Reference no: EM132918012

BSBSTR601 Manage innovation and continuous improvement

Performance Evidence

The candidate must demonstrate the ability to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including evidence of the ability to:

• manage and promote innovation and continuous improvement for an organisation or work area on at least one occasion.

In the course of the above, the candidate must:

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

Knowledge Evidence

The candidate must be able to demonstrate knowledge to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including knowledge of:

• cost-benefit analysis methods
• knowledge management systems
• continuous improvement systems and processes
• creativity and innovation theories and concepts
• organisational learning principles
• quality management and continuous improvement theories
• relevant risk management concepts
• key aspects of supply chains, and operational, product and service systems

• method for conducting gap analysis
• changing trends and opportunities in workplace.

Identify relevant team members and communicate ways of working objectives, expectations and desired outcomes
Eliciting the best work from your employees is the mark of an effective leader. But, effectively communicating what exactly you expect from them can be difficult1.

"Unclear expectations lead to inefficient processes and subpar performance," says Christine Lotze, a partner at Philosophy IB, a Florham Park, N.J.-based management-consulting firm that specializes in changing workplace behavior. "People get frustrated because their work isn't valued and ultimately the company suffers."

You can avoid that confusion with these four tips to communicate your expectations clearly and effectively:

1. Reinforce your expectations. As with any conversation, you should use simple and direct language when communicating your expectations. "The key to effective communication is simplicity and repetition of the message," Lotze says. Hearing your expectations once won't make them sink in -- they need to be regularly reinforced.

2. Explain who, what and how. To communicate clear expectations in a constantly changing startup environment, make sure that employees always know what you are trying to achieve, how you plan to get there, and who will do what to reach that outcome. "Most failures can be linked to a gap in clarity about one of these three components," Lotze says.

3. Notice what the work environment communicates to employees. For employees to meet your expectations, the work environment has to support the behaviors you want to see. "Every element of your culture must reinforce the expected behaviors you outline for your employees," Lotze says. If the expectations are at odds with the environment, your employees won't be able to meet them
-- even if they're trying.

4. Take a personal interest in your employees. Your employees come to the workplace with their own wants and needs, so getting to know each person individually helps you ensure that they understand your expectations and feel motivated to meet them. "By really understanding what makes them tick, what gives them energy, and what challenges they are facing, a leader can much more effectively drive performance and change behaviour," Lotze says.

Take the time to establish an emotional connection with each of the people you manage. Ask what they're struggling with, what they're working toward, and what excites them about the work they're doing. Knowing what motivates them will help you frame your expectations in a way that matches their career goals.

Employee expectations gone awry can practically be spotted from a helicopter miles away. The tension becomes so thick it changes the air. Anxiety spreads. Alliances form. A mutiny brews. At the failing end of the communication spectrum, the workplace resembles a Survivor tribal council.

But it doesn't have to be that way. Effective communication can give the workplace a friendly atmosphere where employees are comfortable and can focus on doing what they do best. To get there, executive coaches advise a grounded communication approach that's equal parts clarity, empathy, and honesty.

Communicating Employee Expectations: Keep the Conversation Alive

Jamie Walters chuckles when she hears about businesses that merely do annual reviews. The author of the book Big Vision, Small Business and the founder of business consulting firm Ivy Sea- Sophialon suggests having a casual conversation on a regular basis instead of waiting for an annual review. Meet once a month at least to talk about goals and progress so there aren't any surprises. "Even with quarterly reviews people can be caught off-guard with something that's built up," she says.

Activity 1 How and why is communication central to managing employee expectations?

Activity 2 Nimra was very excited to be leading the team managing a move to a new office with four of her favorite co-workers. The group of five seemed to agree on everything. However, when their manager asked for an update, it went poorly, as the manager asked many questions Nimra and her team had not thought to ask one another. Which team dynamic issue likely contributed to this
outcome?

Activity 3 Who defines organisational KPI's? Why do they require ongoing review?

Activity 4 Interview someone responsible for risk management in an organisation of your choice and identify their process of monitoring and review. What issues are highlighted and what strategies
were implemented to deal with them?

Activity 5 Describe the relationship between continuous improvement and sustainability.

Activity 6 Using an organisation you are familiar with, determine those organisational systems and processes most critical to its success. Determine also, the performance standard required of the critical system/s or processes and any appropriate benchmarks or benchmarking opportunities. Standards are typically expressed quantitatively (in terms of numbers) to ensure that performance expectations are clear and easily measured. Quantitative standards are usually expressed in terms of one or a combination of the following dimensions:

• Physical or productivity - quantities of products/services, numbers of customers/clients, etc
• Budget or Monetary - ROI, break-even point, liquidity, labour costs, materials costs, sales revenue, gross profit, etc
• Time - scheduling, critical path timeframe, process time, waiting time (queuing), etc

Qualitative (subjective) standards also play an important role although performance is much harder to measure. These may include 'qualified' personnel, 'team players', 'appropriate dress', 'satisfaction', 'expectations', and the like. Determine also whether these are reflected in the organisation's strategic or department/unit business plans. If you don't have easy direct access to
an organisation, interview a manager in an organisation you know.

Activity 7 Research two technology and/or electronic commerce specialists that you could access to provide advice.

Activity 8 Is implementation of a risk management strategy contrary to encouraging innovation and entrepreneurship? Why/why not?

Activity 9 Outline a generic communication strategy to include all staff in continuous improvement activities.

Activity 10 Sometimes, too serious a mindset can hinder creativity. Having fun during work allows one to be relaxed and that's where one tends to get inspired with wonderful ideas. Needless to say, a stressful or even depressing work environment doesn't give one the mood to think of doing things differently. The employee would only look forward to the end of the day.

Suggest a way to ensure that creativity is not being hampered by the organisational mindset.
Activity 11 Think of an organisation you are familiar with. Does the organisation have any of the artifacts of a continuous improvement philosophy, like process flowcharts or process improvement teams or Six Sigma projects or the like? If so, what are they and how are they used? If not, what is the organisational approach to continuous improvement?

Activity 12 How does performance measurement integrate into continuous improvement processes?

Activity 13 Select one principle of effective performance measurement and describe the principle. Provide practical examples in the context of an organisation you have access to of it application.

Activity 14 Describe how you would analyse performance reports and variances to determine improvement opportunities in organisational sales processes.

Activity 15 Outline how competitor analysis can be undertaken. Provide specific examples from a business you have access to.

Activity 16 How can you measure performance against KPIs?

Activity 17 What are the possible consequences for a business that does not monitor and manage its supply chain? Why?

Activity 18 Is value chain analysis the same as supply chain analysis? Why/Why not?

Activity 19 For an organisation you have access to draw a flow chart diagram of your organization's approval process for innovations. Pick an example for a theoretical new idea. Suppose it is a good idea to improve customers' satisfaction that would involve significant spending and the co-operation of several departments. What levels of approval and authority would it need to see the light of day? Who are the key stakeholders in the approval process? Who has the right of veto? What levels of planning or business case development are needed to get it through the system?

Draw as detailed a flow chart as you can showing the go/no go decision points and the feedback loops where ideas are sent back for reconsideration. Now ask some questions. Is this process fit for purpose? Is it over-engineered? Do we have too many hurdles for new proposals to jump?

Often when this exercise is done we find that the approval process has been designed for significant new product initiatives but it is unwieldy for smaller developments or process
improvement proposals that still have to jump through all the hoops.

Activity 20 Describe 2 ways you could reward creativity in your staff.

Activity 21 Outline an approach to dealing with an innovation that resulted in a negative impact on an organisation. What strategies could be applied to manage the situation?

Activity 22 Provide two examples of circumstances whereby a contingency plan would need to be implemented.

Activity 23 Provide an example of a technique to build the right culture and enabling internal system that drives innovation behaviours.

Activity 24 What are the relationships between Knowledge Management - Innovation Management - Organizational Learning?

Activity 25 Explain how open communication with respect to innovation costs and benefits nurtures a culture of innovation and continuous improvement.

Activity 26 Discuss how you would advance the development of an organisational learning and a creative climate/culture in an organisation you are familiar with? As part of your response, address the notion of 'failure' acceptance as critical within the innovation process.

Activity 27 How could you reward team learning? Suggest a recognition and reward strategy.