BSBMGT608 Manage Innovation and Continuous Improvement - Learner Resource

BSBMGT608 Manage
innovation and
continuous improvement
– Learner Resource
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Student Name
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BSBMGT608 Manage innovation and continuous improvement 1

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APPLICATION
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.
It applies to people 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.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
UNIT SECTOR
Management and Leadership – Management

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ELEMENTS AND PERFORMANCE CRITERIA
ELEMENT PERFORMANCE CRITERIA

ELEMENTS DESCRIBE THE PERFORMANCE CRITERIA DESCRIBE THE PERFORMANCE NEEDED TO
ESSENTIAL OUTCOMES. DEMONSTRATE ACHIEVEMENT OF THE ELEMENT.
1.Review programs, 1.1 Establish strategies to monitor and evaluate performance and
systems and processes sustainability of key systems and processes
1.2 Undertake detailed analyses of supply chains, and operational,
product and service delivery systems
1.3 Identify performance measures, and assessment tools and
techniques, and evaluate their effectiveness
1.4 Analyse performance reports and variance from plans for key result
areas of the organisation
1.5 Identify and analyse changing trends and opportunities relevant to
the organisation
1.6 Seek advice from specialists, where appropriate, to identify
technology and electronic commerce opportunities
2. Develop options for

2.1 Brief groups on performance improvement strategies and
continuous improvement
innovation as an essential element of competition
2.2 Foster creative climate and organisational learning by promoting
interaction within and between work groups
2.3 Encourage, test and recognise new ideas and entrepreneurial
behaviour where successful
2.4 Accept failure of an idea during trialling and recognise, celebrate
and embed success into systems
2.5 Undertake risk management and cost-benefit analysis for each
option or idea approved for trial
2.6 Approve innovations through agreed organisational processes
3.Implement innovative
processes 3.1 Promote continuous improvement and sustainability as essential to
doing business
3.2 Address the impact of change and consequences for people and
implement transition plans
3.3 Ensure objectives, timeframes, measures and communication plans
are in place to manage implementation
3.4 Implement contingency plans in the event of non-performance
3.5 Follow up failure by prompt investigation and analysis of causes
and manage emerging challenges and opportunities effectively
3.6 Ensure that learnings from activities are captured and managed to
inform future work
3.7 Regularly evaluate continuous improvement systems and processes
3.8 Communicate costs and benefits of innovations and improvements
to relevant groups and individuals

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FOUNDATION SKILLS

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THIS SECTION DESCRIBES LANGUAGE, LITERACY, NUMERACY AND EMPLOYMENT SKILLS

INCORPORATED IN THE PERFORMANCE CRITERIA THAT ARE REQUIRED FOR COMPETENT
PERFORMANCE.
Skill Performance Description

Criteria
Learning 3.6  Plans and implements strategies to review and improve
own performance.
Reading 1.1-1.5, 2.5, 2.6, 3.2-
 Analyses, evaluates and integrates facts and
3.5, 3.7
ideas to construct meaning from a range of text
types.
Writing 1.1-1.5, 2.1, 2.5, 3.2,
 Integrates information and ideas from a
3.3, 3.5, 3.6, 3.7, 3.8
range of sources, utilising appropriate support
materials
 Communicates complex relationships
between ideas and information, matching style of
writing to purpose and audience.
Oral 1.6, 2.1-2.4, 3.1, 3.5,  Participates in a variety of spoken exchanges with
Communication 3.8 co-workers and stakeholders when developing
options and implementing the continuous
improvement plan.
Numeracy 1.1-1.5, 2.5, 3.3  Selects and interprets mathematical information to
analyse performance
 Performs calculations required to establish
timeframes, cost-benefits and measures for
continuous improvement and innovation processes.
Navigate the work 2.6  Adheres to organisational policies and procedures
of work and considers own role in terms of its contribution
to broader goals of the work environment.
Interact with 1.6, 2.1-2.4, 3.1, 3.5,  Recognises the importance of taking audience,
others 3.8 purpose and contextual factors into account when
making decisions about what to communicate, with
whom, why and how
 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.

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Get the work done 1.1, 1.2, 1.3, 1.5,  Plans, organises, implements or reviews
1.6, 2.3, 2.4, 2.5, organisational strategies, systems and processes
3.1, 3.2, 3.3, 3.4,  Applies problem-solving processes to identify
3.5, 3.7 risks, evaluate options and determine solutions
 Uses lateral and analytical thinking to evaluate

options against needs, resources and constraints
before making decisions
 Facilitates a climate in which creativity and
innovation are accepted as an integral part of
achieving outcomes
 Recognises that the current way is only one way
of doing something and explores possibilities
that challenge current approaches
 Actively identifies systems, devices and
applications with potential to meet current and or
future needs, with the help of specialists.

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Table of Contents
Unit of Competency...............................................................................................................................5
Application..........................................................................................................................................5
Performance Criteria...........................................................................................................................6
Foundation Skills.................................................................................................................................7
Assessment Requirements..................................................................................................................9
1. Review programs, systems and processes........................................................................................11
1.1 – Establish strategies to monitor and evaluate performance and sustainability of key systems and
processes..............................................................................................................................................12
Establishing the most suitable strategies for your business..............................................................12
Monitoring financial performance....................................................................................................12
Considering other business factors...................................................................................................12
Activity 1A.........................................................................................................................................14
1.2 – Undertake detailed analyses of supply chains, and operational, product and service delivery
systems.................................................................................................................................................15
The supply chain process..................................................................................................................15
Analysing supply chains.....................................................................................................................15
Analysing operational systems..........................................................................................................16
Considering the effectiveness of product and service delivery systems...........................................16
Activity 1B.........................................................................................................................................17
1.3 – Identify performance measures, and assessment tools and techniques, and evaluate their
effectiveness.........................................................................................................................................18
What are the performance measures?.............................................................................................18
Evaluating the use of performance measures...................................................................................19
Additional assessment tools and techniques....................................................................................20
Activity 1C.........................................................................................................................................21
1.4 – Analyse performance reports and variance from plans for key result areas of the organisation. 22
Analysing performance reports.........................................................................................................22
Activity 1D.........................................................................................................................................24
1.5 – Identify and analyse changing trends and opportunities relevant to the organisation................25

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Researching and identifying key trends and opportunities...............................................................25

Appropriate methods of trend analysis.............................................................................................25
Data management tips......................................................................................................................26
Making the most of your data...........................................................................................................26
Activity 1E.........................................................................................................................................27
1.6 – Seek advice from specialists, where appropriate, to identify technology and electronic
commerce opportunities.......................................................................................................................28
Digital specialists...............................................................................................................................28
Enlisting the advice and service of digital experts.............................................................................28
Various digital opportunities.............................................................................................................29
The potential for e-commerce..........................................................................................................29
Activity 1F..........................................................................................................................................30
2. Develop options for continuous improvement.................................................................................31
2.1 – Brief groups on performance improvement strategies and innovation as an essential element of
competition...........................................................................................................................................32
Briefing groups on performance improvement strategies................................................................32
Choice of briefing methods...............................................................................................................32
Encouraging innovation in the workplace.........................................................................................33
Establishing rapport..........................................................................................................................33
Activity 2A.........................................................................................................................................35
2.2 – Foster creative climate and organisational learning by promoting interaction within and
between work groups...........................................................................................................................36
Fostering a creative climate..............................................................................................................36
Organisational learning.....................................................................................................................37
The different types of work groups...................................................................................................38
Additional benefits of interaction and collaboration in the workplace.............................................38
Activity 2B.........................................................................................................................................40
2.3 – Encourage, test and recognise new ideas and entrepreneurial behaviour where successful......41
New ideas..........................................................................................................................................41
What is entrepreneurial behaviour?.................................................................................................42
The benefits of entrepreneurial behaviour.......................................................................................42
Testing and evaluating ideas.............................................................................................................42
Rewarding the generation of ideas and entrepreneurial behaviour.................................................43
Activity 2C.........................................................................................................................................44

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2.4 – Accept failure of an idea during trialling and recognise, celebrate and embed success into
systems.................................................................................................................................................45
Accepting failure...............................................................................................................................45
Trialling business ideas......................................................................................................................45
Defining failure..................................................................................................................................45
Promoting the culture of innovation.................................................................................................46
Recognising and celebrating successful innovation..........................................................................46
Ways of embedding success into systems.........................................................................................46
Activity 2D.........................................................................................................................................47
2.5 – Undertake risk management and cost-benefit analysis for each option or idea approved for trial
..............................................................................................................................................................48
Risk management and cost-benefit analysis.....................................................................................48
Cost benefit analysis.........................................................................................................................49
Activity 2E.........................................................................................................................................50
2.6 – Approve innovations through agreed organisational processes...................................................51
Approving innovations......................................................................................................................51
Evaluation of the process..................................................................................................................51
Bottlenecks in the decision-making process......................................................................................52
The importance of flexibility.............................................................................................................52
Activity 2F..........................................................................................................................................53
3. Implement innovative processes......................................................................................................54
3.1 – Promote continuous improvement and sustainability as essential to doing business.................55
Promoting continuous improvement................................................................................................55
The promotion of continuous improvement.....................................................................................56
Why is continuous improvement essential for your business?.........................................................56
Ensuring the sustainability of your business.....................................................................................56
Activity 3A.........................................................................................................................................57
3.2 – Address the impact of change and consequences for people and implement transition plans. . .58
3.3 – Ensure objectives, timeframes, measures and communication plans are in place to manage
implementation....................................................................................................................................58
Addressing change and implementing transition plans.....................................................................58
Analysing the negative impacts of change........................................................................................59
What are transition plans and how should they be implemented?..................................................59
Setting objectives for change............................................................................................................59
Developing reasonable timeframes..................................................................................................60

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Creating effective communication plans...........................................................................................60

Effectively measuring the impact of change.....................................................................................61
Activity 3B.........................................................................................................................................62
3.4 – Implement contingency plans in the event of non-performance.................................................63
The purpose of contingency planning...............................................................................................63
Writing a contingency plan...............................................................................................................63
Contingency planning tips.................................................................................................................64
Activity 3C.........................................................................................................................................65
3.5 – Follow up failure by prompt investigation and analysis of causes and manage emerging
challenges and opportunities effectively..............................................................................................66
Investigating and analysing causes of failure....................................................................................66
Considering the impact of failure......................................................................................................66
The importance of prompt follow-up action.....................................................................................66
Root cause analysis...........................................................................................................................67
Fishbone diagrams and Catwoe........................................................................................................67
Managing emerging challenges.........................................................................................................68
Managing emerging opportunities....................................................................................................68
Activity 3D.........................................................................................................................................69
3.6 – Ensure that learnings from activities are captured and managed to inform future work............70
Capturing learning from activities.....................................................................................................70
The effective management of business information.........................................................................71
Activity 3E.........................................................................................................................................72
3.7 – Regularly evaluate continuous improvement systems and processes.........................................73
3.8 – Communicate costs and benefits of innovations and improvements to relevant groups and
individuals.............................................................................................................................................73
Appropriate means of evaluation......................................................................................................73
Communicating the costs and benefits of innovations and improvements......................................73
Communicating with employees.......................................................................................................74
Communicating with customers........................................................................................................74
Communicating with other stakeholders..........................................................................................74
Activity 3F..........................................................................................................................................75
Summative Assessments.......................................................................................................................76
References............................................................................................................................................77

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TOPIC 1- REVIEW PROGRAMS, SYSTEMS

AND PROCESSES
ESTABLISH STRATEGIES TO MONITOR AND EVALUATE
PERFORMANCE AND SUSTAINABILITY OF KEY SYSTEMS AND
PROCESSES
Establishing the most suitable strategies for your business

It will be necessary to analyse your business systems and processes for the identification of
improvement strategies. You should consider the ways in which innovation is actively promoted and
practised within your workplace. It will also be important to analyse the methods of manufacturing and
distributing products to your customers. All of the practices should be streamlined and optimised in
order to maximise the chances of meeting your business objectives.
You should consider the specific nature of your business when choosing the best strategies for
monitoring and evaluate performance. Time should be taken to outline the various options and discuss
appropriate strategies during business meetings. Each of your employees should have the opportunity
to voice their opinions and all feedback should be taken into account. The improvement strategies will
be most effective if everybody is in agreement about their implementation.
Effective business management will involve the monitoring and evaluation of performance, in
accordance with your organisational goals. You may have established key performance indicators (KPIs)
relating to the amount of money that is being generated and the levels of customer satisfaction.
Managers may need to change and adopt new strategies if the targets aren’t being met.
Consider the smart acronym when developing new objectives:

 Specific
 Measurable
 Achievable
 Realistic
 Time specific.

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Monitoring financial performance

Effective financial management will be essential for the sustainability and growth of your business. You
may take the opportunity to measure performance budgets against actual expenses or compare the
past with current profits. You should account for the various types of income and expenditure. Enough
cash flow should be generated for the maintenance and growth of your business.
Considering other business factors

The performance of your business shouldn’t be measured purely in financial terms. You should consider
the effects of training upon efficiency. It is also necessary to consider the level of innovation within your
business. Consider any success that has been enjoyed subsequent to the development and release of
brand new products and services. Compare your growth in particular markets against rival businesses.
Conduct regular surveys to gauge the level of customer satisfaction and think about whether you have
responded appropriately to any feedback.
You are encouraged to use the following methods of analysis and evaluation:
 Benchmarking – This will involve the comparison of your business against rivals, both
within, and outside your target market. You should consider the respective strengths
and weakness of any systems and processes that have been implemented. The levels of
performance should be measured over a defined time period
 Financial analysis - You can measure debts,

liquidity and net profit margins as a means of
ascertaining the impact of key systems and
processes
 Questionnaires and interviews – You may question

customers and employees for perspectives on the
performance of your business. They might provide
feedback on suitable means of improving
efficiency or satisfying specific needs
 Mystery shopping visits – If you want a realistic perspective of everyday business

operations then it would be worth carrying out mystery shopping visits. You’ll find
numerous market research companies offering mystery shopping services and
guaranteeing the production of detailed business reports
 Social media monitoring – You may build a presence on various social media networks
and follow the profiles of your business customers for feedback on performance
 Business meetings – You should ask your employees to regular meetings and encourage
them to provide perspectives on business efficiency and performance. They might
identify causes for concern and solutions that hadn’t previously been considered
 Quantitative employee analysis – Quantitative research will allow you to gain a variety
of valuable insights regarding the performance of your employees. Consider the impact
of procedural changes on productivity. Take account of sales, contribution, and profit
directly attributable to the work of each employee.

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UNDERTAKE DETAILED ANALYSES OF SUPPLY CHAINS, AND

OPERATIONAL, PRODUCT AND SERVICE DELIVERY SYSTEMS
The supply chain process

The supply chain process typically involves following stages:
1
Supply of goods and equipment
2
Factory based production
3
Warehouse storage
4
Distribution to the customers
Analysing supply chains

It is very important to analyse and consider the efficiency of the supply chain process. You are
encouraged to map out the various stages, specific to your business. Consider the speed of transporting
essential equipment and the cost of raw materials. Think about the efficiency of your chosen methods
of production. Consider your ability to respond to different kinds of customer orders. There’s a good
chance that you’ll identify areas of improvement and bottlenecks, which must be resolved. Appropriate
action should be taken, to maximise the potential for customer satisfaction, and ensure desirable
business profits.
Rules for the delivery of products and services:

 You should make every effort to maintain consistency with regards to production and
distribution of goods. Customers are likely to remain loyal, as long as you can
guarantee reliability
 It will be necessary to maintain standards with regards to the production and delivery
of quality products. Your employees should abide by common policies and follow the
procedural rules.
Analysing operational systems

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There are a variety of operational systems, which result in the delivery of specific products to your
customers. You have to account for the ways in which products are made, packaged, and stored within
your premises. Specific processes must be comprehensively analysed in order to identify ways of
minimising cost and ensure that all business resources are used
effectively. Each operational process should be optimised for the purpose
of adding value to the business. You should identify any time-consuming
processes and problems which prevent your employees from working
efficiently. Steps should be taken to streamline the process for increased
customer satisfaction. It might be possible to automate tasks which prove
particularly mundane and physically challenging. You could improve the
quality of your business offerings for enhanced profitability and growth.
Considering the effectiveness of product and service delivery systems

The success of your business will undoubtedly rely upon the successful delivery of products or services.
You may have the technical expertise required to manufacture high-quality goods for dispatch and sale
at a major outlet. Alternatively, you may have responsibility for ensuring the timely delivery of products
to a variety of national and international customers. It would be advisable to analyse the management
and distribution of stock specific to your business. The advantages and disadvantages of your business
location may also be taken into account. You may identify the need to move closer to your customers or
make use of external distribution services for improved efficiency. You might also find that it is cost
effective to outsource the production of certain business items. However, you shouldn’t take any action
that may compromise the quality of your business offerings.

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IDENTIFY PERFORMANCE MEASURES, AND ASSESSMENT TOOLS

AND TECHNIQUES, AND EVALUATE THEIR EFFECTIVENESS
What are the performance measures?

Performance measures are used to ascertain the effectiveness of key businesses processes and
procedures. Different measures may be used, depending upon the nature of your business. Those
companies aiming to produce large quantities of low-cost products will be focussed on manufacturing
speed and efficiency. However, luxury brands may be more concerned with production standards and
customer relations. The managers of large organisations are likely to rely upon performance
measurement tools and control systems for the organisation of essential company data. They may use
computers and other advanced forms of technology for analysis and evaluation of performance.
Reasons for monitoring performance:

 To identify methods of improvement
 To enhance the chances of business success
 To ensure that businesses practices and procedures are undertaken, in accordance with
primary objectives
 To identify employees who are performing and under-performing.
You may choose to measure the effectiveness of business activities against your key performance
indicators. Criteria such as cash flow, productivity, delivery times, customer complaints, and product
returns may all be analysed over a specific period of time. You may also look for evidence of employee
loyalty and productivity.
You might consider the use of a rating system, as outlined below:
Performance Fails to meet Satisfies Satisfies Partially Completely

criteria expectations expectations expectations exceeds exceeds
to an extent requirements expectations
Standard of
work
Level of
responsibility
Professional
understanding

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Attitude
Evaluating the use of performance measures

You may use the following criteria when deciding upon the appropriate use of
performance measures:
 Consistency and verifiability
 Relevance of findings, in accordance with your business objectives
 The potential for improvement, based on the findings.
SWOT analysis
You will consider your business strengths, weaknesses, opportunities, and threats when performing a
SWOT analysis. Internal and external factors may be included in the different categories. Strengths may
include the financial position of your business and the quality of your products. If your business is
relatively small, then this may be considered a weakness. However, you may have opportunities for
growth in particular markets. Urgent action may be necessary if you are to mitigate the threat of the
competition. You should decide which factors of the SWOT analysis are most important and which
issues need addressing at the earliest opportunity.
Process mapping
Process mapping is a good way of finding out the effectiveness of procedures carried out within your
organisation. You should consider various inputs, outputs, resources, and process controls. Every stage
of production must be thoroughly analysed as you are expected to identify any bottlenecks and means
of improvement. It may be worth eliminating processes that don’t add any value to your business.
Here is a basic example of a process map:
Raw materials
Raw materials Products packaged
converted using
recieved in the warehouse
factory equipment
Products distributed Products Products organised

to international transferred to the for next-day
customers loading bay shipment

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Management by objectives
This is a method of measuring employee performance against core business objectives. It involves a
preliminary meeting, where the objectives and appropriate timescales for achievement are agreed.
Regular meetings are scheduled for evaluation and adjustment of goals in accordance with the
employee’s performance. The aim is to ensure the timely and effective completion of business
objectives. However, managers may deem it necessary to review and alter the plans on a regular basis.
Forced ranking
Employees are grouped into categories of achievement when carrying out the forced ranking process. It
is typical for 20% to be categorised as high-achievers, 70% as average achievers, and 10% as
underachievers. The performance of employees within the different groups is measured over time. This
is a proven way of encouraging competitiveness. However, the employees may feel that they are being
unfairly categorised and that their efforts aren’t being fully recognised. It can cause resentment and
divisions within the workforce.
Additional assessment tools and techniques

Brainstorming
Brainstorming is a particularly effective method of building business strategies and
identifying solutions to problems. You are encouraged to conduct brainstorming
activities as a team. Each of the participants should be encouraged to make
contributions and there shouldn’t be any fear of ridicule. The ideas can be
recorded on large paper documents or grouped on charts. You’ll find that a
variety of interesting and potentially valuable ideas flow from the central
theme. You may use differently coloured pens and incorporate images as a
stimulus for fresh ideas. The best and most realistic ideas should be recorded and
action should be taken after the brainstorming session.
Trend analysis
Trend analysis involves consideration of various trends, relevant to your business. It allows you to
identify the events and changes which have already occurred and made projections about the future.
You may consider the potential for business growth or strategies that may be developed for the
improvement of an essential process. However, unexpected events may not be in correlation with
projected trends.

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ANALYSE PERFORMANCE REPORTS AND VARIANCE FROM PLANS

FOR KEY RESULT AREAS OF THE ORGANISATION
Analysing performance reports

There are various performance reports which may be used to highlight organisational development.
Management may rely upon the production and analysis of such reports when considering the potential
completion of business objectives and achievement of increased market share. There may be an
additional evaluation of staff performance and business profits. It will be necessary to define an amount
of time for the analysis and consider any trends that are identified. Strategies may be developed to limit
the amount of variation from your core business aims.
The analytical steps should include:

 Identification of key performance indicators
for a particular aspect of your business
 Accumulation of key data and formulation of

reports, based on pre-determined aims
 Preparation of reports, in accordance with

organisational standards
 Comparison of results (you might use

benchmarking, or compare results from two defined periods)
 Analysis of the reasons for variance.
You may reference the following reports:

 Budget/cost variance – These reports highlight differences in the amounts of
money that have been allocated and spent on business items and processes. The
variance is deemed favourable when businesses don’t spend the amounts that have
been budgeted. However, unfavourable variance occurs when businesses overspend
 Customer service – Organisations are able to draw upon various sources of

information regarding customer service. They may consider the effectiveness of
strategies used when responding to feedback. There may also be analysis of the
amounts that have been spent by different customers
 Environmental – It is very common for modern-day businesses to create policies

and organise procedures for the minimum environmental impact. The consumption of
energy, efficiency of business processes, and impact of recycling initiatives may be
taken into account
 Financial – Effective financial management is essential for business

sustainability. The basic analysis might focus on expenditure and income during defined

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periods of time. Business managers may also be concerned with the cost-effectiveness
of training and speed of financial transfers
 Workplace health and safety – Businesses are expected

to implement safeguards and strategies to limit the prospect of
injuries within the workplace. Considerations may include the
number of injuries which have happened when using industrial
equipment or the number of sick days taken during a specific
period. The findings of health and safety inspections must also
be taken into account
 Quality – The delivery of quality products and services

will be essential to the success of any business. You may be
interested in finding out the percentage of products which meet
required standards upon initial production. The analysis may
also focus on the number of returns and reasons for customer complaints.

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IDENTIFY AND ANALYSE CHANGING TRENDS AND OPPORTUNITIES

RELEVANT TO THE ORGANISATION
Researching and identifying key trends and opportunities

The analysis of trends and opportunities will be essential if you are to strengthen your position in a
particular industry. You might identify a downward trend in customer preference for certain products.
Alternatively, you may discover that a change of business operation has stimulated significant financial
growth. Such trends should have a significant bearing on the business decisions that you make.
There are various methods and resources that can be used for the identification of business trends. You
might discover important information in magazines and newspapers related to your industry. It is also
important to reference internal data. Consider the level of profit attributable to the sale of different
products and services. Analyse changes in the cost of manufacturing processes and the effects of hiring
skilled employees. If you’d like further information about business trends, then it would be worth
attending major events and networking sessions. The details of business trends should be recorded for
later reference. You may consider the use of digital tools such as Flipboard and Evernote.
It is important to consider the trends that have the greatest significance to your business. Consider the
link between your primary objectives and any developments in your industry. Pay particular attention to
opportunities and threats that are bound to directly impact your sales, costs, and cash flow.
Appropriate methods of trend analysis

You should have routine systems for monitoring and evaluating key trends. Time should be taken to
consider the data that has the greatest relevance to your business. You must also identify the scale of
variation which should prompt further investigation. The reasons for significant change should be
carefully considered and action should be taken for the good of your business.
You may adopt the following methods:

 Past trend analysis – Considering current trends in
light of past data
 Internal trend analysis – Accounting for different

types of trends within your business (you may
consider the relative efficiency of manufacturing
processes or the impact of training on productivity)
 External trend analysis – Paying attention to

external factors which are likely to have an impact
on the success of your business (you may identify
trends such as the increased use of technology, or
fluctuations in the various forms of tax)

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Data management tips

It will be necessary to maintain an organised data management system if you are to ensure the
effectiveness of trend identification and analysis. Employees should be aware of the rules and
procedures which may be followed when recording certain types of information. It will be important to
maintain accurate records regarding finance and the performance of employees. Different forms of
internal and external research should be carried out on a routine basis. You should also take steps to
limit the prospect of discrepancies when analysing important business data. Be aware that inflation may
have a bearing on any financial information that you record. And take account of any significant changes
in the industry when analysing your data.
Making the most of your data

There are various tools that can be used for the effective presentation of
business data. You might outline key information in tables and use graphs to
show how events have progressed over time. It is also important to account
for the relationship between different types of data. You may discover a
correlation between the employment of staff members and business profits.
Increases in government tax may have had an impact on the growth of your
company. The data will be most informative if it is collated and presented
effectively.

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SEEK ADVICE FROM SPECIALISTS, WHERE APPROPRIATE, TO

IDENTIFY TECHNOLOGY AND ELECTRONIC COMMERCE
OPPORTUNITIES
Digital specialists
Modern day businesses must capitalise on the broad range of technological opportunities for the best
chance of success. It will be necessary to draw upon the knowledge of specialist workers, who are either
employed on a full-time basis or hired for specific projects. However, detailed briefs and regular
meetings will be necessary to ensure that everybody is on the same page when it comes to digital
strategy.
These digital specialists will be of particular assistance:

 Business strategy consultants – They will work in
combination with members of senior management to
identify opportunities and develop strategies for the short
and long term
 Information technology consultants – They will

provide assistance in the establishment of business
networks and harness the latest tools for enhanced data
management and communication
 SEO experts – They will assist in the development

of strategies for enhanced organic and paid search
rankings
 Digital marketing specialists – They will provide advice on the use of social
media and digital advertising streams appropriate to the business.
Enlisting the advice and service of digital experts

If you decide that it is necessary to hire skilled digital workers, then it will be important to advertise in
the right places. You could pay for job listings on websites and within magazines relevant to your
industry. Alternatively, you may use the services of professional recruiters in your area.
If you’re looking for help on specific projects, then it would be worth carrying out web searches for local
experts. You may pose questions on digital forums and ask fellow business people for their
recommendations. Alternatively, you could read books and research information on quality websites for
the purpose of creating your own digital campaigns. However, it will take a considerable amount of time
and dedication to develop the digital skills required.

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Various digital opportunities

You may be surprised by the great variety of digital opportunities specific to your line of business. It
would be advisable to restrict the selection to opportunities which match up with your primary business
objectives.
Consider the following strategies and methods of digital promotion:

 Development of software specific to a particular business need
 Integration with different types of digital technologies (particularly mobile phones and
tablets)
 Minimising your business costs through the

employment of remote workers (consider the use of
digital freelance employment platforms)
 Using video conferencing software to maintain

communication with workers in various locations
 Providing real-time online support
 Utilising cloud computing technologies, for enhanced

data storage, and protection
 Marketing products and services via popular social

media networks (Facebook and Twitter are valuable
platforms for digital communication)
 Differentiation through the development of unique content (consider the creation of

blogs, videos, infographics and other forms of engaging content)
 Website optimisation/development in accordance with the interests and desires of

your digital audience
 Researching and analysing the behaviour of digital competitors and customers (you
could use advanced analytics technology and develop strategies for increased
engagement)
The potential for e-commerce

Leading digital researchers have forecast significant increases in the number of business transactions
completed online over the coming years. You are encouraged to follow the digital trend and create
targeted e-commerce strategies. You could give prospective customers the opportunity to buy products
directly from your website. Alternatively, you may use the highly popular third-party e-commerce
platforms. Carry out digital research and send email marketing communications, including links to your
most popular product pages. Or pay for targeted advertising on the major search engines. The potential
for digital sales is considerable, depending on the selection of e-commerce advertising methods suitable
for your business.

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TOPIC 2- DEVELOP OPTIONS FOR

CONTINUOUS IMPROVEMENT
BRIEF GROUPS ON PERFORMANCE IMPROVEMENT STRATEGIES

AND INNOVATION AS AN ESSENTIAL ELEMENT OF COMPETITION
Briefing groups on performance improvement strategies

Regular and clear communication is essential, to ensure that all team members are striving to meet
common organisational goals, and combine skills in the aim of performance improvement.
It will be necessary to communicate with the following groups:

 Project groups – Comprising workers of different skills
and responsibilities who combine for the purpose of
completing specific projects
 Cross-functional groups – Comprising workers of

distinct skills and business purposes
 Self-directed work groups – Comprising variously skilled

workers who assume responsibility for different
aspects of project management and don’t necessarily
require the approval of supervisors.
Choice of briefing methods

There are different ways of briefing the distinct business groups. Time may be allocated for traditional
business meetings and consultations during the working day. Emails can be sent and notes left to
remind workers of their responsibilities. There’s even the option of using advanced video-conferencing
technology. It is worth taking the time to plan and review any messages for clarity and general
understanding.
Performance improvement briefs

All employees should be aware of the shared responsibility for performance improvement. The briefs
should include details of the appropriate means of reducing waste and streamlining operational
business processes.
Types of performance improvement strategies:

 Maintain positive streams of communication and take account of any feedback
 Inform employees of the ways in which they are contributing

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 Set challenges and grant increased responsibility to your employees
 Make it clear that you have faith in the worker’s capabilities and allow them to take
reasonable risks
 Offer rewards for incremental improvements and major innovations
 Allocate time and money for employee training and development
 Provide appropriate professional and personal support.
Encouraging innovation in the workplace

Innovation is essential if businesses are to stand out and grow. It can take a number of forms, including
the production of unique products, and development of outstanding customer service. All employees
should be encouraged to provide suggestions for innovation and feedback on processes that are being
undertaken.
They should be encouraged to adopt the following strategies:

 Learn lessons from the competition
 Share ideas and try new methods, despite elements of risk
 Read and consult third-party experts for advice on business development
 Carry out preliminary tests on a small scale
 Take the opportunity to expand horizons and seek fresh perspectives
 Collaborate and partake in business competitions focussed on innovation.
Businesses may enjoy the following benefits upon the successful promotion of
innovation:
 Production of high-quality products and increased profitability
 Increased staff loyalty and commitment
 Enhanced efficiency in the use of professional resources
 Increased flexibility and adaptability.
Establishing rapport
Creating rapport is about using your interpersonal skills to communicate effectively with different
people to build a relationship. If you have good interpersonal skills, you will usually be able to talk with
ease to a variety of people with differing backgrounds and at a wide
range of levels. Your communication will be confident, eloquent and
adaptable to suit different situations. Establishing rapport can help to
encourage a continuous improvement culture in the workplace.
People are more likely to listen to you, be motivated by you and come
to you with ideas for improvements.

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To establish rapport:
 Try and find something you have in common
 Use positive, confident and co-operative language.
 Be interested in what people are saying and ask questions to demonstrate this
 Interpret non-verbal and verbal messages and react accordingly or mirror their body
language
 Your use of language, verbal or non-verbal – try to be accommodating and adapt your
style
 Be aware of cultural differences:
o Different cultures and communities have different euphemisms and accents,

which you should bear in mind when speaking.
o English can potentially be a second language.
o Some words, terms and phrases may be offensive.

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FOSTER CREATIVE CLIMATE AND ORGANISATIONAL LEARNING BY

PROMOTING INTERACTION WITHIN AND BETWEEN WORK GROUPS
Fostering a creative climate

An employee should feel inspired to exercise their full range of professional skills and develop new ideas
when working in a creative climate. They should feel motivated by the challenge of meeting and
exceeding the company objectives from one day to the next. There won’t be a great deal of fear over
the possible repercussions of failed innovation. The staff will be encouraged to maintain broad horizons
and achieve their full potential when working on projects.
Business owners can boost the chances of creativity by employing the following
strategies:
 Rewarding employees for their creativity and implementing outstanding ideas
 Giving employees the opportunity to contribute ideas privately, without fear of

ridicule
 Establishing innovation teams, for the purpose of working on specific projects
 Being prepared to listen
 ten and assess the merits of new ideas
 Organising informal events and developing a sense of fun within the

organisation.
Creativity theories
There are many different theories of creativity – for example, psychoanalytic theory, addiction theory,
mental illness, humanistic, etc.
We will explore two of these in more detail:

 The psychoanalytic theory states that people become creative as a reaction to a
difficult situation/circumstances and/or repressed emotions. It is argued that ‘as
situations become difficult or they go through a traumatic event people pull back from
their surroundings. They then rely on their creative side to find a solution to the
difficult situation or as an outlet for their now repressed emotions’.
 The humanistic theory of creativity offered by Maslow suggests that humans

have six basic needs. These needs need to be met before we can reach our full
potential. Once these needs are met, we can reach self-actualization and are now free
and comfortable enough to express ourselves in a creative manner. Maslow divided
creativity into three types:

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o primary creativity – this allows us to escape from the stress of day to

day life by channelling this stress into creative art such as painting, drawing,
sculpture and writing. It is a more spontaneous form of creativity.
o secondary creativity requires a higher level of thought to achieve. It

tends to be more thought out and involved than primary creativity. These forms
of creativity are more thought out prior to commencement.
o integrated creativity, on the other hand, comes from combining both of

the above forms. Although it may be spontaneous when we commence our
creative work a lot more thought has gone into what we hope to achieve before
we begin. This form is believed to be the basis of most of the great art,
philosophy and scientific discoveries or achievements.
Source: The five major theories of creativity,

http://www.ripperdesignandmultimedia.com/2013/03/26/the-five-major-theories-of-creativity/
Organisational learning
Organisational learning refers to the analysis of other people’s professional behaviour and the exchange
of ideas. Businesses that actively promote this concept give their employees the best chance of learning
about everything, from production processes to strategies for improvement. All of the employees
appreciate that they are able to expand their professional knowledge and learn new skills. They should
feel truly valued and happy to contribute ideas for the progression of the business.
The successful promotion of organisational learning can lead to:

 Improved efficiency
 Improved productivity
 Increased profit
 Employee commitment to the business
 Enhanced business standards
 Adaptability and flexibility
Organisational learning principles include:

 Create value for both the organisational and the individual – the organisation
and individual need to gain something from the training/organisational learning
 Balance challenge and support – too much support with low challenge will be
boring to individuals and not teach them anything new, too much challenge and not
enough support will make it too difficult for individuals to learn and gain new skills
 Leverage multi-component learning – the training should combine multiple

methods of learning; this is because people learn in at different paces and have
different patterns of work. The components of a course should be designed to work

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together and also work with different versions or modules. Re-using information can
help to improve the sustainability of learning as it is more cost-effective.
 Build capability and confidence – an effective training programme ensures

workers are capable of applying the skills and knowledge learned in the workplace e.g.
the capacity to deliver key business objectives e.g. sales targets. People also need the
confidence to carry out their tasks.
 Commit to support and application – seek opportunities out for people to use
their skills and knowledge in the workplace as soon as possible after they have acquired
them. This will help to reinforce skills and knowledge learned.
Source: Wendy Brookes, Five key principles,

https://cdns3.trainingindustry.com/media/3189712/hemsley%20fraser%205%20key
%20principles.pdf
The different types of work groups

The development of a creative climate and practice of organisational learning will prove effective, given
the inspiration of interaction within and between work groups. Each of these groups will be bonded by
common characteristics. They are representing the same organisation and ideally working towards the
achievement of core business goals. However, each work group will have a distinct identity and fulfil
different functions. They come in a variety of forms including teams, committees, training groups,
informal friendship groups, and teams created for the purpose of addressing particular business
problems.
Ways of encouraging interaction within and between work groups:

 Holding regular meetings and inviting the opinions of all workers
 Rewarding different forms of interaction
 Encouraging staff members to recognise each other’s

efforts and pay compliments when appropriate
 Creating an open office environment, where

interaction is an everyday part of business
 Integrating informal spaces for relaxation and

encouragement of conversations between co-workers
 Integrating wireless technology and encouraging

employees to work in different areas of the business
environment
 Setting positive co-working examples, for employees to follow.
Additional benefits of interaction and collaboration in the workplace

The saying that no man is an island applies in the great majority of business situations. The pooling of
ideas and talents can lead to major breakthroughs, which would not be achieved if employees worked

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exclusively. Fellow employees may provide valuable feedback and realistic viewpoints on issues that are
causing extreme stress or excitement. Problems may be quickly and efficiently resolved when staff
members work together. Interaction is also a positive means of enhancing the feeling of commitment
and motivation for professional development. Employees who are given the opportunity to talk and
contribute are likely to feel happy and willing to work hard for the organisation. Success driven business
owners should make every effort to break down communicative barriers within the workplace.
ENCOURAGE, TEST AND RECOGNISE NEW IDEAS AND

ENTREPRENEURIAL BEHAVIOUR WHERE SUCCESSFUL
New ideas
It is in a business’s best interests to simulate, test, and recognise the contribution of innovative ideas
and entrepreneurial behaviour. If skilled employees continue to develop new ideas and strategies, then
there’ll be a good chance of continuous improvement. As famous author John Steinbeck said, “[ideas]
are like rabbits. You get a couple and learn how to handle them and pretty soon you have a dozen”. Of
course, such ideas should be tested on a small-scale before applying them to the entire business and
making major changes to working practices.
Ways of inspiring new ideas:

 Consider your products and services from the customer’s
perspective. You may identify the potential for improvement
 Encourage employees to practice innovative techniques and

take reasonable risks
 Conduct market research and capitalise on key business trends
 Analyse and learn from rival businesses
 Promote change within your business policies
 Create suitably stimulating professional environments
 Ask for employee feedback regarding the effectiveness of business strategies
 Recognise and reward employees for their contributions
 Organise informal meetings and encourage the relaxed discussion of business

improvements
 Provide training on idea generation techniques, including lateral thinking, and

brainstorming
 Show that you are willing to follow up on the employee’s ideas.

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What is entrepreneurial behaviour?

There are numerous examples of highly successful entrepreneurs throughout the world. They have
developed ingenious ideas and produced products which have had a significant impact on people’s lives.
Entrepreneurs such as Steve Jobs, Bill Gates and Richard Branson have approached business in unique
ways and harnessed their own unique methods of innovation.
However, they are bound by some common forms of behaviour:

 Finding and acting on their passions
 Focussing on the production of goods and services which enhance people’s lives
 Having confidence in their ideas and striving to be the best
 Taking pleasure in their working lives and hiring people with similar levels of
enthusiasm
 Sharing responsibility and recognising the talents of fellow professionals
 Accepting that failure is inevitable and dealing with it appropriately
 Maintaining high levels of organisation and considering the finer details

of business
 Ignoring unreasonable criticism and following through on

ideas
 Being able to visualise and analyse the potential for success
 Persuading others and securing funding for idea development
The benefits of entrepreneurial behaviour

The successful promotion and adoption of entrepreneurial behaviour may have a highly positive impact
on your business. It may result in the production of quality products and increased customer
satisfaction. Word may spread about your unique business offerings and you may develop a significant
market share. If all of the employees within your business practice innovative techniques then there will
be a good chance of developing an extensive product portfolio and streamlining essential practices.
Improvement in efficiency may lead to cost minimisation and enhance the prospects of growth.
Testing and evaluating ideas

It will be necessary to carry out extensive research in order to identify the potential of new ideas. You
should consider the size of the market and the number of people who are likely to be interested your
new products or services. Identify the levels of success enjoyed by competitors who’ve developed new
ideas in the market that you are targeting. It may even be possible to create prototypes and launch
services on a local level, to begin with. Your customers could be questioned about the possible means of
improvement and you may gauge the chances of growth. Alternatively, you could write business blogs
and see whether people are prepared to share and comment on the feasibility of your new ideas.

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It will be important to monitor and analyse the impact of your business innovations. You can use a
variety of ratios to find out the financial benefit and impact on customer engagement. Consider the
amounts that are invested during idea development, in relation to the profits that are made. Ask for
customer feedback and think about possible improvements. It will be necessary to continually hone
your ideas and overcome problems for the best chance of long-term success.
Rewarding the generation of ideas and entrepreneurial behaviour

There are numerous ways of incentivising the generation of ideas and practice of entrepreneurial
behaviour. You might encourage your employees to take part in innovation competitions for the
opportunity of career advancement. However, it is worth emphasising that the best ideas may arrive at
the most unexpected moments. There’s also a chance that employees will make continuous
improvements, which could result in positive organisational change. Some high profile companies in
America have even started rewarding employees for the generation of ideas that are ultimately doomed
to failure. The aim is to integrate entrepreneurial behaviour.
You may consider these creative rewards:

 Prizes specifically are chosen and exchanged by co-workers
 Rewards for people who show entrepreneurial behaviour on an ongoing

basis
 Organising trips and informal celebrations for innovative workers
 Unique business trophies for display in the workplace.

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ACCEPT FAILURE OF AN IDEA DURING TRIALLING AND

RECOGNISE, CELEBRATE AND EMBED SUCCESS INTO SYSTEMS
Accepting failure
It’s already been mentioned that the most successful entrepreneurs appreciate that failure is a natural
part of the business progression. It is essential to identify the ideas that won’t work and improvements
that can be made for future success. It is also worth emphasising that some business ideas result in
partial failure, which may be overcome through the implementation of appropriate business strategies.
Famous American inventor Thomas Edison once said, “I have not failed. I have just found 10,000 ways
that won’t work”.
Trialling business ideas

The implementation of a trialling process is necessary to ascertain the feasibility and potential of
particular business ideas. It allows for the identification of problems and potential failures, which could
have a significant impact on the fortunes of your business.
You can use these trialling methods:

 Inviting a sample of your target audience to trial new
products/services and provide feedback on performance
 Discussing ideas with trusted co-workers, family, and

friends
 Attending business events and giving presentations

about your ideas
 Discussing your ideas via online forums (this is a good

solution for those of you who want some anonymity)
 Developing prototypes and attempting to source funds

via crowdfunding websites
 Approaching local business investors.
Defining failure
There are a variety of reasons for the partial and complete failure of business ideas. Innovators may lack
the funds or expertise to make the most of the opportunities. They might not take the necessary time to
plan and identify potential problems. If different members of the workforce are involved, then there
may be a failure to collaborate effectively. The business may also fail to take account of fluctuations in
customer demand, or changes in legislation. Such events may lead to significant financial loss and
negative perceptions about a company. Employees may lose their motivation and become more averse
to risk for fear of losing their jobs. However, businesses must also consider the major impact of
successful innovation.

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Promoting the culture of innovation

Innovation may not come naturally to some members of the workforce. Some people may lack the
creativity and confidence to put their ideas forward.
However, it is worth considering the following means of encouraging innovation:

 Offer rewards for innovation
 Create an open working space, where employees can interact and build ideas together
 Encourage socialisation and stimulating activity in the workplace
 Employ people from different backgrounds and encourage them to share effective
working practices
 Make it clear that you are happy for employees to take
risks and that there won’t be overwhelmingly negative
recriminations in the event of failure
 Provide innovation training
 Allocate any necessary resources and take the time and
effort to act upon the best ideas
Recognising and celebrating successful innovation

There are various types of innovation, which may result in business benefits. Employees may be critical
of their performance and regularly identify methods of improvement. Market research may result in the
identification of major opportunities for product development. A significant moment of inspiration
could happen when you least expect it. You should recognise different ideas and take the earliest
opportunity to develop implementation strategies.
You could organise the following methods of celebration:

 Sharing the success with employees and others who have made a contribution
 Making a point of organising special events to celebrate success
 Allocating shares and designating responsibilities for the development of ideas
 Increasing awareness of innovation via company newsletters, websites, and other
means of communication
 Providing financial rewards and promoting employees who show a capacity for
innovation
Ways of embedding success into systems

There are a number of ways to integrate a culture of successful innovation within your organisation. You
may include the drive for innovation when creating business objectives and plans. Regular meetings
may be held and employees encouraged to suggest ways of improving the business. You can research
the competition and follow positive principles of innovation. Potential employees may be questioned
and tested on their ability to innovate. You can also communicate the creativity of your business to
prospective customers. The impact of such strategies should be monitored and evaluated for continued
success.

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UNDERTAKE RISK MANAGEMENT AND COST-BENEFIT ANALYSIS

FOR EACH OPTION OR IDEA APPROVED FOR TRIAL
Risk management and cost-benefit analysis

There are bound to be a variety of risks associated with the development of any business idea. These
may include the prospect of financial loss, negative customer feedback, and the worst case scenario of
forced closure. However, steps can be taken to mitigate and minimise the impact of such events.
Planning should result in the identification of suitable solutions.
The comprehensive analysis of risk may allow:

 A realistic assessment of potentially negative events
 Decisions regarding the feasibility of proposed innovation and change
 Preparation for a variety of negative scenarios.
Key decision makers and strategists are encouraged to follow the five steps of risk
assessment:
1. Allocate responsibility for the identification of different risks
2. Identify and consider the nature of different risks
3. Rank the risks in terms of likelihood and potential impact
4. Account for the trigger events, which lead to negative scenarios
5. Develop contingency plans and outline the best methods of prevention.
A risk matrix should be created, along with the following lines:
Very unlikely Quite unlikely Quite likely Very likely
Severe risk
High Risk
Medium risk
Moderate risk
Low Risk
For example, if you wanted to modify an existing product to try and maintain competitiveness and
income, there would be certain risks attached. These risks could include; the product not being what the
customers want/need, operational risks associated with modifying a product, financial risks, timing of
product can be risky e.g. starting development too soon without proper planning.

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To control risks you need to think about how you can minimise them. For example, to minimise the risk
of the product not being what the customers want/need, you can conduct thorough market research to
find out what it is the customers want/need before developing the product. You could also consider
conducting trials and product testing to gain some valuable feedback on the modifications you will be
making.
Cost benefit analysis

The evaluation of a proposed business idea should continue with a cost-benefit analysis. This will
involve a variety of calculations, to find out whether the anticipated benefits outweigh the potential
drawbacks and costs of a specific change or innovative strategy. It will be necessary to undertake
thorough research, for optimum accuracy in the cost-benefit analysis. You may consider the cost of
manufacturing and advertising a particular product, in relation to the income that may be generated.
There should be a realistic payback period, in which the financial benefits of selling the product or
service outweigh the related costs.
You are advised to follow the five step cost-benefit analysis method:
1. Consider all of the costs specific to a business decision or course of action (a variety of
variable and fixed costs are to be expected)
2. Account for the quantifiable benefits which may be enjoyed if the business venture is
successful
3. Specify an amount of time for the measurement of costs and benefits
4. Base your business decision upon the findings
5. If you are unable to assign financial values, then it may be worth adopting a ranking
system, as follows.
Method of Benefits Primary Costs Secondary Ratio 1/2 Final

innovation ranking on a ranking on a Ranking
scale of 1-5 scale of 1-5

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APPROVE INNOVATIONS THROUGH AGREED ORGANISATIONAL

PROCESSES
Approving innovations
Different levels of approval may be required, depending on the types of innovations that are made.
Employees might be granted the authority to make decisions and carry out incremental changes if there
isn’t a high level of risk. However, senior management may give the go-ahead for radical innovations,
including the development of brand new processes and creation of services based upon customer
demand.
Approval may be granted by:

 CEOs
 Owners
 CFOs
 Departmental heads
 Board members
Innovations are likely to have an impact on various aspects of your business. Training may be required
to facilitate a change in manufacturing methods. Different advertising channels may be deemed
appropriate for the targeting of specific consumer groups. Such changes should be made in accordance
with organisational objectives and based on realistic forecasts.
Basic stages of an approval process:

 Idea generation
 Product development
 Prototype testing and validation
 Full-scale manufacturing agreement
 Regular review and continuous improvement.
Evaluation of the process

It will be necessary to designate decision making responsibilities to specific members of your workforce.
Research and planning will be required to ascertain the prospects of success and means of overcoming
problems. Some innovative ideas may be rejected for reasons of insufficient finance, lack of time, or low
expectations. The reasons should be fully explained and alternative solutions should be taken into
account. It might even be worth questioning prospective customers and trialling the idea to evaluate
the prospects of success.

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Bottlenecks in the decision-making process

The decision-making process may be delayed and opportunities missed for a variety of reasons. The
managers of large organisations may be overwhelmed by the number of innovative suggestions and
have trouble identifying the best ideas. There may also be disagreements about the potential for
implementing some innovations.
However, there are some proven means of overcoming these bottlenecks:

 Restrict final authority to a specific number of
employees; each of whom shares common interests
in the development of the business
 Ensure that decisions are made in accordance with

the strategic vision and objectives of the business
 Decide whether you have the required skills and

resources in place to deal with the proposed
innovation
 Only engage in time consulting consultations when

major decisions have to be made
 Let the employees take responsibility for everyday changes and make it clear that you
are prepared for a certain degree of risk
 Be prepared to take a variety of viewpoints into account when implementing

organisational change
The importance of flexibility

It is worth bearing in mind that some innovative strategies have to be changed after initial
implementation. External factors might have an impact on the levels of interest and viability of your
new product or service. Potential improvements may be identified and additional time may be required
to ensure effective innovation. The decision making authority for such changes should be allocated at
the earliest opportunity. It is also important to be flexible during the implementation of planned
innovation.

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TOPIC 3- IMPLEMENT INNOVATIVE

PROCESSES
PROMOTE CONTINUOUS IMPROVEMENT AND SUSTAINABILITY AS

ESSENTIAL TO DOING BUSINESS
Promoting continuous improvement

The process of continuous improvement involves the implementation of strategies, for the growth and
progression of a business. There should be an evaluation of each business process, from the production
of minor products to the methods of communication with customers. Relatively small and incremental
changes are made, so the employees are able to adapt and the prospects of long-term success are
maximised. Sessions may be organised and individual employees encouraged to have their say on the
best means of implementing continuous improvement. Realistic end goals should be recognised and the
employees should agree shared responsibility. It will be necessary to provide clear action plans and
regularly review the effectiveness of continuous improvement strategies.
Your business might adopt these continuous improvement frameworks:

 Kaizen – A Japanese business method which emphasises the importance of change for
the good. It involves the identification of processes that can be improved and highlights
strategies which can be gradually implemented. Workers are expected to focus on
productivity, effectiveness, safety, and minimisation of waste
 Total quality management – The aim of total quality management is to organise

employees and business processes for guaranteed customer satisfaction. It involves the
implementation of strategies for enhanced production and delivery. It is important to
understand that different elements of the business chain are inter-linked and should be
optimised for total quality
 Lean manufacturing – Managers who implement this method are required to carry out
root cause analysis and identify the reasons for waste. The causes may include poor
stock rotation, delays in production, product defects, and inability to capitalise on
worker’s skills. The professional practices of Kanban or just in time stock rotation may
be implemented to reduce the amount of waste
 ISO 9000 – Referring to an internationally recognised set of quality standards. ISO 9000
certification depends on the inspection of business procedures, maintenance of
business records, training of employees, and appropriate
interaction with customers

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 Six Sigma – A method of improvement which relies upon the development of strategies
based upon comprehensive business data. Business people who assume responsibility
for six sigma leadership must take account of the various business processes and
understand how to measure required standards.
Some key questions should be asked before implementing continuous improvement:

 How restrictive is the current process, with regards to time, and general efficiency?
 What is the level of staff involvement in the current

process?
 What is the scope for continuous improvement of the

current process?
 What would be the direct and indirect impacts of

continuous improvement?
 How should the success of the continuous improvement

be measured?
The promotion of continuous improvement

There should be a common agreement regarding the strategies that should be followed in the aim of
continuous improvement. Employees should be prepared to combine effectively and implement any
changes deemed necessary for the continued success of the business. You may even offer incentives for
workers who regularly come up with good ideas for the development of business processes. The results
of continuous improvement should be tracked and information shared to prove that your organisation is
moving in the right direction.
Why is continuous improvement essential for your business?

The process of continuous improvement can be applied to various aspects of your business. You may
employ SEO strategies in the aim of gaining improved search engine rankings and gradually increasing
the numbers of people who visit your website. Alternatively, you could carry out customer research to
ascertain the levels of satisfaction and organise focused training sessions for your staff. Effective
continuous improvement will prevent your business from remaining stagnant and losing out to the
competition. It may result in improved employee commitment, increased profits, and reduced costs. It
is an excellent way of bringing the various elements of your business together and streamlining for
optimum success.
Ensuring the sustainability of your business

Sustainable strategies should be followed for the long-term success of your business. They should
outline the means of adapting to changes in the economy, society, and professional environment.
Comprehensive planning will allow your business to stay ahead of the competition and meet the
changing needs of employees and customers. It will enable you to ascertain the feasibility of business
ideas and identify issues which could have a significant impact on your organisation. You should take
account of the costs that may be incurred over time. It may be necessary to account for training and
expected changes in location. You are also encouraged to consider the long-term sustainability of your

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health and safety policies and prospects of retaining or employing new staff members. Market research
and analysis of your financial records may allow for the identification of sustainability issues.

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ADDRESS THE IMPACT OF CHANGE AND CONSEQUENCES FOR

PEOPLE AND IMPLEMENT TRANSITION PLANS
Addressing change and implementing transition plans

It is important to recognise that some people involved in business will be resistant to change. They may
be used to and confident of carrying out procedures in a set manner. However, change will be required
if the business is to adapt and progress. There may be a need to offer superior levels of customer
service. A change of business process may be deemed necessary for improved efficiency. However,
steps can be taken to ensure that such transitions are smooth and hassle-free.
Employees may enjoy some notable benefits as a result of change:
 Rewards and increased responsibility for those who are able to successfully
adapt to change
 Increased earnings, in accordance with the development of the business
 Reduction in the amount of time required to complete business tasks
 Greater commitment and satisfaction as a result of positive change.
It is also important to account for the negative consequences:

 Confusion upon the initial implementation of change
 Disruption and increased anxiety about job security
 Difficulty adapting to procedural changes
 Reduced responsibility and earning potential
 Emotional trauma
 Forced relocation.
You will need to not only identify impacts of change but address them. For example
if staff were confused upon the initial implementation of change, you could give explanations to help
staff understand the changes, if they staff became anxious about job security, you could give staff re-
assurance and talk about career opportunities and if they were having difficulty adapting to procedural
changes, you could provide demonstrations or conduct workshops.
Analysing the negative impacts of change

If you want to gain an understanding of the negative impacts of change, then it will be necessary to
carry out comprehensive analysis. This analysis should be undertaken at the earliest opportunity so that
you can decide upon the necessary implementation of change. The process of change should be
thoroughly detailed and research should be undertaken to discover the range of negative scenarios. You
should consider the impact upon different business departments, procedures, and stakeholders. You

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may then carry out a cost-benefit analysis and develop solutions to deal with the most significant
impacts. Various strategies should be in place to manage the change.
You may adopt the following change management strategies:
 Clearly, communicate the reasons for change
 Identify workers with responsibility for implementing change
 Organise appropriate training and support for those who are affected by change
 Regularly review the impact of change and update relevant members of your
organisation.
What are transition plans and how should they be implemented?

Transition plans should be created for the purpose of helping people during times of organisational
change. They will outline the objectives, priorities, and strategies which will be followed during the
implementation of change. It may be necessary to change your existing business plans and include
information about financial projections. You should also include details of any changes in the types of
work undertaken by your employees. The methods of training and updating employee skill sets will be
covered. You should also highlight the benefits, which will be enjoyed upon successful transition.
ENSURE OBJECTIVES, TIMEFRAMES, MEASURES AND

COMMUNICATION PLANS ARE IN PLACE TO MANAGE
IMPLEMENTATION
Setting objectives for change

If you want your employees to combine and do their utmost to achieve a proposed change, then it will
be necessary to set realistic and achievable objectives.
You may outline the following objectives:

 Achieve improvements in productivity and efficiency
 Increase market share
 Produce unique products and differentiate the business
 Improve customer relations
Consider Kotter’s eight step model for effective change

management:
1. Create a sense of urgency for change – Organise meetings and point out any emerging
opportunities which your business can’t afford to miss
2. Establish a powerful coalition – Ensure that key staff members support the reasons for
proposed change. Employees will follow the lead of powerful and respected leaders

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3. Create a vision for change – Communicate the objectives of change and highlight the
responsibilities of different employees
4. Maintain regular communication – Regularly reinforce the need for change and
highlight achievements along the way to completion of the end objective. Celebrate the
positive contributions made by employees
5. Remove obstacles to change – Consider the factors which are obstructing the
implementation of change and develop appropriate strategies
6. Focus on short term wins – Make a point of recognising and rewarding positive steps
along the way to the completion of change
7. Build on the change – Consider improvements related to the initial change
8. Anchor the change – Include the change in your company policies and reinforce its
benefits whenever possible.
Developing reasonable timeframes

The change will be most effective if it is implemented gradually. Employees should be given the chance
to adapt over time. There should also be preparation for bottlenecks in the process. It may even be
worth trialling the change on a select group of employees and obtaining feedback about the effects. The
process can be adapted to suit people’s individual requirements. There should be transparency in your
organisation so that employees are aware of the need for change. This will mean that your proposals
don’t come as a complete surprise.
It might not be possible to make accurate forecasts about the effects of change. However, you should
establish ways of measuring and evaluating the effects over time. Positive results may be communicated
to your employees and customers for increased motivation and engagement.
Creating effective communication plans

Employees should be informed of valid reasons for implementing change. These may vary; from the
need to limit the number of customer complaints, to capitalisation on the development of new
technology. Employees should be given the opportunity to state and explain any reasons for objection
to the proposed change. Management should take these views into account and respond appropriately.
The need for change should be communicated in a positive manner. It is important to take account of
non-verbal signals when communicating with employees who may be resistant to change. You should
clearly communicate the objectives and expected benefits. A positive example may be provided in
support of the business proposals. You should consider the positive points which will be of greatest
interest to your employees. They may be particularly interested in increased profits, improved working
efficiency, and the allocation of time for interesting business projects. However, you should beware that
employees are generally able to see through attempts to ‘soften the blow’.
It will be necessary to maintain regular contact during a period of change. You might have to answer
questions about new processes and provide reassurances about the limited impact of negative events.
Recognise the efforts being made by your employees and present key data about the effects of any

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change. Encourage employees and customers to give regular feedback and respond for the benefit of
your business.
Consider the following methods of communication:

 Bulletin boards
 Change booklets and manuals
 Business newsletters
 Demonstrations
 Formal group meetings
 Emails
 Faxes
 Focus groups
 Intranet messages
 One on one discussions
 Videos
 Webcasts
 Workshops.
Effectively measuring the impact of change

The effects of change can be categorised in a number of ways. You might be keen to record generated
profits, levels of training, increases in the speed of manufacture, and levels of interest shown in brand
new products or services. However, you should be aware that fluctuations in customer demand and
sales may occur for a variety of reasons. It might be worth carrying out regression analysis, to
realistically identify the direct impacts of change. This will allow you to accurately measure the
correlation between change, profitability, minimisation of cost, and other variables. Additional steps
should be taken to identify means of overcoming problems and achieving continuous improvement.

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IMPLEMENT CONTINGENCY PLANS IN THE EVENT OF NON-

PERFORMANCE
The purpose of contingency planning

Contingency plans should be created in case business changes result in partial or complete failure. They
should highlight appropriate actions for limitation of negative consequences. Contingency plans may
have to be implemented due to mistakes made by your employees, or changes in legislation. It is likely
that you will have identified such negative scenarios while carrying out your SWOT analysis. However,
additional research may be required. You will also have to rank the risks in terms of likelihood and
potential impact. The greatest amount of time should be spent developing solutions and ways of
overcoming the most likely and potentially damaging events.
The risks include:

 Damage to property and equipment
 Natural disasters
 Delays in receiving goods from suppliers
 Failure of equipment
 Negative publicity about products and

services
 A lack of employee knowledge and skills
 The development of a rival business
 Changes in legislation.
Writing a contingency plan

Different members of your organisation should be consulted when developing a contingency plan. They
may have specific knowledge about the scenarios which could have a significant impact on your
business. All of the potential events should be listed and time allocated for the identification of suitable
solutions. The plan should be reviewed and updated on a regular basis. It should be distributed to
relevant stakeholders and feedback should be taken into account. You should accumulate data about
past events and test your contingency plan to find out whether it is effective.

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Here is a contingency plan template for your consideration:
Type of event Likelihood Potential Appropriate Staff Resources

impact response members required
involved
Heavy snow High High Provide staff with Digital team Laptops
preventing suitable
Mobile
staff from equipment to
phones
getting to work from home
work e.g. laptops, Money
mobile phones
Contingency planning tips

Great care should be taken during the development of contingency plans. Event descriptions should be
written clearly, for general understanding. You might even include pictures to clarify the meaning of
written information. It is also important to ensure that different members of the workforce are aware of
their responsibilities with regards to the implementation of contingency plans. You should only include
essential information regarding the appropriate means of action in different scenarios. The plan should
be securely saved and available to employees with decision-making authority. It might be distributed to
external stakeholders, as evidence that you are properly prepared for future events.

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FOLLOW UP FAILURE BY PROMPT INVESTIGATION AND ANALYSIS

OF CAUSES AND MANAGE EMERGING CHALLENGES AND
OPPORTUNITIES EFFECTIVELY
Investigating and analysing causes of failure

If you are to limit the impact of failure, then it will be necessary to carry out prompt investigation and
develop appropriate solutions. Minor failure may affect a specific department, or process within your
business. However, major failure may result in the breakdown of customer relationships, redundancy of
employees, and perhaps even the closure of your business.
You may have to deal with the following types of failure:

 Failure to meet business objectives
 Failure to attract customers and make sales
 Failure to compete with innovative businesses
 Failure to anticipate and respond to changes in

legislation
 Failure to effectively manage business finances
 Failure to prevent insolvency.
Considering the impact of failure

Failure is to be expected in businesses which encourage innovation. However, business owners who
take steps to limit and control the impacts may learn a considerable amount from failure. They may
identify inefficient procedures and methods of advertising. However, such mistakes can be avoided in
the future development of business ventures. Unfortunately, some entrepreneurs are unable to see
their way through significant periods of failure. They may incur a considerable financial loss and be
deterred from pursuing any other business opportunities. Negative publicity may cause serious damage
to the business’s image and employees might struggle to find alternative means of employment.
The importance of prompt follow-up action

If detailed contingency plans have been created, then there will be a good chance of responding
appropriately to different forms of failure. The implementation of recovery strategies may result in the
restoration of a positive mindset and maintenance of high productivity levels. Negative perceptions and
personal impacts will be limited as issues are rapidly identified and resolved. There will be a
considerable amount of information regarding the reasons for business failure, which could be used to
inform future decisions.

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Root cause analysis

It would be worth carrying out a root cause analysis to identify the reasons for business failure. This is a
key business process, involving the consideration of causal factors, and the development of solutions to
limit the impact of similarly negative events in the future.
There are three typical reasons for failure:

 Physical events – Involving the breakdown of essential machinery or unexpected
damage to the business premises
 Systematic errors – Due to the inefficiency of working practices and inability to

collaborate effectively
 Human causes – Poor leadership, disagreements among employees, and avoidable

mistakes are just a few of the possible explanations.
The five steps of root cause analysis should be followed:

1. Defining the problem
2. Collecting information about the problem
3. Identifying potential causes of the problem
4. Developing solutions to overcome the problem
5. Carrying out the necessary action.
Fishbone diagrams and Catwoe

You can use fishbone diagrams as an aid when deciding upon the reasons for issues which negatively
impact your business. These diagrams are used for the visual representation of primary and secondary
causes. They allow you to identify the links between issues in different areas of your business. The
Catwoe method will allow for a further understanding of the causes.
Catwoe draws upon the following perspectives:

 Customers – Considering who they are and how the issue affects them
 Actors – Considering the roles of those with responsibility for analysing the effects and
limiting the negative impact on your business
 Transformation processes – Considering the business systems and procedures which

have been affected
 Worldview – Considering the problem from a wider perspective
 Owner – Considering the action taken by key members of your organisation
 Environmental constraints – Considering the potential environmental impact of any

solutions.

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Managing emerging challenges

Emerging challenges should be thoroughly investigated, analysed, and acted upon for your business to
remain in a position of strength. Market research may reveal key trends and changes in customer
buying behaviour. There may be a preference for particular forms of technology or expectations
regarding the performance of products and services. Rival businesses may emerge and threaten to take
a proportion of your market share. A culture of innovation should be promoted to give you the best
chance of staying one step ahead.
It is quite likely that your business objectives will change over time. You may initially be keen to increase
awareness of a particular range of products. Upon achievement of this primary target, you may turn
your attention to successful sales methods. It will be necessary to review and update your business
plans on a regular basis. You may deem it necessary to devote a large amount of time to the
development of new business ideas. However, this may not be possible unless you employ a business
specialist with the ability to deal with everyday problems. You should follow Richard Branson’s lead and
delegate decision-making authority to suitably skilled members of the workforce. Effective change
management strategies may be created for the purpose of dealing with objections and facilitating the
growth of your business.
Managing emerging opportunities

There are bound to be a wide variety of opportunities in the rapidly advancing business world. You
might have the chance to market your products and services in foreign countries. It may also be possible
to utilise brand new technology for the enhancement of your business processes. The range of choices
may be quite overwhelming and confusing. However, you are encouraged to consider your primary
objectives and identify the opportunities which could have the greatest impact on your business. You
might be particularly excited about the prospect of developing a new product or entering a new market.
However, it would be worth taking a step back and considering such opportunities from a wider
perspective. Opportunities should be measured against key business criteria; such as potential
profitability, and implementation of business resources.
You could use the following market research methods:

 Desk-based research
 Questionnaires
 Interviews with staff and customers
 SWOT analysis
 Brainstorming sessions
 Competitor research
 Financial analysis.

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ENSURE THAT LEARNINGS FROM ACTIVITIES ARE CAPTURED AND

MANAGED TO INFORM FUTURE WORK
Capturing learning from activities

There are various lessons that can be learned during the implementation of innovative strategies and
procedural changes. You may consider the profitability and costs of manufacturing brand new products.
Specific forms of marketing may prove to be particularly effective and certain customer groups may take
considerable interest in your business offerings. Changes may result in the increased speed of
manufacturing and greater employee satisfaction. Digital updates may have the effect of attracting
more people to your website and increasing e-commerce sales. It is important to capture such
information and use it to stimulate the growth of your business.
Consider the following ways of capturing business information:

 Performance reviews – You should collect different
forms of data about employee performance, for
analysis in light of your business objectives.
Categories of performance may include levels of
innovation, speed, and manufacturing efficiency
 Peer appraisals – Employees may be prepared to

give feedback about the performance of their co-
workers. However, you should be wary of bias
when gathering such reviews
 Dashboards – You can use dashboards to track the

performance of departments against
organisational criteria
 Financial records – There are various ways of collecting data about the financial impact
of innovation. You may use balance sheets, income statements, and cash flow
statements for an accurate appraisal of financial performance
 Marketing research – It is important to measure the performance of different

promotional methods. Criteria such as lead to sales conversion, cost per lead, and
organic web traffic should be taken into account
 Employee monitoring – Performance data should be analysed to find out the impact of
changes within the business. You may also ask employees to complete questionnaires
and surveys about the impact of innovation
 Customer research – There are a number of ways of evaluating your business from the
customer’s perspective. You could engage via social media networks and conduct

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surveys to gauge perceptions. You should also collect data regarding the completion of
customer orders and after-sales service.
The effective management of business information

Effective organisation is required for the management of information from various business sources.
Essential data may be gathered via different digital channels and during business meetings. It may be
recorded in the form of computer data, paper documents, digital networks, and audio devices. All of the
essential information should be securely saved and access restricted to relevant personnel. There
should be organisational policies and procedures for the collection and storage of information. It may be
necessary to invest in additional resources and use the services of external data management
companies for enhanced organisation and protection.
The following systems may be used:

 Web content management
 Documents management
 Records management
 Digital asset management
 Learning management
 Learning content management
 Collaboration
 Enterprise search.

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REGULARLY EVALUATE CONTINUOUS IMPROVEMENT SYSTEMS

AND PROCESSES
Appropriate means of evaluation

We have already outlined the various methods of continuous improvement, which apply to business
systems and processes. It is important to evaluate these methods as your business continues to grow
and events impact the marketplace. You might find that some innovations are not effective as initially
thought. There might also be prospects for further improvement as a result of the introduction of new
technology and the availability of skilled workers.
It is quite likely that continuous improvement will have been implemented as a means of meeting
different business objectives. However, you might identify alternative strategies, which could speed up
the process of meeting your initial goals and stimulate the expansion of the business. Measurements
should be established to find out the relationship between continuous performance and different
success criteria. You may be particularly concerned with the effects upon profitability, customer
engagement and growth. You could even benchmark performance against similarly sized rival
companies. The benefits of continuous improvement should far outweigh the costs. You should consider
the amounts of time and resources that are invested when implementing continuous improvement
strategies. There may be a possibility of allocating money for training programmes and equipment
which could further enhance your business.
Questionnaires and surveys may be issued to find out whether your continuous improvement strategies
are having the desired effect. Members of the workforce may have realised the benefits of continuous
improvement methods. However, they may also have ideas which could be implemented for greater
efficiency. Data regarding customer complaints and product returns may also be analysed. A thorough
evaluation is bound to result in the identification of further opportunities.
COMMUNICATE COSTS AND BENEFITS OF INNOVATIONS AND

IMPROVEMENTS TO RELEVANT GROUPS AND INDIVIDUALS
Communicating the costs and benefits of innovations and improvements

The costs and benefits will be of concern to various people, both within and outside your organisation.
Employees may be concerned about the amount of training and potential changes in income. Customers
are likely to be excited about the development of new products and services. Business innovations and
improvements may also have an impact on local communities, creditors, investors, and other
stakeholders.
The following costs may be taken into

consideration:
 Research and development

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 Purchase of equipment and technology
 Staff training
 Marketing
 Prototypes and service tests.
These benefits may also be enjoyed:

 Business differentiation
 Increased market share
 Minimised production cost
 Improvements in workplace health and

safety
 Reduced environmental impact
 Enhanced quality of goods and services
 Increased profitability.
Communicating with employees

You could organise business meetings to discuss strategic decisions with employees. They will
appreciate it if you take the time and effort to explain major changes and address their concerns. You
might also take the opportunity to produce documents detailing the reasons for the implementation of
certain strategies. Such information could be communicated in business newsletters, emails, or printed
documents. Regular updates should be sent and you should ensure that employee contributions are
recognised.
Communicating with customers

There are numerous means of communicating the anticipated benefits of business strategies to your
customers. You might keep them updated via regular business blogs or email newsletters. It might even
be worth sending direct mail about the major benefits of a brand new business product or service. It is
important to write in accordance with company style guides and consider the concerns of target
customers. Communications should be appropriately timed to create a buzz and generate interest. You
could enlist the services of a professional copywriter for the creation of persuasive and engaging
communications.
Communicating with other stakeholders

If you know that your business strategy is likely to have an impact on the local community, then it may
be worth producing a newspaper article, including the relevant details. You should also communicate
with the appropriate government representatives and ensure that your business strategy meets legal
requirements. If you require additional financial backing, then it will be necessary to consult business
investors and creditors.

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References
These suggested references are for further reading and do not necessarily represent the contents of
this unit.
Websites
Monitoring the performance of new business ideas:
https://www.business.qld.gov.au/business/business-improvement/becoming-innovative-
business/monitoring-performance-business-ideas
Monitoring performance: http://www.marketresearchworld.net/content/view/385/53/
How to evaluate a company’s performance: http://smallbusiness.chron.com/evaluate-companys-

performance-67095.html
Measuring performance: http://www.bgateway.com/business-guides/grow-and-improve/benchmark-

business-performance/measuring-performance
Supply chain: http://www.investopedia.com/terms/s/supplychain.asp
Measure performance and set targets: http://www.infoentrepreneurs.org/en/guides/measure-

performance-and-set-targets/
SWOT analysis: http://www.mindtools.com/pages/article/newTMC_05.htm
Analysing trends to improve business: https://www.business.qld.gov.au/business/business-

improvement/trend-analysis-business-improvement/analysing-trends-improve-business
Improving business processes: http://www.mindtools.com/pages/article/improving-business-

processes.htm
The three types of methods used to measure performance: http://smallbusiness.chron.com/three-

types-methods-used-measure-performance-23612.html
Business performance measurement: http://www.kellen.net/bpm.htm
Review your business performance: http://www.infoentrepreneurs.org/en/guides/review-your-

business-performance/
Environmental considerations: https://www.business.qld.gov.au/business/running/environment
Workplace Health and Safety (WHS): http://www.business.gov.au/business-topics/employing-

people/workplace-health-and-safety/Pages/default.aspx
What is statistical analysis? http://www.businessnewsdaily.com/6000-statistical-analysis.html

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Five ways to spot trends before they happen: http://www.inc.com/minda-zetlin/5-ways-to-spot-

trends-before-they-happen.html
The five Cs of opportunity identification: https://hbr.org/2012/10/the-five-cs-of-opportunity-identi/
Market analysis: http://www.marketingdonut.co.uk/marketing/market-research/market-analysis
Choosing trends and results to analyse: https://www.business.qld.gov.au/business/business-

improvement/trend-analysis-business-improvement/choosing-trends-results-analyse
Kaizen: http://www.mindtools.com/pages/article/newSTR_97.htm
Total quality management:

http://www.businessballs.com/dtiresources/total_quality_management_TQM.pdf
ISO 9000: http://www.inc.com/encyclopedia/iso-9000.html
Eight ways to foster innovation in your company: http://www.inc.com/guides/2010/04/fostering-

innovation-in-companies.html
Improving innovation: http://www.business.vic.gov.au/marketing-sales-and-online/growth-innovation-

and-measurement/improving-business-innovation-and-examples
Working in groups and teams: http://www.skillsyouneed.com/ips/groups.html
Why personal interaction drives innovation and collaboration:

http://www.forbes.com/sites/skollworldforum/2013/04/09/why-personal-interaction-drives-
innovation-and-collaboration/
Encouraging innovation in your business: https://www.business.tas.gov.au/growing-and-improving-

your-business/research-and-development/encouraging-innovation-in-your-business
The behavioural traits of a successful entrepreneur:

http://www.forbes.com/sites/groupthink/2012/06/04/the-behavioral-traits-of-a-successful-
entrepreneur/
Becoming an innovative business: https://www.business.qld.gov.au/business/business-

improvement/becoming-innovative-business
All references accessed on and correct as of 23/03/2017, unless other otherwise stated.

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BSBMGT608 Manage

BSBMGT608 Manage innovation and continuous improvement 1

Management and Leadership – Management

BSBMGT608 Manage innovation and continuous improvement 2

ELEMENTS AND PERFORMANCE CRITERIA

ELEMENT PERFORMANCE CRITERIA

2. Develop options for

BSBMGT608 Manage innovation and continuous improvement 3

BSBMGT608 Manage innovation and continuous improvement 4

THIS SECTION DESCRIBES LANGUAGE, LITERACY, NUMERACY AND EMPLOYMENT SKILLS

Skill Performance Description

BSBMGT608 Manage innovation and continuous improvement 5

 Uses lateral and analytical thinking to evaluate

BSBMGT608 Manage innovation and continuous improvement 6

BSBMGT608 Manage innovation and continuous improvement 7

Researching and identifying key trends and opportunities...............................................................25

BSBMGT608 Manage innovation and continuous improvement 8

BSBMGT608 Manage innovation and continuous improvement 9

Creating effective communication plans...........................................................................................60

BSBMGT608 Manage innovation and continuous improvement 10

TOPIC 1- REVIEW PROGRAMS, SYSTEMS

Establishing the most suitable strategies for your business

Consider the smart acronym when developing new objectives:

BSBMGT608 Manage innovation and continuous improvement 11

Monitoring financial performance

Considering other business factors

 Financial analysis - You can measure debts,

 Questionnaires and interviews – You may question

 Mystery shopping visits – If you want a realistic perspective of everyday business

BSBMGT608 Manage innovation and continuous improvement 12

UNDERTAKE DETAILED ANALYSES OF SUPPLY CHAINS, AND

The supply chain process

Analysing supply chains

Rules for the delivery of products and services:

Analysing operational systems

BSBMGT608 Manage innovation and continuous improvement 13

Considering the effectiveness of product and service delivery systems

BSBMGT608 Manage innovation and continuous improvement 14

IDENTIFY PERFORMANCE MEASURES, AND ASSESSMENT TOOLS

What are the performance measures?

Reasons for monitoring performance:

 To enhance the chances of business success

 To identify employees who are performing and under-performing.

You might consider the use of a rating system, as outlined below:

Performance Fails to meet Satisfies Satisfies Partially Completely

BSBMGT608 Manage innovation and continuous improvement 15

Evaluating the use of performance measures

 Relevance of findings, in accordance with your business objectives

 The potential for improvement, based on the findings.

Here is a basic example of a process map:

Products distributed Products Products organised

BSBMGT608 Manage innovation and continuous improvement 16

Additional assessment tools and techniques

BSBMGT608 Manage innovation and continuous improvement 17

ANALYSE PERFORMANCE REPORTS AND VARIANCE FROM PLANS

Analysing performance reports

The analytical steps should include:

 Accumulation of key data and formulation of

 Preparation of reports, in accordance with

 Comparison of results (you might use

 Analysis of the reasons for variance.

You may reference the following reports:

 Customer service – Organisations are able to draw upon various sources of