BSBMGT608 Manage Innovation and Continuous Improvement Project

This project delves into the critical aspects of continuous improvement and innovation, focusing on sustainability as a key driver for long-term organizational growth. It examines the importance of continuous improvement in adapting to changing market needs and achieving a competitive advantage. The project explores two primary initiatives: increasing employee engagement for sustainability and implementing performance management systems. It analyzes the risks associated with these initiatives, such as slower decision-making and potential motivational challenges, and proposes strategies to mitigate these risks. A cost-benefit analysis is conducted to evaluate the financial viability of employee engagement and performance management systems, demonstrating their potential to improve organizational performance and employee contribution. The project also outlines a research plan and assesses the impact and consequences of these initiatives on staff, including their effects on motivation and collaboration. Finally, it includes a contingency plan to address potential failures, emphasizing the use of advanced technologies as a recovery strategy.

Graduate Diploma
of
Management

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Contents
Introduction................................................................................................................................1
Continuous improvement and sustainability..............................................................................1
Risk associated with initiatives..................................................................................................1
Cost Benefit analysis-................................................................................................................2
Impact of change and consequences..........................................................................................4
Contingency plan.......................................................................................................................4
Conclusion..................................................................................................................................5

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Introduction
In today’s time sustainability has become one of the critical factors for achieving the long
term growth of the organisation. Sustainability ensures that the growth of the organisation
will be without any kind of significant challenges (Pinkus, 2011). At the same time
continuous improvement plays a same role. It is crucial that firm analyses the risks attached
to their business, does a cost benefit analysis and analyse the impact of change and its
consequences for staffs. They also need to make contingency plan in case any initiatives fail.
Continuous improvement and sustainability
Resource scarcity is increasing and in this, it has become crucial for the organisations to
make sure that they have a continuous improvement plan. Choosing the sustainable process in
which sustainability of the future is ensured is necessary as it gives them competitive
advantage over the rivals (Asif, et al. 2011). A firm that has adopted continuous development
is more likely achieve success in the market as they will orient themselves as per the
changing need of the organisation. Selecting an approach to sustainability allows a firm to
have long term goals which lets them ahead of their competitors in the long term (Asif, et al.
2011).
Risk associated with initiatives
The two initiatives that can be taken in this regards are:
 For sustainability: For this employee engagement can be increased by asking from
everyone while making strategic decisions.
 For Key performance indicators: For this the use of performance management system
can be beneficial (Gruman and Saks, 2011).
Risks that can confront employee engagement are:
 It makes the decision making process slow hence it might give benefits that is actually
required by the company.
 There is also a risk that if the company involves them in the process but still their
concerns are not heard, then the challenges related to motivation might be created
(Ferguson and Reio Jr, 2010).

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Strategies
 Company must limit the time frame in which all the concerns and ideas are heard.
 Company should come to any conclusion and must explain to each staff that why their
ideas cannot be implemented in the company.
Risks that confront sustainability
 Reducing quality of resources can hamper sustainability.
 Risks related to achieving higher growth while ensuring sustainability (Yilmaz and
Flouris, 2010).
Strategies
 Company must add partners which can provide them quality resources whenever
required and regular quality assessment needs to be done.
 Company should make a strategic plan for ensuring that they can utilise the resources
for longer period of time and also make sure that the growth rate is not compromised.
The use of lean management can be effective in this regards.
Cost Benefit analysis-
Cost of employee engagement
Amoun
t
Recruitment cost 25000
investment in development
program 20000
Training cost 15000
60000
Benefits related to employee
engagement
Saving through retention 15000
team productivity 30000
Employee contribution (per
employee) 50000

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95000
Costs of performance management
system
Amount
($)
cost for annual process review 15000
set up cost 30000
cost related to training 10000
55000
Benefits related to performance
management system
legal protection against employee lawsuit 15000
Productivity 40000
performance appraisal 25000
80000
From the above cost benefit analysis of employee engagement, it can say that the employee
engagement can be effective initiative. It can also work financially. For this initiative, the
total cost including recruitment cost, training cost and investment cost is 60,000 $. On the
other hand, the total benefits including saving through retention, productivity of team and
employee contribution, will be 95,000 $. The net cost benefit will be 35000 $. This will be
beneficial for the company. The company can get more contribution from the employees. In
the addition of this, the company can also attract the persons from outside. It can keep
talented persons from leaving.
Further, from the above cost benefit analysis of the performance management system, it can
say that this initiative can increase the overall performance of organisation. For the
implementation of performance management system, the cost including training cost, set up
cost and cost for annual process review is 55000 $. On the other hand, the benefits including
productivity, legal protection against employee lawsuit and performance appraisal will be
80000 $. The net cost benefit will be 25000 $.

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Research practices which would be
performed
No of the week for performing each
activity
1 2 3 4 5 6 7 8 9 10
Detection of the research issue
Formulating research aim and
objective
Data collection for research through
appropriate technique
Implementing initiatives
Checking the risks associated with
each initiative.
Working for improving the risks
Writing of final report
Submission of report
Impact of change and consequences
Each of the initiatives discussed above there is a significant impact and consequences that it
pose to staffs.
Employee engagement for improving sustainability has a long term impact on the motivation
of the people. This is because employees feel that they are worthy and also their management
believes in them (Markos and Sridevi, 2010). This also brings leadership to develop in the
individual which is necessary for the company to deal with the challenges that might confront
their business in the future. It will also impact on the way a person approaches to a task i.e.
the collaboration can be promoted.
Implementation of performance management system will ensure that employees also look at
each variable before actually doing their work. This adds a pressure on the employees to

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perform better as each of their actions will be evaluated under different key performance
indicators and it is compared with standards that has been set in the industry (Mone and
London, 2018).
Contingency plan
Problem
There is a problem related to sustainability and lack of key performance indicators and there
is a risk that if employee engagement is done then time taken to complete the task increases.
There is also the risk that sustainability might reduce the growth of the company.
Personnel that should monitor failure
Managers of each department should be responsible for monitoring the risks that might lead
to failure.
Recovery strategy
Take use of advanced technologies so as to improve the working methodology can be
beneficial and it will enhance the scope of the firm to avoid risks in the initiatives.
Conclusion
It can be concluded that for improving sustainability and key performance indicators related
issues, there must be use of initiatives such as employee engagement and implementation of
performance management system. Risks such as late decision making and quality of
resources confront these initiatives. As a part of the contingency plan, a recovery strategy that
can be used is taking higher use of technology.
REFERENCES
Asif, M., Searcy, C., Garvare, R. and Ahmad, N., 2011. Including sustainability in business
excellence models. Total Quality Management & Business Excellence, 22(7), pp.773-786.

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Asif, M., Searcy, C., Zutshi, A. and Ahmad, N., 2011. An integrated management systems
approach to corporate sustainability. European Business Review, 23(4), pp.353-367.
Ferguson, K.L. and Reio Jr, T.G., 2010. Human resource management systems and firm
performance. Journal of Management Development, 29(5), pp.471-494.
Gruman, J.A. and Saks, A.M., 2011. Performance management and employee engagement.
Human Resource Management Review, 21(2), pp.123-136.
Markos, S. and Sridevi, M.S., 2010. Employee engagement: The key to improving
performance. International journal of business and management, 5(12), p.89.
Mone, E.M. and London, M., 2018. Employee engagement through effective performance
management: A practical guide for managers. Routledge.
Pinkus, K., 2011. The Risks of Sustainability. In Criticism, Crisis, and Contemporary
Narrative (pp. 72-88). Routledge.
Yilmaz, A.K. and Flouris, T., 2010. Managing corporate sustainability: Risk management
process based perspective. African journal of business management, 4(2), pp.162-171.