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BSBMGT608 Manage Innovation and Continuous Improvement Strategic Goals To aim 8 percent of productivity improvement as a goal, adaptation of products must be satisfied by preferences of customers. There is purpose of making customer centric organization. Increase of the effective processes for better coordination is also considered. The financial objective is to streamline financial growth and revenue by 8 percent. Customer strategic objectives are increase improvement in customer relation management and customer retention and maintenance of outstanding customer service, introduction of new products in existing and new market.

Process for identifying needs and preferences of customers Uninterruptedly reviewing the need identification process and collecting data from the particular and existing customers to recognize the trends of purchasing behavior and preferences of customers by customer relation department. Quality orientation process Monitoring, planning, and correcting in quality management must be initiated and total commitment from the employees at all levels must be ensured for total quality management.

Process for unity

To make a reduction of employee confliction, job descripts accuracy and feedback constructive to employees to gain unity of objective for quality management, performance appraisement must be employed. Brief consultation session

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To obtain feedback of employees and management for improvement in the proposed strategies, the intend strategies are disseminated at all levels in organization. The ideas of improvement in technology and customer service were agreed. They did not like to suffer further cost for training. They have resisted launching new products and heavy promotion for the brand awareness. The operational level employees have favored to have freedom for joining the labor unions and like most of the proposed strategies, but they are against of having been monitored at work place. For generating viewpoints of people, brain storming session and NGT techniques have been employed. The focus of discussion has been on the decentralized structure, better performance appraisal system, information and knowledge management and specific skills-based training. Benefits Efficiency. A continuously improving business is continually improving efficiency. As you implement the systems to get more done in less time, you save money on labor and increase customer satisfaction by turning out a higher-quality product. Engagement. Employees who work in an environment where they are expected to make continual improvements are more interested in their work than employees who are expected to simply show up and get the job done. Interested employees are satisfied employees who stay with your company longer and go the extra mile to satisfy customers and fix problems. Customer satisfaction. As your products and services continually improve, you'll be better able to meet customer needs. Your offerings will have fewer flaws because your staff will be devoting time and energy toward resolving difficulties. These efforts will be in part a response to customer feedback, and their implementation will improve the customer experience. Effective systems. When continuous improvement is part of a quality management effort, your business will put systems in place to continually evaluate and upgrade its PAGE 1

operations. These systems will give your company the tools it needs to build quality into its DNA as an intrinsic aspect of its identity. Disadvantages -Incremental improvement. Continuous improvement is usually implemented as an incremental process in which advances are made in small steps according to an established set of assumptions. To have a formal continuous improvement program in place, your team will have defined a set of desirable objectives and will be working toward these outcomes. However, sometimes real improvement comes from shattering a mold and exploring an entirely different direction. - Stifled innovation. If your business has defined the ways it wants to grow and improve, it may limit itself to a specific type of development and close itself off to other possibilities. It addition to missing opportunities, this creates the possibility of stifling rather than rewarding the creativity of your staff. - Inadequate implementation. Although continual improvement itself tends to be good for an organization, it may not be implemented effectively. Objectives may not be communicated clearly, or managers may not be sufficiently motivated in following through with improvements. If your staff isn't sufficiently motivated or if they feel like their efforts are wasted, your continuous improvement program may create more problems than benefits.

Performance Improvement Strategy Target Area

Research Data

Organizational Skill

Performance concern

Research is in progress

Deficiency of knowledge regarding new lines

Expected standard of performance

To generatean correctly To be effectively produce the accurate data and to enable products on a daily basis, meet the meaningful analysis regarding production deadlines market

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Agreed improvement action

Set up a team to do research on the market

Hire engineer consultant. Establish good communication in the company.

Support

Conduct effective training in Intensive training lead by engineer writing research and handling consultant. complex data. Time management training. Hire a consultant

Review date

To be reviewed every quarter Every Month of year

Review note

Effective training is needed.

Outsource the part of the production process which A.C Gilbert could not do effectively while waiting for the engineers train to be able to deliver expected performance.

Date to achieve

Within 4 months

Within 4 months

Gaining lots of knowledges, doing research and planning will help A.C Gilbert to know which target market to engage and what is the current trends going on the market by having an accurate research data. It is hard for the engineers to keep up by having a lot of new lines introduced in such a short amount of time. These would help A.C Gilbert to be better prepared to compete with competitors in the market which in the end going to give A.C Gilbert competitive edge against other company Reviewed Performance Improvement Strategy Target Area Research Data Organizational Skill Performance concern

Research is in progress

Deficiency of knowledge regarding new lines

Management Skills Ineffective management lead

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Expected standard of performance Agreed improvement action Support

to lack of performance To generate an correctly To be effectively produce the products Good workforce accurate data and to enable on a daily basis, meet the production and increase of meaningful analysis regarding deadlines sales due to market upgraded spirits. Set up a team to do research Hire engineer consultant. Establish Internal on the market good communication in the company. promotions Conduct higher training in Intensive training lead by engineer writing research and handling consultant. complex data. Time management training. Hire a consultant To be reviewed every quarter Every Month of year

Bonus

Review note

Effective training is needed.

Management skills training

Date to achieve

Within 4 months

Review date

Outsource the part of the production process which A.C Gilbert could not do effectively while waiting for the engineers train to be able to deliver expected performance. Within 4 months

Within 4 months

KRAs Financials- As the scenario shows, A.C. Gilbert continually made loss from 1962 to 1967. In order to improve the organizational goal to accomplish $20 million sales, Company should take the following strategies:  Reduce unnecessary expenditure –A critical part of saving for many people is to reduce spending on “wants” to allow room for savings.

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 Keep investment costs low  Increase marketing- Conduct marketplace research to learn which messages speak to your target audience. Run ads and promotions in limited locations and check the results before spending your entire budget. Incorporate some way to monitor marketing communications, such as using coupons, electronic codes or website traffic statistics.  Pricing strategies- Find out what your competition is charging and raise or lower your prices based on your goals. Lowering your prices can increase revenues to make up for lower margins. Raising your prices can create a higher perceived value in the minds of consumers and increase your margins. Raising your prices can also increase your revenues without increasing sales. Customers- A. C. Gilbert had a limited range of top-quality toys and focused on educational toys and mainly aimed at boys rather than girls before 1950’s. When it moved into the 1960s, there were huge culture changes across the world, which impact in toy markets. After Jack Wrather, an opportunistic businessman, took over the company in 1962. The company changed the focus from traditional boys’ toys to ranges for pre-school children and dolls aimed at girls. Now it is 21st century, the company’s short-term objective is expanding their target customers from middle and upper class to lower class. The long-term objective is increasing market share in emerging markets, such as Southeast Asia (China, South Korea, Thailand, Malaysia, Indonesia etc.) KPI  Staff retention

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h ;t m e r o g in a F C b H T I G A s c v .d u U ly p ff N L fi ,f jk M The company should retrain experienced engineers to meet new production requirements due to increase new lines.

 Quality standards

It is important to maintain current quality standards and even to exceed market expectations.

 Production times

It is important meet key retail sales periods, otherwise the company will miss the opportunity to increase sale.

 Sales budgets

Necessary first step in structuring an overall budget for A. C. Gilbert. With an accurate projection of future sales, keeps expenses in line and protects the company from failing.

 Profit budgets

It is important to set an acceptable profit goals, which stimulate employees to use their existing knowledge to attain the goal.

RISK ANALYSIS

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Cost-Benefit Analysis Activity

$

Material

17,000

Research

9,000

Instructor

70,000

Marketing

20,000

Total cost

143,000

ROI=Operational savings/Cost of Training ROI=148,000/143,000 ROI= 1.03; Positive ratio This means ROI was 103% or $1.03 for every $1.00 spends for the training. Recommendation ROI is concerned about whether the training is benefiting the organization. In the other hand, most training evaluation is concerned with whether learners acquire knowledge and skills and apply them to work.By having the new strategy in place A.C Gilbert would have; Work safety practices improvement result in customer service and productivity improvements Employee with new skills for workforce gains, adequate skills to meet the needs of your operation for now and in the future Stimulate to employees and demonstrate that company isalways ready to invest in them. Loyaltyimprovement and staff retention. In turn, retention is a saving to company.

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