Countdown Supermarkets: Innovation, HRM, and Design Thinking

This report examines Countdown Supermarkets, focusing on innovation management, human resource management, and the application of design thinking frameworks. It highlights the company's initiatives in waste reduction and environmental sustainability, emphasizing the role of green HRM in fo...Read More

Running Head: COUNTDOWN SUPERMARKETS
Countdown Supermarkets
Name of the Student
Name of the University
Author Note

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Executive Summary
The aim of this paper is to apply the learnings of the course work in a single assessment. The
purpose is to contribute in the operational context to innovate and organizational change within a
business entity. The selected business unit for this work is the Countdown supermarkets. The
assessment applies problem solving strategies along with the decision making for efficient and
effective performance of the organization. The paper also embodies the design thinking
methodologies along with the stakeholder’s collaboration for innovation and change.

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Introduction
In an organization, innovation is required, so is the management of change. In the highly
competitive industry, it becomes necessary for the organizations to stay sustainable in the
market. The innovation process is extremely helpful in this regards but requires a suitable design
to execute it successfully (Tukker et al., 2017). The present report will show the aspects of
innovation, organizational culture, human resource management through the chosen organization
that is Countdown Supermarkets.
TASK 1- Innovation Management & Human Resource Management
1.1
a) The name of the organization is Countdown Supermarkets. It is a retail store and a
subsidiary of Woolworths. The company was founded in the year 1981 and the headquarter of
the company is located in Auckland, New Zealand. There are 184 locations where the company
has its branches and it is mainly the grocery stores. There are almost 18,000 or more people who
are connected with the Countdown Supermarkets. As far as the key people of the company is
concerned, Natalie David is the Managing director of the company (Countdown.co.nz. 2019). It
has been considered to be one of the largest supermarket chains in New Zealand.
The stores are primarily divided into almost 10 areas and each area has a group manager
or the area manager. The operation of the ar4sa are supported by the National Operations
Managers. The company also provides the online grocery products to the people of New

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Zealand. The supplies are conducted on daily basis to four of its most active distribution centers
such as the Wiri, Palmerston North, Christchurch and Auckland. The biggest competitor of
Countdown Supermarkets is Foodstuffs Limited(Countdown.co.nz. 2019). The current slogan of
the company is “Shop Smarter” that was introduce in the year 2009. The firm is seen to have
high CSR values as it is involved in many charity programs along with having an effective
branding.
b) The Countdown Supermarkets has concentrated on the innovation in the process. It has
recently aimed at producing the zero waste. It has started adopting the no packaging. It is also
seen that the supermarket is highly active towards reducing the 40 % of daily garbage that is
equivalent to 7000,000 tons of trash piled up of the left over package(Countdown.co.nz. 2019).
The environmental sustainability has become one of the most serious concerns for the ordinary
mass as well as the business organizations. The company can take up innovative measures to
reduce the carbon footprint and save the expenses too.
c) In the current scenario, the business organizations have become highly aware of the
environment management techniques through the strategy of going green. Since, the corporate
world is also going green, the business organizations are also experiencing huge shift from the
traditional way towards the contemporary economy that explores the green economic facets of
the business. The green human resource management is a unique business strategy for a healthy
workforce and also a healthy environment. The waste reduction strategy adopted by the
Countdown Supermarkets will open innovative opportunities for the business in terms of
increasing the sustainability and establishing a workforce which understands and appreciates the
green culture in the organization(Countdown.co.nz. 2019).

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1) The Countdown Supermarket will leave least ecological footprints apart from dealing
with the economic issues. It will help the organization to facilitate the attainment of the investors
and shareholders. The HRM of the organization is the most responsible in this regard. Notably,
it is evident that the employees are satisfied and committed to the organizations which is
proactive towards endorsing the green around. It will lead the company towards environmental
sustainability for a long period of time.
2) Also, it will establish a healthy organizational culture driven towards the betterment of
the society and the world at large. The Green Human Resource Management will help to boots
up the morale of the employees and increase their satisfaction too. The employees will
understand the vision and mission of the company and feel a kind of belongingness towards them
(Carayannis, Sindakis & Walter, 2015).. They will feel motivated by the corporate structure of
the organization and given their best for the overall benefit of the company. The human resource
policies aligned to the aim of waste reduction will support the employee management and their
engagement.
d) The first strategy will involve the two processes such as defining the message and
involving the customers. The second strategy will involve the training of the employees of the
organization and using the benefits-cost analysis tool for screen thee evaluation of the innovative
change in the organization (Basile & Faraci,2015).
1) The company should not strike blindly to the different goals. It must come up with
reasons and align to the culture of the business, find out the type of support they will require and
then select it and stick to it. The involvement of the customers will help the organization to come
up with a list of options and ask the customers to vote on which innovation they wat the most

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(Teece, Peteraf & Leih, 2016). The assistance of the customers will create a long term bond with
them and at the same time tailor their products and services as per their needs.
2) The training system will provide the employees the correct information and skills
required foe being aligned to the innovation process the company is contemplating to incorporate
into the operations. The screening of the benefit –cost analysis will help to measure the rates of
benefit the company will experience after adopting the waste reduction strategy. The employees
will know how they must behave and perform in order to make the innovation a successful one.
The training will make them understand the importance of environmental sustainability. This
tool is useful for evaluating the net benefits of the decisions made by the organization.
e) The innovation brought about by the company will help the company to grow
financially and socially.
1) The more efficient use of the products will reduce the expense of purchasing new
materials. The unpacked aspect of the products helps to reduce the plastic pollution.
2) It will help to improve the work efficiencies through the accurate and detailed design
that is focused on the reduction of rework, compensation for the loss and other issues. The
company can actualize this aim by using the gravity dispensers line up on the walls of the
supermarket. This technique will enable the customers purchase the exact amount they need.
3) It will attain more satisfaction of the customers in order to enhance the image and
reputation of the company. The Countdown supermarkets can request the customers to bring
their own containers from home that can easily reduce the wastage of products. The unpacked
aspect of the products helps to reduce the plastic pollution (Edvardsson et al., 2018). The
company should also aim at selling the pure ingredients food. The consumers and the

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shareholders will want to be connected with the company more and share a long term
relationship in this way.
Task 2- Design Thinking Framework
2.1 The concept of design thinking
The design thinking is the methodology that helps to deliver a business strategy and lead
towards success. The design thinking process is the most suitable for the software development
projects. It is considered to be the core of a particular organization’s organizational change, the
innovation strategy, the HRM functions and many others. The design thinking frameworks help
to arrive at a particular objective through a collaborative thinking processes. The design thinking
is a specific human –centered approach towards integrating innovation that satisfies the
requirements of people, for success, the possibilities of technology and many others (Barbosa,
Romero & Cunha, 2018). It can even change the way an organization serves, offers products,
processes and the strategies. The DT framework covers five levels of journey such as empathize,
define, ideate, prototype and test.

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Image 1- Design thinking process
Source - (Barbosa, Romero & Cunha, 2018)
The design thinking framework of Idea Couture combine the future thinking with the
design thinking and applies that particular methodology to achieve a business strategy for the
customer experience of innovation. It also combines the system thinking along with the business
strategy.

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Image 2- Design thinking framework
Source -(Pugh, 2016)
As a whole, it can be said that design thinking facilitates the organizational innovation
and change. The human centered innovation starts with the development of a clear understanding
of the desires of the customers and their unarticulated needs. The most unique source of
innovative ideas which can gain the competitive advantage, higher margins can be known by the
design thinking frameworks (Pugh, 2016). The best advantage of the design thinking is that it
helps to reduce the risk of innovation process through the help of prototypes and customer
engagement The desi thinkers are relied on the customer insights and not only on the market
research and historical data.
2.2 five stages of design thinking for organizational innovation

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In an organization, the regular innovation process consists of the four stages such as
ideate, define, design and develop. The stages are synced with each other for a successful
innovation in the organization. The design thinking process on the other had comprises of five
stages. The Countdown Supermarket must follow this technique for bringing innovation
successfully. This particular process helps to bring out better choices and ideas and it is up to the
organization which one will it select and implement.
 In the first stage the Countdown Supermarket will listen to the requirements of the
customers regarding the particular issue of environmental sustainability and waste
reduction process. This specific approach will help to save the learnings and discoveries
ins a disciplined way similar to the empathy maps.
 In the defining stage, the company is supposed to combine all the collected insights and
opinions after listening to the customers and observing their requirements. The definition
of the problems is extremely essential. This stage of the design thinking frames out the
problem clearly for which the solution is required. It will help the company to explore the
opportunities. The problem definition in the case of Countdown Supermarket will
supposedly be the environmental impacts of the operations.
 In the ideating stage the company will search for the methods to resolve the problems
identified. It will give space to spurring ideas. The company will then ideate or
brainstorm. The design thinking emphasizes on the transformation of an idea into a
concept. This strategy will help the company to encourage the team work and promote
the multi-disciplinary team that helps to bring better outcomes. The company will then
shortlist the best idea from among the list and leave the rest.

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 The stage of prototyping is highly important as in this stage the solutions are brought into
the vision of the organization. In this stage, there are various methods which are involved
such as the rapid prototyping, sketching and many others. However, the scholars suggest
to follow a speedy, simple and economical method while dealing with this stage. In this
context, a prototype can be converted into a kind of beta product or a minimal viable
product.
 The testing stage is the stage where the responses of the customers are known towards the
innovation adopted by the company. In the case of Countdown Supermarkets, the new
process of package less container systems will be evaluated by taking the reviews of the
customers directly or indirectly. This is an important sage and must not be skipped.
2.3 The change management models
After much research, it can be said that two model are the most suitable in the context of
Countdown Supermarket. The change management models help to instruct how to manage the
change to be implemented in the organization. Since the Countdown Supermarkets is focused at
reducing their operational impacts on the environment, it is proposed that they use the gravity
dispensers lined up on the walls of the supermarket. This technique will enable the customers
purchase the exact amount they need. It will attain more satisfaction of the customers in order to
enhance the image and reputation of the company. The Countdown supermarkets can request the
customers to bring their own containers from home that can easily reduce the wastage of
products. The unpacked aspect of the products helps to reduce the plastic pollution. The
company should also aim at selling the pure ingredients food. The consumers and the
shareholders will want to be connected with the company more and share a long term
relationship in this way.

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The change management of Kurt Lewin
The change management model developed by Kurt Lewin states that there are three
stages of managing the change. The stages are unfreezing, change and freezing. The unfreezing
stag is mainly the preparation of change. This models will help the company to understand how
to communicate to the employees about the change. It also teaches to challenge the existing
traditional practices of the company along with the pre-conceived culture and values. Previously
the organization was aimed at gaining the topmost position in the entire New Zealand in terms of
revenues, size and popularity. Hence m the operations of the company was tailored to that. Later,
when the values of the company have become modified incorporating the environmental
concerns, the operations also must be according to that. The unfreezing stage is the most
difficult as it covers the challenging sections. In the changing stage, the company should make
the employees adopt the change implemented. It can bring problems which needs to be handled
smoothly. In the last sage that is the Freezing stage, the employees are acclimated to unknown
business processes and they are provided with new duties and expectations. The proper support
must be provided along with the training programs for better outcomes.

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Image 3- Change management model
Source - (Kagermann, 2015).
Kotter’s 8-step change model
The eight steps change model of Kotter is useful for the implementation and management
of change. The eight bas steps are as follows-
1. The company should firstly create a sense of urgency in order to recognize a big
opportunity and spark excitement among the employees.
2. In the second step, the company will build a guiding coalition. It will establish an internal
team to manage the transformation. The team is supposed to guide, communicate and
coordinate in the organization as a whole (Carayannis, Sindakis & Walter, 2015).
3. It will then form the strategic vision and take initiative to stand up on the expectations.
4. Next, the company will enlist the volunteers for supporting the change. It will provide
tasks to the volunteers in a way that will contribute to the success of the company.
5. The Countdown Supermarkets will then enable the actions by removing the barriers. It
should remove the barriers through the coalition (Kagermann, 2015).
6. Then it must generate the short term wins. The focus on the long term wins must not
disrupt the short term activities or the daily operations.
7. The maintenance of the balance between the change leadership and the change
management is highly important. The leadership of change should consist of motivating,
directing and aligning the staffs to their capabilities and strengths.
8. The communication transparency is another impotent aspect of the implementation of
change. It will help to keep the employees on track.

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Image 4- Change management model
Source -(Edvardsson et al., 2018)
2.4 Advantages and disadvantages
Advantages- The organizational change leaves its effect on the entire organization and
the stakeholders. The management of change involves all the people of the organization and at
the same time takes care of their individual interests. While implementing a change or managing
the change, it is mandatory to know the interests of the import stakeholders (Teece, Peteraf &
Leih, 2016). When the interests of the stakeholders are not known, it is likely that the company
keeps hovering around inconsequential factors and spending time and money on the wrong
aspects. The design thinking frameworks, the prototype and the ideas help to learn about new
opportunities and probable barriers to achieve the success. Notably, the stakeholders and the
stakeholders’ groups are necessary to come into contact with each other (Edvardsson et al.,
2018). The prototyping part in the design thinking process helps to welcome the new ideas of the
stakeholders and subsequently their interests too. Seen from the perspectives of change

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management, the knowledge of the interests of the stakeholders helps to minimize their
resistance while implementing change.
Disadvantage - The problem with design thinking arises when there is a huge innovation
program and large changes are to be made. The contrasting systems and practices of the business
continues to be the blocks to the progress. The design thinking process is a master process of
visualizing the ideas but that is just a part of the innovation. The entire process is successful only
when it creates actual value, and they work in the marketplace too.
2.5 Benefit of organizational change in Countdown
The Countdown Supermarkets will be benefitted in so many ways if the proposed change
is implemented in the organization. The proposed change will help the business to run as
environmentally friendly and reduce the impact on the environment. The reduction in the usage
of plastic packages will support a greener society. It will also reduce the unwanted expenses the
company used to bear previously. Hence it will save their money too which they can invest on
something more important.
Task 3 Innovation and Organizational Change
3.1 Two Contextual factors
1) Thee first contextual factor that influences the response of the employees towards
change in the workplace is their understanding of the purpose and importance of the change
process. It depends on how well the employees understand the reasons behind the change. It is
true that human beings are born with some innate abilities to understand the situation going
around (Doppelt, 2017). When people do not understand what is happening, why is it happening

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and what good will it do, an anxious air prevails. The Countdown Supermarkets will have to
understand that before implementing any change.
2) The second contextual factor that leaves impact on the response of the employees
towards change in the workplace is the organizational climate and organizational relationships. A
good bonding between the employees and the executives helps to bring openness and acceptance.
Good relationships do reduce the stress and the aftermaths. It creates resilience in the workforce.
The transition and the adversity is handled smoothly when good relationships are shared among
all. The organization must acknowledge that and support it in their work culture.
3.2 Two reasons for resistance
1)The first reason for which the employees resist the change implemented in the
workplace is the faulty implementation approach. It is sometime not the change that initiates
resistance but the implementation approach itself (Oh et al., 2016). The change that is
implemented in an insensitive manner leaves the employees infuriated. Hence, the Countdown
Supermarkets needs thoughtful implementation approach for making the change a successful
one.
2) The second reason is the pressure from the peers. Man is a social creature, no matter
whether he is introvert or extrovert. The organizational stakeholders create resistance in order to
protect the desires and interests of a particular group. The influence of the co –workers and the
other people around is contributory in resisting a particular change. Hence, the Countdown
supermarkets needs to ensure that the change does not hurt the personal interests and the
threatens the social bonds at the workplace.
3.3 Two processes to manage the resistance to change

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1) The Countdown supermarket can easily manage the resistance to change by
effectively engaging the employees. They must take the reviews and feedbacks from the
employees in order to ensure that they are happy with the change (Roth, Schneckenberg & Tsai,
2015). They employees must be asked questions regarding whether the change is at all working
or not. They must also be asked for the advice on how to improve the existing condition.
2) The organization can also manage the resistance to change by communicating the
change effectively. They can in a way explicitly tell the employees about what is going on and
why is it necessary for the organization. They must also communicate to them what benefits the
change is going to bring in their lives and the organization as a whole.
3.4 Positive and Negative of organizational change processes on the employees
Positive- The successful implementation of an actually useful change in the organization
can facilitate the employees to enhance their confidence level. The organizational change when
receives positive perceptions of the employees, a smooth way for future changes are paved
(Teece, Peteraf & Leih, 2016). It instills the confidence of the employees on the ability of the
management in terms of leading good decisions for the betterment of the organization. It also
makes the day-to day decisions easy.
Negative – While implementing he change; the Countdown supermarkets might face the
negative impacts on the employees among which the loss of loyalty is most important. When the
change is not completely accepted by the employees, they might break their loyalty towards the
company that is often resentful (Pugh, 2016). The organizational change when not implemented
properly can initiate the employee turnovers.
3.5 Two strategies to engage the employees in the organizational change process

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1) Since employee involvement is the key to change management, the Countdown
Supermarket must engage their employees as much as possible. They must create a plan with the
change department/team. It must develop a strategy after establishing the vision and
communicate to the members regarding how to get there. It should understand the stakeholders
and also the skills required in the change process.
2)Leadership is also a crucial factor in the employee engagement while managing the
change. The leaders of the organizational change must be a role model to be followed by the
subordinates (Bedford, 2015). He must be aware of how to stay committed to the success of
change. It can be done by moving the barriers, ensuring the learning, providing the resources,
supporting employees by change, partnering with the stakeholders and others. It helps to manage
the resistance to change and facilitates the employee engagement.
3.6 The two organizational change requirements
1) The first organizational change requirement was to meet the needs of the employees.
The aim of the organization is to develop products and serve them in such a way that pleases the
employees and they gain the competitive advantage over the market rivals (Basile &
Faraci,2015). After the evaluation of the change in the suppliers of the products who served fresh
products, it can be said that the Countdown Supermarket has properly followed the design
thinking framework steps. It has listened to the customers, defined the problem, ideated how to
resolve the problem, prototyped the action and tested the results which were surprisingly better.
2) The second organizational change requirement was to compete with the
technologically advanced atmosphere. They identified the use of modern technologies in order to
perform more efficiently in the market which were cost-friendly too. It has been found that they

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used manual billing machines but later they started using the automated billing machines which
resulted in effortless and errorless calculations (Bedford, 2015). As seen from the perspectives of
the design thinking framework, the company was aligned to the steps of design thinking,
3.7 Two contribution of the employees
1) The employees can promote an innovative environment in the workplace by
developing a learning culture among themselves (Basile & Faraci,2015). They can help promote
and plan the innovation by sharing their ideas and views in front of their supervisors that can do
better for the organization.
2) The employees can also contribute indirectly by staying calm at the transformation and
change implemented in the organization. They should not create an aura of anxiety and resist the
change that is going to happen for the betterment of the organization.
3.8 Two contribution of the management
1) On the other hand, the management of the organization can also contribute in creating
a conducive culture to innovation and creativity (Barbosa, Romero & Cunha, 2018). They should
develop a clear sense of direction. The clear sense and communication of the targets will help
the organization to speed up the journey to innovation.
2) The management of the organization should also continue the recognition of the talents
and the rewards systems. The rewards can be in any form both in the financial or the non-
financial forms (Amis, 2018). When the rewards systems are tied to the innovation process, it
automatically establishes a work culture full of motivations, innovation and creativity.
Conclusion

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Therefore, from the above report it can be seen that the change management is a vast
subject and there are so many aspects interlinked with the topic itself. It is also apparent that the
management of change is far more important the implementation of change. Hence, an
organization like the Countdown Supermarket should develop the strategies to mitigate the issues
which are connected with organizational change and innovation.

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