Continuous Improvement and Innovation Report for Business Management

This report delves into the core principles of continuous improvement and innovation, covering essential methodologies and theoretical frameworks. It begins by outlining two key methods for cost-benefit analysis: the payback period and return-on-investment analysis. The report then explores creativity theories, including Graham Wallas' five-stage model and the Parnes & Osborn theory, and their practical applications within the workplace. It further examines the diffusion of innovation theory and its utility for managers. The concept of a learning organization is defined, along with its five key characteristics, followed by an explanation of shared vision and team learning as critical organizational learning principles. The report also analyzes quality management and continuous improvement theories, and discusses the implications of Kotter's 8-Step change model for transformational change. It explains the purpose of ISO 9000 standards and the concept of risk management according to AS/NZS ISO 31000:2009, including factors that affect its success. Finally, it identifies sustainability practices common in Australian workplaces and the seven steps in the risk management process. The report offers a comprehensive overview of the key components of continuous improvement and innovation, providing valuable insights for business management.

Running head: CONTINUOUS IMPROVEMENT AND INNOVATION
Continuous Improvement and Innovation
Name of the Student
Name of the University
Author Note

1CONTINUOUS IMPROVEMENT AND INNOVATION
Outline two methods for conducting cost-benefit analysis.
The two most important methods used for analysis include the payback period method of
analysis and the return-on-investment analysis (Ferwerda 2014). It is the method using which
the payback period is calculated, that is, the time required by the asset to generate returns
equivalent to the amount invested in the asset. The return-on-investment analysis on the other
hand determines the rate at which returns are being earned on the investment made on a
particular asset.
Describe two creativity theories and their application to workplace innovation
One of the most important creativity theories that can be used in the context of innovation at
work places is the theory proposed by Graham Wallas which has five stages including
preparation, incubation, intimation illumination and verification (Anderson, Potočnik and
Zhou 2014). The next important theory of creativity that firms can use includes the theory
proposed by Sid Parnes & Alex Osborn. This theory also comprises of four stages including
understanding the problem, generating ideas, planning for action and acceptance finding.
Describe the diffusion of innovation theory and why a manager implementing an
innovation may find this theory useful.
The diffusion of innovation theory is one of the oldest social science theories and it describes
the adoption of an idea or product or behaviour which is new in the society such that it is not
a simultaneous process and spreads across the population amongst people who are aware of it
and people who are not aware of the same (Scott and McGuire 2017). This process helps the
manager to understand the features of the products that can be used for different parts of the
population in the target market to advertise and sell the product effectively.
Outline the concept of a learning organization.

2CONTINUOUS IMPROVEMENT AND INNOVATION
A learning organisation is essentially a firm that allows the employees to learn and grow and
continuously evolves. There are generally five characteristics including Systems thinking,
mental models, personal mastery, team learning and shared visions. A combination of these
characteristics are believed to help the firm into an integrated and interconnected way of
thinking (Bunea, Din and Popescu 2016). This form of a model allows employees to feel
committed to the organisation and consider themselves to be a part of the same.
Explain the concept of shared vision as an important organizational learning principle.
The aim of a shared vision in the firm is crucial for maintaining transparency in the
organization and allows employees to share their ideas so that they can contribute in their
own way to the firm in which they work. Further, it is the method in which the ideas and
common interests are generated and shared. This method helps in creating a sensation of
unity and commonality across different diverse and varied sectors (Alt, Díez-de-Castro and
Lloréns-Montes 2015). It is one of the few strategies that help in creating a common purpose
of improving the firm and helping the firm grow.
Explain the concept of team learning as an important organizational learning principle.
Team learning is one of the five important principles that constitute a learning organisation in
a firm. It is focussed on increasing the skill set of the group as a whole. It helps the entire
group to learn and solve problems together so that the problem solving speed and capacity of
the firm increases (Siemens 2014). There are three major parts of team learning including
personal mastery, system thinking and dialogue. These help in improving the conversational
skills of the team as a whole. This feature is specifically meant o improve the interpersonal
skills of the team and use the strengths and weaknesses of the team members in an effective
manner.

3CONTINUOUS IMPROVEMENT AND INNOVATION
Identify and discuss in detail five quality management and continuous improvement
theories.
Quality management systems are used by firms as a method for gaining customer trust and
providing the best quality services to customers. It uses various tools and techniques in
combination to improve the services offered and ensure that the services are of the best
quality possible (Ross 2017). It also tries to provide the services on time. Total quality
management is an important aspect of this system and tries to continuously improve the
processes of the business by working in a proactive manner. Continuous Improvement thus
requires evaluation of the process on a regular basis.
Discuss the implications for businesses of Kotters 8-Step change model for
transformational change
Change management is a very important and vital part of any organization that continuously
needs to improve and grow. The eight steps of Kotters model include creating urgency,
forming a powerful coalition, creating a vision for change, communicating the vision,
removing obstacles, creating short term wins, building on the changes proposed and
anchoring the changes in the corporate culture (Hornstein 2015). The integration of project
management and organizational change management is now. These steps help the business to
continuously change depending upon the needs of the customers and also maintain a stability
at the same time which helps in generating enough returns and revenues. This model also
ensures that the level of transparency is maintained across all levels in the organization and
employees do not feel the stress and pressure of changing systems.
Explain the purpose of the ISO 9000 Standards for Quality Management and the
standards that are included.

4CONTINUOUS IMPROVEMENT AND INNOVATION
The purpose of the ISO 9000 Standards for Quality Management is to maintain and efficient
system of quality management through the implementation of a quality system. The different
series of standards include requirements, vocabulary and fundamentals and managing the
sustained success of any organization (Hoyle 2017). The series of standards also include
guidelines for auditing management systems.
Describe the concept of risk as identified in the Australia/New Zealand Standard for
Risk Management (AS/NZS ISO 31000:2009)
As per (AS/NZS ISO 31000:2009) the concept of risk has now changed to the effect or
impact of uncertainty on the objectives of a firm from what was known as the chance of
something happening that will impact the objectives of the firm. So now the role of managers
has become two fold in which they will consider the risk of something that might happen and
formulating tools and techniques that will ensure that these risks are mitigated
(Shop.standards.govt.nz. 2018). The attributes of a risk management framework are also
provided which will help managers with a framework that they can follow effectively.
Describe the concept of risk management and outline the factors that make a risk
management system successful and the factors that may inhibit effective risk
management.
The concept of risk management involves a lot of processes among which the most important
is that of continuously changing and evolving processes so that the impact of any uncertain
risk is minimized and even completely eliminated depending upon the circumstances. Risk
management should also be a crucial and integral part of a firm’s governance principles and
the possible risks should be considered as a part of the decision making process (Van Der
Vegt et al. 2015). The major factors that cause interference in the path of risk management
include increased tolerance to old functional structures and no outlook for causes of concern.

5CONTINUOUS IMPROVEMENT AND INNOVATION
The other factor include ineffective communication across different levels of the organization
and lack of proper training and education.
In your own words, describe the seven steps in the risk management process as outlined
in AS/NZS ISO 31000:2009.
The seven steps in the risk management process as framed by the AS/NZS ISO 31000:2009
portray risk management to be an integral part of the operations of any firm. These processes
tend to acknowledge any type of uncertainty and help in considering risks in an explicit
manner. It helps firms to build a process that is well structured, systematic and timely at the
very same time. It uses the information available in the best way possible
((Shop.standards.govt.nz. 2018). These management systems help in keeping up the values of
the organisation and reaching the goals while reaching only limited obstacles. The risk
management helps in forming well informed decisions.
Identify and outline three different sustainability practices common in Australian
workplaces.
Among the three sustainability practices identified in workplaces across Australia, the most
common is that of diversity and inclusion (Benn, Edwards and Williams 2014). The other
sustainable practices include usage of sustainable supply methods and ensuring that there is
proper work life balance among these employees so that they consider themselves to be a part
of the organization.

6CONTINUOUS IMPROVEMENT AND INNOVATION
References:
Alt, E., Díez-de-Castro, E.P. and Lloréns-Montes, F.J., 2015. Linking employee stakeholders
to environmental performance: The role of proactive environmental strategies and shared
vision. Journal of Business Ethics, 128(1), pp.167-181.
Anderson, N., Potočnik, K. and Zhou, J., 2014. Innovation and creativity in organizations: A
state-of-the-science review, prospective commentary, and guiding framework. Journal of
management, 40(5), pp.1297-1333.
Benn, S., Edwards, M. and Williams, T., 2014. Organizational change for corporate
sustainability. Routledge.
Bunea, A., Dinu, G. and Popescu, D.M., 2016. Organizational Learning versus the Learning
Organization-Emerging Concepts Enhancing the Leadership Role. Valahian Journal of
Economic Studies, 7(4).
Ferwerda, J., 2014. Cost-benefit analysis. Chapters, pp.1-1.
Hornstein, H.A., 2015. The integration of project management and organizational change
management is now a necessity. International Journal of Project Management, 33(2),
pp.291-298.
Hoyle, D., 2017. ISO 9000 Quality Systems Handbook-updated for the ISO 9001: 2015
standard: Increasing the Quality of an Organization’s Outputs. Routledge.
Ross, J.E., 2017. Total quality management: Text, cases, and readings. Routledge.
Scott, S. and McGuire, J., 2017. Using Diffusion of Innovation Theory to Promote
Universally Designed College Instruction. International Journal of Teaching and Learning in
Higher Education, 29(1), pp.119-128.

7CONTINUOUS IMPROVEMENT AND INNOVATION
Shop.standards.govt.nz. (2018). [online] Available at:
https://shop.standards.govt.nz/catalog/31000:2009(AS%7CNZS%20ISO)/scope [Accessed 26
Oct. 2018].
Siemens, G., 2014. Connectivism: A learning theory for the digital age.
Van Der Vegt, G.S., Essens, P., Wahlström, M. and George, G., 2015. Managing risk and
resilience.