AnswersStrategic Professional - Essentials, SBL Strategic Business Leader (SBL) Specimen Exam 1 Answers In the Strategic Professional Examinations, it is not always possible to publish suggested answers which comprehensively cover all the valid points which candidates might make. Credit will be glven to candidates for points not included in the suggested answers, but which, nevertheless, are relevant to the requirements. In addition, In the integrated case study examination candidates may re-Introduce points made in other questions or parts of questions as long as these are made in the specific context ofthe requirements ‘of the question being answered. The suggested answers presented below inevitably give much more detail than would be expected from most candidates under ‘examination conditions and include most of the obvious points evidenced from both the pre-seen information and the additional ‘information provided in the case study exam information. These answers are therefore intended to provide a structure of the approach required from candidates and cover the range and depth of knowledge relating to each task which might be demonstrated by the most well prepared and able candidates. They are also intended to support revision and tuition for future examinations. 1 (@)_ Report To: The board of Peels Sleep Solutions (PSS) From: Business analyst ‘Subject: Evaluation of Zeelande Health contract proposal Introduction ‘The following report sets out several key Issues which the board of PSS should consider in relation to the proposed contract with Zeelande Health. The proposed contract introduces several opportunities and challenges to PSS which need to be considered. Opportunities This contract could raise the protle of PSS across Zeelande, and lead to an increase in sales and market share in the Competitive industy of bed mattress manufacturing. This contract could Nalp to reduce the Impact on mattress sales due to the closure of physical showrooms and depariment stores, which are currently tne only source of sales forthe Badin mattress. Association with a high-profile, country-wide initiative such as the Zeolande Health refurbishment programme should improve the reputation of PSS and confirm its commitment to Zoelande and is residents across the country. As PSS owners are all Zeelande residents, they are likely to support the Zeelande Health cause and working with a charty can be seen as socially responsible and a form of giving back to the Zeelande community. ‘The proposed contract stipulates that Zeelande Health will include mention of PSS in all of the publicity surrounding the refurbishment programme. AS advertising isan increasinaly expensive cost to this industry this isa significant benefit to PSS. This benefit may be enjoyed by PSS for far longer that the sbe-month term ofthe contract Some of PSS's competitors have promoted themselves as ‘wellbeing’ companies. The Zeelande Health contract offers PSS the ‘opportunity to promote itself in a similar way, inking its matesses to health, recovery, body support, comfort, and a superior night's sleep Challenges PSS manufacturing plants are currently working at 100% capacity. This means that in order to supply Zeelande Health with the contracted mattresses, PSS will need to reduce its supply ofthe Badin matress to its retall partners. This could jeopardise relations with the reall partners and ultimately lead to PSS breaching contract terms. Contracts with the etal partners would ‘need to be reviewed to check for possible financial penalty clauses arising for PSS in the event of contract breaches. PSS solls the Badin mattress to its retall parters at around $204 (85% ofthe recommended retail price of $240) per single ‘mattess. The Zeelande Health contract specifies a price of $190 per Badin mattress. This is a reduction of 6-9%. The contract with Zeetande Health will reduce PSS's revenue and gross margins. This could also lead to @ reduction in operating profit and ROCE. PSS is already faling below the 12% ROCE industry average and the Zeelande Health contract may make this worse. The extent of the changes in operating costs as a result of this contract would need to be investigated in order to understand the overall impact on operating profit nd ROCE. Manufacture of the Badin mattress requires springs. The cost of springs is susceptibie to increases per the risk register. As the price of the mattresses in the Zeclande Health contract is fixed, these increased costs cannot be passed on. This would further Teduce the gross margin which PSS would achieve under this contact. In terms ofthe Zeelande Health contract, delivery of the mattresses would be made actoss Zeslande and PSS would cover the livery costs. Analysis into the extent of this cast needs to be undertaken before the contract can be signed. ‘The contract stipulates that PSS wil collect old mattresses and dismantle them for recycling. As PSS cannot charge Zeelande: Health for this service in terms of the contract, this is another cost which PSS must analyse before signing the contract. ‘The audit and risk committee has identified that the patents which relate to the manufacture of the Badin mattress have exited. This means that the specific arrangement of springs which PSS uses in the production of the Badin mattress is no longer protected anc can be used by anyone, PSS will need to ensure that Zeelande Health ate avrare that this aspect of the design ofthe Badin mattress is no longer patented.‘The audit and risk committee has highlighted that guarantee claims are increasing. Although ths is currently due to another type of mattress, the possibilty that PSS would be exposed to a higher level of guarantee claims in relation to the Zeelande Health contract must be considered. The guarantee is for ten years but the average Ife span for this type of mattress is only celght years and it can be argued that the life span of a mattiess used in a hospital would be substantially shorter than the elght-year average. PSS runs the risk of having to replace a high number of mattresses to Zeelande Health free of charge. ‘The Zeelande Health contract is not always consistent with PSS values. It will be dificult for PSS to balance high standards of ualty and product testing against the reduced margins which this contract offers. The contract is also not for an Innovative ‘new product, but rather for the Badin mattress whichis already manufactured. The introduction ofthis contract will affect PSS's, ‘etal partners (due to manufacturing already being at 100% capacity) who are currently PSS's only customers for the Badin mattress, meaning a reduction in customer service to the retal partners ‘The contract could also negatively impact PSS's sustainability value. Delivery of the mattresses across Zeelande along with the collection ofthe old mattresses for recycling could mean that it is more dificult for PSS to remain carbon neutral Conclusion Although this is an interesting proposal which offers PSS the opportunity to increase is profile and potential market share, PSS ‘needs to carefully consider the potential challenges which it also creates. It's recommended that extensive work on establishing the potential additional costs involved in undertaking the contract ate considered before any further negotiation takes place. (0) Slides EMAS ~ actions PSS would need to take to comply with EMAS — Formalise poticies = Objective and target setting — Employee training Notes SS is already committed to sustainability and the protection and preservation of Zeelande's natural resources. PSS isa carbon ‘neutral business which recycles its waste and uses solar energy to power its manufacturing plants. Registering with EMAS will require PSS to formalise these policies and PSS will be subject to more public scrutiny in these areas. EMAS requires PSS to measure and evaluate its environmental performance against defined objectives and targets. PSS would esd to evidence continuous improvement against these objectives and targets. Therefore, PSS would need to set objectives, and targets which are realistic but would also nead to evidence improvements in relation to the use of renewable energy (solar power), recycling and negating any CO, emissions, EMAS requires strong employee involvement and PSS would need to undertake significant staff traning to ensure that all employees were aware of EMAS and the importance of complying with the legislation. MAS ~ key areas for PSS to cover in its enviranmental policy Transport ‘Suppliers Mattress disposal service and retuned mattresses Packaging ‘Solar power Health and safety Notes Specific areas which would need to be considered as part of PSS's environmental policy are: — Transport — PSS dellvers mattresses to both the retail partners’ warehouses and fo customers through the DTC sales. PSS would also need to consider the transport impact of the Zeelande Health contract if that was entered into. Any EMAS environmental policy would need to address the impact of CO, emissions due to these deliveries and how PSS would remain carbon neutral ~ Suppliers ~although PSS reoyces its own waste, EMS requites the consideration of waste management by key supplier. PSS would therefore need to discuss waste mariagerent with Asher Springs, Quellings Foam and Zeelande Farms. Only biodegradable chemicals should be used in the production of foam, The PSS environmental policy would need to include reference to suppliers and the raw materials which they provide PSS with — Mattress disposal service and returned mattresses — these would need to be carefully monitored to ensure that tne mattresses are all conecty dismantied and all recycling was being undertaken cotrectly and to the correct standard. This ‘would need to be included in the PSS environmental palcy to ensufe that these recycling processes are highlighted and subject to constant monitoring — Packaging —all packaging needs to be reused and recycled. This includes the boxes used for the ‘bed-in-a-box’ DTC sales, as well as the packaging of mattiesses which are delivered to the reall partners’ warehouses, both aspects would need to be included in an environmental policy to ensure no waste. 4— Solar power — the generation and use ofthe solar power which powers the manufacturing plants would need to be closely monitored, measured and evidenced and this would need to be includ in the environmental palicy of PSS. — Health and safety — the EMAS also covers the environment in which employees operate and therefore health and safety in the four manufacturing plants will need to be monitored and referenced in the environmental policy. (@)_ Briefing paper FAO: Chief executive From: Business analyst Briefing paper: Staff survey In the recent staff survey, employees raised concems about a possible health and safety issue and suggested ways to improve PSS's performance. Health and safety concern Employees ralsed a health and safety concern in elation to the chemicals which they may have been exposed to due to the Use ofthe cheaper, lower qualiy foam supplied by Quelings Foam. This cheaper foam Is usd in the production of the Charu mattress. These concerns were raised across all four manufacturing paris. ‘Assessment of the Issue: This 's potentially serious issue which is harmful to employees and customers. PSS will need to carefully manage communications and undertake full investigation to determine whether the cheaper foam is dangerous and the extent of the ‘issue. This poses a significant threat to PSS's reputation. It may mean that there isa cost-cutting culture within PSS which is, Introducing high levels of risk and encouraging unethical practices. There are also possible communication issues within PSS. ifthe financial ditector believed that the foam was on special ofer rather than a change in purchasing policy. Actions which need to be taken: ~The quality contro! teams at all four manufacturing plants should test the cheaper foam received ftom Quellings Foam to ascertain if there isa health risk. The test results will determine whether the foam can continue to be used of not. — Assuming the foam can continue to be used, in future the foam should be tested as part ofthe routine quality checks which the teams undertake. = Policies and procedures in relation to testing and quality checks of raw materials need to be reviewed, updated, and ‘communicated to ensure that al staf are aware ofthe high standard expected of raw material. = Policies and procedures in relation to whistleblowing should be reviewed, updated and communicated to ensure that all staff are aware of how to raise concerns in a timely manner — Any foam which does present a health risk should be destroyed, ~The finance department should undertake an investigation into the reason for the cheaper price for this foam. Policles on, ‘obtaining discounts from suppliers and the process for approving these need to be reviewed and tightened, — Meetings should be held with al staff from the quality conto, layering, assembly, and completion teams who have been ‘exposed to this foam. Ifthe foam does present health risks, ail staff should be offered medical attention, — the foam does present health risks, any mattresses which contain the harmiul foam should be traced to retall partners, ‘and DTC consumers. Full refunds of replacements should be offered. Madical costs shauld be covered ~ Ifthe foam does present health risks, PSS will need to Issue a press statement as soon as possible. ~ PSS should notify ZMF explaining the issue, its impact and how it intends to deal with it — PSS will need to consider the impact that any negative publicity will have on the Zeelande Health contract — even though that contract is fora different type of mattress, questions may be raised about the quality of all of PSS's raw materials. It will also affect EMAS compliance. Mattress reviews Staff suggested that they write positive reviews of PSS mattresses for the mattress review websites to improve PSS's ratings. ‘Assessment of the Issue: Employees posing as customers to write fake positive reviews on mattress review websites Is unethical and ifthe public became ‘aware that this was happening, the reputation of PSS would be damaged. ‘Actions which need to be taken: = Anemail should be sent to all staf to explain that this is unethical behaviour and should not be undertaken, ~ Staff should be given training on acting ethically. ~The importance of ethics as part of PSS values and PSS's membership of ZMF should be emphasised in all PSS ‘communications.— Employee focus groups should be set up to give staff an opportunity to suggest improvements fo PSS products which will improve ratings and increase sales, Innovative products Staff commented that PSS mattresses are not as innovative as some of the products which are availabe fiom its competitors, ‘Assessment of the Issue: {Although innovation is one of PSS's values, the four mattresses which PSS currently produces do not seem to be as innovative {as other products which are available on the market. If staff are aware of thi, customers willbe too, and ths lack of innovation ‘may be costing PSS sales. Actions which need to be taken: — PSS should review its overall strategy i terms of product offerings and future plans. — Staff forums should be held to share ideas on more innovative mattress oferings. This isin line with PSS values. = Data on features which consumers want should be analysed from the DTC sales and this data should be incorporated into future strategies and product designs. — Budget should be set aside for formal research into creating more innovative mattresses. ~The design and production of mors innovative mattesses could be included as a central part of talent management Programme, ‘Summary ‘The health and safety concem and the suggestions for improvement all require immediate steps to be taken by PSS in order to ensure that it complies with regulations and its own values. (b) Email To Human resources director From: Business analyst ‘Subject: Talent management at PSS Talent management is concerned with attracting, identifying, developing, and retaining staff members who are considered to be particularly important to the future success of PSS. If implemented corecty, a talent management programme could help support PSS'S values. However, there are also negative implications of introducing a talent management programme at PSS, which are considered below. ‘Supporting PSS’s values Bod mattress manufacturing is a compotitive Industry which has seen substantial innovation over the last few years. PSS Js not currently manufacturing truly innovative products, and this has been noted by employees who raised the Issue in the staff survey, Theretore, if PSS to remain innovative, inline with its values, it may benefit from identifying talented stat ana providing them with the opportunity to suagest ways that PSS could become more innovative. Staff who are being developed by a talent management programme and work at an operational level should be better able to identify areas of improvement and innavation within the manufacturing process itsef which may save time, money and ‘improve the quality of PSS products ‘Atalent management programme could help to encourage staff at PSS to challenge assumptions underpinning PSS's operations. Such challenges may result in tundamental, longer-tetm changes to operations and products which better address customer heads and would help PSS achieve its values. ‘talent management programme would not only help in improving operations and products, but it will also enable talented ‘employees to develop in the long term into more senior positions and managerial roles. This wil help with staff retention and reduce the risk of talented employees leaving PSS as they believe that better prospects are avallable at compotitor fms, Developing staff for internal promotion can also ensure that the ethos and culture of PSS remains unaffected. PSS values place a strong reliance on ethics and sustainably and the importance of these could be emphasised further through a talent ‘management programme. Challenges Whilst 2 talent management programme may be motivating for PSS staff, it will aso make them even mote attractive to Competitors. Therefore, PSS may need to increase salaries and offer other incentives alongside a talent management programme to avoid losing staf wham PSS has spent time and money investing in. This is important as it already seems to be the case that competitor firms are paying higher salaries. The loss of key sta members could harm future business plans and damage PSS's competitive position PSS would need to consider succession planning for stat. A talent management programme which does not offer the prospect of 2 mote senior tole in PSS could be demotlvating to sat rather than leading to Improved performance. The current induction, and on-the-job traning offered to stat is focused on thelr current roles and there does not appear to be any formal development of staf. This is not consistent with a talent management programme and would requite a change in taining mindset 6{Asa talent management programme can be expensive in terms of time, resources, and financial costs, PSS will need to ensure that the benefts ftom introducing a talent management programme outweigh these costs. This means that PSS will need to set Clear objectives for the talent management programme atthe outset and will need to monitor the success of the programme at regular intervals, It is important that PSS staff are motivated to engage in the talent management programme. If staff are not engaged in the ‘programme, it will not deliver its objectives and will not tucceed. PSS needs to ensure that staff have time to invest in the talent ‘management programme as the plants are currently working at 100% capacity and the operations director has suggested that staff are already very busy. Ifthe talent management programme places adaitional ime burdens and increased workloads on staff this may be viewod as a disincentive, ‘A successful talent management programme will require management to tsten to suggestions which are being made as it will only be successful fi is led and supported at board level. Conclusion ‘There could be berets to PSS ia talent management programme is implemented, Dut PSS needs to set clear objectives for the programme and cleatly communicate progression opportunities to staff. Due to the cost of implementing the programme and the current heavy workloads of staf, it may be better if PSS improves internal communication and offers regular staff forums rather than a formal talent management programme. 3. FAO: Finance director From: Business analyst (a) _Brieting notes: Data analysis benefits and threats of big data Gathering large amounts of varied information from customers and potential customers through the PSS website is known as, big data, The analysis and use of this data offers potential bonefts to PSS, but big data does also Introduce threats [Benefits of data analysis 1, Driving innovation It PSS analyses the data which it gathers through is website in relation to customer orders, customer and website visitor activity, preterences and feedback, It can idenfily patterns andi tends which wil give better insight into customer behaviour on a continual basis. Analysing this data will duce the time taken to decide on the direction which PSS should follow in relation to its strategy and future plans. If PSS had meaningful information which was analysed continually, it Ccould know much earlier what consumers look for in a mattress and this could then be used to evolve PSS's marketing and influence future PSS products, 2. Bullding loyalty ‘The bed mattress industry usually has low levels of brand loyalty but i PSS could analyse a wide range of customer and ‘website visitor data continuously ang tailor products and services based on the data collected, customer loyalty may be improved, ‘The data collected could be used more effectively. Website visitors could be offered the option of signing up for marketing emails about new products and promotions. This could be a beneficial and cost-effective marketing Strategy especially when advertising costs are high. 3. Competitive advantage It may be possible for PSS to galn competitive advantage and an increased market share of the mattress sector If the analysis of data helps fo identify tends and preferences which have not been identiied by rivals. Threats of big data 1. Security Holding large quantities of data opens PSS up tothe threat of virus and hackers, As PSS holds personal information from customers, it must ensure that this data is held securely which, in tum, is likely to increase costs. The audit and risk ‘committee has said that itis unclear what controls are currently in place. This needs to be investigated and a stronger, more transparent control system needs to be implemented as soon as possible. 2. Cost It could cost a significant amount of time and money to interpret data which may be of limited use to PSS. Due to the Competitive nature of the mattress industry, itis unlikely that PSS would be able to pass this cost onto customers. Any time delay in interpreting data wil reduce its value and reduce any advantage which PSS tas over its rivals. 3. Wrong decisions It would be easy to make the wrong decisions based on the information which fas been gathered. This fs a concern for PS as the DTC website currently only markets the foam mattress types. This means that there may be litle information collected which is relevant tothe mattresses which contain springs. It ls also possible that the consumers who use the DTC website are not representative ofall mattess consumers as many preter io buy maitresses at physical showrooms (or department stores. Relying on data collected from selected sectors of the market only may be dangerous and lead to wrong decisions being made. 74, Data overload PSS management could spend jts of time tying to determine informative pattems and trends in the data which may not frist. Having lots of data does not guarantee that it willbe useful (0) Briefing notes: Internal control weaknesses The auait and risk committee has identiied internal control weaknesses which need to be addressed. This briefing paper evaluates those weaknesses and makes several recommendations, Issue 1: Guarantee claims ‘The lack of detalled monitoring and review of guarantee claims is a weakness in the management controls. As the increase in claims has not been investigated, i is not clear what has caused the inctease. It has not been established whether the mattresses which were the subject of the guatantee claims were manufactured at 2 particular plant or no, Its unclear whether the mattresses which were subject to guarantee claims were old or not More guarantee claims are expected for the Abhu mattress as it has an average life of six years, but the guarantee Is for a ten-year period. But this would not explain the substantial increase In guarantee claims. A full Investigation is needed to Understand the cause ofthe increase. Ifthe guarantee claims relate to recently manufactured Abhu mattresses, there is likely to be a problem with elther the raw ‘matorals used in that mattress which have not been detected by the quality control teams or a problem in the manufacture [process which has not been discovered by the complation teams. Detailed monitoring of guarantee claims Is a ciitical aspect of the contol environment and Is necessary to ensure that poor duality products do not go unchecked without suitable corrective action. If problems are left unnoticed and unchecked over several months, these could became a major operational issue for PSS. The lack of management understanding in relation to the importance of detailed monitoring of guarantee claims is a concem as problems with operations may go undetected Recommendations: = The finance team should report guarantee claims on a monthly basis to the board of directors for review. — These reports should detail the age ofthe mattress involved, the type of mattress and the reason forthe guarantee claim. — Wit appears that there is a manufacturing fault, this should be referted back to the operations ditector and the relevant manufacturing plant for a full and immediate investigation. The relevant manufacturing process and policies will need a careful review. A manufacturing fault would be harmful to PSS's reputation as sold mattresses may need to be recalled and replaced = Actions which have been taken in response to the report should then be reported back to the finance team, — _Allactions must be followed up by the finance and operations directors to ensure that issues are actively addressed Issue 2: Patents Patents afe an important element of the PSS business and are used to ensure that the PSS mattresses are distinct in a ‘competitive market. The patents also offer protection to PSS for its own spring arrangements, mattress layer compositions, foam combinations and mattress covers, By allowing patents to expire, PSS runs the risk that competitors could copy these elements of PSS design and manufacture. Onoe a patent has expited, there Is no legal protection offered to PSS and competitors would be able to mako use ofthe previously patented processes without having to pay PSS a royalty feo. If PSS continues to claim that processes are patented, when the patent has expited, this could have a negative impact on PSS's reputation, Recommendations: — Regular checks of patents should be undertaken and allocated to an appropriate member of staff ~ Ateport on each check should be made to the board of directors. — A review of all patents which exist should take place and it should be established whether any designs or processes currently being used in the manufacturing plants are covered by patents held by other companies. If this is found to be the case, this should be reported to the board of decors as soon as possible. ~The board of directors should assess the impact ofthe patents wich fave expited in relation to the Badin mattress and establish the scale of the problem and formulate a strateay to deal with the issue. — As these expired patents relate tothe Badin mattress, its important that Zeelande Health is made aware that some of the processes involved in producing this mattress are no longer patented in case Zeelande Health believe these patents are in place anc that has contvibuted to its decision to enter into a contract with PSS,Strategic Professional - Essentials, SBL Strategic Business Leader (SBL) ‘Specimen Exam 1 Marking Scheme 1 (@)_Upto.2 marks foreach relevant opportunity identifed and discussed (up to a maximum of 10 marks) Up to 2 matks for each relevant challenge identied and discussed (up to @ maximum of 10 matks) (Up to a maximum 16 marks in total key points Opportunities = Raise profie = Counter closure of physical showroomsidenartment stores = Confirm commitment to Zeelande — Supported by Peels family ~ Socially responsible — Advertising benefit = ‘Wellbeing’ company Challenges = Already at capacity = Would need to reduce supply to reall partners = Possible financial penaities in reall partner contracts — Reduction in revenue and gross margin ~ __Possitie reduction in ROCE = Exposure to increase in cost of springs ~ Delivery costs — Impact of restructuring operations — —Non-delivery penalty clause = Collection and recycling costs for old mattresses = Patent expiry = Risk of high guarantee claims = Inconsistent with PSS values = Potential for negative impact on sustainability Professional skills may be adaltionally rewarded as in the following rubric: How welltas | Not at all ‘Not so well Quite well Very well the candidate demonstrated professional skills a follows: 1@) Tho candidate has Tho candidato has The candidato has Tho candidate has analysis ski's in| not considered the considered some of the | considered many of the | considered mostat! of considering the | opportunities and ‘general opportunities | key opportunities and | the key opportunities most significant | challenges of the ‘and challenges but there | challenges to PSS in | and challenges to PSS in factors attecting | proposal. The answer is | was limited application | detail detail "he proposal purely frees fo PSS. The answer 's presented | The answer is presented in the comect format. | in the correct format. Report 0 133 2-66 4(0) Slide 1 Up to 2 marks for each relevant point on actions to comply with EMAS, referring to: — Formalise policies ~ Objective and target setting = Employee training (Up to a maximum of 6 marks) Slide 2 Up to 2 marks for each relevant point on key areas tobe included in PSS environmental policy, referring to Transport = Suppliers = Mattress disposal service and retumed mattresses, = Packaging = Solar power — Health and safety (Up to a maximum of 6 marks) (Upto a maximum 10 marks in total Professional skills may be adaitionally rewarded as in the following rubric: Quite well Very well The slides and notes were adequate and the points made sufficient to clan the relevant Information on EMAS to the Intended audience, The answer 's presented in the correct format. The slides and nates are logical and presented ina concise and appropriate way to clarity the relevant information (on EMAS to the intended audience. The answer's presented in the correct format. How wellhas | Not at all ‘Not so weil the candidate demonstrated professional skills as follows: 1) The answer flied to The slides and notes communication | clarify the relevant were both limited in skis in clartying_ | information for PSS. coverage and therefore the most relevant_| The presentation is failed to clarity effectively information tothe | inappropriate for the | the mast relevant board Intended auaience, information on EMAS to the intended audience. Presentation slides and notes ° 133 2-66 4 102 (a) mark for each relevant point on the issues assessed (up to a maximum of 4 marks for each issue and up to maximum of 9 marks in total) Up to 2 marks for each relevant action identified and discussed (up to a maximum of 4 marks for each issue and up to ‘maximum of 12 marks in total) (Up to a maximum of 18 marks in total) key points Health and safety concern = Assessment - serious, impacts staf and customers, reputational damage, cost-cutting culture? = Adtions: © Test cheaper foam Policies reviewod Destroy any harmful foam ‘Approval for discounted deals. Communicate with staff Thrace customers Press statement NNotity 2M (© Impact on Zeetande Healtn contract Mattress reviews = Assessment — unethical, reputational damage = Actions: ° ° ° ° Email to stat Staf training Reinforce PSS values and ZMF membership Employee focus groups Innovative products = Assessment — not achieving innovation value, customers may be aware, costing sales = Actions: 0 Review overall strategy 0 Staff forums (0 Gather data from customers (© Research budget © Talent management programme Professional skills may be adcitionally rewarded as in the following rubric: How well has | Not at all ‘Not so well Quite well Very well the candidate demonstrated professional skills follows: 20a) The candidate has fald | The candidate nas The candidate made | The candidate Scepticism skis | to adequately probe the | probed some of the a reasonable attempt | presented a clear and In probing the | discussions of the board | issues in relation to the | at probing the board —_| well-structured probing discussions of the | in reation tothe staff | board discussions but | discussions, but only | of mosval of the board board in relation | survey. these were nat explored | some of the key issues | dlscussions. to the staff survey in any deta wore explored in detall The answer fs presented | The answer is presented Briefing paper In the comect format. _| in the correct formar. 0 133 2-66 4 ul(©) 1 matk for each relevant point advising on the extent to which a talent management programme would support PSS values (to 2 maximum of 8 matks) 1 matk for each challenge a talent management programme could present (to a maximum of 8 marks) (Up to a maximum of 12 marks in total) key points ‘Supporting PSS values = Currently not innovative = Suggest ways to innovate = Save time and money and improve quality = Challenge assumptions ~ Address customer neods = Staff development — Staff retention = Emphasise ethics and sustainability Challenges for PSS = Employees may be lost to competitors = May need to increase salaries = Competitors already paying higher salaries = Succession planning necessary = Current raining mindset needs to change = Expensive ~ Cost can outweigh benefits — Monitor success — Motivated participants — Management needs to listen Professional skills may be adcitionally rewarded as in the following rubric: How wallhas | Notatall Not 30 well cae wa Ver wel thecal demonstated professional his ssrolows: 20) The canto he | Thocanddae has |The candidate mace a | The cand Sonmersar | eae aemansete | demons reasonablatmpt at | oomonsatd sr fcumen sas | anyanarerasscl | ited avareness ot | demonstatng arenes | and wolstuctued Semonsvatna” | the sypoort gen by | suport gn oy talent | ore suport gen by | arenes of rasa awareness of | tatet management | managemert ard. | talent management and_| ofthe most mgartnt theevtrtwa | orpratoms wth | grbiems ttt wo | potions thf PS, | suooot gn by tot wan ert | nen PSS may taco. | tempt ced sumo mmaagoront and managment | Theanaver snot | focus on PSS proto wi i fr PS. sau supper | tec Tre answer presenta | The answers proto Inman timer | Inteoret fst cial ° 133 266 a 12(a) Upto 2 matks for each benefit to PSS identified and discussed (up to a maximum of & marks) Up to 2 marks for each threat to PSS identified and alscussed (up to a maximum of & marks) (Up to a maximum of 12 marks) Key points: Benefits = Drives innovation — Identity pattems and trends — Speed up decisions = Tailor products to meet needs = Building loyaty — Competitive advantage Threats = Data security = Increased threat of hackers = Significant cost interpreting data = Cannot pass cost on. = Easy to make wrong decisions = Data only being collected from some ofthe market = Distract management = Having lots of data does not guarantee that it will be useful to us (b) 1 matk forthe evaluation ofthe impact of each relevant point (up to @ maximum of 5 marks per issue and up to maximum of & matks in total) 1 mark for recommended actions for each relevant point (up toa maximum of 5 marks per issue and up to maximum of 8 marks in total) (Upto a maximum 12 marks) Key points: Guarantee claims Impact = Not clear on cause of claim — Not clear if across all plants ~ Not clear if problem with new mattresses = Due to shorter average lite? — Problems with raw materials or process? Recommendations = Monthly reporting of guarantee claims = Full investigation into cause = Detect manufacturing faut — Actions taken documented Patents Impact — Competitive advantage = Risk of copying No legal protection No royalty fees = _ Reputational damage Recommendations, ~~ Regular checks = Check all processes are patented — Strategy to manage expired patents = Impact on Zeelande Health contract 13Professional skills may be additionally rewarded as in the following rubric: How well nas | Not at all ‘Nat so well Quite well Very well the candidate demonstrated professional sills a follows: 3 The candidate has fale | The candidate nas The candidate has The candidate has evaluation skits | to make any attempt to | attempted to appraise | presented evidence clearly and correctly In objectively | appraise the implications | the implications tor of some objective appraised mostall appraising the | for PSS of the control | PSS of tho controf ‘appraisal of tho Of tho most refovant implications weaknesses identified | weaknesses identitied, | implications for PSS of | implications af the cof ne internal — | No recommendations | but tne appratsal the contrat weaknesses | internal controt control for improvernent were | was limited. The ‘and there were some | weaknesses and has weaknesses made. candidate made reasonable and justified | made a number of identifies weak and unjustifed | recommendations for | relevant and wall justified and making recommendations for | improvernent. recommendations for well-reasoned Jimprovernent. Improvement. eammencatons Tho answor is presented | The answer is presented ” Improvement Jn tho comect format. | in tho correct format Briefing notes ° 133 2-66 4 14