Continuous Improvement

BSBMGT608 Manage innovation and

continuous improvement
Session 2

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Purpose of this presentation
At the end of this session, you should be able to:
 brief groups on performance improvement
strategies and innovation as an essential element
of competition
 foster creative climate and organisational
learning by promoting interaction within and
between work groups
 encourage, test and recognise new ideas and
entrepreneurial behaviour where successful.
© 2015 Innovation and Business Industry Skills Council Ltd
Purpose of this presentation (cont.)
 accept failure and of an idea during trialling and
recognise, celebrate and embed success into
systems
 undertake risk management and cost-benefit
analysis for each option or idea approved for trial
 approve innovations through agreed
organisational processes.

© 2015 Innovation and Business Industry Skills Council Ltd

Continuous improvement theories
 Plan-Do-Check-Act Cycle (PDCA)

 Total Quality Management (TQM)

 Kaizen

 Six Sigma

 Lean Manufacturing/Production.

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Strategies
Performance improvement strategies could include:
process re-engineering

implementing technology or equipment

training.

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Create a culture of innovation
A creative climate is one where team members are:
 highly motivated

 experienced and/or experts in their field

 allowed time for creative thinking

 encouraged to deliberate and think laterally.

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Barriers to creativity
 obstacle thinking

 habit

 other people

 the environment.

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Fostering creativity
Communication is the key – talk about innovation
and continuous improvement:
 recruitment interviews

 team meetings

 employee forums

 newsletters.

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Organisational learning
A culture of innovation can be achieved through:
 learning and development opportunities

 focus groups.

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Managing new ideas
Successful programs are documented and provide a formal
framework for:
capturing ideas
discussing ideas
assessing the costs
obtaining approval
implementing ideas
assessing success
rewarding those involved.

© 2015 Innovation and Business Industry Skills Council Ltd

Accept failure
Recognise and accept failure before too much time
and money is invested into the idea:
 set timeframes for testing new ideas

 set investment parameters

 conduct post-trial reviews before moving on.

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Celebrate and embed success
Organisations celebrate success in many different
ways, including:
 public recognition in meetings, newsletters,
emails, etc.
 financial reward

 certificates and awards

 opportunities to participate in future

implementation projects.
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Assess ideas
Risks to the organisation for implementing new
ideas can include:
 increased operating costs

 interruption of service to customers

 unhappy employees.

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Cost benefit analysis
A cost benefit analysis is completed using the
following steps:
 state the ideas you are assessing

 determine the risks and costs

 identify the possible benefits of each idea

 assess the outcomes against the set criteria

 decide which ideas are feasible.

© 2015 Innovation and Business Industry Skills Council Ltd

Approval
When submitting innovations for approval it is
important that the submission clearly outlines:
 how the innovation will improve organisational
performance
 how the innovation links to the organisation’s
strategic and operational plan goals
 details of risk assessments
 details of completed cost-benefit analysis
 details of how the innovation will be implemented.

© 2015 Innovation and Business Industry Skills Council Ltd

The next steps
You should now:
 read Section 2 of the Student Workbook

 complete the self-paced activities in Section 2 of

the Student Workbook before the next session.

© 2015 Innovation and Business Industry Skills Council Ltd