while being different, uses capabilities that exist in a company or are augmented by strategic
alliances. Therefore, something is an innovation not simply because it is new to that company, but
because it is simply new.
— Dr. Makarand “Chips” Chipalkatti, Osram Slyvania
Innovation is a process to bring new ideas, new methods, or new products to an organisation.
Unfortunately, in the past, in America, innovation has been limited to looking for a “big” idea to
advance an organisation’s competitive position. Management seems to be always looking for the
Copyrights © 2021 Dynamics Learning Pty Page 5 of 131

“silver bullet,” a new “I Phone, etc.,” while true innovation is involving every single employee to look
around their work area to identify small problems around them and to be empowered and
responsible to solve them. The average Japanese company receives 24 ideas per worker per year and
saves $4,000 per employee. From this process of involving all employees in continuous improvement
will come daily improvements in quality and productivity and miraculously great commercial ideas
will also “pop” out.
— Norman Bodek, PCS Inc.
Innovation is relative. I often hear the question asked, “Is that innovative? Because I think this other
company has done it before.” However, I define innovation as anything new – or different – that
changes the game for YOUR company. Leveraging what someone else has done is a perfectly
legitimate innovation strategy. We need to always keep the endgame in mind and that’s competitive
advantage. Do not rule it out because you think it does or does not qualify as innovative. Just ask
yourself, “Will it make a positive difference?” If the answer is, “yes,” then go with it.
— David Silverstein. Breakthrough Management Group
Having a view of the future landscape of consumer wants and needs – whether known or
unarticulated – and developing solutions that grow your business while fulfilling or altering the
lifestyle and behaviour of your target consumers.
— Troy Geesaman, Laga
I have found it most helpful to define “business innovation” (as distinct from general innovation) as
the “creation and capture of new value in new ways.” This definition has made innovation more
actionable and measurable in business terms and makes it inclusive of “new” offerings and value
propositions (new services or products), “new” methods (new technology applications or business
processes), and “new” business models (new channels, partners, and financial models for capturing
value from innovation investments.
— Ron Jonash, Monitor Group
Innovation is not always something new. It can be something totally new and also can be the same
thing in a new form or some aspects of something in a new form that effects new experiences.
Innovation is the ability to bring new aspects, ideas and concepts that contribute to new experiences.
Innovation is all about acceptance by users who experience, use, enjoy and consume of what you do.
— A. K. Don, Dynamics Learning

Why is innovation so important?

Organisations can boost their competitiveness in a number of ways: they can pursue price leadership
or pursue a differentiation strategy. Innovation is critical in both cases.
 Businesses that pursue price leadership must ensure long-term competitiveness through the
development of innovative, highly efficient processes. They place a premium on process
optimization and continuous cost improvement.
 Businesses pursuing a differentiation strategy require innovation to develop distinctive features
that set them apart from their competitors.
 Several start-ups begin by developing an innovative product or service.
Thus, continuous innovation is critical for all businesses. The primary distinction is in the innovation
strategy's focus, which varies significantly between companies.
Types of Innovation
It is remarkable how many people believe that businesses are either innovative or not. This is a
highly polarizing and simplistic perspective that ignores the variety of innovations that businesses
can and do pursue. Consider two dimensions of innovation: We have four distinct types of
innovation as a result of technology and market forces:
Incremental Innovation
The most common type of innovation is incremental innovation. It makes use of your existing
technology and adds value to the customer (new features, improved design, etc.) within your
existing market. Almost all businesses engage in some form of incremental innovation.
Adding new features to existing products or services, or even removing existing features, are
examples (value through simplification). Even minor changes to the user experience can be
beneficial.
Disruptive Innovation
Disruptive innovation, also referred to as stealth innovation, is the process of introducing new
technology or processes into your company's existing market. It is stealthy in nature, as newer
technology is frequently inferior to established market technology. This newer technology is
frequently more expensive, has fewer features, is more difficult to use, and is less attractive. After a
few iterations, the newer technology outperforms the older and disrupts all existing businesses. By
that time, it may be too late for established companies to compete effectively with newer
technology.
There are numerous examples of disruptive innovation, the most well-known being Apple's iPhone,
which revolutionized the mobile phone market. Prior to the iPhone, most popular phones relied on
user input via buttons, keypads, or scroll wheels. The iPhone was the culmination of a decade-long
technological revolution, largely iterated by Palm Treo phones and personal digital assistants (PDAs).
Frequently, it is not the first mover who disrupts the established market. Apple needed to cobble
together an incredible touch screen with an easy-to-use interface and provide users with access to a
large selection of built-in and third-party mobile applications to disrupt the mobile phone market.
Architectural Innovation
Architectural innovation is simply the application of lessons learned, skills acquired, and overall
technology to a new market. As long as the new market is receptive, this innovation is phenomenal

at acquiring new customers. Generally, the risk associated with architectural innovation is low, as it
relies on and reintroduces proven technology. Though it is frequently necessary to tweak it to meet
the requirements of the new market.
NASA's Ames Research Centre tried to increase the safety of aircraft cushions in 1966. They
succeeded by developing a new type of foam that reacts to applied pressure but magically returns to
its original shape. It was initially marketed commercially as medical equipment table pads and sports
equipment, before finding greater success as a component of mattresses. This technology, dubbed
"slow spring back foam," falls under the category of architectural innovation. It is frequently referred
to as memory foam.
Radical innovation
When we think of innovation, we frequently think of radical innovation. It generates new industries
(or suffocates existing ones) and entails the development of revolutionary technology. Although the
airplane was not the first mode of transportation, it was revolutionary in that it enabled
commercialized air travel to develop and thrive.
The four distinct types of innovation discussed here – incremental, disruptive, architectural, and
radical – highlight the numerous ways in which businesses can innovate. There are additional
avenues for innovation than these four. The important thing is to find the type(s) that suit your
company and turn those into success.
Lopez, J. (2015), Types of Innovation, https://techblog.constantcontact.com/software-

development/types-of-innovation/
The different types of innovation and The Innovation Matrix

Numerous people make the erroneous assumption that an organisation is either innovative or it is
not. This rather black-and-white approach overlooks the fact that an organisation can pursue a

variety of different types of innovation and that there is no single correct way to innovate. Because
there are as many classifications and typologies for innovation as there are authors, we will attempt
to combine the most frequently used terms for different types of innovation. Additionally, you will
learn how they relate to one another.
Disruptive vs. sustaining innovation
In 1995, Clayton Christensen coined the term "disruptive innovation." By definition, disruptive
innovation is a concept, product, or service that establishes a new value network by disrupting an
existing market or by creating an entirely new market. Disruptive innovation typically provides lower
performance early in its life cycle, and while these types of innovations are frequently not "good
enough" to satisfy current customers, they appeal to a different market.
A classic example of a disruptive innovation is the transistor radio, which initially provided inferior
sound quality to the large established models. While a lighter radio was not appealing to the average
customer at the time, it did appeal to young travellers who enjoyed bringing music to the beach. As
sound quality improved, portable radios began to challenge the established market, eventually
displacing the large and heavy analogue radios. On the other hand, sustaining innovation refers to
the types of innovations that already exist in the market, and rather than creating new value
networks, it enhances and expands existing ones.
For instance, almost all modern automobiles can be considered sustaining innovations. Consider the
Toyota Prius (first introduced in 1997), which has remained largely unchanged in terms of basic
functionality. It only improves slightly with each iteration, remaining true to the needs of a typical
Prius customer.
Radical vs. incremental innovation
Both sustaining and disruptive innovation are capable of being radical or incremental in their
approach. When a new technology completely disrupts an existing business or economy and creates
a new business model, this is considered radical innovation. Only about 10% of innovations fall into
this category, owing to their difficulty of execution.
‘Only 10% of innovations are revolutionary.'
Salesforce, for example, is frequently credited with inventing the new cloud model for software
delivery via the web. Not only did it launch one of the most popular CRM applications, but it also
pioneered the SaaS (software as a service) business model, forever altering the way business is
conducted in the technology industry.
Incremental innovation, on the other hand, refers to a series of small, incremental improvements
made to existing products, processes, or methods over time to maintain a competitive position.
Most innovations are incremental in nature, as these are frequently the simplest and most cost-
effective to implement.
The Innovation Matrix
To clarify the dimensions and to better demonstrate them, we took all four terms and combined
them with our Innovation Matrix.

 Radically disruptive – Innovation that harnesses new technology and creates a new business
model. Has no clear competitors.
 Radically sustaining – Improvement on a product or process in an existing market that
provides new value for the customer.
 Incrementally disruptive – An incremental improvement in technology that leads to a
dramatic disruption.
 Incrementally sustaining – Small and cumulative changes in an existing product, technology,
or service.
Architectural vs. modular innovation
Along with the types of innovations, I would like to briefly introduce the concepts of architectural
and modular innovation. Rebecca Henderson and Kim Clark coined the term "architectural
innovation" in 1990. It refers to the reconfiguration of existing product technologies. The central
tenet of architectural innovation is that, while the product's core components remain constant, the
relationship between them changes. This category of innovation is concerned with the overall
design, system, or the way components interact. The Sony Walkman is a classic example of
architectural innovation, as all major components already existed but were previously only used in
other products.
On the other hand, modular innovation (or component innovation) is the opposite. Modular
innovations involve the replacement of one or more components of a product while maintaining the
overall design. A clockwork radio is an example of a modular innovation; it is powered by an internal
generator and provides electricity for extended periods of time. It is based on the architecture of a
conventional radio but has a greater impact due to its ability to operate in areas with power
shortages.
In the context of businesses, there are different types of innovation.
 Process improvement and Organisational innovation: The improvement of processes
through continuous improvement and the development of new solutions.
 Product development: The development of innovative products or product features.
 Service innovation: The creation and introduction of new services for customers and
partners.
 Business Model Innovation: The development of innovative business models and
new revenue streams.
Copyrights © 2021 Dynamics Learning Pty Page 10 of

 Digitalization and digital transformation also require companies to rethink and develop new
approaches.
Business model, technology- and marketing innovations

While The Innovation Matrix is a solid framework for classifying innovation from the market point of
view, another perspective is to look at the source of the innovation. Usually, innovation falls into one
the following categories:

Business model innovation

Business model innovation is all about rethinking your current business to generate new revenue
streams and maintain a competitive edge. It can be accomplished through the enhancement of an
existing business model or through the discovery of new value-creating opportunities. Numerous
previously successful businesses have failed to innovate their business models because they were
too preoccupied with their current operations to envision possible future innovations.
Instead, these companies should have sought to actively challenge the industry's fundamental
assumptions and dominant logic to uncover new profitable opportunities. Fortunately, business
model innovation is easier when approached methodically:
 Analyse your current business model – Identify your target market and you are offering.
How exactly is your value proposition created and your revenue generated? To do this,
you can use for example the Business Model Canvas.
 Confront your current business model – Engage in ideation to challenge common
assumptions and current way of doing things. Sometimes, questioning your long-held
assumptions may help you to come up with those infamous “out-of-the-box ideas”
especially if you are suffering from a creative block. You can generate new ideas for example
with the help of these ideation tools.
 Ensure the consistency of a business model – Make sure your new business model is
consistent with your long-term vision.
 Build a pilot and test it – Make iterations based on your findings, always keeping success
factors and possible pitfalls in mind.

Technology innovation
A widespread misconception is that breakthroughs in innovation are always based on fascinating
and expensive technologies. Positive change does not always require the most technologically savvy
personnel or significant technological investments. However, most significant innovations continue
to make use of new technology in some way. For many industries, technology is the primary driver
of competitive advantage and profit margin expansion. Technological innovation is defined as the
process of generating new ideas based on technology, capability, or knowledge to develop a new
solution to a real or perceived need and transforming it into a viable entity. New technology can be
used to accomplish the following:
 Accelerate your innovation processes
 Realize new possibilities in the market
 Generate ideas and build them into innovations
 Model your products and services for the market
 Experiment and test these new concepts
One of the most attractive aspects of technological innovation is that it does not require starting
from scratch. Occasionally, a technological solution designed for one purpose may be applicable to a
completely different use case. To begin, determine whether any of the new and interesting
technologies available to you could be modified and used for your purpose.
Marketing innovation
Marketing innovation, it is claimed, is just as critical to a business's success as product innovation.
This makes sense, as there is little point in spending time and money developing business models
and products if no one can find them or benefit from them. However, marketing innovation is not
limited to developing new channels and tactics for promoting your offering; it also includes
identifying new markets and developing new value propositions that others are unable (or unwilling)
to provide. This can be accomplished by launching your technology, product, or business model in
novel and unconventional locations or by promoting your existing offering in ways it has not
previously been promoted. Classic marketing innovations are those that repurpose an existing
product and offer a new value proposition to a completely new segment. For instance, if you happen
to have a large inventory of products that you are looking to sell, experimenting with new ways to
use and promote them may be worthwhile. Consider reviewing your marketing tactics on a regular
basis, particularly if you believe your current marketing strategies and initiatives are ineffective in
generating the desired results.
Different degrees of innovation

There are different degrees of innovation. The mere improvement – for example, of processes or
products – is called incremental innovation. Major innovations that lead to substantial changes are
called disruptive innovation or radical innovation.
1. Incremental innovations are, for example, the optimization of existing processes and
procedures or a product line extension.
2. Disruptive Innovations are, for example, major innovations such as iTunes and Google
Android. These are often referred to as “digital disruption”: Innovations that change the
logic of existing markets.

The difference between incremental and disruptive innovation

For many companies, innovation means taking existing products and changing details: The colour,
the form, the functionalities, the size, etc.
 This form of incremental innovation ensures the competitiveness of companies in existing
markets.
 In future markets, incremental innovation is often no longer sufficient. Companies must
radically reinvent products and services.
To ensure their long-term innovation capability, companies worldwide have established an idea
management and innovation management system that provides a structured approach: From the
development of an innovation strategy to setting up an innovation roadmap and successfully
implementing innovation.
Managing incremental and disruptive innovation

For companies, setting up an innovation management is important to keep pace with changing
customer needs. Incremental innovation provides competitive advantages in terms of production
costs, functionalities, or equipment.
 Conventional innovation management often does not go beyond incremental innovation:

products are improved, but not reinvented.
 With methodologies like the Stage-Gate Model for the innovation of process and product
development, however, companies quickly reach their boundaries, – especially in
supersaturated markets.
Particularly in times of digital change, in which new customer needs emerge, companies must be
able to develop more far-reaching forms of innovation and bring them to market successfully.
Disruptive innovation needs different approaches

Companies that want to drive disruptive innovation forward need to take a different approach and
pursue a revolutionary path in addition to traditional methods.
 More and more businesses realize that different approaches are critical to long-term growth.
 Innovation must be more radical in the future.
 This requires rethinking. New management techniques are being sought. More courage
and willingness to take risks are necessary.
The result of such management approaches are new products and services for tomorrow’s markets.
Business models that are still impossible to imagine today will emerge. Small teams that can act
flexibly develop innovative concepts faster to market maturity.
How to establish an innovation culture

Appropriate software tools can assist in the implementation of innovation processes and an
innovation culture. The Internet expands communication and collaboration opportunities. For
instance, innovation teams can establish collaborative workspaces for various innovation projects,
co-develop ideas, and prepare them for implementation. Additionally, innovation tools ensure that a
culture of innovation is fostered within the organisation and that barriers to creativity and
innovation are overcome. By establishing the appropriate culture, employees will perceive
innovations as positive changes and will enthusiastically support them.

Methods for managing innovation

The methods of innovation management are as diverse as the types of innovation:
 Innovation processes, with which developments are steered by a clearly defined

procedure through different stages and levels.
 Open innovation and Customer co-creation: methods that integrate customers directly
into the development process.
 Innovation labs: Business units in which employees work on the development of innovations
outside the daily business
 Innovation challenges: Competitions in which employees are asked to contribute solutions
to overcome a company’s challenges.
It is essential to select the right tools for innovation projects and to build up the innovation
culture as well to increase the innovation capability of a company.
Learning Activity 1
Manage innovation and continuous improvement
Activity type Written Task
Activity timing 45 minutes

Activity description Write answers to the following questions not less than 100 words
per question including sub questions:
1. Define and describe in your owns words, what is
innovation and why innovation is critical for the growth of
any organisation?
2. Compare and contrast between the different types of
innovation. Provide examples where necessary to support
your comparison.
3. Select an organisation of your choice and identify an area
of the business that requires innovation – the source of
innovation could be business, technology, or marketing.
4. Explain why this area requires innovation?
5. Discuss on how an innovation culture can be established
in the organisation to support this innovation and the
various methods that can be used to manage this
innovation.

What is continuous improvement

A continuous improvement strategy is any policy or process in place in a workplace that assists in
maintaining a constant focus on improving the way things are done. This could be accomplished
through ongoing incremental improvements or by concentrating on larger process improvements.
Continuous improvement is an ongoing process of enhancing all aspects of an organisation, including
processes, tools, products, and services. It is predicated on the belief that a steady stream of
improvements, executed with diligence, will produce transformative results. Occasionally, these
improvements are significant, but more frequently, they are minor. However, what matters most is
that they are frequent. Businesses that excel at continuous improvement begin with the conviction
that success is determined by:
 Innovating “how” they do what they do (big and small).

 Engaging all employees in sharing knowledge and generating improvement ideas.
 Exploring better ways to deliver to customers and respond to changes in the
external environment.
A continuous improvement mindset is predicated on the belief that a steady stream of

improvements, executed diligently, will produce transformative results. Continuously improving
facilities become more competitive over time and can maintain their industry advantages, but only if
the improvement efforts are conducted correctly. Establishing a sound baseline and conducting
ongoing assessments will aid in determining the effectiveness of the efforts being made. Fostering a
culture of continuous improvement is based on three practices:
1. Performance transparency
Transparency in performance begins with publicizing goals and cascading those goals
(typically a balanced mix of financial and operational metrics) to individuals at all levels of
the organisation. Progress toward objectives must be transparently tracked to provide
frontline staff and management with a clear picture of what is working and what needs to
be improved.
2. Knowledge sharing
It is critical to share knowledge to scale best practices across (and up and down)
organisations. The teams would collaborate to foster informal and formal knowledge sharing
and should be empowered to investigate any idea and bring in additional expertise as
needed. The team must collaborate because no single team can fully comprehend most
problems "end-to-end." However, by collaborating in multi-week sprints, they can achieve
significant time savings.
3. Employee involvement
Employee involvement is critical in organisations committed to continuous improvement.

Frontline employees are typically closest to the work and thus have the most insightful ideas
about how their work can be improved. It is critical to capture their perspectives.

Continual process improvement model

When focusing on continuous improvement, a variety of strategies and methodologies can be used.
Choosing the best one for a particular industry is critical because it will help maximize the results.
Continuously improving performance, commitment, strategy, and processes all contribute to the
company's bottom line growth. Additionally, this image demonstrates how improvements in these
four categories contribute to the overall quality of the facility's output.
Plan-Do-Check-Act
The "plan, do, check, act" process is another beneficial concept. This is a cyclical process that guides
a business or group through the four improvement steps. By repeating these steps, continuous
improvement is sought and evaluated.
Each step builds on the previous step, and then feeds into the next.
 Plan - Teams will assess current standards, generate ideas for improvement, determine
how those improvements should be implemented, establish objectives, and create a plan of
action during the planning phase.
 Do - Implement the plan created in the preceding step. This includes not only process
changes, but also any necessary training, raising awareness, and implementing any
controls necessary to avoid potential problems.
 Check - Performing new measurements and comparing them to those taken prior to
the change is a critical step in this process. Analyse those findings and take any
necessary corrective or preventative actions to ensure that the desired outcomes are
achieved.
 Act - Management teams analyse all data gathered during the change to determine whether
the change will be permanent or if additional adjustments are required. The act step feeds
into the plan step because once a change has been fully implemented, it is time to look for
additional ways to improve.
Improvement Strategies
The term "continuous improvement" is an umbrella term that refers to a variety of methodologies
used to accomplish a goal. Selecting the appropriate strategies for a facility will help maximize
results and ensure the efforts' long-term success. At any given time, a facility may choose to
implement multiple continuous improvement strategies. To maximize results, different areas of the
business, or even different departments within an area, can each employ a distinct strategy.
Lean & Continuously Improving

Lean continuous improvement is a strategy for reducing waste throughout an organisation. Anything
that does not add value for the customer is considered waste. In many ways, this strategy for
continuous process improvement focuses on resolving issues rather than directly improving a
process. The outcomes are similar, but by focusing on waste, it is frequently easier to develop goals
around which improvement strategies can be developed.

Value Stream Mapping

Value stream mapping is a critical component of continuous improvement because it can be applied
to almost any other strategy. This process examines the design and flow of internal processes within
a business to determine where value can be added. Additionally, a value stream map can be an
excellent tool for brainstorming areas that could be improved.
A well-designed value stream map will be extremely detailed and formatted in the manner of a flow
chart. It is used to assist in isolating each step of a process to determine where value is added and
where it is not. This simplifies the process of eliminating or modifying areas where value is either
missing or could be increased. Although value stream mapping was developed originally for
manufacturing processes, it can be applied to other industries as well.
Kaizen
Kaizen is a well-known strategy for continuous improvement that dates all the way back to the
1980s. This concept assists in concentrating on improvements that are the result of numerous small
changes rather than a few large changes. Changes are typically proposed by front-line employees,
not the management team or another planning department. This approach is effective because
those working on the front lines are directly impacted by issues and can more easily identify areas
for improvement.
Some of the benefits of Kaizen include:
 Capital Investments - By focusing on smaller, incremental changes, the company does not
typically need to come up with significant capital resources to implement the changes.
 Engaged Workplace - By encouraging employees to contribute the improvement ideas,
they become more engaged.
 Long-term Improvement - Each small improvement made builds on previous improvements,
leading to a snowball effect.
Total Quality Management

TQM originated in the manufacturing sector but has since been adapted for use in a variety of other
environments. It focuses on increasing employee engagement, customer satisfaction,
communication, and other critical components of organisational success. This is a continuous
improvement strategy that is frequently integrated into or used in conjunction with other strategies
to maximize success.
The 5S Strategy
The 5S method of organisation assists in determining how a workspace should be organized to
maximize efficiency and effectiveness. This is accomplished by identifying the resources required at
each stage of a process and ensuring they are readily available. This can be accomplished in a variety
of ways, including organizing tools to make them easily accessible, relocating machinery so that a
part flows from one to the next, and ensuring stored parts or equipment are readily available when
needed.

Learning Activity 2
What is continuous improvement

1. Briefly explain what continuous improvement and the

three practices is essential for fostering a continuous
improvement culture in an organisation. Provide
examples to support your explanation.
2. Select one of the continuous improvement strategies
outlined in the lesson above and relate it to an
organisation of your choice. Elaborated and discuss on
how the organisation uses this strategy to maximize
results.

Cost-benefit analysis methods

A cost benefit analysis is a process by which organisations can analyse decisions, systems, or
projects, or determine a value for intangibles. The model is built by identifying the benefits of an
action as well as the associated costs and subtracting the costs from benefits. When completed, a
cost benefit analysis will yield concrete results that can be used to develop reasonable conclusions
around the feasibility and/or advisability of a decision or situation.
Scenarios Utilizing Cost Benefit Analysis

Cost benefit analysis is the foundation of the decision-making process across a wide variety of
disciplines. In business, government, finance, and even the non-profit world, cost benefit analysis
offers unique and valuable insight when:
 Developing benchmarks for comparing projects
 Deciding whether to pursue a proposed project
 Evaluating new hires
 Weighing investment opportunities
 Measuring social benefits
 Appraising the desirability of suggested policies
 Assessing change initiatives
 Quantifying effects on stakeholders and participants
How to Do a Cost Benefit Analysis

While there is no “standard” format for conducting a cost benefit analysis, there are some common
elements that almost all analyses will include. Utilize the structure that is most appropriate for your
situation or industry, or experiment with one of the resources and tools listed at the conclusion of
this article. We will walk through the five fundamental steps of conducting a cost benefit analysis in
the sections below, but first, a quick overview:
1. Establish a framework to outline the parameters of the analysis

2. Identify costs and benefits so they can be categorized by type, and intent
3. Calculate costs and benefits across the assumed life of a project or initiative
4. Compare cost and benefits using aggregate information
5. Analyse results and make an informed, final recommendation
As with any process, it is critical to complete all steps thoroughly and resist the temptation to cut
corners or make assumptions based on opinion or "best guesses." According to a paper by Dr. Josiah
Kaplan, a former Research Associate at the University of Oxford, it is critical to conduct a thorough
analysis:
“The best cost-benefit analyses take a broad view of costs and benefits, including indirect and longer-
term effects, reflecting the interests of all stakeholders who will be affected by the program.”
Why use cost benefit analysis?

Cost benefit analysis is used by organisations to inform decision-making because it provides an
agnostic, evidence-based view of the issue under consideration—uninfluenced by opinion, politics,
or bias. Cost benefit analysis is an invaluable tool for developing business strategy, evaluating new
hires, and allocating resources or making purchase decisions because it provides an unbiased view
of the consequences of a decision. There are two primary methods for arriving at the overall results
when conducting this analysis. These are called the Net Present Value (NPV) and the Benefit-Cost
Ratio, respectively (BCR).

Net Present Value Model

The NPV of a project refers to the difference between the present value of the benefits and the
present value of the costs. If NPV > 0, then it follows that the project has economic justification for
going ahead. It is represented by the following equation:
NPV = ∑ present value of the total future benefits - ∑ present value of total future costs
Benefit-Cost Ratio
On the other hand, the Benefit-Cost provides value by calculating the ratio of the sum of the present
value of the benefits associated with a project against the sum of the present value of the costs
associated with a project.
∑ 𝑝𝑟𝑒𝑠𝑒𝑛𝑡 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑡𝑜𝑡𝑎𝑙 𝑓𝑢𝑡𝑢𝑟𝑒 𝑏𝑒𝑛𝑒𝑓𝑖𝑡𝑠

Benefit − Cost Ratio (BCR)
= ∑ 𝑝𝑟𝑒𝑠𝑒𝑛𝑡 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑡𝑜𝑡𝑎𝑙 𝑓𝑢𝑡𝑢𝑟𝑒 𝑐𝑜𝑠𝑡𝑠
The greater the value above 1, the greater are the benefits associated with the alternative
considered. If using the Benefit-Cost Ratio, the analyst must choose the project with the greatest
Benefit-Cost Ratio.
The formula for Benefit-Cost Ratio can be calculated by using the following steps:
1. Step 1: Firstly, determine all the cash outflows which are basically the costs to be incurred to
complete the upcoming project. One of the prime examples of such costs is the initial
investment of a project.
2. Step 2: Next, determine all the cash inflows or benefits that are expected from the
project. Incremental revenue or sales and cost savings are some of the major examples of
such expected benefits.
3. Step 3: Next, determine the discounting rate based on available market information or
opportunity cost.
4. Step 4: Next, compute the present value of all the expected cash outflows or costs (step
1) by using the discounting rate (step 3).
5. Step 5: Next, compute the present value of all the expected cash inflows or benefits (step
2) by using the discounting rate (step 3).
6. Step 6: Finally, the formula for a benefit-cost ratio can be derived by dividing the present
value of all the expected benefits from the project (step 5) by the present value of all the
expected costs of the project (step 4) as shown above formula.
Example 1
Let us take an example of a company that has recently invested $10,000 for the purpose of replacing
some of its machinery components. This renovation is expected to result in incremental benefits of
$5,000 in 1st year, $3,000 in 2nd year and $4,000 in 3rd year. Calculate the benefit-cost ratio of the
replacement project if the applicable discounting rate is 5%.

Solution:
PV of benefit is calculated as,
 PV of benefit in 1st year = $5,000 / (1 + 5%)1 = $4,761.90

 PV of benefit in 2nd year = $3,000 / (1 + 5%)2 = $2,721.09
 PV of benefit in 3rd year = $4,000 / (1 + 5%)3 = $3,455.35
 PV of Expected Benefits is calculated as,
 PV of Expected Benefits = $4,761.90 + $2,721.09 + $3,455.35

 PV of Expected Benefits = $10,938.34
Benefit-Cost Ratio is calculated using the formula given below:
 Benefit-Cost Ratio = PV of Expected Benefits / PV of Expected Costs

 Benefit-Cost Ratio = $10,938.34 / $10,000

 Benefit-Cost Ratio = 1.09
Therefore, the benefit-cost ratio of the project is 1.09 which indicates that it will create additional
value and as such it should be considered positively.
Example 2
Let us take another example where two projects are being assessed by ASD Inc. The cash flow and
discount rate details of the two projects (Project A and Project B) are as given below. Based on the
given information, calculate out of the two projects which is a better project.

Solution:
PV of Benefit is calculated as
For Project A
 PV of benefit in 1st year = $300,000 / (1+10%)1 = $272,727.27

 PV of benefit in 2nd year = $600,000 / (1+10%)2 = $495,867.77
 PV of benefit in 3rd year = $900,000 / (1+10%)3 = $676,183.32
 PV of benefit in 4th year = $700,000 / (1+10%)4 = $478,109.42
 PV of benefit in 5th year = $600,000 / (1+10%)5 = $372,552.79

For Project B
 PV of benefit in 1st year = $600,000 / (1+12%)1 = $535,714.29

 PV of benefit in 2nd year = $800,000 / (1+12%)2 = $637,755.10
 PV of benefit in 3rd year = $900,000 / (1+12%)3 = $640,602.22
 PV of benefit in 4th year = $1,000,000 / (1+12%)4 = $635,518.08
 PV of benefit in 5th year = $1,200,000 / (1+12%)5 = $680,912.23
PV of Expected Benefits is calculated using the formula given below
For Project A
 PV of Expected Benefits = $272,727.27 + $495,867.77 + $676,183.32 + $478,109.42 +

$372,552.79
 PV of Expected Benefits = $2,295,440.57

For Project B
 PV of Expected Benefits = $535,714.29 + $637,755.10 + $640,602.22 + $635,518.08 +

$680,912.23
 PV of Expected Benefits = $3,130,501.92
Benefit-Cost Ratio is calculated using the formula given below:
 Benefit-Cost Ratio = PV of Expected Benefits / PV of Expected Costs
For Project A
 Benefit-Cost Ratio = $2,295,440.57 / $2,000,000

For Project B
 Benefit-Cost Ratio = $3,130,501.92 / $3,000,000

Therefore, Project A has a higher benefit-cost ratio as compared to Project B which indicates that
out of the two Project A is the better investment option.
Source: adapted from: https://www.educba.com/benefit-cost-ratio-formula/

Learning Activity 3
Identify and analyse potential emotional stressors in the workplace
Written Task
Activity type

Activity description  How would you interpret the NPV and Benefit-Cost Ratio?
 Under what circumstances should each metric be used?
 Identify the advantages and limitations of these rations.
Calculations can be used to support your answer.

Knowledge management systems

What is a knowledge management system?
A knowledge management system is any technology that is used to store and manage knowledge - in
other words, it is a tool that is used to manage knowledge. A successful knowledge management
system, on the other hand, leverages the underlying goals of knowledge management: codifying
knowledge, retrieving knowledge, enhancing collaboration, and stimulating overall organisational
learning.
Knowledge management systems have evolved from a useful tool for optimizing knowledge
management processes to an integral part of knowledge management. Today, organisations rely on
knowledge management systems to perform a variety of knowledge management functions - data
storage is an obvious example, but technology systems can also be used to foster collaboration and
group learning, among other things.
Emerging features in contemporary knowledge management systems
There are several emerging features in contemporary knowledge management systems.

Here is a look at some of the most prominent ones:
 Content and document management: This is a critical component because almost

always, codifying knowledge results in documentation (or another form of created
content). When selecting a knowledge management system, ensure that the
platform supports the file size, type(s), and volume that you require. This is critical
for enterprise organisations that must store massive amounts of data and scale on a
regular basis. (Enterprise portals provide this functionality.)
 Lessons learned databases: These are systems that make intangible (and frequently
tacit) knowledge visible and accessible to other users. Lessons learned databases are
focused on what their name implies: on lessons learned by experts that others
should emulate (think of it as best practices). The trick here is to identify a database
capable of storing and making accessible this type of qualitative data.
 Groupware: As previously stated, collaboration is a critical component of knowledge
management. Groupware is a generic term that refers to any collaborative work
platform that is typically designed for workers who must communicate remotely.
Groupware is classified into two types: synchronous groupware (which allows for
real-time collaboration and updates) and asynchronous groupware.
 Artificial Intelligence (AI): The incorporation of AI (as telepresence) into knowledge
management systems eliminates the need for human consultants to analyse data
and monitor knowledge management processes. Today, cognitive computing,
adaptive technology, and intelligent filtering tools have enormous implications for
knowledge codification and are likely to be adopted by an increasing number of
knowledge management systems. However, given the critical role of human quality
assurance (QA) in much of today's data work, concerns have been raised about AI's
ability to completely take over this space.
While knowledge management systems can help automate and standardize knowledge
management, implementing one presents several challenges. Security, data accuracy, and

technological advancements (cost, implementation, and usability) are all focused issues that you
should consider from the start. However, a much more pervasive and ongoing challenge is fostering
a culture of collaboration and knowledge sharing through technology. Individuals may already be
hesitant to share information with their peers, and technology can erect additional barriers. As a
result, you will need to incorporate processes that facilitate and promote this type of knowledge
transfer.
Kevin Murray offers four key things to look for when choosing a KM system:
1. Security: Information is valuable. Like any other valuable, there are people who will
steal it.
2. Accountability: Information is valuable only when it is accurate. Limit access. Log
intensively. Test for accuracy.
3. Backup: Everyone knows the value of backing up. Not everyone knows how to do it.
Hiding a backup drive in the CEO's desk will not help if the building floods or burns.
Creating, maintaining, and correctly storing back-ups should be an automatic
functionality.
4. Ease of Use: If the system is too difficult or demanding to use, people will take
shortcuts. Shortcuts usually reduce security and the integrity of the information you
are managing.
Implications for Knowledge Management

To improve organisational knowledge, knowledge management must therefore be
integrated across the entire knowledge spectrum. It must contribute to knowledge
development at all levels and facilitate and promote its dissemination to individuals, groups,
and/or the entire firm, as required by the organisation. Knowledge management must
oversee the storage and retrieval of organisational knowledge and foster an environment
conducive to learning and knowledge sharing. Similarly, it must be involved in acquiring
knowledge from external sources whenever this is necessary for the development of
organisational knowledge resources.
To a large degree, KM is therefore dependent on the understanding and management of

organisational learning, organisational memory, knowledge sharing, knowledge creation,
and organisational culture.

Learning Activity 4
Knowledge management systems

1. Briefly explain and define what is a knowledge

management system?
2. Discuss on the advantages and limitations of a knowledge
management system
3. Briefly list down and explain with examples on how to
select a knowledge management system

Continuous improvement systems and processes

Continuous improvement that is sustainable requires engagement at all levels and a robust
management system that addresses the long-term, incremental nature of culture-based change. To
effectively drive the transformation process, such a system requires three critical structural
components: maturity-based transformation, functional integration, and sustainability via a three-
tiered system.
Continuous improvement processes

A continuous improvement process, frequently abbreviated as CIP or CI, is a continuous effort to
improve products, services, or processes. These efforts can be "gradual" in nature or "breakthrough"
in nature. Customer-valued delivery processes are constantly evaluated and improved in terms of
their efficiency, effectiveness, and adaptability.
A process of continuous improvement is a type of perpetual loop. It progresses from planning to

implementation, evaluation, and revision, before returning to planning, reissue, and so forth. It is
methodical and precise. One of its primary advantages is that it prevents organisational stagnation.
To orchestrate improvement, variables such as perceived vulnerabilities, areas identified for
improvement, employee participation, and client satisfaction are monitored, measured, and
manipulated. Numerous organisations have reported increased levels of improvement when
employees who will be impacted by the proposed changes are included in the process's planning and
evaluation stages.
Almost all organisations share common goals, even if their by-products are diametrically opposed.
Continuous improvement processes complement a variety of objectives, including corporate goals,
educational aspirations, and charitable endeavours. The ability to quantify and qualitatively
document characteristics such as achievement, retention, loss, communication, and cooperation,
among others, clearly distinguishes an enterprise from its competition. Similarly, being able to
pinpoint precisely how an entity stands to benefit from change demonstrates to investors,
employees, and consumers alike that this organisation is more than capable of adapting to whatever
challenges the future may bring.
Kaizen
Some successful implementations use the approach known as kaizen (the translation of kai
(“change”) Zen (“good”) is “improvement”). This method became famous from Imai's 1986 book
Kaizen: The Key to Japan's Competitive Success.
 Feedback: The core principle of CIP is the (self) reflection of processes.

 Efficiency: The purpose of CIP is the identification, reduction, and elimination of suboptimal
processes.
 Evolution: The emphasis of CIP is on incremental, continual steps rather than giant
leaps. Key features of kaizen include:
 Improvements are based on many small changes rather than the radical changes that might
arise from Research and Development
 As the ideas come from the workers themselves, they are less likely to be radically different,
and therefore easier to implement
 Small improvements are less likely to require major capital investment than major
process changes

 The ideas come from the talents of the existing workforce, as opposed to using research,
consultants, or equipment – any of which could be very expensive
 All employees should continually be seeking ways to improve their own performance
 It helps encourage workers to take ownership for their work, and can help reinforce team
working, thereby improving worker motivation.
The elements above are the more tactical elements of CIP. The more strategic elements include
deciding how to increase the value of the delivery process output to the customer (effectiveness)
and how much flexibility is valuable in the process to meet changing needs.
PDCA
The PDCA (plan, do, check, act) or (plan, do, check, adjust) cycle supports continuous improvement
and Kaizen. It provides a process for improvement since the early design (planning) stage of any
process, system, product, or service.
PDSA
The origins of PDCA can be traced back to the Shewhart cycle of PDSA, which is frequently referred
to as the Deming cycle. Shewhart simplified the standard academic scientific method of Inductive
and Deductive Thinking, which is used in hypothesis testing. When we do something, we follow the
PDSA cycle: Plan it, do it, Study it, and Act on the results. This was a far more straightforward
concept to employ and communicate to Western Electric's shop floor while building telephones,
where many workers would not and could not comprehend the scientific method. Indeed, the PDSA
principle could easily be applied to everyday life, such as driving to work. Thus, the PDSA cycle was
easily relatable to Western's workforce, resulting in the necessary buy-in.
As the name implies, continuous improvement is the practice of constantly re-examining and
improving processes. At first glance, the entire concept may appear to be a bit of a buzzword. You
constantly hear the term bandied about, but no one ever discusses what it entails. And, as we all
know, theory alone does not get you very far in business. All the confusion surrounding continuous
improvement stems from the fact that it is not something you "do." Rather than that, it is the way a
business operates. Continuous improvement in a business entails two things.
1. Focus on Growth – The company should have an ongoing focus on incrementally improving
their processes, services, or products. Meaning, perfecting the way you do things on-the-go
instead of carrying out one-off change initiatives.
2. Creating a Culture of Improvement – More often than not, it is the employee on the shop
floor who is an expert on company processes, not the management. Continuous
improvement should be the responsibility of everyone in the company (not just for the
process improvement team).
Connection with other systems and processes

If you are familiar with other process management terms, you are probably wondering how they are
all interconnected. Here is how they are related…
 Business Process Management (BPM) – A methodology of process re-evaluation and

improvement. The same thing as continuous improvement. The minor difference is that
continuous improvement is more of a “philosophy” that a company should be based
on,
while BPM is a concrete set of tools and techniques. You can use BPM as a means of creating
a culture of continuous improvement, but it does not necessarily work the other way
around.

 Business Process Improvement (BPI) – The act of analysing, streamlining, and improving a
single process. Continuous improvement means carrying out a BPI initiative whenever there
is need for it.
 Business Process Reengineering (BPR) – Rather than improve an existing process, you re-
create it using a new technology or methodology.
CIPs are sometimes referred to as a meta-process for most management systems (including business
process management, quality management, project management, and program management).
Edwards Deming, a pioneer in the field, viewed it as a component of the ‘system' in which process
and customer feedback was weighed against organisational goals. The fact that it is a management
process does not mean that it must be executed by ‘management'; rather, it means that it makes
decisions about the delivery process's implementation and design.[4] [5] A broader definition is
provided by the Institute of Quality Assurance, which defines "continuous improvement as a gradual
never-ending change that I
Maturity-based transformation
There is no one-size-fits-all solution for changing an organisation's culture. Engaging all employees,
developing their skills and competencies to effect process improvements, and fundamentally shifting
from a 'cop to a coach' leadership style all require effort and time. Transferring ownership of process
improvement from technical experts to front-line workers necessitates a reorganisation of the
organisation around lateral processes. Additionally, employee skills and knowledge must be
developed. We can only hold them accountable as they develop competence in each new aspect of
their work.
A mature, integrative management system requires a three- to five-year execution road map and the
ability to track the progress of each site or process area along this path. Appropriate implementation
actions are determined by the process area's and team's evolving maturity, ensuring consistency in
the long-term execution plan required by culture-based change.
Functional integration
One of the fundamental principles of integrative improvement is that the organisation should be
built around processes, products, and customers. Multidisciplinary teams optimize processes and
value streams to deliver superior products to 'overwhelmed' customers. The system must drive this
process-based approach and prevent functional improvement approaches from being suboptimized.
This means that all functional improvement requirements (quality, maintenance, demand and supply
planning, and human resource management, for example) and the various continuous improvement
methodologies are centrally managed and executed concurrently and in concert.
Sustainability through a three-tiered system
Sustainable improvement does not occur automatically because of the use of continuous
improvement tools. Without supporting systems and underlying management principles, systems,
and tools, the introduction of process maps, autonomous maintenance checks, 5Why problem-
solving forms, and visual scoreboards, for example, is not sustainable. A comprehensive integrative
development approach necessitates the implementation of these principles, systems, and tools
across all functions to ensure that improvements are sustainable, that the transformation process is
managed effectively via a maturity-based system, and that functional development approaches and
methodologies are integrated. Due to the transformation's long duration, a systemic,
multidimensional approach is required to ensure structural, process, and behavioural alignment.
By investing in a business improvement system that integrates these three critical components,
organisations can leapfrog years of implementation experience and generate exponential savings

and competitive advantage significantly faster than organisations attempting to develop these
capabilities in-house.
The structural components of an effective management system are illustrated below.
Source: https://traccsolution.com/blog/sustainable-continuous-improvement/
Learning Activity 5
Continuous improvement systems and processes

1. Briefly define what is a continuous improvement process
and explain the importance and need for continuous
improvement.
2. Select one of the continuous improvement approaches
outlined in the above lesson and elaborate on this
approach utilizing real-world examples to support your
justification.

Creativity and innovation theories and concepts

The capacity or act of conceiving something novel or unusual is referred to as creativity. Innovation
is the act of bringing something new to life. Invention is the process of creating something that has
never been created before and is recognized as the result of a singular insight. The following are
some theories and concepts relating to creativity and innovation:
TRIZ
TRIZ is a problem-solving, analysis, and forecasting tool derived from a study of global patent
literature patterns of invention. The acronym TRIZ is derived from its original Russian name, and it is
frequently referred to in English as a "theory of inventive problem solving" or TIPS. The framework is
fundamentally a collection of strategies and tools for developing novel solutions to difficult
problems.
By analysing thousands of patents that successfully solved problems, researchers discovered that
most of these successes were based on approximately 40 inventive principles. TRIZ asserts that by
examining whatever problem you are confronted with and comparing it to the 40 principles, you will
discover a variety of approaches to problem solving.
When should it be used: If you are truly stumped for a solution to a problem, it may be worthwhile
to peruse the list of TRIZ principles? Additionally, it is beneficial for anyone in a company who may
generate ideas (which, in my opinion, should be everyone) to have a fundamental understanding
of the principles.
40 principles of TRIZ. Copyright By FotoSceptyk – Own work, CC BY-SA 4.0,

https://commons.wikimedia.org/w/index.php?curid=45719323

The technology adoption life cycle

Geoffrey Moore introduced the technology adoption life cycle in his book Crossing the Chasm.
It builds on Everett Rogers' 1962 creation of one of the most researched social theories, the diffusion
of innovations among individuals and organisations, and explains why disruptive product and
technology companies frequently struggle to succeed in the mainstream market.
Diffusion of innovations
The diffusion of innovations has traditionally been defined as the process by which an innovation is
communicated to members of a social system over time via specific channels. These channels can be
any mode of information transmission, ranging from interpersonal communication to mass media.
The diffusion theory seeks to identify the factors that influence an innovation's rate of adoption.
According to the theory, the primary factors affecting the spread of a new idea or innovation are
time, communication, and social systems, which are collectively referred to as adopter categories.
A more specific definition of adopter categories is ‘individuals, organisations or larger clusters within
a social system based on their innovativeness’.
The adopter categories are:
 Innovators – People who are enthusiastic about new technology and have a high-risk
tolerance. They are keen to be the first ones to try out a new technology and allow to adopt
innovation, even if it might eventually fail.
 Early adopters – More discreet in their adoption choices compared to innovators, but
appreciative to potential products that may give them or their organisation a competitive
advantage.
 Early majority – People who adopt an innovation after a significantly longer time compared
to innovators or even early adopters. Makes up most of the market.
 Late majority – Adopt an innovation after the average participant, extremely cautious and
willing to see proof of results and usefulness before buying.
 Laggards – The last ones to adopt an innovation. Extremely sceptic and will buy a new
technology only if they really must.
In addition, the following factors have been identified to affect the adoption rate of the innovation
in the market:
 Compatibility – is the innovation perceived to be consistent with the needs of potential

adopters?
 Relative advantage – is the innovation perceived to outperform the competition?
 Complexity – is the innovation easy to understand or does the adoption process require new
knowledge and skills?
 Trialability – can it be experimented before purchasing?
 Observability – are the benefits visible for others?
Crossing The Chasm

Moore believes that the most difficult transition, dubbed the chasm, is from early adopters to early
majority. The chasm exists because the expectations of these two categories of adopters are
markedly different.

The fundamental premise is that the entire market can be represented by a bell curve that can be
segmented according to the degree to which customers are willing to adopt new technology,
with each segment having its own set of expectations and desires.
The early market, on the left side of the curve, is composed of individuals seeking the latest
inventions, whereas the mainstream market, on the right, is composed of individuals seeking
practical, everyday solutions.
Early market participants frequently anticipate intuitive solutions and are frequently motivated by
future opportunities. The mainstream market, on the other hand, is more analytical and willing to
take on less risk, whereas the late majority is typically motivated by current-event problems.
Typically, individuals who fall into this category are only interested in pursuing events that are
extremely likely to occur. To maximize growth potential, you must work on projects across all three
horizons concurrently. You cannot ensure a bright future without striking a balance between all
three horizons, and by doing so, you will maximize your growth potential while also lowering the risk
of your business portfolio.
70-20-10 Rule
To put the three horizons model into practice, you can employ the 70-20-10 rule, which was
pioneered by then-Google CEO Eric Schmidt. It is a straightforward formula for allocating resources
between "the core," "the adjacent," and "the innovative stuff," which is frequently referred to as
"the transformational."
The term "core" refers to the activities that comprise most of an organisation's existing business,
whereas "adjacent" refers to new enhancements and logical extensions to the existing business.
However, transformational can refer to anything novel for the organisation that is unrelated to its
core.
To achieve the best results, allocate 70% of your resources to core business initiatives, 20% to
projects related to your business, such as new markets, and 10% to completely new ventures.
Along with anecdotal evidence from Google, subsequent research appears to confirm that
companies that allocate their resources in this manner typically outperform their peers by a margin
of 10% to 20% (as measured by their P/E ratio). Additionally, the research discovered that the long-
term returns on each type of investment are inversely proportional to the resources invested.

Because the three-horizon model of growth and the 70-20-10 rule are talking about the exact same
thing, we can combine these two for a more practical look at the issue.
Having said that, 70-20-10 is not a rule every business should adopt. It all really depends on your
circumstances and strategic decisions, and a different allocation can prove to be much more suitable
for you. However, the 70-20-10 rule is simply a highly practical and reasonable starting point for
most organisations.

Building a Culture of Innovation

Rather than a specific theory or methodology, this is a business imperative to ensure that the
corporate culture fosters, rather than stifles, innovative behaviour. The difficult part of this is that
culture is a highly individual thing that varies across companies, industries, and regions. In all cases,
however, it is beneficial for a business to look inward and determine whether its people, processes,
and leadership serve as innovation enablers or bottlenecks.
When should it be used: Every business should frequently examine itself to determine how it can
best develop its innovation culture? This does not mean that companies should copy what
"innovative companies" like Netflix do (much of their infamous HR Culture document would simply
not work in many other organisations), but rather that they should assess the impact of their own
processes and determine how they can enable and encourage more innovative behaviour at all
levels of the organisation.
Budgets for Micro-Innovations

Everybody always says that innovation is risky because it involves investing money in things that
have a high probability of failing. One way to address this is to conduct more small-scale innovation
experiments, which allow for significantly more experiments to be conducted much faster and at a
fraction of the cost. The trick is to make it as simple as possible for people to conduct their own
experiments.
When should it be used: Any organisation that wants to enable their staff who have an idea to “try it
out” or do an initial market experiment?
c This critical theory, popularized by Professor Clayton Christensen's book The Innovator's Dilemma,
explains why large, established companies eventually succumb to smaller competitors, and it
introduced the concept of disruptive innovation. Simply put, it postulates that small businesses can
disrupt the market of large corporations by releasing a new version of an offering that caters to a
specific segment of the customer base. In many cases (particularly those listed in the book, such as
Computer Storage, Department Stores, and Construction Equipment), the small business introduces
a new technology that is inferior in quality or performance to that of the large company but
compensates for this with a lower price or greater convenience. With time and iteration, this new
technology will improve to accommodate more demanding applications. The critical aspect of the
theory that most discussions overlook is that while it is occurring, management at established
companies believes they are making the correct choice by allowing new companies to take over the
low-end of the market. The reason is that the low end of the market is frequently the least
profitable, and by eliminating it from the customer base, large companies increase their profitability
(although not necessarily making more profit). Given that business leaders are frequently taught
that increasing profitability is the holy grail of management, allowing someone else to take over the
low market makes perfect sense.
When it should be used: Very rarely! This may seem strange, but the most critical point to
remember about Disruptive Innovation is that most people completely misunderstand it. Most start-
ups claim to be disruptive or to disrupt a specific industry. The issue is that disruptive innovation is a
phenomenon, not a technique. It possesses no predictive ability. The theory explains primarily how
large corporations were disrupted, not how a small business can ensure success in the face of a
larger competitor. As such, it is critical to understand the theory's foundations from a defensive
standpoint to help prevent them from being disrupted.

Ambidextrous Organisations / Dual Innovation

For most businesses, one of the most difficult aspects of innovation is not the generation of new
ideas or the development of new innovations. Rather than that, it is about incorporating new
innovations into the business without jeopardizing the performance of core business operations.
This is an issue that many businesses face. Even if they agree on the importance of innovation and
establish teams or departments to develop new value-adding, innovative products and services,
these products may never see the light of day because no one in the existing business units is
willing to take on the responsibility and risk of launching them. They can cite a variety of seemingly
legitimate reasons for this, including the following:
 My team has not got the time to resource or time to take ownership of this new thing
 My team does not have the skills to understand or support it if something goes wrong
 do not want to risk showing this to our customers and them not liking it
 It might take sales away from our current offerings
 I am not putting my neck and job on the line to promote something which I was not involved
with developing
 If this does not work, it is going to make me look bad
Ambidextrous Organisations on the other hand are companies which have set themselves up to do
three things:
 Effectively run their core business

 Develop, test, and validate innovations outside of their core business
 Integrate several the best innovations back into the core business in a reliable manner
The process of making this happen is often referred to as “Dual Innovation”, and builds the skills,
capabilities, and processes within a company to make the transition of innovations into the core
business more likely to take hold.
When should it be used: Any company which has or is thinking of building an Innovation Team /
Department / Lab / Skunkworks should be aware of this concept of Dual Innovation and make sure
your teams have the skills and permission to engage in it.
Open Innovation, Crowdsourcing, and Idea Management

Known by a variety of names, this is the process by which a business can pose a challenge and solicit
ideas from hundreds, thousands, or hundreds of thousands of people, both within and outside the
organisation. Historically, businesses may have used suggestion boxes or an email address for people
to submit ideas, but most of the time, the ideas never made it to fruition, frustrating both the
leadership (who was unable to organize and evaluate the ideas) and the people who submitted
them. However, several start-ups have recently emerged that provide a software solution that
enables businesses to create innovation challenges, solicit thousands of submissions, and then
evaluate and manage these submissions in a more structured manner. Whether the term is used to
refer to Open Innovation, Idea Management, Innovation Management Systems, or Crowdsourcing,
the concept is similar.
When should it be used: There are various types of companies which will benefit the most from Idea
management. Here are a few:
 Companies which have stubborn challenges for which an outsider’s perspective could
provide a breakthrough (e.g., ones where traditional experts in a field have not been able
to solve a challenge with existing methods)

 Companies which want to solicit feedback and ideas from many internal employees
(e.g., bringing to light inefficiencies which leadership would not be aware of)
 Companies which want to get feedback on early prototypes or ideas from the
marketplace (e.g., to beta test multiple variations of an offering to see if / which one
proves to be popular)
 Companies which want a structured system to manage a funnel of ideas and projects (e.g.,
when thousands of potential ideas need to be evaluated and budgets/resources need to
be assigned)
 Companies which want to allow external parties/consumers to suggest improvements to
existing products or entirely new products (e.g., like P&G’s Connect and Develop platform)
Importantly, it should be noted that there are times when this system could be overkill, such as for
start-ups which are working on a single product and are very early in their journey. Typically, more
established companies will gain more benefits from a system like this. Additionally, software systems
like this do not replace people in the innovation process and cannot automate its management.
Understanding the science of creativity

For a long time, there was a lot of bad advice floating around regarding how to improve one's
creativity. Frequently, it would use ambiguous phrases such as "reconnect with your inner child,"
"think like an artist," or "ask yourself what Apple would do." And this advice almost never helped
because it lacked an understanding of what individuals should change. There has been an explosion
of excellent scientific research into creativity and the factors that influence it over the last few
decades. For instance, we now understand that nurture is more important than nature, that
creativity levels decline over time, how the brain is wired to recognize patterns and ignore novel
input, and how the brain would rather work off memory than be creative. When you utterly
understand how creativity works, based on empirical evidence rather than intuition, you can then
implement strategies to enhance it (Ed: if that is what you are after, and I would suggest everyone
should be). Even now, we understand why people fail to recognize when they are rejecting creative
ideas when placed in decision-making positions (premium content).
When should it be used: Recommended that everyone who sees the value in new ideas should be
educating themselves on understanding creativity better, especially from an evidence-based,
scientific basis.
Effective Brainstorming
Every business is familiar with brainstorming. And yet almost every business is frustrated by its
inability to generate solutions. This is simply because most businesses are unaware that they are
doing it incorrectly. And this is not entirely their fault, as most professional brainstorming facilitators
employ rules developed in the 1950s and long since proven to be ineffective. Indeed, much of the
creativity research outlined in the preceding framework (understanding your creativity) has resulted
in breakthroughs in our understanding of how teams generate ideas collaboratively and has enabled
the development of significantly more effective brainstorming techniques. One such technique,
which may seem counterintuitive at first but is quite effective, is for individuals to write down their
initial thoughts in silence prior to any group discussion (this is called brainwriting and is especially
good at getting creative suggestions out of more introverted people).
When should it be used: Any time a company wants to develop a set of ideas or potential solutions
to a challenge as a group? This should always be done instead of traditional brainstorming.

Lean Innovation Management

Lean Innovation Management is a framework for managing innovation projects more agilely than
traditional project management. It is inspired by several Lean Start-up principles and incorporates
elements of Design Thinking and Agile Development. For example, rather than requiring managers to
develop a comprehensive business case with lifetime costs and risks to request funding for a full
project (which is frequently highly inaccurate and based entirely on guesswork for innovation
projects), a manager may be required to request funding for an initial set of experiments to validate
an idea's market potential. This enables a much greater number of innovations to be tested much
more quickly, at a lower cost, and with less risk than is possible with traditional management
methods.
Some of the aspects of Lean Innovation Management include:
1. Encouragement of lots of small scale, cheap experiments instead of full launches

2. Allocating small initial budgets to get to the next stage in a lifecycle early on (e.g., to test the
market), instead of asking for a full project budget with a business case
3. Incorporating feedback from multiple parties throughout the design and
development process
4. Building of “Minimum Viable Products (MVPs)” and prototypes and testing these with real
people
5. Iterating and changing direction (“pivoting”) if the feedback suggests you are going in the
wrong direction
When should it be used: Any company which has a limited budget of money and pool of resources
to work on innovation projects could greatly benefit from a Lean Innovation approach.

Business Model Canvas

Model of Business Canvas is an excellent tool for describing, designing, challenging, pivoting, and
testing your business model and new business models, which is critical when developing
innovations. It was developed by Strategyzer co-founder Alex Osterwalder to help you quickly lay out
the various components of a new offering and determine how they will fit together to form a
business model. This enables you to identify potential roadblocks, gaps in the offering, and even
potential market gaps. Often, this provides a much more complete picture of an offering than other
types of summaries, such as traditional business cases.
Business Model Canvas
When should it be used: At the initial stages of any project when you need to look at the overall
picture and how a business model might fit together? Especially useful when trying to
determine exactly what the value proposition for a customer will be.
Design Thinking
One of the most frequently used but misunderstood terms in today's business world is "Design
Thinking." Design Thinking is a methodology that designers use to solve complex problems and
provide clients with desirable solutions. A design mindset is solution-oriented and action-oriented
toward the creation of a preferred future. Typically, this entails a company spending time with
users to learn about their current daily experiences and using that information to gain insights into
the true underlying challenges and how they might be addressed.
Contrary to popular belief, it is not limited to the "design stages" of product development (initial
sketches, graphic design, prototyping etc). Rather than that, consider it as a collection of processes
that result in a better understanding of a user's needs and ways to meet those needs.

Christoph Meinel and Larry Leifer, co-directors of the HPI-Stanford Design Thinking Program,
outlined four principles for successful design thinking implementation:
 The human rule, which states that all design activity is ultimately social in nature, and any
social innovation will bring us back to the ‘human-centric point of view’.
 The ambiguity rule, in which design thinkers must preserve ambiguity by experimenting
at the limits of their knowledge and ability, enabling the freedom to see things
differently.
 The re-design rule, where all design is re-design; this comes because of changing technology
and social circumstances but previously solved, unchanged human needs.
 The tangibility rule: the concept that making ideas tangible always facilitates communication
and allows designers to treat prototypes as ‘communication media’.
When it should be used: The methodology is particularly useful for resolving so-called wicked
problems, in which the challenge is ill-defined or tricky, as opposed to problems for which a solution
can frequently be found through experience or technical knowledge. Therefore, it is such a valuable
component of any innovation framework, where the ultimate goal is to find a solution that adds
value to the end customer, but first you must determine what is causing the customer's challenge.
Portfolio Management
Portfolio management is the process of selecting, prioritizing, and controlling an organisation's
projects and programs in accordance with its strategic objectives and operational capacity. The
objective is to strike a balance between innovation initiatives, change initiatives, and business as
usual while minimizing resource consumption, risk, and return on investment. This is, in my opinion,
one of the most fundamentally overlooked frameworks for increasing the success rate of innovation
projects, and every business should place a higher premium on it. Traditionally, portfolio
management (if it occurred at all) was handled by the central team responsible for the program
management of a company's various projects, often referred to as a Programme Management Office
(PMO), which assisted in determining which projects should be funded, planning them, tracking
progress, and managing risks and issues. If Programme Management is about completing projects
correctly, Portfolio Management assists in completing projects correctly. Incorporating innovation
projects into a program's portfolio can be challenging, but when done correctly, can yield enormous
benefits:
1. It helps evaluate which innovation projects fit the company’s overall strategic goals
2. It is vital for incorporating innovation projects back into the core business (see point
11 about Ambidextrous Organisations)
3. It helps determine potential bottlenecks and dependencies between innovation projects
that individual team members may not realise (for example, the availability of specific
people who might otherwise be pulled in various directions)
4. It can help see how projects fit together across various sites, territories, and countries
5. It can spot and reduce duplication of effort and reduce overall costs
6. It can help sequence activity and resources between projects and teams
7. It can distinguish differences between types of projects and determine the best
management methodology / principles for each instead of a “once size fits all” approach (for
example, there are big differences between the ability to create a full business case for an
18-month IT transformation, compared to a short-term initial MVP build for a new offering)
8. It can be used to “balance” the portfolio budget and resources between projects which build
out the core business, build related new innovations and more radical innovations (see point
3 about Three Horizons)
9. It can be used to spot gaps in the overall list of projects and types of innovations you are
developing (see point 2 on Ten Types of Innovation)

10. It can significantly reduce the perceived risk associated with doing innovation projects
11. It can give leadership a clearer idea of the direction the company is travelling, what
customers are demanding and innovations they are developing to address that
demand
When should it be used: Every company which is running multiple projects simultaneously, as well
as those developing new innovations, should have a portfolio view of everything that is going on in
the company?
Three Horizons
The Three Horizons Innovation Framework is based on McKinsey’s Three Horizons of Growth
but used to determine how well your business offerings will be able to deliver value and fit into your
overall strategy as time goes on. The horizons in an innovation context are as follows:
 Horizon 1: exploiting your current offerings (core business activity and incremental
innovations to improve current offerings)
 Horizon 2: extending the business with new offerings which build on the core but
provide new value
 Horizon 3: exploring new future offerings that could change the company but are not ready
yet
As time goes on, companies will notice that customer tastes, technology, competition, and the
whole market will change, often making their current offerings less valuable (and therefore less
strategic) and will eventually require more innovative offerings to take their place. When these
moments happen, they are disruption points where one horizon is replaced by another, as outlined
in this image:
Three Horizons of innovation summary
When should it be used: The Three Horizon Framework is frequently used in CXO/Executive level
discussions within organisations to ensure that leadership has a holistic view of the need for various
types of innovation activity? As a result, it enables company leadership to recognize the importance
of anticipating future change and investing in a variety of innovations that may not be viable today
but could become the company's most important offerings in the future. This is critical for
anticipating future market scenarios and adjusting your strategy and innovation portfolio
accordingly.

Ten Types of Innovation

The Ten Types of Innovation provides a framework for assessing the various types of innovations
that your organisation is currently experimenting with. According to Doblin's research of over 2000
innovation projects, there are ten distinct ways for a business to innovate. They are as follows:
1. Profit Model: How you make money

2. Network: How you connect with others to create value
3. Structure: How to organise and align your talent and assets
4. Process: How you use signature or superior methods to do your work
5. Product Performance: How you develop distinguishing features and functionality
6. Product System: How you create complementary products and services
7. Service: How you support and amplify the value of your offerings
8. Channel: How you deliver your offerings to customers and users
9. Brand: How you represent your offerings and business
10. Customer Experience: How you foster compelling interactions
What is fascinating is that the research also clearly showed the impact of companies trying more
than one type of innovation. While most companies innovate by improving the performance of their
product (type 5), those companies which tried to add value by innovating in several ways were
consistently more successful, with their innovations more likely to make a return on investment.
To see the full impact of trying out more than one type of innovation, check out this graph from
Doblin which analyses the number of different types of innovations the companies were attempting
and how they performed against the stock market:
As you can clearly see, the companies which attempted more types of innovation consistently
outperformed the market.
When should it be used: When combined with portfolio management, design thinking, and several
other frameworks on this list, the Ten Types of Innovation framework provides an excellent
foundation for determining whether there are additional ways for your company to add value or
alternative approaches to a problem? For instance, you can set a goal of innovating without altering
the product's performance and relying solely on the nine other types of innovation. Additionally,
evaluating your current portfolio of innovation projects against the matrix of the Ten Types of
Innovation is extremely beneficial, as it enables you to identify potential gaps in your own list of
projects, as well as potential gaps in the market that no one is currently exploiting or exploring.

Jobs to be Done
“Jobs to be Done” is a Strategyn theory and methodology that focuses on Outcome-Driven
Innovation. The theory's fundamental premise is that people purchase products and services to
accomplish tasks, and while specific products and services come and go, the underlying task to be
accomplished remains constant. It is based on the idea that rather than focusing on what features or
benefits a customer wants, an innovation should seek to understand what job/activity/outcome a
customer is attempting to accomplish and then develop something that assists them in
accomplishing that.
As Theodore Levitt put it, "what people want is a quarter-inch hole, not a quarter-inch drill."
This enables you to create an offering that a customer can "hire" to complete a task. Office workers
create documents using word processing software. Scalpels are used by surgeons to dissect soft
tissue. However, few businesses keep this in mind when brainstorming new product ideas, and
simply asking people what jobs they have is unlikely to yield insightful responses, as people
frequently do not understand or are unable to articulate what is frustrating them or what they are
attempting to accomplish. What businesses truly require are insights, not opinions.
The Jobs to be Done framework enables businesses to elicit candid feedback about their challenges
and frustrations from real people. By segmenting these individuals, it may be possible to develop an
innovative solution to several the challenges, implying that a product could perform the entire "job,"
making it significantly more appealing to a customer.
The Job Map
The Job-To-Be-Done framework suggests that all jobs consist of eight different steps, where you look
for opportunities to help your customers.
The so-called "Job Map" is simple and straightforward:
1. Define your customers goals and resources.

2. Locate what information is needed to do the job.
3. Prepare the environment where the job will be done.
4. Confirm that your customer is ready to get the job done.
5. Execute the job.
6. Monitor the job so that it is successfully executed.
7. Modify and make alterations to improve execution.
8. Conclude the job or repeat.
Each of the eight steps focuses on addressing the job-to-be-done correctly. The job is at the heart of
the whole innovation process all the way from planning to execution.

The Jobs-To-Be-Done method is extremely effective at determining your target market and
segmentation. It is self-evident that if your customers are not struggling to complete a task, there
may be little point in pursuing that market.
When is it appropriate to use it: Any innovation project that your business undertakes should be
focused on identifying potential customer jobs? It is most effective early in a project's lifecycle, when
a team should be out investigating how things are currently run. This entails meeting real people,
observing them objectively, and attempting to gain insights by observing their behaviour and
frustrations rather than their opinions.
Source: Adapted from https://www.ideatovalue.com/inno/nickskillicorn/2017/07/15-most-

important-innovation-theories-your-company-should-be-using/
Learning Activity 6
Creativity and innovation theories and concepts
Written Task
Activity type

Activity description Write brief answers to the following questions.
1. Select two of the innovation theories and concepts
outlined above, briefly explain and provide a comparison
of innovation theories/concepts. Provide examples to
support your explanation.
2. Select an organisation of your preference and identify an
area which needs innovation. Select a theory/concept
outline above and analyse how this company can utilize
this innovation theory/concept to structure their
innovation.

Organisational learning principles

Organisational learning is the process by which an organisation continuously improves itself through
experience and the use of that experience to create knowledge. The acquired knowledge is then
disseminated throughout the organisation. Organisational learning is critical for all businesses, as
knowledge creation, retention, and transfer within the organisation all contribute to the
organisation's overall strength. When considering the definition of organisational learning, three
primary actions should be considered:
 Conceive
 Act
 Reflect
An idea or product is conceived, the company creates the idea or product, then the company must
reflect. It is through this reflection of both process and outcome that learning will occur. In addition
to those actions, there are three key processes that occur in organisational learning:
 Knowledge creation
 Knowledge retention
 Knowledge transfer
It is critical for the organisation to ensure that the knowledge gained during this process is retained
and transferable within the organisation. Individuals cannot effectively retain knowledge because
they can leave, taking their knowledge with them. Embedded knowledge can be retained within an
organisation and distributed to all employees. To define organisational learning, one must first
appreciate the critical nature of fostering a learning culture within an organisation. Individuals,
teams, and the organisation as a whole benefit from this type of learning. This approach also has
positive intra-organisational consequences.
10 principles that determine whether an organisation has a strong or weak environment for
learning:
1. Leaders support learning

The CEO, senior executives, and other key leaders throughout the organisation send a
message that continuous learning is valued and expected of individuals, teams, and the
entire organisation. Leaders communicate that learning can take place in a variety of ways,
including formal and informal classroom instruction, on-the-job activities, and social
interaction. Leaders speak and act in ways that are visibly consistent with this value.
2. Managers take responsibility for employee learning

Managers encourage direct reports to acquire new knowledge and skills and to develop
competencies to increase their organisation's value. Managers provide opportunities for
employees to learn, practice, and apply what they have learned on the job. Managers hold
their direct reports accountable for learning and for their own development.
3. Organisation hires and promotes learners

Recruiters, other human resource personnel, and hiring managers are looking for self-
motivated learners who are constantly on the lookout for opportunities to expand their
knowledge and skills, learn from their successes and failures, take calculated risks in the
interest of learning, and continue to develop themselves. The organisation recruits new
employees and promotes existing employees who demonstrate a willingness to learn and
grow.

4. Learning is aligned with results

Employees and managers alike understand how acquiring specific knowledge and skills will
contribute to the organisation's success. It is not about learning for the sake of learning or
because "we have always done it that way," but about learning to assist the organisation in
achieving its strategic goals.
5. People have a growth (learning) mindset

Executives, managers, and employees believe that they and others within the organisation
can learn and grow. They believe that everyone possesses this potential, which can be
unlocked by actively providing opportunities for people to acquire new knowledge and skills.
They believe that nobody is born with fixed abilities; rather, they believe that it is inherent in
the human condition to be able to enhance competencies and performance.
6. Organisational structure facilitates learning

The organisation's information flows freely. Work unit leaders are free to communicate with
one another. They assist and peer-coach one another as needed. Employees across
departments and geographies are connected and actively share their successes, failures, and
lessons learned. Other critical stakeholders are included in critical decision-making processes
and their input is respected.
7. Knowledge management contributes to learning

Information is stored in an easily accessible location (hardcopy or database) that can be
accessed by all employees to acquire the knowledge necessary to perform their jobs
successfully. Successes and failures are described in such a way that anyone can glean the
information they require. Employees can obtain the information they require when they
require it to improve the organisation's performance. Employees are constantly generating,
identifying, collecting, organizing, sharing, adapting, and utilizing information to assist the
organisation in becoming more intelligent.
8. Employees take risks and experiment

Leaders encourage this behaviour by praising effort and learning even when the outcome is
unsatisfactory. Employees are not penalized for attempting something new (e.g., pay
reduction, demotion, public humiliation, or marginalization). Rather than that, this type of
behaviour is rewarded. Both failures and successes are viewed as opportunities for growth.
9. Learning is rewarded
Employees who acquire new knowledge and skills are commended and rewarded.
Employees are rewarded when new knowledge is applied and contributes to the
organisation's performance improvement (for example, more challenging work assignments,
statements of appreciation and respect, money, and perks). What matters is that employees
appreciate the reward and that it reinforces this type of behaviour.
10. Everyone is reflective
Leaders, managers, employees, and other stakeholders make the most of every learning
opportunity. Each project concludes with an after-action review. Client contacts are
analysed immediately with the goal of learning from and improving them in the future. All
tasks, events, processes, and committees are viewed as learning opportunities. Individuals
are constantly reflecting on what they can learn from their actions and accomplishments.

When these principles exist in the culture, an organisation is predisposed to individual, team, and
whole organisation learning. With that learning comes an increased likelihood that performance will
improve, and strategic goals will be achieved.
Learning Activity 7
Organisational learning principles

 Define organisational learning and explain with examples

the three key processes of organisational learning.
 There are 10 principles that determine whether an
organisation has a strong or weak environment for learning
as outline above, assess these 10 principles and determine
if your organisation has a strong/ weak environment for
learning. Provide evidence/justifications to support your
answer.

Quality management and continuous improvement theories

Total Quality Management (TQM) is a collection of customer-centric and service-oriented quality
improvement methodologies. TQM originated in Japan and quickly gained popularity. While TQM
may refer to a collection of customer-focused practices aimed at enhancing quality and promoting
process improvement, TQM practices are guided by a variety of different theories.
Deming’s Theory
Deming's Total Quality Management theory is predicated on the fourteen management points
he identified, the system of profound knowledge, and the Shewhart Cycle (Plan-Do-Check-Act).
He is well-known for his ratio - Quality equals the result of labour efforts multiplied by total
costs. If a business focuses exclusively on cost, the result is that costs increase while quality
deteriorates.
Deming's system of profound knowledge is comprised of four pillars:
 System Appreciation - an understanding of the way that the company’s processes and
systems work
 Variation Knowledge - an understanding of the variation occurring and the causes of
the variation
 Knowledge Theory - the understanding of what can be known
 Psychology Knowledge - the understanding of human nature
By being aware of the different types of knowledge associated with an organisation, then quality can
be broached as a topic. Quality involves tweaking processes using knowledge. The fourteen points of
Deming’s theory of total quality management are as follows:
1. Create constancy of purpose

2. Adopt the new philosophy
3. Stop dependencies on mass inspections
4. Do not award business based upon the price
5. Aim for continuous production and service improvement
6. Bring in cutting-edge on the job training
7. Implement cutting-edge methods for leadership
8. Abolish fear from the company
9. Deconstruct departmental barriers
10. Get rid of quantity-based work goals
11. Get rid of quotas and standards
12. Support pride of craftsmanship
13. Ensure everyone is trained and educated
14. Make sure the top management structure supports the previous thirteen points.
Plan-Do-Check-Act (PDCA) is a cycle created for continuous improvement. In the planning phase,
objectives and actions are outlined. then, you do your actions and implement the process
improvements. Next, you check to ensure quality against the original. finally acting requires that you
determine where changes need to occur for continued improvement before returning to the plan
phase.

Crosby’s Theory
Philip Crosby is another person credited with starting the TQM movement. He made the point, much
like Deming, that if you spend money on quality, it is money that is well spent. Crosby based on four
absolutes of quality management and his own list of fourteen steps to quality improvement.
Crosby’s four absolutes are:
 We define quality as adherence to requirements

 Prevention is the best way to ensure quality
 Zero Defects (mistakes) is the performance standard for quality
 Quality is measured by the price of nonconformity
The fourteen steps to continuous quality improvement, for Crosby, are:
1. Attain total commitment from management

2. Form a quality improvement team
3. Create metrics for each quality improvement activity
4. Determine cost of quality and show how improvement will contribute to gains
5. Train supervisors appropriately
6. Encourage employees to fix defects and keep issues logs
7. Create a zero-defects committee
8. Ensure that employees and supervisors understand the steps to quality
9. Demonstrate your company’s commitment by holding a zero defects day
10. Goals are set on 30-, 60-, or 90-day schedule
11. Determine root causes of errors, remove them from processes
12. Create incentives programs for employees
13. Create a quality council and hold regular meetings
14. Repeat from step one
Joseph Juran’s Theory

Joseph Juran is responsible for what has become known as the “Quality Trilogy.” The quality
trilogy is made up of quality planning, quality improvement, and quality control. If a quality
improvement project is to be successful, then all quality improvement actions must be carefully
planned out and controlled. Juran believed there were ten steps to quality improvement. These
steps are:
1. An awareness of the opportunities and needs for improvement must be created

2. Improvement goals must be determined
3. Organisation is required for reaching the goals
4. Training needs to be provided
5. Initialize projects
6. Monitor progress
7. Recognize performance
8. Report on results
9. Track achievement of improvements
10. Repeat

The EFQM Framework

The European Foundation for Quality Management (EFQM) Model is based upon nine criteria for
quality management. There are five enablers (criteria covering the basis of what a company does)
and four results (criteria covering what a company achieves). The result is a model that refrains from
prescribing any one methodology, but rather recognizes the diversity in quality management
methodologies. The nine criteria as defined by the EFQM Model are:
1. Leadership
2. People
3. Policy and strategy
4. Partnerships and resources
5. Processes
The organisation’s Results are what it achieves. These encompass the level of satisfaction among the
organisation’s employees and customers, its impact on the wider community and key performance
indicators. They are:
6. People results
7. Customer results
8. Society results
9. Key performance results
Each of the nine criteria is subdivided to describe in more detail the concept of ‘Excellence’ in that
area and to examine how well an organisation is doing through a list of practical questions to ask
itself. The starting point for most organisations is to gather evidence relevant to the nine criteria of
the Model. This involves asking, for each of the criteria, ‘How good are we and how could we
improve?’ Evidence may take a variety of forms depending upon the organisation.
The National Council for Voluntary Organisations (NCVO) suggests that each organisation will need
to find a method for using the framework that suits them best.
They give examples of:
 Questionnaires based upon the Model.

 A workshop approach where evidence is gathered from across the organisation on how the
nine criteria are being met.
 An approach in which the organisation produces a detailed document describing what it is
doing under each of the criteria and sub-criteria.
 An approach for a small organisation or small teams within a larger organisation, involving
half-day sessions working through the Model to gain a rapid picture of where it stands
under the various criteria.
Once this self-assessment exercise has been initiated, the organisation can take action to improve its
performance with help from the guidance contained in the Model’s relevant publications or further
training in the area that needs improvement.
The British Quality Foundation (BQF) has also developed a software tool called ‘BQFsnapshot’ that
will run on most Windows-based computers. It is intended to provide a quick and simple way of
finding out how your organisation measures up to the characteristics of Excellence.
Although most organisations concentrate on improving their performance using the Model, it is
possible to ‘score’ performance against the criteria, providing an internal benchmark of
improvement over a period.

Potential benefits
 The Excellence Model provides a holistic framework that systematically addresses a
thorough range of organisational quality issues and gives attention to impacts through the
‘results’ criteria.
 It provides a clear diagnosis of an organisation’s activities and is useful for planning as it
makes links between what an organisation does and the results it achieves, highlighting how
they are achieved.
 It seeks to instil a culture of continuous improvement.3
 It is flexible enough to be used in bite-sized chunks or for specific issues – e.g., an analysis of
an organisation’s environmental policy in less than a single day as well as providing a
framework for a comprehensive review of all the organisation’s activities over several
months.
 There is no requirement for external validation and the Excellence Model can be used as
an internally driven self-assessment tool allowing an organisation to be as honest and as
open as possible in gauging its performance.
 ‘Scoring’ can provide an organisation with an internal benchmark for its next self-
assessment, to capture trends. It can also be used among organisations for some external
benchmarking and comparison.
 The Excellence Model stresses the importance of consensus in assessing an organisation’s
strengths and areas to improve.
Potential limitations
 Although there is an option for ‘scoring’ and an Awards Recognition scheme, they may be
expensive for smaller social enterprises to enter.
 There is no formal mark or accreditation for the Model, and it will not be overtly visible or
recognisable to customers, service users, funders, and other stakeholders. However, EFQM
does offer awards to organisations, showcasing winners through its website and networks.
 Though it has been used successfully by several medium and large voluntary organisations, it
was initially developed for the commercial sector and some of the language of the
Excellence Model may not translate easily to social enterprises or voluntary organisations.
There are limited examples of use by third sector organisations.
There are nine ‘big ideas or criteria in the Model that underpin this premise and attempt to cover all
an organisation’s activities. These nine ideas are separated into Enablers and Results. The Enabler
criteria are concerned with how the organisation conducts itself, how it manages its staff and
resources, how it plans its strategy and how it reviews and monitors key processes. They are:
1. Focus on Results - pleasing company stakeholders with results achieved by stakeholders are
a primary focus.
2. Focus on Customers - it is vital that a company’s quality management leads to customer
satisfaction.
3. Constancy of Purpose and Consistent, Visionary Leadership
4. Process and Facts form the Management Focus - Management breaks down everything into
systems, processes, and facts for easy monitoring.
5. Training and Involving Employees - Employees should receive professional
development opportunities and be encouraged to remain involved in the company
6. Continuous Learning - everyone should be provided with opportunities for learning on
the job
7. Developing Partnerships - It is important to encourage partnerships that add value to the
company’s improvement process
8. Social Responsibility of the Corporation - The company should always act in a way where it is
responsible towards the environment and society at large.

Ishikawa’s Theory
Creator of the last theory, Dr. Kaoru Isikawa is often known for his namesake diagram, but he also
developed a theory of how companies should handle their quality improvement projects. Ishikawa
looks at quality from a human standpoint. He points out that there are seven basic tools for
quality improvement. These tools are:
 Pareto Analysis - Pareto analysis helps to identify the big problems in a process.
 Cause and Effect Diagrams - Cause and effect diagrams help to get to the root cause of
problems.
 Stratification - Stratification analyses how the information that has been collected fits
together.
 Check Sheets - Check sheets look at how often a problem occurs.
 Histograms - Histograms monitor variation.
 Scatter Charts - Scatter charts demonstrate relationships between a variety of factors.
 Process Control Charts - A control chart helps to determine what variations to focus upon.
What should you do about the competing theories?

These are a few of the many different TQM theories such as Six Sigma. When learning about total
quality methods, it is important to remember that these are guidelines. What is important is that
you and your organisation practice consistent steps towards improving quality in your organisation
and processes. Use the tools that have been shown to work and make a commitment. Committed
leadership means committed employees.
Learning Activity 8
Quality management and continuous improvement theories

1. Describe and elaborate briefly on Total Quality

Management and list down the several different theories
at work guiding TQM practices.
2. Select a theory from the theories outline above and
explain in detail which theory is being used to guide TQM
in your organisation.
3. Identify the advantages and limitations of this theory.

Relevant risk management concepts

Integrating risk into decision making
The degree to which risk management is integrated into decision making is a critical indicator of true
risk management effectiveness. Companies that successfully integrate risk management into their
planning and budgeting processes, investment decisions, core operational business processes, and
critical supporting functions achieve a long-term sustainable advantage, according to research.
Consider a large investment fund that makes investment decisions only after conducting an
independent risk analysis and simulating the effect of uncertainty on critical project assumptions and
forecasts. Another example is a large airline that bases its strategic decisions on several high-quality
alternatives, each of which has been subjected to risk assessment.
Strong risk management culture
Human psychology and business managers' ability to make decisions in the face of significant
uncertainty have a significant impact on risk management effectiveness. Nobel laureates and
researchers have conducted some extraordinary research in the field of risk perception,
demonstrating that most people choose to be ignorant of risks, either consciously or subconsciously.
Thus, a strong risk management culture is critical for effective risk management. Consider a large
petrochemical company that used online and in-person training to increase risk management
awareness and competency across all levels of staff. Additionally, the company invested resources in
integrating risk management principles into the company's overall culture. Another example is a
government agency that made open discussion and sharing of risk information a corporate value
that was later communicated to all employees.
Disclosing risk information
Another criterion for risk management effectiveness is an organisation's willingness and ability to
document and disclose risk-related information both internally and externally. A mature
organisation not only incorporates risk analysis into internal decision-making processes, but also
communicates information about risks and their mitigation to relevant stakeholders via external
reporting or the company website, as appropriate. It is critical to note that, because actual risk
information may be sensitive and contain commercial secrets, the focus of disclosure should be on
the risk management framework, the executive commitment to risk management, and the
organisational culture.
Bear in mind that disclosing risk management information enables businesses to both earn and save
money. For instance, the insurance market responds positively to a company's ability to disclose
information about the effectiveness of its risk management and control environment by lowering
insurance premiums. Banks and investors also view risk disclosure positively, as it enables businesses
to reduce their financing costs.
Continuously improving risk management
The final criterion for effective risk management is continuous improvement of both the risk
management framework and the risk team. This was accomplished by assessing the quality and
timeliness of their risk analysis on a regular basis, conducting annual risk management culture
assessments, and conducting periodic reviews of risk management team competencies. For instance,
professional risk management certification contributes to the enhancement of risk team capabilities.
One of the reasons for the ongoing need for risk management improvement is the discipline's rapid
development. Over 200 specialists from 30 different countries are currently reviewing the ISO
31000:2009 standard. Several recommendations for the new version of the standard include a

greater emphasis on risk management integration into business activities, including decision making,
and the requirement to explicitly consider human and cultural factors. These changes could have a
significant impact on the risk management effectiveness of many modern non-financial
organisations.
Risk management, like any other aspect of corporate governance, must be integrated into the
organisation's overall management system. ISO 31000:2009 expressly states that risk management
must be adaptive, dynamic, iterative, and capable of responding to change. As an organisation's risk
maturity improves, so do the tools it uses to manage risks in decision-making. Professional risk
managers should not only develop risk management processes for their organisations but should
also strengthen their own risk management capabilities.
Principles of Risk Management
There are specific core principles regarding risk management. When looking to perform an actual
risk assessment, the following target areas should be part of the overall risk management
procedure (as defined by the International Standards Organisation; ISO):
 The process should create value
 It should be an integral part of the organisational process
 It should factor into the overall decision-making process
 It must explicitly address uncertainty
 It should be systematic and structured
 It should be based on the best available information
 It should be tailored to the project
 It must consider human factors
 It should be transparent and all-inclusive
 It should be dynamic and adaptable to change
 It should be continuously monitored and improved upon as the project moves
forward When first addressing a risk management procedure for a project, take note of the
principles to ensure that your specific assessment is matching up with the core ideals as defined
by ISO.

Risk Management Process
There is a specific procedure that one should follow when it comes to performing a risk assessment.
The overall process can be itemized as follows:
1. Identification – Perform a brainstorming session where all conceivable risks are itemized
2. Planning – Once defined, plan for contingencies as part of the overall project
plan; implement controls as needed
3. Derive Safeguards – Place specific ‘fallbacks’ into the overall project plan as
contingencies for risks if they arise
4. Monitor – Continuously monitor the project to determine if any defined (or un-expected)
risks manifest themselves
Note that the diagram that is part of this post dictates the process in a graphical format.
Dealing with Risk
Once the risks are identified and the specific risk process has been instantiated, what should the
project manager do with the defined risks? There are certain techniques to be aware of pertaining to
risk. Being aware of what the risks are will dictate how effective each of the individual risk
management options might be.
 Avoid the Risk – This may seem obvious, but it is an actual technique. There are
instances where a perceived risk can be avoided entirely if certain steps are taken. An
example of this might be a concern over a vendor supplying a given deliverable at a
specific timeframe. It may be decided to perform the actual work for the deliverable in-
house thereby eliminating the risk of the external vendor.
 Reduce the Risk – While some risks cannot be avoided, they can be reduced. This may be
accomplished by fine tuning aspects of the overall project plan or adjusting specific areas
of scope. Whatever the case, reducing a risk reduces the impact it will have on your
project.
 Share the Risk – If a certain risk cannot be avoided or reduced, steps can be taken to
share the risk in some way. Perhaps a joint venture with a third-party will reduces the
downside risk for the organisation. This could reduce the sunk cost and potential losses
of the project if sharing of risk results in it being spread out over several different
individuals or groups.
 Retain the Risk – This is a judgement call. Once all options are exhausted, the team
members, sponsor and project manager may just decide to retain the risk and accept the
downside potential as is. This decision is usually made by first determining the upside
potential of the project. If it is deemed that the project’s expected upside far outweighs
the sunk cost and downside, then the risk itself may be worth it. Note that in certain
cases, insurance can be used to mitigate the downside, although the actual risk retention
itself is what is being accepted by the team.
Risk management is a very broad field and often requires a very specialized knowledge set and
background to perform adequately. However, from the standpoint of the project manager, he/she is
the defector risk assessment officer if none other have been made available. Being that the project
manager is ultimately responsible for the success or failure of the project, being aware of the various
concepts and methodologies behind risk assessment and risk management, will give them a leg up in
being able to draft a project plan that considers any downside potential for the project.

Learning Activity 9
Relevant risk management concepts
Written Task
Activity type

1. What are the principles of risk management?

2. Explain the risk management process in a
diagram/flowchart.
3. Explain briefly on two methods that can be used to deal
with risks? Provide examples to support your answer.

Key aspects of supply chains, and operational, product and

service systems
The supply chain is a term that manufacturing businesses have long used to refer to the process of
getting goods to customers. However, because many businesses rely on manufacturers, the term has
permeated the corporate world as well. Supply chain management is composed of four major
components: integration, operations, purchasing, and distribution. Each is reliant on the others to
ensure a smooth transition from plan to completion at the lowest possible cost.
Element One: Integration
As is the case with any endeavour, planning is critical to long-term success. Integrity is a component
of good planning; it ensures that everyone involved in the manufacturing process communicates and
collaborates. Rather than operating in distinct divisions or silos, integrated teams collaborate to
ensure the product reaches the distribution phase. This enhanced communication results in fewer
errors, which cost both time and money. Because everyone is collaborating, leaders can also
monitor the entire operation and easily identify areas for improvement throughout the supply chain.
Element Two: Operations
As critical as strategy is to maintain a robust supply chain, day-to-day operations are the lifeblood of
manufacturing. Managers keep an eye on the work being done and ensure that everything stays on
track. Many modern manufacturers employ lean manufacturing strategies, which means that
processes are constantly evaluated for opportunities to improve efficiency. Whether it is monitoring
equipment to ensure maximum efficiency or reducing work hours when production slows, the
operations team can make significant improvements to the supply chain.
Element Three: Purchasing
Nothing can be created from nothing. The purchasing function of supply chain management ensures
that a business has access to all the materials, supplies, tools, and equipment necessary to
manufacture products. This frequently entails staying ahead of the process, ensuring that you have
everything you require well in advance of when you require it. Without the appropriate purchasing
personnel, you risk running out of materials, delaying production, or overbuying, straining the
company's budget.
Element Four: Distribution
The supply chain concludes when the product reaches store shelves or the customer's front door (if
they purchase them online). However, getting products there requires a well-thought-out shipping
process. Today, most businesses use logistics software to manage their shipments, whether they
handle them in-house or outsource them to a third-party provider. When products are handled
properly, they are moved quickly from the warehouse to the customer.
The simple bread and butter we eat daily is obtained through a series of processes. In this case,
bread begins with the farmer who plants the seeds and sells the wheat to the businessman, who
sells it to the baker who bakes the bread. This is a succinct summary of supply chain management.
In other words, supply chain management is a network of businesses that are linked together to
manufacture products or deliver services that consumers require.
It is critical for businesses to ensure two things for their supply chain to be effective: first, that it is
cost effective, and second, that it delivers results on time. We began by outlining the supply chain
management process for bread. It is a very straightforward one. There are numerous complex supply

chain management processes that vary in complexity according to the size of the business, the
chain's complexity, and the number of products involved at each step. Thus, supply chain
management begins at the point of origin and concludes with the delivery and consumption of the
product or service by the end user.
Learning Activity 10
Key aspects of supply chains, and operational, product and service systems

1. Explain briefly what the elements of supply chain

management are. Use examples to support your
explanation.
2. Select one of these elements and relate it to an
organisation of your choice (you may use the organisation
you are employed in as well) and explain in detail how
this element supports a seamless supply chain.

Method for conducting gap analysis

A gap analysis is a technique for comparing the performance of a business's information systems or
software applications to ascertain whether business requirements are being met and, if not, what
steps should be taken to ensure they are. The term "gap" refers to the area between "where we are"
(our current state) and "where we wish to be" (the target state). A gap analysis is also known as a
need’s analysis, a needs assessment, or a gap-analysis.
Gap analysis reports are frequently used by project managers and process improvement teams in
information technology. Small businesses, in particular, can benefit from gap analyses when
determining how to allocate resources. Gap analysis tools can be used to document which services
and/or functions have been accidentally omitted, which have been purposefully omitted, and which
still need to be developed in software development. A gap analysis can be used in compliance to
compare what is required by certain regulations to what is currently being done to comply with
them.
How to conduct a gap analysis
The first step in conducting a gap analysis is to define specific target objectives based on the mission
statement, strategic goals, and improvement objectives of the organisation. The following step is to
analyse current business processes by collecting relevant data on their performance levels and
current resource allocation. This data can be gathered in a variety of ways, depending on the type of
analysis being conducted, including through examination of documentation, conducting interviews,
brainstorming, and observing project activities. Finally, after comparing its target goals to its current
state, a business can develop a comprehensive plan outlining the specific steps necessary to close
the gap between its current and future states and achieve its target objectives.
A gap analysis process enables organisations to determine the most effective way to accomplish
their business objectives. It contrasts the current state with an ideal state or set of goals,
highlighting flaws and areas for improvement.
How do you know what to cut, repair, expand, or change to propel your business forward? That is
how you conduct a gap analysis. You may have numerous hypotheses about what is occurring, and
your team may have divergent views on how to accomplish your objectives. Rather than groping
in the dark, a gap analysis guides you through a thorough examination of your organisation's
current state and desired state, allowing you to act on facts, not assumptions, to maximize your
potential.
If you are unsure how to conduct a gap analysis, follow these four straightforward steps. Regardless
of your industry, you can apply these tips to any discipline and accomplish your business objectives.
1. Analyse your current state
To begin, you must decide which area of your business to focus on and assess its current state. You
must first ascertain your organisation's current state before developing a strategy for achieving your
objectives. For instance, your company wishes to become the most beloved in your industry, but
your customer service team reports that many calls and interactions with customers result in
customer frustration.
Is the issue with your product, or does your support team require additional training on how to
handle difficult calls? You will not know until you dig in, which will require speaking with the
stakeholders, gathering data, and scrutinizing your key performance indicators. Utilize a gap analysis
tool––a customer journey map, empathy map, service blueprint, or process flow––to make sense of
this data and visualize your current state.

If you wanted to determine what causes customer frustration, you could collect quantitative data
such as your company's NPS score or the weekly volume of negative calls handled. Additionally, you
may consider qualitative data, such as customer comments or feedback from your support
representatives regarding the current call process.
Even if you are analysing a more strategic aspect of your business, the process is identical. A sales
team that shares the same company vision––becoming the industry's most beloved company––
might scrutinize sales reps' product pitches as well as sales growth, targets, and conversion rates.
What is critical at this stage is identifying the root cause of the problem, which is much easier to do
once all contributing factors have been identified. Indeed, your gap analysis process should consider
everything you currently do to obtain a sense of the "big picture."
To improve your efficiency and performance, analyse and visualize your current state.
2. Identify the ideal future state
Once you have figured out the big picture and gained an understanding of how your team or
organisation currently operates, you must cultivate an idealistic mindset. Which place would you
prefer to be? What is not occurring that should? Do not worry about how you are going to get there
yet. That is the subsequent step. The sky is the limit right now, and you should dream big.
Perhaps you have an exceptional marketing team that outsources all its content, but after
conducting a content audit, you discover that your brand has become disjointed because of the
freelancers handling it. Your fantasy may be to reclaim control of the content creation process and
thus reclaim your brand identity.
Another example might be a warehouse that is required to comply with certain safety regulations,
but the production and human resource managers decide to go above and beyond. Their ideal would
be to go above and beyond what is required to attract and retain more talented and dedicated
employees.
In both cases, current performance falls short of expectations or requires modification. However,
rather than charging ahead blindly or slapping a Band-Aid on the situation, visualizing the ideal
enables you to reach your full potential. A good gap analysis tool in this case would be a
brainstorming board or mind map, which will allow you to fully leverage your team's creativity.
However, how do you achieve the ideal in a realistic manner? That is where the effort comes into
play.
3. Find the gap and evaluate solutions
Completing the first two steps in isolation will not yield excellent results––the status quo may
appear inescapable, and goals may seem lofty and unattainable. However, combining them reveals
what is missing between your performance and potential. Additionally, you must determine which
solutions will most effectively close the gap. Using our previous example of a marketing team (see
step 2), a gap analysis would raise the following question: How do we transition from a disjointed
brand voice to one that is clear and in our control?
Several solutions for bridging this gap present themselves, though not all are created equal:
 You could bring content creation back in house by hiring more full-time writers, which would
be more expensive than using freelancers.

 You could re-evaluate of all your freelancers to determine which ones are worth keeping and
which are falling short of your standards. This option would require some time and might
result in not having enough freelancers to handle your needs.
 You could tighten your brand creation guidelines and retrain your freelancers. This option
would also require time and does not necessarily guarantee an improvement in the content
created by your freelancers.
If guaranteed control is the primary consideration, the first solution is the best. On the other hand, if
cost is the primary consideration, the first solution is ruled out, and your team may opt for the
second or third. A decision tree is an effective gap analysis tool because it calculates costs and
benefits based on conditional probability. Finally, how you close the gap will be determined by your
organisation's and team's priorities. Collaborate to determine what works best.
4. Create and implement a plan to bridge the gap
After you have mapped out the various options for bridging the gap and determined which is the
best, you will almost certainly need to convince others in your organisation as well. Because the
changes you are implementing may also affect other teams and departments, it is critical to develop
a plan. Establish a clear strategy and measurable objectives to assist you in actualizing your
transition and gaining support from all stakeholders.
When presenting to management or executives, for example, include a timeline or schedule for
implementing the planned changes. Additionally, you could create a more detailed action plan that
delegated specific tasks to teams or individuals.
Method for conducting gap analysis
Written Task
Activity type

1. Explain the importance of carrying out gap analysis to

understand whether business requirements are met.
2. Select an organisation of your choice and carry out a gap
analysis in an area of your choice. Provide examples and
justifications to support your analysis.

Changing trends and opportunities in workplace

Our mobile devices enable us to work from anywhere. The cloud enables us to carry data with us
wherever we go. Additionally, by altering the way we work, mobile work policies enable an
increasing number of people to choose where they want to work. However, tensions are brewing
within organisations. According to a recent NPR report, employers are reconsidering telework. They
want their people to collaborate, innovate, build culture, and advance the business.
According to the Wall Street Journal, IBM, Bank of America, and Aetna have asked some of their
mobile workers to return to the office. Most organisations recognize that innovation and ingenuity
are a result of collaboration. Collaboration energises individuals. Employees come up with new and
better ideas and discover ways to streamline processes and increase output when they collaborate.
According to a 2017 Gallup report, the most engaged employees spend between 60% and 80% of
their time working outside the office. At work, employees report a lack of collaborative spaces that
enable them to be creative, frequent noise disruptions, and an inability to communicate creative
ideas effectively to co-workers. People are leaving the office in the current state of work because
they lack adequate workspace. It is past time to redefine what an office is and to create
environments that inspire and motivate people to work.
Changing the way, we work
Four key drivers and disruptors are fuelling changes within organisations today.
1. Culture
Cultural changes can be gradual or abrupt. A few factors are adding to the cultural shift many are
witnessing around the world.
 Diversity – Organisations often have four or five generations working together in one place.
In addition, people are connecting with others from around the world more than ever
before. People look, sound, and work differently creating a rich tapestry of ideas.
 Biophilia – Humans seek out connections to nature. They are drawn to places with biophilic
design elements found to be building blocks of emotional, cognitive, and physical wellbeing.
Expressions of nature can be overt such as bringing in plants, wood, or other natural
elements, or they may be more nuanced such as patterns within fabric.
 Personalization – The maker movement has had an impact on how people work and
connect to the environment. People are increasingly looking for bespoke experiences at
work. Organisations that reflect a unique brand and culture can express the values that set
them apart.
 Purpose – Whether someone is a baby boomer or a millennial, no one wants to feel like a
cog in the wheel. People are looking for more than a paycheque. They want to do work
that has a sense of purpose and meaning.
2. Employee engagement
Employee engagement continues to be a critical issue for organisations' bottom lines.
According to the Steelcase Global Report: Global Workplace Engagement, one-third of workers in 20
of the world's most developed economies are disengaged. Another third is in the middle, neither
harming nor propelling their businesses forward. According to research, engaged employees
produce superior business results.

The Global Report, which was conducted in collaboration with global research firm Ipsos, is the first
to examine the impact of the work environment on employee engagement. A clear pattern
emerged: employees who were more engaged were also more satisfied with their workplace.
Additionally, they had greater choice and control over how and where their work was completed.
3. Technology
Technology is a game changer, upending numerous business models and propelling others to
unprecedented heights.
We can move freely throughout the day thanks to laptops, tablets, and smartphones. Larger, more
stationary devices enable us to visualize a greater variety of data and collaborate with others.
Throughout the day, we must manage how our information and ideas can flow freely between
devices. Technology will have a profound effect on the future of work in ways that we are only
beginning to comprehend. Technologies can be integrated into the workplace to improve employee
productivity and to assist organisations in creating environments that employees enjoy working in.
(Read Creating a Culture of Well-Being)
Additionally, virtual reality, augmented reality, and artificial intelligence are all beginning to have an
impact on how people work. There is considerable anxiety about what will happen as machines
take on more jobs previously reserved for humans.
4. Shift to creative work
A widespread belief is that machines will eventually take over routine, processing tasks, freeing
humans to perform more meaningful work. Already, we are witnessing a shift toward creative work.
“To thrive in today's complex world, businesses must generate, embrace, and implement novel
ideas. That requires creativity and a creative workforce,” says IDEO's TIM BROWNCEO, a Steelcase
board member. Most people concur with Brown. Seventy-seven percent of respondents believe that
creativity is a necessary job skill. Despite this, 69% of respondents believe they are not living up to
their creative potential. At the same time, most leaders believe their organisation is not creative,
even though creativity helps them compete, increase revenue, and gain market share.
To be successful in the future, employees must generate new ideas, solve difficult problems, and
think creatively. They must be inventive. Steelcase and Microsoft recently announced the launch of a
collection of Creative Spaces aimed at enhancing the creative process. “The design challenge is to
balance business needs with human needs by creating thoughtfully curated destinations,” says
JAMES LUDWIG, Global Design Director at Steelcase.
No single space can accommodate the evolving ways in which people need to work today. That is
why Steelcase designers advocate for an ecosystem of spaces that integrate people, place, and
technology to benefit both the individual and the organisation. Individuals can easily transition from
one type of work to another based on the tasks at hand. We have muddled the ways in which we
work and the times in which we work. It is past time for us to blur the lines between what we have
traditionally defined as the workplace by altering the way we work. Spaces that successfully
combine design and materiality without sacrificing performance have the potential to inspire new
ways of thinking and fuel creativity.

Changing trends and opportunities in workplace
Written Task
Activity type

1. Select one of the key drivers fuelling changes within

organisations today and relate it to an organisation of
your selection.
2. Provide examples and justification on how this driver has
felled change within the organisation.

BSBSTR601 – Skills development and application
Skills development and application guidelines
Learning outcome description

The following sections of this workbook describes the required application of skills and knowledge
required to sustain and develop an environment in which continuous improvement, innovation and
learning are promoted and rewarded.
The unit applies to individuals with managerial responsibilities who aim to build a better and
more effective work environment. Continuous improvement and innovation have links with
the model of the learning organisation and people working at this level play an important
role in building the culture, values and attitudes of the organisation.
Skills application
The following sections includes the application of language, literacy, numeracy, and employment
skills that are essential to performance.
SKILL DESCRIPTION
Reading  Analyses, evaluates, and integrates facts and ideas to construct
meaning from a range of text types
Writing  Integrates information and ideas from a range of sources, utilising
appropriate support materials
 Communicates complex relationships between ideas and
information, matching style of writing to purpose and audience
Numeracy  Selects and interprets mathematical information to analyse
performance
 Performs calculations required to establish timeframes, cost-benefits
and measures for continuous improvement and innovation
processes
Initiative and  Adheres to organisational policies and procedures and considers own
enterprise role in terms of its contribution to broader goals of the work
environment
 Recognises the importance of taking audience, purpose and
contextual factors into account when making decisions about what
to communicate, with whom, why and how
Self-management  Plans and implements strategies to review and improve own
performance
Teamwork  Recognises the importance of building rapport to establish positive
and effective working relationships
 Collaborates with others to achieve joint outcomes, playing an active
role in encouraging innovation and facilitating effective group
interaction
Page 69 of
SKILL DESCRIPTION
Problem solving  Applies problem-solving processes to identify risks, evaluate options
and determine solutions
 Uses lateral and analytical thinking to evaluate options against
needs, resources, and constraints before making decisions
 Actively identifies systems, devices, and applications with potential
to meet current and or future needs
Planning and  Plans, organises, implements, or reviews organisational strategies,
organising systems, and processes
Initiative and  Recognises that the current way is only one way of doing something
enterprise and explores possibilities that challenge current approaches
 Facilitates a climate in which creativity and innovation are accepted
as an integral part of achieving outcomes
Performance outcome
Upon completion of the following sections, you must be able to demonstrate the ability to complete
the tasks described in the sections and foundation skills of this unit, including evidence of the ability
to manage and promote innovation and continuous improvement for an organisation or work area
on at least one occasion.
In the course of the above, you must be able to:
1. identify opportunities for improvement

2. consult with stakeholders
3. promote the value of creativity, innovation and sustainability and recognising successes
4. support testing and trialling of new ideas
5. undertake risk management and cost-benefit analysis for options
6. plan for and implement improvements using organisation’s processes for approvals, project
management and change management
7. facilitate contributions to and communications about continuous improvement and
innovation
8. capture insights, experiences and ideas for improvements and incorporate them into the
organisation’s knowledge management systems and future planning.

BSBSTR601 – Section 1 – Establish ways of working within
Section 1
Establish ways of working within team
Identify relevant team members and communicate ways of
working objectives, expectations, and desired outcomes
Identify relevant team members
The first step toward improving communication within a team is to define who exactly is a member
of that team. This may seem self-evident. However, one study discovered that less than 10% of 120
surveyed teams were able to correctly identify their teammates. Along with establishing who is on
the team, it is critical to define the roles and responsibilities of each of these individuals. Together,
these two steps will ensure that team members are aware of who to communicate with and for
what purpose. And this will significantly improve office communication.
An effective team member maintains a 'we' mentality, which includes delivering remarkable
experiences to co-workers and existing and prospective customers. Members of the team are
committed to identifying and implementing solutions whenever, however, and without hesitation.
Additionally, they ensure that there is a shared, common goal.
Communicate with team members

Communication is the most frequently used mode of thought expression and one of the most critical
skills to master in any type of relationship. Communication is also a tool that assists us in achieving
certain goals when we work in teams. As a result, it is critical to facilitate the flow of ideas and
information between team members. However, the process of transmitting those ideas in such a
way that they retain their value qualifies as goal-oriented communication.
Managers and leaders frequently communicate with their employees to engage and motivate them
to remain focused on specific objectives. They are then confronted with the challenge of effectively
communicating their message, adjusting it to ensure that it is understood by each individual, and
inspiring them to take specific actions. Therefore, it is critical to learn goal-oriented communication
techniques.
When communicating with team members via e-mail, text, instant message, or other forms of digital
media, message meanings can easily be misinterpreted. The most effective team interaction
frequently occurs in open, face-to-face meetings. Team members will hear both the words of your
intended communication and the tone of voice you use while delivering it in this type of setting.
Communicate ways of working objectives, expectations and desired outcomes as follows:
1. Define the objectives, expectations, and desired outcomes.
2. Set specific and measurable actions to achieve the objectives, expectations, and desired
outcomes.
3. Communicate the objectives, expectations, and desired outcomes clearly and openly.
4. Predict possible challenges ahead.
5. Inform all parties involved.
6. Adjust the message.
7. Ensure understanding.

Identify relevant team members and communicate ways of working objectives, expectations, and
desired outcomes
Individual verbal presentation

Activity type
(Directed and observed by the trainer)
Activity timing 5 - 7 minutes per learner
Activity description 1. Explain in your own words how many team members
would be ideal for a team and clarify the roles and
responsibilities of each of these members.
2. Elaborate how you would ensure that there is proper
communication of working objectives, outcomes, and
expectations within the team.

Identify and establish strategies to monitor and evaluate

performance and sustainability of key systems and
processes
At a high level, a monitoring and evaluation strategy enables the continuous review, analysis, and
comprehension of a project's (or program's) performance throughout its life.
This establishes a framework for accurate and timely reporting, a foundation for continuous
improvement, and mechanisms for evaluating the successes and failures of programs in the hope of
learning from them.
This strategy encompasses several facets.
Defining measurable benchmarks
To initiate the definition of benchmarks, it is important to consider the following.
 the baseline data, which may have been established by the client, sponsor, or other
appropriate authority, or the data that existed prior to the project's implementation -
demonstrating the situation prior to the project's impact.
 the stakeholders and impacted community; their needs, expectations, and any other
relevant metrics should be considered through consultation. These will provide valuable
'external' perspectives that can be incorporated into the strategy and then translated into
objective outcomes for measurement and reporting.
 Whenever possible, use quantifiable, objective measures to ensure consistency of
understanding when multiple parties are monitoring, evaluating, or reporting. Where
quantitative data is not feasible, clearly explaining explicit requirements, along with tests for
what is and is not acceptable, will assist.
Communicating the benchmarks
The project's personnel, as well as, in some cases, external stakeholders, must understand the
benchmarks that will be used to assess the project's effectiveness.
Not only do these benchmarks serve as a basis for evaluating project performance, but they are
frequently linked to performance bonuses or other related outcomes. If these are to be used in your
projects, they must be unambiguous—or else there will be complications.
Important considerations for communicating benchmarks:
 Has approval been obtained for the benchmarks? There are instances when excessive or
premature communication can be detrimental to your program. Consider the following
scenario: you have collaborated with stakeholders to establish some benchmarks; prior to
obtaining approval for these benchmarks, you communicate them to your project team,
contractors, and other relevant parties. Are you able to identify the problems? What
happens if these benchmarks are not approved, what happens if the parties believe the
benchmarks are unreasonable, and what happens if the parties begin work to meet the
benchmarks?
 Has the validity of the benchmarks been established? In many cases, benchmarks are
developed by a senior team using analogous (primarily historical) methods—past program
and industry performance are considered. It is frequently difficult to establish a direct link

between previous and current programs; after all, a project (a composite of a program) is a
unique endeavour. As a result, validation of benchmarks and standards is critical to ensuring
their currency and relevance to the program.
 Communicate prior to establishment; while I have discussed the dangers of premature
communication, it is critical that benchmarks are communicated to and accepted by
appropriate personnel prior to being bound by them. The best-case scenario (although
initially more expensive) is to involve stakeholders throughout the process; to identify,
validate, and accept benchmarks rather than simply being instructed that they must be
met.
Establishing monitoring plans
A monitoring plan should start with the end in mind; what do we want to know? This could be based
upon:
 reporting requirements: “we need to communicate program progress with the board on a
monthly basis”.
 quality requirement: “we need to know if a defect variance of greater than 2% exists within
our products”
 business requirements: “we need to know if our member base drops below 10,000”
 risk requirements: “we need to know if this risk rating reaches above 17”
 client needs, legislation, and a multitude of other factors.
It is important to establish what is important, what we are going to monitor, how it will be
monitored, by whom and the frequency. These aspects form the basis of most monitoring plans.
Issue Benchmark or Monitoring Monitoring Responsible

standard Method frequency
Establish review plans
Review plans are like monitoring plans in that they enable comparisons of actual performance to the
baseline or agreed-upon benchmarks. The distinction is typically that while monitoring occurs
concurrently with the program, reviews are typically performed at the conclusion of a stage, gate, or
project.
Monitoring is generally defined as the inspection used to report, control, and, when necessary, take
corrective active measures to bring performance back to plan; or, in some cases, to adapt the plan.
Reviewing is a retrospective analysis of performance in which causation factors (reasons) for
deviations from expectations are identified and linked. The review is examining historical data to
improve future situations.
Once developed, a strategy must be implemented. When a new strategy is developed, it should be
tested in a controlled environment before being applied to a high-risk program.

Sustainability of systems and processes
Sustainability is defined as the study of how natural systems function, maintain diversity, and
produce everything necessary for the ecology to remain balanced. Sustainability considers how we
can coexist with and protect the natural world. Sustainability is the deliberate and proactive
application of methods that do not harm people, the environment, or profits while also having a
beneficial effect. The processes used to achieve sustainability must be dependable, replicable, and
quantifiable; the results must also be verifiable, particularly under external scrutiny.
Successful projects not only meet their delivery objectives, but also add value through the
integration of their activities to develop self-sustaining systems and processes. If an organisation's
systems and processes are designed and operated in such a way that they accomplish organisational
goals while minimizing environmental impact and resource consumption, we can refer to those
systems and processes as sustainable.
Identify and establish strategies to monitor and evaluate performance and sustainability of key
systems and processes
Project work
Activity type

Activity description 1. Form groups of 3-5 people
2. Identify a key system or process used by an organisation of
your choice and explain briefly
3. Define measurable benchmarks to evaluate the performance
of this system/process and explain how you would
communicate these benchmarks.
4. Explain the factors considered when determining how to
communicate the benchmarks, i.e., to stakeholders.
5. Establish a monitoring plan using the template in the lesson
outline above
6. Establish a review plan to assess the actual performance
against the benchmark. Provide recommends on how to
improve.

Consult and seek advice from stakeholders, to identify

opportunities for improvement
Communication and consultation are critical deliverables for any successful project and a critical soft
skill for project management. You may not consider communications to be a project deliverable, but
they are. It may not be the priority for your client or customer, but that is because every client or
customer will take good communication for granted.
Project communications is one of the deliverables for which you are personally accountable, and it
has a significant impact on the success or failure of your project. Even the best-managed projects
that fulfill all their promises on time and within budget can develop a negative reputation and be
perceived as failures. The reason for this is that the project manager did not consult with and
communicate project details to their stakeholders, particularly team members, to elicit their input
into the project's planning.
Consult team members
This is the largest stakeholder group on your list. You may wish to divide the group into subgroups
according to their assigned roles. For instance, you may wish to have separate communication
channels for Business Analysts and Software Developers, as well as for Electricians and Plumbers on
your project. This group views project performance differently than sponsors does: the sponsor
views the project as work being performed for them. The team member views the project as work
that they are performing, and thus reports on the project's performance reflect their performance. A
well-written report benefits everyone involved, including project sponsors and team members. A
negative report will cause concern for the sponsor but may have a detrimental effect on team
morale.
What to Consult
Which project information to consult with a stakeholder group is inextricably linked to the
communication information available. After all, one cannot consult what one does not understand.
On the other hand, if the information is absolutely necessary and gathering it is feasible, you should
make every effort to make it available. The information to consult cannot be chosen without regard
for the tools and techniques used to gather the information, and vice versa.
While project communications are not a critical deliverable of the project, it should be treated as
one. Begin with your project charter: does it contain any information requirements? If it does, you
should include the information and its intended audience in your Communications Management
Plan. Additionally, your Scope Statement may include communication requirements for the project.
Additionally, the Statement of Work (SOW) may have included communication requirements for the
project. When working on a project for an external customer or client, the SOW serves as your bible;
any project communications that are required by the legal contract should be specified there.
How to Consult
There are numerous modes of communication available to you, including face-to-face meetings,
email, intranet, Internet, regular mail, phone, and video conferencing. These can be classified into
two categories: “; push"; and “; pull"; communications. As the name implies, push communications
entails pushing information onto the recipient, whereas pull communications entails the recipient
actively requesting information from a central source. Pull communications include websites and
centralized repository systems, whereas push communications include email and meetings.

Typically, preference for push or pull communications is a matter of personal preference. Some
people process information more effectively when it is presented to them, while others prefer to
retrieve it at their leisure. Prepare to deal with conflicting requirements from members of your
stakeholder groups. If there are conflicting requests, you may have to make the final call on which
method to use. Alternatively, you may be able to identify a group spokesperson who will be
empowered to articulate the group's requirements. The sponsor of your project is an exception to
this rule. Since there are only one or two of these individuals, you must ensure that your
communication methods meet their needs.
When to Consult
Your communication schedule will be determined by the audience's needs and the availability of
pertinent information. For instance, if you have sufficient bandwidth, you could generate daily
reports on any metrics managed by your MS Project file. On the other hand, you cannot report on
the outcome of your Gate Meeting until after it has occurred. Additionally, there is no reason why a
report that is consulted biweekly by one stakeholder group cannot be consulted weekly by another.
Tools and Techniques
The tools and techniques you will use to convey the information include those you will use to collect
it, as well as those you will use to store and retrieve it. Email, websites, webcasts, conference calls,
video conferencing, meetings, and graphical tools such as Excel will be used for communication.
Which of these tools you use will depend on what you are consulting, how you need to consult it,
and your communication budget?
Consult and seek advice from stakeholders, to identify opportunities for improvement
Activity type Presentation

Activity description Imagine the organisation you are working in is planning a project
and the project manager must draw up a
consultation/communication plan to communicate the project
aspects to their stakeholders. You can determine which project
the manager has to draw up the plan for.
Briefly explain what factors need to be taken into consideration

when drawing up this plan:
1. Identify the team members to consult
2. What needs to be consulted
3. How to consult
4. When to consult
5. Tools and Techniques that can be used

Communicate with and mentor team members on ways of

working that contribute to continuous improvement
Use mentoring time to pinpoint areas of improvement
Occasionally, you will provide more in-depth coaching, for example, when onboarding a new hire or
assisting a team member with overcoming a specific obstacle. However, spending time teaching
skills one-on-one is not the most efficient use of either of your time.
You should spend most of your time mentoring direct reports on higher order attributes. Collaborate
to determine which areas and specific skills they should develop to successfully complete innovative
and continuous improvement tasks. Then direct them to training resources that provide high-quality
information. For instance, are you assisting someone in assuming additional leadership
responsibilities? In addition to your discussions, he or she can enrol in online courses on
interpersonal skills such as team leadership. Are you preparing entry-level employees for a shift to
digital operations? Online Microsoft Office training makes more sense than you personally
demonstrating the software to them. Is it necessary for your team to broaden its skill set to be more
multidimensional? Your team's project leaders and project team members could significantly benefit
from project management training.
Coaching and mentoring employees does not require you to constantly resolve issues for your team.
If you are constantly bombarded with basic requests, consider your management style. You could be
subtly undermining your team's self-confidence. Are you micromanaging each step or providing your
team members with the tools, training, and autonomy they require to develop their own solutions?
Mentoring is a method of team management that many modern workplaces have embraced for
personal and professional development. Mentors counsel mentees on career advancement and job
satisfaction. Mentors can also gain insight into their own work style and leadership capacity during
this process.
Establishing strong mentor-mentee relationships
In an increasingly competitive job market, establishing strong mentor-mentee relationships in your

workplace has numerous benefits for your organisation. To ensure that mentoring in the workplace
benefits everyone and that you as the manager see a return on your investment, setting goals is
critical. Whether your organisation has a formal mentoring program or matches mentors and
mentees on an individual basis, the terms of engagement should always be transparent. Consider
the following:
 What does the mentee set to gain?

 How much time and commitment are required from the mentor?
 How frequently should the mentor and mentee meet?
 What does success look like?
 What happens if the relationship does not work out?
Establish the objectives and framework for mentoring in the workplace by engaging in ongoing, two-
way communication with all parties. Ascertain those mentors and mentee meet on a regular basis,
whether in person, via phone, or via video conferencing systems such as Skype or Zoom. They assist
in determining whether objectives are appropriate and being met, whether both parties are content,
and ultimately, whether the relationship should continue.

While mentoring has numerous benefits for both employees and employers, the success of all
mentoring relationships and programs is contingent upon openness and honesty. Assure that you
are always receptive to feedback on how to improve your mentoring and that you make necessary
changes. Celebrate any victories along the way, as there will undoubtedly be many.
Communicate with and mentor team members on ways of working that contribute to continuous
improvement
Role-play
Activity type

Activity description Perform a role-play to explain the below points:
1. Importance of mentoring in an organisation
2. How mentoring team members is facilitated in your
organisation?
3. How are mentor-mentee relationships established in your
organisation?

Communicate with and coach team members how they can

be innovative
One-on-one meetings are considered the best management practice of all time. Also called weekly
check-ins, these meetings are held once each week between managers and each direct report. By
implementing these meetings into your ongoing performance management practices, you will:
 Get updates on goal progress each week.

 Give actionable feedback to coach teams towards achieving their goals.
 Provide praise for weekly wins.
 Clarify expectations so teams know exactly what they are accountable for.
 Discuss development goals and progress on development plans to promote employee
engagement and retention.
 Build trust by showing teams you are committed to their success.
 Reduce time spent putting out fires and tracking down teams for updates during the week,
since expectations and updates are exchanged routinely.
 Keep teams focused on their objectives by holding them accountable for progress
each week; and
 Provide course-correcting guidance and help teams overcome obstacles.
Ultimately, one-on-one check-ins are among the best tool you have available to you as a manager.
To help your teams, achieve their objectives, you must get to know them exceptionally well. This is
crucial because it allows you to identify their strengths, weaknesses, and most importantly, their
motivators. The best way to know your teams well is to communicate with them regularly.
Communicate with and coach team members how they can be innovative
Activity type Verbal questioning by the trainer
Activity timing 3-5 minutes per learner

Activity description Your trainer will ask you the following questions:
1. About your workplace
2. How are one-on-one meetings carried out in your
workplace?
3. Why do you think one-on-one meetings are crucial in
performance management and how has it improved
performance management in your workplace?
4. Any recommendation to improve the effectiveness of
these meetings at your workplace

BSBSTR601 – Section 2 – Identify
Section 2
Identify improvements
Analyse performance reports and variance from

organisational plans within workplace
Variance analysis enables you to examine the difference between planned and observed behaviour.
Variance is a performance metric that illustrates the difference between what you produce and what
you planned.
A variance report is a document that compares anticipated and actual financial results. In other
words, a variance report compares what was expected to occur to what occurred. Typically, variance
reports are used to examine the gap between budgeted and actual performance.
You are probably aware that most business operations do not go according to plan. This is a fact of
life in all businesses, to the point where variance analysis becomes necessary. Variance analysis
enables you to investigate the discrepancy between planned and actual continuous improvement
behaviours or outcomes.
Variance analysis assists businesses in planning, developing standards, and implementing

benchmarks. Additionally, it serves as a control mechanism by flagging operational deviations.
Variance analysis should always be performed upon project completion, and it is most effective
when performed on a regular basis to allow for course corrections if your planned implementation
goes awry. Finally, because this analysis requires precise inputs, it contributes to the development
of responsible and accurate performance practices.
Some Causes of Variance
Typical causes of variance include insufficient procedures, insufficient working conditions,

insufficient equipment, measurement errors, accidents, insufficient equipment maintenance,
computer malfunctions, and even traffic, weather, or natural disasters. Because your business has
control over several of these factors, it is critical to determine how to effect change that benefits
your bottom line. Variances caused by events beyond your company's control, on the other hand,
are more difficult to anticipate and correct.
What role does variance analysis play in the process of continuous improvement? By providing
information about actual performance in comparison to standards, variance analysis can serve as the
foundation for continuous operational improvement. The underlying causes of unfavourable
variances are identified and, where possible, corrective action is taken.
Variations in planning (or revision variances)
Are variances that have occurred as a result of insufficient planning or faulty standards?
A planning variance compares an original standard to a revised standard that should have been used
or would have been used had planners known what would happen in advance.
Management determines that a planning variance is uncontrollable. i.e. management may not be
held responsible.

Variations in operation (or operating variance)
Are deviations from a standard that have been revised in retrospect due to adverse or favourable
operational performance. An operational variance is used to compare a measured value to the
revised standard. It is deemed controllable by management. As a result, management is held
accountable for operational deviations.
The explanation of variances is a critical step in variance analysis. In some cases, the cause is purely
operational (e.g., raw material prices increased due to market shortages), but in others, the cause is
budgeting and planning failures (e.g. we used an out of date price list when setting the standard cost
of materials). Frequently, the causes are a combination of planning and operational factors. Certain
firms seek to emphasise these distinctions by separating planning and operational variances.
The fundamental approach is to have two budgets - the original and a revised one that takes
planning issues into account. Then we can determine two distinct sets of variances:
Variances in sales planning and operations

The variance in sales volume can be classified into planning and operational variances:
Cost variances in planning and operation
When planning and operating principles are applied to cost variances (material and labour), caution
must be exercised regarding budget flexing. One widely accepted method is to adjust both the initial
and revised budgets to reflect actual production levels:

Budget revision example 1
Rhodes Co manufactures Stops, which require approximately 2 kg of material XYZ at a cost of

$10/kg. In week 21, only 250 Stops were produced, despite a budgeted 300. At a cost of $5,100, 450
kg of XYZ was purchased and used during the week. Later, it was discovered that the standard did
not allow for a 10% price increase across the industry of the material supplier. Rhodes Ltd maintains
no inventory.
Planning and analysis of operations
The analysis begins with the calculation of:
1. Actual Results
2. Revisions to the flexed budget (ex-post).
3. Budget that was originally flexed (ex-ante).
Example 2 - Budget revision
A transportation business makes a particular journey on a regular basis and has established a
standard fuel cost of 20 litres of fuel at a rate of $2 per litre for each journey. New legislation has
necessitated a change in the mode of transport and an unexpected increase in fuel costs. The
standard cost per journey is determined retrospectively to be 18 litres at $2.50 per litre.
Required:
Calculate the initial and revised flexed budgets based on the journey being made 120 times during
the period.
Solution

When is it appropriate to revise a budget?

There must be a compelling reason for concluding that the initial standard cost is implausible. In
retrospect, deciding that expected costs should be different from the standard should not be
arbitrary, perhaps to shift blame for poor operational management or cost estimation.
A compelling reason for changing the standard could be as follows:
 a change in one of the primary materials used to manufacture a product or provide a

service an unexpected increase in the cost of materials as a result of a rapid rise in global
market prices (e.g., the price of oil or other commodities)
 a change in working methods and procedures that affects the amount of direct labour
required to complete a task for a product or service
 a change in the rate of pay for the workforce that was not anticipated.
These are not common occurrences. Therefore, the requirement to report planning and operational
variances should be an ad hoc, rather than a routine, occurrence.
If the budget is revised frequently, the reasons for the revisions should be investigated. This could be
as a result of management attempting to shift blame for poor results or as a result of an ineffective
planning process.
Additional thoughts on calculating variances in planning and operations in accounting exams
The fundamental premise stated previously is that
The critical question is as follows: what is the revised budget volume?
In accountancy exams, there are three distinct approaches to planning and operating variances.
Approach 1:
If a revised volume is provided (or easily calculated), the best approach is to conduct two distinct
sets of variances.
This results in a situation where the total traditional variance equals the sum of the planning and
operating variances but not line by line (e.g., the sum of the materials price planning and operating
variances does not equal the traditional materials price variance).

Approach 2:
If no apparent revised volume is provided (or can be calculated), set revised budget volume equal to
actual volume. This means that all variances in cost are based on actual output.
In this manner:
 There is no variance in operating sales volume – it is all planned.

 Thus, the variance in sales volume is effectively calculated using the Original Standard
Margin.
 Cost variances in planning will be determined by actual output volumes.
 Traditional variances are now calculated on a line-by-line basis rather than in aggregate.
 Not that this approach must be used if the original budgeted volume is not specified in
the questions.
Approach 3:
If no apparent revised volume is provided (or can be calculated), set revised budget volume equal to
original budget volume.
In this manner:
 There is no variance in planned sales volume – it is entirely operational.

 Thus, the variance in sales volume is effectively calculated using the Revised Standard
Margin.
 Cost variances in planning will be calculated using the original budgeted volumes.
 Total conventional variance equals planning + operation in aggregate, not line by line.
Source: https://kfknowledgebank.kaplan.co.uk/planning-and-operating-variances-
Analyse performance reports and variance from organisational plans within workplace
Group discussion (directed and observed by the trainer)

Activity type
Activity timing 30-45 minutes

Activity description 1. Form groups of 3 to 5 learners per group
2. Appoint a group leader to manage the discussion
3. Discuss about how the variance in performances are analysed
in your workplace.
4. Importance of variance analyses and how it helps continuous
improvement, and how frequently you think these analyses
should be conducted.
5. What could be the reasons for variances in your workplace

Identify and analyse changing trends and opportunities

relevant to the workplace
Modern workplace trends and opportunities to consider adopting
1. Flexible workforce
According to an Intuit study, freelancers will account for 40% of the workforce by 2020. The primary
reason for this growing trend is that employers are realizing the value of freelancers in terms of
efficiency, particularly in terms of administrative and healthcare costs savings.
Upwork and other freelance marketplaces are accelerating the shift to the gig economy. Sites like
Freelancer, Fiverr, Guru, and even LinkedIn enable specialized workers to work remotely for a
diverse range of companies worldwide.
The rise of the internet has also resulted in the emergence of the gig economy. Sites like Upwork are
bringing more people together from all over the world. This provides them with the freedom and
flexibility to pursue the work they desire. Millennials are foregoing the traditional security and
benefits of a full-time job in favour of more freelance opportunities that give them complete control
over their schedule.
These outsourcing platforms are hugely beneficial for freelancers, too. Workers enjoy:
 The flexibility to choose whom they work for and at what pay rates
 The ability to set their own schedule
 The freedom to work remotely
Freelancers can specialize in a wide variety of fields. Writers, graphic designers, Photoshop experts,
customer service specialists, and accountants (among others) can freelance through sites such as
Upwork, Guru, and Freelancer. Businesses benefit from having access to a large talent pool of highly
skilled professionals.
Freelancers are not limited to small businesses on a shoestring budget, either. Some of the world's
largest companies rely on freelancers for specialized talent. Companies such as Facebook, IBM,
and BBC Worldwide have utilized freelancer sites to complete projects on time and within budget.
Employers are becoming more dynamic and productive, in summary. They would rather hire from a
large talent pool of remote workers located throughout the world. As a result, the demand for
managers who can effectively manage both freelancers and full-time employees working alongside
one another is increasing.
2. Collaboration
Collaboration, even in the digital age, can be challenging to master. As connectivity improves, so
does the number of platforms available for communication between employees, employers, and
clients. This can create complications for teams working in the same office, let alone those working
and communicating remotely.
Consider a post-click landing page and the process that goes into its creation. Typically, you will have
a copywriter, a designer, and then a manager or vice president who will give final approval for
publication. With all the post-click landing page elements required to create an optimized page,
constant communication and changes must occur prior to a page being published.

Project managers would be responsible for organizing copywriters, editors, and designers, as well as
client or other stakeholder feedback. Copywriters may prefer Slack or Google Docs for
communication, while clients may prefer Gmail or Trello for feedback and suggestions.
Communication via multiple channels almost certainly resulted in publication delays and details
being lost in translation, all of which made collaboration inefficient.
However, with the Instapage Collaboration Solution, team members and clients can leave
comments directly on the post-click landing page, provide and respond to real-time feedback, and
resolve issues all within one platform. There are no workarounds, no mocked-up screenshots to
send — just straightforward communication. This ultimately speeds up the process of designing
post-click landing pages and makes the project more seamless for all parties involved.
Rather than relying on clients and team members to communicate via multiple channels, the
collaboration solution centralizes communications and streamlines the inefficient and time-
consuming portions of the post-click landing page creation process.
Increased collaboration is the direction that modern workplaces are taking. More offices are utilizing
remote freelancers, and a streamlined communication process simplifies what was previously a
complicated design-feedback-approval process.
3. Greater emphasis on work-life balance
As businesses have increased their reliance on technology. More employees are required to work
beyond the end of the workday. The requirement for employees to remain connected, combined
with a nearly constant business cycle, has increased the pressure on employees to always maintain
connectivity. When employees are required to work away from the office, both productivity and
morale can suffer. According to a Deloitte report, the most important factor for millennials when
accepting a job is a healthy work-life balance. Millennials are less committed to their employers than
their elders and place a higher premium on their personal interests. Businesses seeking to recruit
and retain millennial talent must provide a healthy work-life balance and flexibility.
Employers are aware of their employees' stress levels. They recognize that an employee who is
stressed and overworked will be less productive. Therefore, an increasing number of employers
offer flexible scheduling to accommodate doctor appointments, family events, and other personal
obligations. Rather than focusing on office hours, businesses are shifting their focus to deliverables
and outcomes.
4. Alternative presentation methods
PowerPoint was previously the only viable option for business presentations, but that advantage
appears to be ebbing. In 2016, one study discovered that businesses spent 5% less on PowerPoint
hires in 2016. Prezi and Keynote are two new, more attractive alternatives to PowerPoint that give
executives more options for their presentations. When it comes to presenting their content and
"wowing" their clients, businesses demand superior graphics and animation.
A corporate video can cost between $6,000 and $10,000; an animated video can cost between
$2,000 and $5,000, and a video created specifically for a web presenter can cost as little as $1,200.
These cost savings alone undoubtedly contributed to an increase in Prezi and Keynote spending of
23 and 18 percent, respectively.

5. Rethinking traditional performance reviews
Historically, performance reviews occur once a year. You would work continuously throughout the
year, collaborating with colleagues, completing projects, and meeting deadlines. At the end of the
year, you would meet with your manager and receive a score indicating how well your performance
matched the job's responsibilities.
Not only was this inefficient, but it could also be detrimental to morale. As employees believe they
performed admirably throughout the year.
Employers are beginning to provide more responsive feedback to employees via weekly or monthly
reviews rather than annual reviews. Additionally, Kris Duggan of Fast Company notes that today's
employees desire frequent feedback, open communication, and collaboration with peers. We are in
the infancy of a revolution. Numerous businesses do this... and I believe that over the next two
years, we will see a sea change in this area. Progressive human resource leaders recognize the
importance of continuous, real-time feedback and solutions.
Employers recognize that conducting performance reviews on a more frequent basis helps to clarify
objectives and boosts employee morale. That is why, according to a Deloitte study, most employers
are considering rethinking their performance management practices. The study discovered that
companies that conduct quarterly or even more frequent performance reviews perform better than
those that conduct annual performance reviews:
This illustration demonstrates to marketers how the modern workplace is shifting toward more
frequent performance reviews.
How will the modern workplace continue to change?
The modern workplace trends described above are some of the most prominent new changes
experienced by employees and employers. Other trends like boomerang employees, organisations
valuing team performance over individual performance, and employee well-being programs are also
on the rise.
What new workplace trends will become mainstays that change the way we work?
Identify and analyse changing trends and opportunities relevant to the workplace
Role-play
Activity type

Activity description In the modern working environment, most businesses today are
adapting various modern workplace trends and opportunities to
change the way we work.
What are the various modern trends adapted by your workplace?

Perform a role-play to describe how this technique has changed
the way we work in the current global context.

Collect data and analyse areas for improvement in supply

chains, and operational and service systems
There are numerous items that we use or consume daily, and supply chain management threads
them all together to create a harmonious and efficient environment. Any break in this chain can
cause systemic disruption via a domino effect.
Supply chain management is comprised of a few critical components. We will discuss each
component briefly.
1. Planning
This is a critical stage. Prior to initiating the entire supply chain, it is critical to finalize and
implement the strategies. Checking the demand for the product or service, its viability,
costing, profit, and manpower requirements, among other things, are critical. Without a
sound plan or strategy in place, it will be nearly impossible for the business to achieve long-
term success. As a result, sufficient time must be devoted to this phase. Only after finalizing
the plans and weighing all the advantages and disadvantages is it possible to proceed.
Every business requires a plan, blueprint, or road map from which its strategies are
developed.
Planning enables the identification of market demand and supply trends, which in turn
enables the development of a successful supply chain management system.
2. Information
Today's world is dominated by a never-ending flow of information. To be successful, a
business must stay current on all pertinent information regarding the various aspects of its
production. The supply and demand trends for a particular product are best understood
when information is properly and timely disseminated throughout the business's various
levels. In a knowledge-based global economy, information is critical, and ignorance about
any aspect of business can spell doom for the enterprise's prospects.
3. Source
Suppliers are critical components of supply chain management systems. Products and
services sold to the end user are manufactured using a variety of raw materials. As a result,
it is critical to procure suitable raw materials at reasonable prices. If a supplier is unable to
deliver on time and within the budget specified, the business is certain to incur losses and
develop a negative reputation. It is critical for a business to acquire high-quality resources to
produce high-quality products and maintain a positive market reputation. This necessitates
that supplier play a significant role in the supply chain management system.
4. Inventory
A well-managed inventory is critical for a highly effective supply chain management system.
An inventory is a list of items, raw materials, and other necessary components to produce a
product or service. This list must be updated on a regular basis to denote available and
required stock. Inventory management is critical to the supply chain management function,
as without it, production and sale of the product are impossible. Businesses have recently
begun to place a higher premium on this component due to its impact on the supply chain.

5. Production
Production is a critical component of this system. This is only possible when all other supply
chain components work in unison. For the production process to begin, it is critical that
proper planning and supply of goods, as well as inventory management, are in place.
Following the manufacture of goods, testing, packaging, and final preparation for delivery of
the finished product take place.
6. Location
Any business that wishes to survive and thrive requires a profitable location. Consider the
case of a carbonated beverage factory located in a water-scarce area. Water is a
fundamental requirement of such businesses. Water scarcity could stymie production and
jeopardize the company's reputation. A business cannot exist if it is forced to share an
already scarce raw material with the surrounding community. Thus, a suitable location that
is well connected and located close to the source of critical production resources is critical to
a business's prosperity. Manpower requirements and availability must also be considered
when establishing a business unit.
7. Transportation
Transportation is critical for transporting raw materials to manufacturing units and for
delivering finished products to markets. At each stage, timely delivery of goods is critical to
maintaining a smooth business process. Any business that pays attention to and takes care
of this component will benefit from on-time production and transportation of its goods.
It is critical for a business to strive for a safe and secure transportation process. Whether the
transportation management system is in-house or outsourced, it must ensure zero damage
and minimal loss during transit. Secure transportation is built on two pillars: a well-managed
logistics system and flawless invoicing.
8. Return of goods
Among the numerous components that contribute to the strength of a supply chain are the
ability to return defective/malfunctioning goods and a highly responsive consumer grievance
redress unit.
Nobody is perfect. Even a machine can fail once in a million times, if not more frequently. As
part of a well-developed business process, one can anticipate the return of goods in a
variety of circumstances. Even the most stringent quality control procedures are susceptible
to unavoidable momentary lapses. In the event of such lapses, which are invariably followed
by consumer complaints, a business must recall the product/s and issue an apology
instinctively. This not only fosters positive customer relationships, but also helps to sustain
long-term goodwill.
The eight components discussed in this section are interdependent and contribute to the smooth
operation of the supply chain management system. It ensures a business's success and reputation. A
business must pay close attention to each of these components to create an error-free supply chain.
Businesses with a strong supply chain management system always place a high premium on each of
the components listed and ensure that management and teams at all levels follow the rules. Profit is
the bottom line, and for the business to achieve it, it is critical that the supply chain is leak-proof.
Any snags should be addressed immediately, and any weak links should be repaired or eliminated.

Demand and supply are two critical components of any business. For any business to be successful,
demand and supply trends must be carefully studied while implementing an effective execution
strategy. A supply chain management system is necessary not only for the timely manufacture of
goods; it is also critical for ensuring that consumer information is protected.
Collect data and analyse areas for improvement in supply chains, and operational and service
systems

Activity description 1. Explain the eight components discussed in the lesson
outline above that are critical for smooth supply chain
management system.
2. Provide real-world examples for each of these
components.

Conduct a gap analysis of supply chains, and operational

and service systems and identify improvement needs and
opportunities
Continuous improvement is a systematic process for identifying opportunities for improvement that
can assist an organisation in meeting its objectives of increasing profits, lowering costs, and
accelerating innovation. Additionally, opportunities improve a product's or service's quality, increase
its safety, and result in happier customers, patients, and staff.
Every company, every job, and every workflow have room for improvement. Organisations that
recognize this fact and actively involve their entire workforce in identifying opportunities for
improvement work to foster a culture of continuous improvement. By involving frontline employees
in improvement efforts, organisations can achieve a finer level of improvement than is visible to
managers and senior leaders.
Continuous improvement software is used to track opportunities for improvement identified by

front-line staff in their daily work, as well as improvements made as part of larger, strategic projects
and rapid improvement events.
Whether they are part of top-down initiatives or bottom-up daily development, it is critical that each
move quickly through the development cycle. Successful organisations can maintain momentum and
increase engagement in continuous improvement in this manner.
Gap analysis tools

Many tools exist to help you bridge the gap. Whichever tool you choose, visualize, and document
each step of your gap analysis to keep your organisation moving forward.
SWOT analysis
SWOT analysis is perhaps one of the oldest textbook-marketing assets. SWOT stands for strengths,
weaknesses, opportunities, and threats. You can perform a SWOT analysis both quantitatively and
qualitatively. This process will help you determine internal and external threats to your organisation
and see where and how you stand out against the competition.

SWOT analysis example
Fishbone diagram
Named for their distinctive shape, fishbone diagrams (also known as Ishikawa, cause-and-effect, or
herringbone diagrams) explore the possible causes of a root problem. This type of diagram would be
especially valuable when examining your current situation.
The most used categories for investigation are:
 Measurements
 Materials
 People
 Machines
 Methods
 Environment
You can choose any categories that make sense for the central problem or effect you are examining,
as shown in the example below.

Fishbone diagram for service industry example
McKinsey 7S framework
The McKinsey 7S framework was created by the consulting firm of the same name. It ultimately
assists in determining whether a company is meeting expectations and actualizes an organisation's
shared values. It examines an organisation's seven Ss to determine which values overlap.
Additionally, this framework serves as a link between the current and desired states of the business.
McKinsey 7S Framework

Structure of the McKinsey 7S Model
Structure, Strategy, and Systems collectively account for the “Hard Ss” elements, whereas the
remaining are considered “Soft Ss.”
1. Structure
Structure is the way in which a company is organized – chain of command and accountability
relationships that form its organisational chart.
2. Strategy
Strategy refers to a well-curated business plan that allows the company to formulate a plan
of action to achieve a sustainable competitive advantage, reinforced by the company’s
mission and values.
3. Systems
Systems entail the business and technical infrastructure of the company that establishes
workflows and the chain of decision-making.
4. Skills
Skills form the capabilities and competencies of a company that enables its employees to
achieve its objectives.
5. Style
The attitude of senior employees in a company establishes a code of conduct through their
ways of interactions and symbolic decision-making, which forms the management style of its
leaders.
6. Staff
Staff involves talent management and all human resources related to company decisions,
such as training, recruiting, and rewards systems
7. Shared Values
The mission, objectives, and values form the foundation of every organisation and play an
important role in aligning all key elements to maintain an effective organisational design.
Nadler-Tushman Model
Perhaps the most dynamic of the models, the Nadler-Tushman model examines how each
business process affects another and identifies which gaps affect efficiency. It creates a holistic
view of your organisation’s operational processes from beginning (input) to end (output).
The model finds gaps by dividing your organisation's processes into three groups:
 Input: Entire company culture and workforce, all resources used to create
product/service, and operational environment
 Transformation: The systems, teams, and processes that take the input value(s) and
turn them into the output product
 Output: The final product or service

PEST analysis
Similar to SWOT, PEST analysis helps you identify threats and opportunities by examining the four
primary external factors of your business environment:
 Political
 Economic
 Sociological
 Technological
This approach closes gaps in the market by identifying current issues, highlighting opportunities for
change, and mitigating market risks.
template for pest analysis
If you want to conduct a more in-depth analysis of your market environment, consider a PESTLE
analysis, which incorporates legal and environmental factors.
PESTLE analysis - Gap analysis is critical for any business looking to streamline operations for
increased efficiency and cost effectiveness. If you are considering process improvement, this section
will teach you how to begin documenting your current process.
Collect data and analyse areas for improvement in supply chains, and operational and service
systems
Activity type Project work

2. Select one of the frameworks/models outlined in the above
lesson and conduct a gap analysis on the supply chain of your
workplace.

Communicate with and agree on team members identified

improvement needs and opportunities
After analysing systems and processes and identifying areas for improvement, it is critical to
communicate these needs and opportunities to team members. Develop an effective
communication strategy to ensure they understand what they are responsible for and their (each
team member's) roles and responsibilities. Among the improvements that have been identified are
the following:
 Operational
 Systems (communication, information management, decision making etc.)
 Processes (customer service, order taking, delivery, after sales etc.)
 Documentation
 Standard operating procedures
 Policies and procedures
 Resource management including resource acquisition, storage, and use
Your communication strategy will be customised to the requirement of communication. If the

improvement is large and complex, you should have in depth communication in a very formal
communication setting. Your method of communication may include:
 Meeting (team meeting, one on one meeting etc.)
 Workshop and presentations
 Email (instructions and guidelines)
 Video conferencing (Zoom meeting or Google Meet meeting)
To make sure you communicate in the most effective manner possible, you need to know what the 7
principles of communication are. Therefore, below list of the 7Cs of communication, also known as
the 7 principles of communication, will provide you with a useful checklist to ensure good
communication in the workplace.
1. Concrete
When the message you wish to convey is concrete – not prone to fall – your audience (team
or clients) will have a clear understanding of what you are attempting to communicate. It
will only be concrete if it is backed up by appropriate data. Your argument should be backed
up by factual evidence, such as data and figures, leaving no room for the audience to conjure
up images.
2. Coherent
When you are incoherent, the entire point of your message becomes meaningless. You must
have a firm grasp on what goes where and when. Communication that is coherent is logical.
It is a method of communication that is well-planned, logical, and sequential. There should
be a strong connection to the primary topic and a consistent flow.
3. Clarity
Your message's purpose should be clear enough that the reader does not have to scratch his
or her head to figure out what you are saying. Determine the format in which you wish to
communicate. Make a point of stating your objective or purpose. Your readers should not be
required to make assumptions about what you are attempting to convey. For instance,
sentences should be concise, use the active voice whenever possible, and be broken up into
separate bulleted points.

4. Commitment
Commitment is a critical component of effective workplace communication. It simply
assesses one's commitment and the extent to which one communicates certainty
throughout the argument. It gently persuades prospects. A message delivered with
conviction will have a greater impact and boost your morale.
5. Consistency
When communicating at work, the words you use are critical. Your language should not be
perplexing to your team. You must convey your message in the fewest possible words and
maintain consistency in tone, voice, and content to save time. Repetition is not permitted.
Try to use concise sentences and short words.
6. Completeness
Never leave a sentence unfinished. Each message must conclude logically. The public should
not be left in suspense as to whether there will be additional material. Ascertain that you
communicate completely, emphasizing the importance of being informed and acting.
7. Courteous
Let us maintain a positive attitude. Your argument should instil respect in the other party.
Make every effort to communicate in an honest, respectful, open, and polite manner. Say it
carefully and it will be extremely effective and significant. Offensive language can turn
people off.
Communicate with and agree on team members identified improvement needs and opportunities
Activity type
Activity description 1. Take into consideration the communication plan/strategy
of your workplace and outline them in line with the 7
principles of communication.
2. Identify the limitations of your workplace’s
communication plan and provide recommendations to
improve.

Identify learning opportunities for team members

Any course of study, instruction, education, or training (including distance learning and
correspondence courses) made available by a learning provider and accessible and used by
organisations for the purpose of employee learning and development.
How to assess your learning needs
If you are a reflective leader, you have probably already assessed your own learning needs—albeit
subconsciously. Therefore, how should you go about it formally? At this point, the average manager
seeking additional information may be perplexed. They range from maintaining a journal of
knowledge gaps to assessing the risks associated with your practice to conducting formal patient
satisfaction surveys. You can use them to assess your own or your team's needs. However, most
busy managers will want to assess their learning needs using a more limited set of tools. The
following is a sampling of tools that you may wish to try.
1. 360° appraisal
If you work in a team, you can conduct a formal 360-degree appraisal, which entails
soliciting feedback from your colleagues on your strengths and weaknesses. Colleagues may
be physicians or multidisciplinary members of your team. They can provide feedback on
your knowledge, skills, and attitudes, as well as your ability to work in a team. Those
providing feedback should keep in mind that it should be objective, descriptive, and
constructive. It is counterproductive to assert that "you are useless and always will be, and
you said horrible things about me." It is beneficial to state, "you are excellent with patients,
but you do not always keep accurate records, and you should improve on this."
2. Critical incident reviews

The primary goal of these reviews is to ascertain what went wrong, how, and why it went
wrong, and how to avoid similar errors in the future. However, they can be used as an
educational tool as well. A true incident that occurred to your team is much more likely to
focus minds than a dry research paper. The review could focus on instances where
something went wrong (for example, when a patient was given a drug to which they were
allergic), or it could focus on instances where something went right (for example, when a
patient was given a drug to which they were allergic). It could also focus on instances where
something went right (for example how the team worked effectively to cure a patient with
meningitis). Such evaluations should be well-structured. To begin, you should determine
which incident to examine and then allow time for everyone to prepare their thoughts prior
to the meeting. Then you should conduct the review fairly. The review's objective is not to
point fingers at individuals but to ascertain what the team can learn from what went
wrong.
3. Self-assessment
This entails maintaining a journal of learning requirements that arise during your workday.
You may not something down during a consultation or make a note about an issue discussed
during a practice meeting. By reviewing your diary, you can determine your knowledge gaps.
They may appear to be isolated gaps, but upon closer examination, you may notice
systematic gaps (for example, you may discover that 40 percent of your learning needs
discovered in this way are about interpersonal skills).

4. Performance review
This may entail utilizing existing data or conducting a formal customer satisfaction survey.
The latter requires you to have confidence in yourself and your colleagues, as well as the
ability to take criticism in stride.
5. Observation
You can observe your team's performance and determine their educational needs. Their
performance and performance gaps will indicate the type of education they require.
Alternatively, you could solicit feedback from your team members regarding your
performance and areas for improvement. Observing how you practice by videotaping your
performance is a powerful tool for determining your specific learning needs. It is especially
effective at examining how you communicate and how customer-focused you are in your
current job role.
There are numerous methods available to assist you in identifying gaps in your knowledge
and skills; different methods will suit different individuals. It is preferable to employ multiple
methods, and a combination of subjective and objective measures frequently provides a
more complete picture of your knowledge and skill gaps.
Identify learning opportunities for team members

Activity description 1. Select one of the tools that can be used to facilitate
employee learning and development.
2. Explain in detail with examples on how this tool can be used
to facilitate and the learning and development of employees
in your workplace.
3. Identify the advantages of this tool and any limitation you
foresee in using this tool.

BSBSTR601 – Section 3– Implement innovative
Section 3
Implement innovative processes
Innovation is about more than coming up with the next big idea; it is also about how you implement
the ideas that make it out the door and how you foster the culture necessary to sustain the creation
of those ideas. Having said that, innovation must exist independently and distinct from your overall
corporate strategy. Innovation must exist independently and discretely from your overall corporate
strategy. Generally, there are points in an organisation's history when the imperative for innovation
becomes crystal clear. It could be a prolonged period of revenue growth, a string of unsuccessful
bids, or a competitor's new product.
Opportunities for Improvement Should:
1. Align to Your Business Goals

Your senior leaders are responsible for establishing the overarching organisational goals,
which managers and staff then work to achieve through continuous improvement. It is
critical that the opportunities for improvement that arise because of daily improvement are
aligned with these strategic goals, and that you have a mechanism in place to demonstrate
how this alignment contributed to the organisation's success. Larger projects and events
(composed of individual improvements) also contribute to your business's progress toward
its objectives.
2. Deliver Results
It is critical that continuous improvement has a measurable impact to demonstrate the value
of the investment and to engage employees and leaders in future efforts. This requires early
identification of key performance indicators for each target opportunity to evaluate the
result. Key performance indicators include waste reduction, cost reduction, increased
customer satisfaction, increased safety, and improved product quality.
3. Drive Innovation
Your continuous improvement program should infuse new ideas into established processes.
At times, a process can be tweaked to improve it; at other times, a complete overhaul may
be required. Continuous improvement creates an environment conducive to creativity,
which results in innovation.
The role of improvement software in implementing opportunities

Continuous improvement software enables the organisation to collect, implement, measure, and
share improvements in a standardized, organized, and efficient manner.
Continuous improvement software enables the systematic capture of opportunities of all sizes and
scopes across the organisation, ranging from small daily improvements and "Just Do Its" to those
that contribute to strategic projects and rapid improvement events.
The opportunity structure is fully customizable, allowing your organisation to continue using the
language that works best for them, whether that is A3s, Hoshin Kanri, PDSA, Kaizen, or whatever
else they practice. Organizing all opportunities in one location simplifies the process of capturing,
implementing, measuring, and sharing improvements.

Confirm objectives, timeframes, measures, and

communication plans are in place to manage
implementation
The act of transmitting ideas and information is referred to as communication. For a grass-roots
initiative or community-based organisation, this entails communicating to the community the true
nature of your organisation, the issues it addresses, and its accomplishments. Communication is a
continuous process for any organisation that serves, is reliant on, or is otherwise connected to the
community. While the purpose, audience, message, and channels may change, the requirement to
maintain relationships with the media and key community members does not. As a result, an
integral part of any communication plan is to continue using and revising it over the course of
your organisation's existence, based on your experience.
Communication can take many forms, including:
 Meetings, word of mouth
 News stories in both print and broadcast media
 Press releases and press conferences
 Posters, brochures, and fliers
 Outreach and presentations to other health and community service providers, community
groups, and organisations
 Special events and open houses that your organisation holds
To communicate effectively, it helps to plan out what you want from your communication, and what
you need to do to get it.
Confirm objectives, timeframes, and measures

Planning is a way to organize actions that will lead to the fulfillment of objectives. Your goal, in this
case, is to raise awareness about your initiative's long-term benefits to your community. To develop
a plan for communication, you must consider some basic questions:
 Why do you want to communicate? (What is your objective (purpose)?)
 To whom do you want to communicate it? (Who is your audience?)
 What do you want to communicate? (What is your message?)
 How do you want to communicate it? (What communication channels will you use?)
 Whom should you contact, and what should you do to use those channels? (How will you
distribute your message?)
The answers to these questions constitute your action plan, what you need to do to successfully
communicate with your audience. The remainder of your communication plan, involves three steps:
Implement your action plan. Design your message and distribute it to your intended audience.
Evaluate your communication efforts and adjust your plan accordingly.
Develop a plan for communication
 A plan will make it possible to target your communication accurately. It gives you a structure
to determine whom you need to reach and how.
 A plan can be long-term, helping you map out how to raise your profile and refine
your image in the community over time.
 A plan will make your communication efforts more efficient, effective, and lasting.

 A plan makes everything easier. If you spend some time planning at the beginning of an
effort, you can save a great deal of time later, because you know what you should be doing
at any point in the process.
Timeframe
As soon as your organisation begins planning its objectives and activities, you should also start
planning ways to communicate them; successful communication is an ongoing process, not a one-
time event. Communication is useful at all points in your organisation's development - it can help get
the word out about a new organisation, renew interest in a long-standing program, or help attract
new funding sources.
Planning for communication is an eight-step process. The steps are:
1. Identify the purpose of your communication

2. Identify your audience
3. Plan and design your message
4. Consider your resources
5. Plan for obstacles and emergencies
6. Strategize how you will connect with the media and others who can help you spread your
message
7. Create an action plan
8. Decide how you will evaluate your plan and adjust it, based on the results of carrying it out
1. Identify your purpose
What you might want to say depends on what you are trying to accomplish with your
communication strategy. You might be concerned with one or a combination of the following:
 Educating the public about the innovation your organisation addresses

 Recruiting program participants
 Recruiting volunteers to help with your work
 Rallying supporters or the public to action for your innovation
 Announcing events
 Celebrating honours or victories
 Raising money to fund your work
 Countering the arguments, mistakes, or, occasionally, the lies or misrepresentations of those
opposed to your work.
 Dealing with an organisational crisis that’s public knowledge, a staff member who commits a
crime, for example, or a lawsuit aimed at the organisation.
2. Identify your audience
Who are you trying to reach? Knowing your audience makes it possible to plan your communication
logically. You will need different messages for different groups, and you will need different channels
and methods to reach each of those groups. There are many ways to think about your audience and
the best ways to contact them. First, there is the question of what group(s) you will focus on. You
can group people according to several characteristics:
 Teams
 Team members
 Supervisors
 Managers

 Directors
 Board members
Another aspect of the audience to consider is whether you should direct your communication to
those whose behaviour, knowledge, or condition you hope to affect, or whether your
communication needs to be indirect. Sometimes, to influence team members, you must aim your
message at those to whom they listen. For example, managers, supervisors, and team leaders, etc.
3. The message
When creating your message, consider content, mood, language, and design.
Content
You should craft your message with your audience in mind; planning the content of your message is
necessary to make it effective.
Mood
Consider what emotions you want to appeal to.
The mood of your message will do a good deal to determine how people react to it. In general, if the
mood is too extreme – too negative, too frightening, trying to make your audience feel too guilty –
people will not pay much attention to it. It may take some experience to learn how to strike the right
balance. Keeping your tone positive will usually reach work terms than evoking negative feelings
such as fear or anger.
Language
There are two facets to language in this instance. One is the language in which your intended
audience communicates. The other is the tone of your language – formal or informal, simple, or
complex, referring to well-known or obscure figures and ideas.
You can address language issues by providing printed materials in both the official language and the
language(s) spoken by the diverse team members you wish to reach, as well as by providing
translation for spoken or broadcast messages.
The issue of the second language is more complicated. If your message is too informal, your
audience may feel as though you are speaking down to them, or, worse, that you are making an
insincere attempt to connect with them by communicating in a manner that is obviously not natural
for you. If your message is too formal, your audience may believe you are not speaking directly to
them. You should use straightforward language that communicates your message simply and clearly.
Channels of communication
What does your intended audience read, listen to, watch, or engage in? You must reach them by
placing your message where they will see it.
 Posters
 Fliers and brochures - These can be more compelling in places where the issue is already in
people’s minds
 Newsletters
 Promotional materials - Items such as caps, T-shirts, and mugs can serve as effective
channels for your message of innovation.

 Reading material - Reading material that is interesting to the target audience can be used to
deliver a message through a story that readers are eager to follow, or through the
compelling nature of the medium and its design.
 Internet sites - In addition to your organisation's website, interactive sites like Facebook,
Twitter, and YouTube are effective mediums for communication
 Letters to the Editor
 News stories, columns, and reports
 Press releases and press conferences
 Presentations or presence at local events and local and national conferences, fairs, and
other gatherings
 Community outreach
 Public demonstrations
 Word of mouth
4. Resources
Your plan should include careful determinations of how much you can spend and how much staff
and volunteer time it is reasonable to use. You may also be able to share materials and other goods
and services with individuals.
5. Anticipate obstacles and emergencies
Numerous events can occur during a communication effort. Someone may overlook sending a press
release via email or failing to include a phone number or e-mail address. A critical word on your
posters or brochures may be misspelled, or a reporter may misreport critical information. Worse,
you may have to deal with a genuine disaster involving the organisation, which could jeopardize
everything you do.
It is critical to anticipate and plan for these types of issues. Any communication plan should include
crisis planning so that you will know what to do in the event of a problem or crisis. Crisis plans
should specify who is accountable for what – dealing with the media, resolving errors, determining
when something needs to be redone rather than fixed, and so forth. It should encompass as many
situations as possible, as well as as many facets of each situation.
6. Strategize how you will connect with the media and others to spread your message
Establishing relationships with individual media representatives and outlets is critical to a

communication strategy, as is establishing relationships with influential individuals and institutions
in the community, as well as with the teams and individuals you are attempting to reach. You must
establish personal contacts, persuade the media and others to assist you, and then maintain those
relationships to keep communication channels open.
7. Create an action plan
Now the task is to bring it all together into a workable plan. By the time you reach this point, most of
your plan should be complete. You understand what your purpose is and who you need to reach to
accomplish it; you understand what your message should contain and look like; you understand
what you can afford; you understand potential obstacles; and you understand which channels to use
to reach your intended audience and how to gain access to those channels. Now it is just a matter of
putting the details together – writing and designing your message (or messages, if you are using
multiple channels), contacting those who can assist you, and setting up everything necessary to
launch your communication effort. Finally, you will evaluate your effort to continue to improve it.

8. Evaluation
If you evaluate your communication plan in terms of both its execution and effectiveness, you can
make adjustments to improve it. It will continue to improve in effectiveness with each
implementation.
Confirm objectives, timeframes, measures, and communication plans are in place to manage
implementation
Project work
Activity type
Activity timing 30 - 45 minutes

Activity description 1. Imagine your workplace is launching a new product/service
and your project manager requires you to structure a
communication plan.
2. Clearly define your communication objectives and structure a
communication with 8-step process outlined in the lesson
above.

Address the impact of change and consequences for people

and implement transition plans
Transition strategies are techniques that are used to assist individuals when their activities, settings,
or routines change or are disrupted. The strategies aim to increase individuals' predictability and to
establish positive routines around transitions. Certain changes in business are influenced by both
external and internal factors, such as emerging competition and changing customer needs. Both
external and internal factors, such as organisational shifts or team operation, can affect a business's
dynamics. As a result, role, direction, and project transitions are frequent occurrences. As a result,
developing a transition plan during times of change can assist you in ensuring the organisation's
smooth operation.
Whether your business is undergoing a major or minor transformation, developing a transition plan
will educate incumbent employees on what they need to do to ensure that the changes occur
effectively and without impairing daily operations. However, developing an orderly transition plan
can be challenging at times.
What is a Transition Plan? (Definition)
A transition plan is a document that details the hand-off process between the incumbent and the
successor. Whether it is an employee transitioning to another position, a project transition, or a
business owner transitioning to a buyer, each transition is critical regardless of the role or role-based
information exchanged.
Why is the Transition Plan Important?
A business transition plan consolidates all the objectives, priorities, and strategies necessary for a
successful transition. Additionally, a transition plan assists in documenting and passing on all tasks
and responsibilities. Without a well-defined plan in place, current employees may risk their financial
and personal well-being. These plans are critical for any role that is relinquished to another
individual. It is a prudent method of ensuring that nothing falls between the cracks. Having a process
for transitioning the role and responsibilities in place aids in ensuring a smooth transition.
Steps for creating transition plan
The structure of a typical Transition plan contains the following elements:
Step Activity Description

Step 1 Add the title of the transition The title of a transition plan describes the purpose
plan and movie of the whole process.
Step 2 Mention transition details Incumbent,

Successor
New Role Start Date
Supervisor
Step 3 Role accountabilities & This represents the roles and responsibilities of the
expectations for the transition employee for the transition.
Step 4 Incumbent knowledge transfer This includes the measurable transfer of on-the-job
requirements for plan knowledge of both explicit skills as well as implicit
or tacit knowledge during the transition.

Step 5 Add role transition checklists Transition Checklist offers a guideline for key
transition activities that must be completed by
certain dates to facilitate the transition.
Step 6 Transition plan agreement Incumbent Signature

Successor Signature
Manager Signature
Implement transition plans

After assessing the above-mentioned components, these 3 steps are set forth below to help you get
started on your transition plan.
1. The incumbent should obtain an evaluation of role and responsibilities: Understanding the
value of the current role and duties is the very first step in making a transition plan. Hence, it
is important to have an understanding if the successor is ready to acquire the
responsibilities given the current circumstances.
2. The incumbent should begin planning regarding his or her future following the transition:
This step is about ensuring that an incumbent is personally ready to exit from any
company, project, or responsibilities. This makes the transition less painful.
3. Bringing the plan into action with formal groundwork- The final step is to bring the
transition plan into action and should be executed with effective communication and formal
planning, this will result in an effortless and-off process.
Address the impact of change and consequences for people and implement transition plans
Activity type Case study
Activity timing 30-45 minutes

2. Appoint a group leader to manage the discussion
3. Discuss on the below topic.
 In the ever-changing global business context, transitions and
disruptions are quite common.
 Therefore, it is critical that all organisations create a transition
plan to encourage positive routines around transitions.
 Thus, briefly explain the transition plan your workplace has set
in place to follow in the situation any internal/external changes
occur.
 Elaborate on the advantages and benefits of plan and identify
the shortcomings and provide recommendations where
necessary.

Implement contingency plans in the event of non-

performance
A contingency plan is a proactive strategy that details the actions or steps that an organisation's
management and staff must take in the event of a future occurrence. It is critical to the continuity of
business, risk management, and disaster recovery processes.
It assists you in remaining prepared for unexpected events and mitigating their impact. Additionally,
it outlines a strategy for resuming normal business operations following the event. It is also referred
to as a contingency plan, backup plan, or disaster recovery plan. If your primary plan fails, it is time
to execute plan B.
Benefits of a Contingency Plan
Without a contingency plan you are opening yourself to unnecessary risks. Here are some important
benefits of a contingency plan that you cannot look away from.
 Helps react quickly to negative events. As a contingency plan lists the actions that need to
be taken, everyone can focus on what to do without wasting time panicking.
 Having a contingency plan in place allows you to minimize damage that could happen from a
disaster and minimize the loss of production. For example, if you have emergency
generators set up, even during a blackout, your team can work seamlessly.
How to Make a Contingency Plan
An effective business contingency plan is based on good research and brainstorming. Here are the
steps you need to follow in a contingency planning process.
Step 1: List down the key risks
Identify significant events that could have a negative impact on the direction of your business and on
critical resources such as employees, machines, and information technology systems.
Involve other team leaders, subject matter experts, and even outsiders such as business consultants
to gain a better understanding of potential issues that could jeopardize the direction.
Utilize a mind map to organize and categorize the information gathered during the staff
brainstorming session. You can easily distribute this to the entire organisation to solicit their input as
well.

Source: https://creately.com/ blog/business/business-contingency-plan-templates
Mind Map for Risk Identification
Step 2: Prioritize the Risks Based on Their Impact

After you have compiled a list of all potential risks that could arise in various areas of your business,
begin prioritizing them according to the threat they pose. The risk impact probability chart is a useful
tool to use in this situation. It enables you to evaluate and prioritize risks based on their severity of
impact and likelihood of occurrence.
Risk Probability and Impact Matrix


Step 3: Create Contingency Plans for Each Event
In this step, you will create separate plans outlining the steps you will need to take if the risks you
identified previously materialize. Consider what needs to be done to restore normal operations
following the event's impact. Here, you will need to define employee responsibilities, establish
timelines for when tasks should be completed following the event, establish procedures for restoring
and communicating, and outline the steps that must be taken in advance to avoid losses after the
event (i.e., insurance coverage). You can use a visual format to emphasize the sequence of events in
this section. It would be more comprehensible for everyone.
Business Contingency Plan Example
Template 1

Template 2
Contingency Probability Preparation Response
Template 3
Probability Impact Preparation Response

Scenario 1
Scenario 2
Scenario 3
Step 4: Share and Maintain the Plan
Once the contingency plans are completed, ensure that they are easily accessible to all employees
and stakeholders. Regularly review and update your contingency plans. Additionally, it is
recommended that you inform your employees of the changes, as they may include changes to their
roles and responsibilities.
Implement contingency plans in the event of non-performance
Activity type Individual verbal presentation

Activity description 1. Briefly describe the definition of a consistency plan and
identify the benefits of having a contingency plan
2. Select an internal/external factor that could have a
significant negative impact to your workplace.
3. Formulate a contingency plan utilizing the steps and
templates outlined in the lesson above.

Follow up failure by investigation and analysis of causes and

manage emerging challenges and opportunities
Failure investigation is a critical tool for providing feedback on asset operational performance.
Failure investigation is the process of determining the critical characteristics of a specific failure and
determining the most likely causes of failure. A Root Cause Analysis is a formal method for
evaluating failures (RCA). A root cause analysis (RCA) is the process of determining the physical,
human, and latent causes of a particular undesirable event. Root causes can include specific
underlying causes that can be reasonably identified, as well as those that are controllable and
fixable, as well as those that are preventable.
Failure analysis is a systematic process for determining the immediate cause of a failure and assisting
in the identification of contributing factors. It assists the asset manager in assessing future risks,
determining mitigating actions, and communicating with stakeholders in an objective manner.
Most operators have formal failure investigation and root cause analysis processes in place, where
critical findings are fed back into the system to improve future integrity and reliability.
Root Cause Analysis is one of several tools and techniques that your organisation can use to
maximize the value of their integrated management systems. Improving your organisation's
processes requires establishing a methodology and approach that promotes innovation through
data-driven analysis.
Root Cause Analysis (RCA) is one of several methodologies – along with Failure Analysis, Control
Plans, and Corrective Actions – for determining the causes of safety incidents or near misses,
occupational health issues, environmental issues such as repeated violations, and quality events
such as recalls and nonconformances. Utilizing a framework that incorporates multiple analysis tools
to accomplish a goal can yield quantifiable results.
Top five methods of failure analysis for continuous improvement
These methods can be extremely valuable for performance when used proactively — and in
conjunction with one another. Here is how they might be used together:
1. Identify potential failure modes through a Process Failure Analysis exercise, OR

experience actual failures or problems in operations, such as an out-of-control event
initiated by Statistical Process Control (SPC).
2. If the issue is significant or systematic, after containment, launch a Root Cause
Analysis (RCA) to investigate how to fix the problem rather than the symptoms.
3. When the root cause is determined, consider launching a Corrective Action to incorporate a
more long-term fix.
4. Record the new risk profile (Severity, Opportunity, Detection) on the risk register and
see how overall risk has changed because of the remedial effort.
5. Update the Control Plan with new controls for detection and/or prevention, so that this
issue (and/or similar issues) will not occur again.
Corrective and preventive actions that result from adopting a more strategic perspective, rather
than focusing exclusively on resolving symptoms as they occur, include enhanced designs, enhanced
standard operating procedures (SOPs), streamlined processes, improved recordkeeping, improved
data use, and enhanced response to emerging issues.

Failure investigation
Failure analysis may support a broader incident investigation – or failure investigation – and so forms
part of an effective safety management system.
Root cause analysis
A more comprehensive failure investigation may necessitate performing a root cause analysis (RCA)
to ascertain the weaknesses or gaps in a management system. A root cause analysis can assist in
defining corrective actions, preventing recurrence, and reducing future costs.
The failure analysis process often involves:
 Interpretation of the failure task, activity location and service data, including teams review
 Examination of the team members, activity, equipment, and tools to determine the failure
mechanism(s)
 Engineering root cause, including design, transportation, installation, and service
 Simulation of the service conditions to establish critical parameters at which failure
will occur
 Definition of safe conditions
 Establishment of a non-destructive evaluation strategy
 Remedial advice for the avoidance of further failures, including design reviews for
future activities and or continuation of innovation and continuous improvement activity.
Follow up failure by investigation and analysis of causes and manage emerging challenges and
opportunities
Activity type
Activity description Explain and define root cause analysis. Elaborate the importance
of this analysis with examples
Select two out of the five methods of failure analysis for
continuous improvement and explain how two of these methods
can be used in conjunction with each other. Provide examples to
support your explanation.

Confirm that learnings from activities are captured and

managed using relevant knowledge management system
Each task experience contains "lessons." These lessons are discovered during the task review
process, which allows for the examination and evaluation of the task experience to uncover
underlying lessons. And the overarching goal of this process is "continuous improvement" -
leveraging the knowledge gained from previous tasks to benefit future tasks and strengthen task
management capabilities. And all of this is accomplished via the "lesson learned."
Task lessons exist at two levels
1. performance lessons and

2. results lessons.
Performance lessons cover the procedures and practices for planning, managing, and completing
approved tasks. The term "results lessons" refers to both the "task" itself and the effort expended to
achieve the desired results. The task review is most effective when conducted as a standardized
management process that establishes the criteria for reviewing tasks and utilizing and incorporating
the review results. Standardized review practices should incorporate the following parameters to
ensure that all objectives are met completely:
 Task review timing and triggers (what types of events will lead to review initiation?).
 Review input requirements (what types of events and circumstances will be reviewed
considering task plans, deliverables, activities, tasks, decisions, and related variables?).
 Data collection methodologies (how will review inputs be identified, gathered, and
organized for review purposes?).
 Review benchmarks and analysis criteria (forming the basis for "lessons" identification).
 Lessons learned reporting methodologies (how will identified lessons be produced,
documented, and incorporated into the "institutional body of knowledge"?).
The temptation is obvious - the task review is time-consuming, and the task has already been
completed - so why not simply move on? This may appear to be logical, but it could also be a grave
error. Lessons learned provide an opportunity to reduce errors and enhance performance
capabilities.
Not only do they help avoid repeating errors, but they also help strengthen capabilities by creating
opportunities for innovation and increased risk-taking.
While some tasks may provide fewer "lessons" than others, the task review process can always be
scaled to accommodate the task's size, value, complexity, and "lessons potential" (i.e., smaller, less
complex tasks can be reviewed in a less formal manner - but they should still be reviewed). Once a
review is triggered, it should always be conducted as efficiently as possible.

Confirm that learnings from activities are captured and managed using relevant knowledge
management system
Activity type Project work

Activity description Explain the difference between performance lessons and results
lessons.
Most organisations do not perform a task review after a task is
done. Explain in your own words why a task review is important
and why it should be carried out following the completion of a
task. Evaluate and describe the parameters for carrying out a
task review.

BSBSTR601 – Section 4– Develop workplace culture and tools for continuous improvement, innovation, and
Section 4
Develop workplace culture and tools for
continuous improvement, innovation, and learning
Evaluate continuous improvement systems and processes

and innovation on a regular basis
Evaluations may be relatively straightforward for certain organisations or initiatives. They simply
want to determine whether their extremely specific objectives are being met. Are significant
improvements achieved following a continuous improvement initiative? How many participants in
the continuous improvement program are still falling short of the targets? If these are the types of
questions that must be addressed, the evaluation process can be quite straightforward. However,
what if the questions are more complicated? Was it the initiative, another factor, or a combination
of factors that contributed to the failure to achieve the desired continuous improvement? What
factors in the environment influence innovation and continuous improvement? The methods for
determining the answers to those questions may also have to be more complex. This issue is
complicated, however, by the fact that sometimes a thorough understanding of continuous
improvement can provide more insight into complex issues than knowledge of research methods.
The type of information desired and how it needs to be analysed
When collecting quantitative data (i.e., numbers), it is frequently impractical to simply examine them
and draw conclusions. There are statistical procedures that can be applied to numbers to determine
what they truly mean, their significance (i.e., the probability that the differences or changes were
caused by the thing being measured), and what they imply about alternative ways to operate.
What you are using the evaluation for
Is your evaluation solely to assist you in becoming more effective at what you do through continuous
improvement? Your responses to these questions will help you determine the types of questions to
ask in the evaluation, the format in which the answers should be provided, the complexity of the
evaluation, and whether additional team members are required.
Evaluate the improvement activity
Evaluate whether the improvement is meeting your objectives; are modifications necessary, or
should a different improvement be used? Audits, assessments, and surveys can all be used to
quantify the improvements. Maintain a record of the evaluation's methods and results. Take your
time; gradual progress may produce better results.
Act to standardise the process
There are two possible situations in this step:
 If the improvement is not successful, analyse what can be done differently next time and go
through the cycle again with a different plan.

 If successful, ensure all stakeholders are informed of the new process, all necessary staff are
trained and educated, policies and procedures are implemented and change within the
organisation is managed.
Keep track of your improvements
This will demonstrate the progress of your improvement efforts. You can conduct a review, create a
plan, and determine what worked and what did not. Today, review and update your PCI; keep it
current to reflect your goals for today, tomorrow, and the future.
Evaluate continuous improvement systems and processes and innovation on a regular basis

Take into consideration recent system/process/activity that was
implemented in your workplace and evaluate the activity to
identify continuous improvement by utilizing the below criteria:
1. The type of information desired and how it needs to be
analysed
2. What you are using the evaluation for
3. Evaluate the improvement activity and identify limitations
4. Provide recommendations and solutions for these
limitations.

Identify and communicate with stakeholders’ costs and

benefits of innovations and improvements
Communication is critical to the success of improvement programs. Visual management facilitates
communication by visualizing the objectives and approach. It encourages people to make a
commitment to change by demonstrating anticipated benefits and early results. However,
ineffective, or excessive communication can frustrate people, causing them to resist change.
Numerous improvement programs are managed by technical personnel in a technical setting.

Communication is frequently undervalued and underestimated, as well as perceived to be difficult. It
is something that people are unfamiliar with, which makes them feel uneasy. However, if you begin
and learn along the way, you will improve. Additionally, if you want people to act, it helps
tremendously if you communicate what you expect of them.
There are a variety of ways in which we communicate about improvement programs and
demonstrate results within the organisation. Diverse communication tools and techniques are used
for a variety of purposes. Most improvement programs employ a balanced mix of paper and
electronic communication methods, including the following:
 Posters and brochures

 Website
 Newsletters
 Mailings
 Mailboxes
 Forums
 Blogs
Even more important is face 2 face communication, from the improvement team to the organisation
under change. These rich forms of communication help to understand the changes, and to build
trust. Change is about showing up and being visible! Possible forms of communication are:
 Kick-off meetings or all employee meeting

 Training and coaching
 Open spaces
 Team meetings
 One on one meetings
 Walking around (walk the talk).

Identify and communicate with stakeholders’ costs and benefits of innovations and improvements
Activity type Verbal questioning by the trainer

Activity description Most improvement programs of organisations in the current
business environment use a balanced mix of paper, electronic
and physical communication means.
1. What communication means are used by your workplace
for improvement programs? Paper, electronic, physical?
2. How effective are these means? What the benefits and
limitations you foresee?
3. Any recommendation you propose for these
communication means?

Establish rewards for continuous improvement, innovation,

and learning
Many leaders and their leadership styles strive for innovation, but few achieve it in the workplace.
There can be no doubt about the advantages of innovation in business. When studying the most
successful organisations throughout history, they are not afraid to think differently and to innovate
at every opportunity. The reason innovation is difficult to achieve in the workplace is that it cannot
be accomplished alone. It takes a team to innovate and transform an organisation's operations over
time. What you must remember about innovation is that it cannot be forced; it can only be
encouraged. Certain team members will naturally be more creative and forthcoming with ideas than
others.
While encouraging innovation, avoid demonizing team members who are not as innovative. If you
create an environment conducive to innovation by implementing some of these ideas, you will see
your team collaborate to build a culture of continuous innovation that improves team performance.
We know why it takes a team to innovate, how do you encourage your team to think differently?
 Reward innovation with responsibility

 Make freedom an office essential
 Reward failure
 Flexible working
 Tangible rewards
 Do not ignore effort
 Reward the team
 Work away from work
 Offer promotions
 Reward them consistently
 Ask your team what they want
 Culture of acknowledgement
 Points, prizes, and other perks
 Environment for innovation
 Office wide recognition
Reward innovation with responsibility
The first step toward innovation is to foster an accepting environment in which employees feel free
to propose new ideas and challenge established practices. If someone has a great idea, empower
them to carry it out. One of the most common mistakes leaders make is delegating a great idea to
someone else. Consider how they will feel if their idea is carried out by someone else - or worse if it
is carried out poorly. By allowing them to drive the innovation forward independently, you
empower them in their role. By doing so, you demonstrate that you value novel ideas and are willing
to place your trust in those who generate them. Allowing them to see their idea through to
completion can be a powerful motivator for developing future ideas and inspiring innovation.
Make freedom an office essential
If you are unsure, an affiliative leader is someone who allows his or her team equal opportunity to
succeed and fail. Affiliative leadership fosters innovation, and by rewarding your team with
increased freedom because of their innovation, you can encourage them to continue thinking
creatively in their roles. It is well established that micromanagement stifles creative thinking and

innovation. If you do not encourage free thought in the workplace, by stepping back from your role
as an affiliate leader, you will never be able to create an environment where your team can think for
themselves and generate new ways of working. Numerous examples of innovation are motivated by
quick thinking. By empowering your team to solve their own problems, you inspire greater
innovation.
Reward failure
To reward failure in the name of performance enhancement. However, if you do not encourage your
team to take risks and fail, you will not develop an innovative culture; you will develop a culture of
mediocrity. By taking your encouragement of innovation a step further and rewarding your team
when they fail, you can foster an environment in which failure is not feared. If the concept of
rewarding failure remains unpalatable, consider this. You are rewarding the creative process, not the
outcome. Indeed, why not! One of your team members came up with an innovative idea and had the
courage to test it. That is something to be celebrated.
Do not be concerned with cultivating a culture of failure. Despite being rewarded for their lack of
success, people simply do not enjoy continuing to fail in their roles - even more so when they
contributed actively to the idea's conception. By providing a safety net in case their ideas fail, you
alleviate any fears they may have. Fear of failure is the graveyard of great ideas.
Flexible working
If you are not already practicing flexible working, now is the time to begin. It can be an excellent way
to recognize your team's innovation. Did you know that, according to a 2017 survey, 67 percent of
workers wish they could work from home and 70 percent believe jobs that allow for flexible
scheduling are more attractive? By allowing your team greater flexibility in their roles, you
communicate that your primary focus is on achieving great results, not on whether someone is a few
minutes late for work. Returning control to your team so they can define the finer details of their
roles is an excellent way to inspire innovation and make your team members feel valued.
Tangible rewards
Tangible rewards are less about overt financial incentives and more about providing them with
tangible items they can touch or at least experience, such as a trophy or a work night out. While this
may sound corny, this is the distinction between reward and recognition. While recognition is
necessary to motivate your teams to continue innovating, providing a tangible reward that they can
see and feel serves as a physical representation of their hard work. Offering financial incentives is a
risky proposition. This is because innovation and ideas are intangible, and the monetary value of the
reward may not add up. By offering a reward that is not proportional to the perceived value of the
innovation, you risk demotivating your teams to innovate.
Never ignore effort
You want to see results and you want to reward team members who innovate to achieve those
results. Meanwhile, you may be rewarding those who fail to foster an environment where
individuals are not afraid to take risks. Great! However, what about those caught in the middle?
Those team members who are attempting to innovate but are neither succeeding nor failing?
It is critical not to overlook these members, or you risk losing their future efforts to be innovative.
Creating an environment where members are rewarded for their success, failure, or otherwise (if
they try) is an excellent way to ensure that everyone is included regardless of their outcome.

It may require a little extra effort to keep track of everyone's activities, but it ensures that no one on
your team becomes stagnant. These members of the middle team may be the ones who succeed
the next time with their innovation, and you do not want to discourage them from attempting.
Reward the team
When a team member achieves outstanding results, you may be tempted to reward that member to
encourage others to follow suit. However, before you do, take a moment to consider who else may
have had a positive influence. Is that person a member of a team? If they are, offering an individual
reward may not be the best course of action. If you reward individuals within a group rather than
the group, you risk creating a culture in which team members compete rather than collaborate. This
may sound fantastic, but what you really want is a team that collaborates and innovates as part of a
collaborative effort. While one person can generate an idea, its implementation requires a team.
By establishing rewards that benefit every member of the team, you can foster a positive employee
experience while also motivating them to collaborate on innovation. Individual team members will
be more likely to encourage one another to be innovative if they understand that their efforts will
contribute to the team's reward.
Work away from work
This incentive is particularly well-suited to flexible work. By incentivizing your team to be flexible in
terms of not only when they work, but also where they work, you give them the freedom to
innovate further. Offering flexible work arrangements as a reward for creativity and innovation can
help to revitalize the workplace. Team members can take a break from their usual work
environment and return more energized and motivated to be innovative in the future.
Each member of your team is distinct, and they will respond differently to various incentives. Thus,
offering such rewards as an option is an excellent way to incentivize and reward those who may
place a lower premium on financial or other benefits.
Offer promotions
If you notice a team member consistently coming up with brilliant ideas and propelling the team
forward through innovation, it makes perfect sense to promote them to a position where they can
have a greater influence on the organisation. All too frequently, businesses take a 'next taxicab off
the rank' approach to promotion, with the person moving up the ladder solely due to their length of
service. By elevating the innovative members of your team, you place them in a position to make a
real difference.
This helps retain the team's top performers and serves as a warning to other team members about
the consequences of following suit. While promotions frequently include a pay increase, simply
rewarding innovative individuals with increased responsibility and direct input into the organisation
encourages the team to be innovative.
Reward them consistently
Consistency and fairness in rewarding innovative team members are critical. If you are inconsistent
with your reward frequency, your team may become demotivated when it comes to continuously
innovating. If they do not know when the next reward will arrive, they will be less motivated to think
creatively. Innovation is notoriously difficult to quantify. If you are not careful, you risk rewarding
one member of your team for being innovative while overlooking another whose ideas contributed
to the innovation.

If you are going to reward large-scale innovation, such as the development of a new process, you
should also reward small-scale innovation, such as something that improves the working
environment and results in a better employee experience. This means that team members who have
less authority are still encouraged to innovate. When your team understands the structure of the
reward system, they are better equipped to work within it and deliver the type of innovative results
you seek. This could take the form of an annual awards ceremony or a monthly team award with
varying levels of recognition for various types of innovation. Whatever it is, ensure that your team
understands when they will see the reward system and what they can expect from it.
Ask your team what they want
This is a critically undervalued characteristic of great leadership. As I previously stated, each member
of your team is unique, and no matter what reward you offer, it will not appeal to everyone in the
same way. A great way to customize your rewards for each member is to solicit their input.
Establishing a dialogue with your team to determine what motivates them and what allows them to
think creatively is one of the most effective ways to develop incentives that work for everyone. To
foster innovation in the workplace, you must keep your employees informed about their
compensation.
Culture of acknowledgement
A great leader understands how to foster and inspire an acknowledgment culture in the workplace.
Acknowledgement is a sincere and authentic communication that demonstrates a person's worth
and the significance of their contribution to the organisation. Recognizing and rewarding innovation
in the workplace can inspire teams to achieve even greater heights. Acknowledgement has a variety
of beneficial effects, including providing a sense of self-worth, excitement, joy, a reason for living, a
sense of contribution, high energy, high-quality performance, and exceptional results for the entire
team.
When teams are operating at maximum capacity and innovation is flowing in the workplace, your
teams deserve recognition, and it is your role as their leader to facilitate these powerful and
intimate interactions by recognizing their outstanding work.
Points, prizes, and other perks
Here are several reasons why you should choose to reward workplace innovation with perks. To be
clear, perks are not synonymous with employee benefits (healthcare, insurance, stock options, etc.).
Instead, perks typically consist of something that can help your teams perform better. Typical perks
include a company car, discounted travel, and gym memberships. Consider establishing employee
recognition programs or achievements that recognize entrepreneurial behaviour and innovation in
the workplace.
According to Entrepreneur, 90 percent of HR professionals surveyed about employee programs

reported that they increased employee engagement, 86 percent reported an increase in employee
happiness, and 84 percent reported an improvement in employee relationships.
You can even implement a points-based system that rewards employees for consistently pursuing
innovation in the workplace, resulting in larger rewards and prizes.
Environment for innovation
A simple way to reward innovation in the workplace is to create an environment that fosters
innovation's success. Reward your teams with truly innovative workspaces that encourage greater
productivity, creativity, and development among employees. It is critical to remember that as a

leader, you must value the environment in which your employees work. When teams have access to
an aesthetically pleasing space or areas that they find agreeable and cosy, workplace innovation
increases.
How is this accomplished? Leaders should recognize their teams' innovation by providing
unconventional office spaces, such as recreational areas and uniquely designed workspaces, that
inspire the very innovation being recognized.
Office wide recognition
Peer employee recognition is an excellent way for leaders to recognize workplace innovation. It is all
about your teams recognizing one another for their outstanding work. It is just as critical to be
recognized and rewarded by your peers as it is for employees to be recognized and rewarded by
their leaders.
While 42% of businesses have a peer-to-peer recognition program in place, 82% of employees
believe they are not recognized for their work as frequently as they deserve. To be a great leader,
you must not only recognize your teams' innovative work, but also share that recognition with the
rest of the office. Peer-to-peer recognition has several benefits, including increased motivation,
engagement, and a more positive company culture.
Establish rewards for continuous improvement, innovation, and learning
Activity type Role-play

Activity description It is especially important that all businesses today open the
opportunity for employees to unleash innovation, this will help
prosper a team that works together to create a culture of continuous
innovation that boosts performance.
Perform a role play on taking into consideration how your
workplace has encouraged your team to think differently and
innovatively

Seek and respond to feedback from relevant stakeholders’

systems and processes for continuous improvement,
innovation, and learning
Employees are human, and as such, have a fundamental need to be recognized. While this is true for
all members of your team, it is especially true for millennials. Millennials, now the largest generation
in the workforce, crave feedback more than any other generation. Feedback is associated with a
variety of key performance indicators for businesses, including retention and engagement. Yet
Gallup reports that only 19% of millennial employees receive feedback on a consistent basis, and
only 17% consider the feedback they do receive meaningful. Additionally, only 15% will solicit
feedback, even if they desire more of it.
The good news is that once you have established a weekly one-on-one meeting practice, an ongoing
feedback loop will emerge as a natural by-product of regular communication. Simply ensure that you
listen to teams as much as you give feedback.
To become a better listener, ask open-ended questions such as:
 Which resources do you need (that you do not already have) to complete your goals?
 Which obstacles are getting in the way of your progress?
 What are some wins (big or small) you achieved since we last checked in?
To demonstrate to your teams that you value their input and are committed to their success, always
act on feedback received promptly.
In terms of feedback, give praise in a manner that the employee values the most. For some, this may
occur in a public setting (e.g., during weekly team meetings); for others, a simple "thank you"
message may suffice. Provide constructive feedback that focuses on the behaviour (not the
individual), its consequences, and how the team member can improve the next time.
Always provide timely feedback. Rather than waiting days (or worse, weeks) after the behaviour
occurred – whether positive or negative – provide feedback as soon as possible, while it is still fresh
in the employee's mind. Most importantly, use your one-on-one check-ins and any other
communication systems you may have in place to provide ongoing feedback (feedback apps, for
example) to hold frequent, regular discussions about goals and performance.
Each manager's practices should be tailored to their direct reports' unique needs, but the strategies
outlined above will assist you in establishing clarity, focus, and ongoing communication to keep
teams engaged. By incorporating these practices into your ongoing performance management
system, you can motivate your employees to achieve faster results, which is the best indicator of
your managerial effectiveness.

Seek and respond to feedback from relevant stakeholders’ systems and processes for
continuous improvement, innovation, and learning
Verbal questioning by the trainer
Activity type

Activity description All companies have a feedback system set in place to facilitate
the ongoing performance management system which will drive
people towards accelerated results.
 Describe with examples on the feedback system set in

place at your workplace?
 What are the benefits of having this system and how
effective do you think it is?
 Do you foresee any limitations? Suggest
recommendations for areas you think require
improvement.

References
15 Ideas for Rewarding Innovation in the Workplace (n.d.), Success Factory, Available at: https://
www.thesuccessfactory.co.uk/ blog/11-ideas for-rewarding-innovation-in-the-workplace, Accessed
21 January 2021.
15 most important Innovation Theories your company should be using (n.d.) Idea to Value, Available
at: https://www.ideatovalue.com/ inno/nickskillicorn/ 2017/07/15-most-important-innovation-
theories-your-company-should-be-using, Accessed 09 January 2021.
Benefit-Cost Ratio Formula (n.d.), Educba, Available at: https:/ /www.educba.com/ benefit-cost-
ratio-formula, Accessed 09 January 2021.
Cost-Benefit Analysis, (n.d.), Wall Street Mojo, Available at: https:/ /www.wallstreetmojo.com/ cost-
benefit-analysis, Accessed 09 January 2021.
Four key concepts for effective risk management (2016), Available at: https://www.
continuitycentral.com/ index. php/news/erm news/1402-four-key-concepts-for-effective-risk-
management, Accessed 21 January 2021.
Gill, S. (2016), 10 Principles of Organisational Learning DNA, Available at: http://www.

learningtobegreat. com/blog/ 2016/08/25/10-principles-of-organisational-learning-dna,
How do you Define Innovation and Make it Practical and Saleable to Senior Management? (n.d.),
Innovation Management, Available at: https:/ /innovationmanagement.se/ 2008/01/07/how-do-
you-define-innovation-and-make-it-practical-and-saleable-to-senior-management, Accessed 09
January 2021.
How to Create a Clear Transition Plan? (n.d.), Available at: https: //blog.bit.ai/ how-to-create-a-
transition-plan-for your-business, Accessed 21 January 2021.
Johnson, M. (2020), Is Your Business Keeping up with Modern Workplace Trends?, Available at:
https:/ /instapage.com/ blog/modern-workplace trends, Accessed 21 January 2021.
Kylliäinen, J. (2018) ‘Key Innovation Management Models and Theories, Available at: https://
www.viima.com/ blog/innovation-management-models, Accessed 09 January 2021.
Learn the Theories of Total Quality Management (2010), Bright Hub PM, Available at: https://
www.brighthubpm.com/ methods-strategies/72443 theories-in-total-quality-management-tqm,
Accessed 21 January 2021.
Planning and Operating Variances (n.d.) Available at: https://kfknowledgebank.kaplan.co.uk/

planning-and-operating-variances, 17 June 2021.
Section 1. Developing a Plan for Communication, (n.d.), Community Tool Box, Available at: https://
ctb.ku.edu/ en/table-of-contents/participation/promoting interest/communication-plan/main,
Accessed 21 January 2021.
State of Work: Blur the Edges (n.d.), Available at: https:/ /www.steelcase.com/ research/
articles/topics/workplace/state work-blur-edges, Accessed 21 January 2021.
The key components of a sustainable continuous improvement system, (2020), TRACC, Available at:
https:/ /traccsolution.com/ blog/sustainable-continuous improvement, Accessed 21 January 2021.
Page 128 of
BSBSTR601 – Section 4– Develop workplace culture and tools for continuous improvement, innovation, and learning
The Eight Components of Supply Chain Management, (n.d.), Available at: https://www.
iqualifyuk.com/ library/business-management-section/the-eight-components-of-supply-chain-
management, Accessed 21 January 2021.
Thomas, N. (n.d.), What is a monitoring and evaluation strategy?, Available at: https://
scopetraining.com.au/ project-management/monitoring-evaluation-strategy, Accessed 21 January
2021.
What Is Gap Analysis? 4 Steps and Examples to Use (n.d.) Lucid chart, Available at: https://
www.lucidchart.com/ blog/what-is-gap analysis, Accessed 21 January 2021.
What is innovation? (n.d.), Innolytics, Available at: https:/ /innolyticsinnovation.com/ what-is-

innovation, Accessed 09 January 2021.

BSBSTR601 – Section 4– Develop workplace culture and tools for continuous improvement, innovation, and learning

BSBSTR601 Learner Workbook

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

BSBSTR601 Learner Workbook

Uploaded by

Copyright:

Available Formats

Page 0 of 131

Structure of the workbook

Unit of Competency: BSBSTR601 Manage innovation and continuous improvement

How to use the workbook

Copyrights © 2021 Dynamics Learning Pty Ltd Page 1 of 131

Copyrights © 2021 Dynamics Learning Pty Ltd Page 2 of 131

Icon Activity/Description Icon Activity/Description

Verbal Questioning Presentation

Trainer directs verbal questioning Learner makes presentations

Individual verbal presentation Project work

Learner present learning Learner undertakes project work

Role-play Case study

Copyrights © 2021 Dynamics Learning Pty Ltd Page 3 of 131

1. Application of ideas that are novel and useful

Copyrights © 2021 Dynamics Learning Pty Page 5 of 131

— A. K. Don, Dynamics Learning

Copyrights © 2021 Dynamics Learning Pty Page 6 of 131

Why is innovation so important?

Copyrights © 2021 Dynamics Learning Pty Page 7 of 131

Lopez, J. (2015), Types of Innovation, https://techblog.constantcontact.com/software-

The different types of innovation and The Innovation Matrix

Copyrights © 2021 Dynamics Learning Pty Page 8 of 131

Disruptive vs. sustaining innovation

Radical vs. incremental innovation

‘Only 10% of innovations are revolutionary.'

The Innovation Matrix

Copyrights © 2021 Dynamics Learning Pty Page 9 of 131

Architectural vs. modular innovation

Copyrights © 2021 Dynamics Learning Pty Page 10 of

Business model, technology- and marketing innovations

Copyrights © 2021 Dynamics Learning Pty Page 11 of

Business model innovation

Copyrights © 2021 Dynamics Learning Pty Page 12 of

Different degrees of innovation

Copyrights © 2021 Dynamics Learning Pty Page 13 of

The difference between incremental and disruptive innovation

Managing incremental and disruptive innovation

 Conventional innovation management often does not go beyond incremental innovation:

Disruptive innovation needs different approaches

How to establish an innovation culture

Copyrights © 2021 Dynamics Learning Pty Page 14 of

Methods for managing innovation

 Innovation processes, with which developments are steered by a clearly defined

Activity type Written Task

Activity timing 45 minutes

Copyrights © 2021 Dynamics Learning Pty Page 15 of

What is continuous improvement

 Innovating “how” they do what they do (big and small).

A continuous improvement mindset is predicated on the belief that a steady stream of

Employee involvement is critical in organisations committed to continuous improvement.

Copyrights © 2021 Dynamics Learning Pty Page 16 of

Continual process improvement model

Lean & Continuously Improving

Copyrights © 2021 Dynamics Learning Pty Page 17 of

Value Stream Mapping

Some of the benefits of Kaizen include:

Total Quality Management

Copyrights © 2021 Dynamics Learning Pty Page 18 of

Activity type Written Task

Activity timing 45 minutes

1. Briefly explain what continuous improvement and the

Copyrights © 2021 Dynamics Learning Pty Page 19 of

Cost-benefit analysis methods

Scenarios Utilizing Cost Benefit Analysis