BSBMGT608 Report: Managing Innovation and Continuous Improvement

This report delves into the concepts of innovation and continuous improvement within the context of leadership and management, specifically focusing on the A.C. Gilbert toy company case study. It analyzes key systems and processes, including operational systems and product/service delivery, and proposes review strategies using KRAs, KPIs, and financial performance measures. The report also evaluates the effectiveness of review programs and suggests improvements such as appointing a quality control supervisor and implementing internal checks. Furthermore, it examines variances in areas like quality, sales, and profits, and assesses the strengths and weaknesses of A.C. Gilbert before 1960. Task 2 focuses on developing a performance improvement strategy, including individual and team briefings, risk analysis, and cost-benefit analysis, with a focus on fostering a creative climate and organizational learning.

Running head: ADVANCE DIPLOMA LEADERSHIP AND MANAGEMENT
Advance Diploma Leadership and Management
Name of the Student:
Name of the University:
Author’s Note:

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ADVANCE DIPLOMA LEADERSHIP AND MANAGEMENT
Table of Contents
Task 1...............................................................................................................................................3
Key System and Processes...............................................................................................................3
Operational System......................................................................................................................3
Product/Service Delivery.............................................................................................................3
Review Strategy of Key Processes..................................................................................................4
Analysis of Key Strategies...............................................................................................................5
Monitoring of Performance of Key Processes.............................................................................5
Evaluation of the Review Program..............................................................................................6
Suggestion for Further Improvements.............................................................................................6
Analysis of Variances......................................................................................................................7
Strength and Weaknesses of A.C. Gilbert before 1960...................................................................8
Services of Specialists...................................................................................................................10
Task 2.............................................................................................................................................11
Performance Improvement Strategy..............................................................................................11
Individual Briefing and Consultation Services..............................................................................13
Team Briefing............................................................................................................................13
Analysis of the Strategy.............................................................................................................13
Leading the Session.......................................................................................................................14
Risk Analysis of the Strategy........................................................................................................14

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Cost Benefit Analysis....................................................................................................................15
Reference.......................................................................................................................................16

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ADVANCE DIPLOMA LEADERSHIP AND MANAGEMENT
Task 1
Key System and Processes
Operational System
As per the case study which is provided in the assessment is related to A.C. Gilbert which
was a toy making company and specialized in making train sets for boys. The operational
structure of the business is appropriate considering the overall size of the business. The
management of the company first of all puts emphasis on effective planning so as to ensure that
the visions and models for the toys can be converted into actual toys for the company (Hammer
2015). The planning stage is an important step in operational management of the company as
appropriate designs for toys are selected from the planning process. On the basis of the design
and model which is to be manufactured the necessary raw materials are purchased for entering
the manufacturing stage (Poelmans, Reijers and Recker 2013). All of these processes are
reviewed by the top-level management of the company in order to ensure that there is a smooth
operation in business.
Product/Service Delivery
After the manufacturing process for the toys are completed in A.C. Gilbert, the
distribution and marketing team of the company takes charge. The distribution of the toys is
generally done in two ways which are direct order from customers and orders from retailers. The
sales team is responsible for securing the customer and also effective marketing of the products.
The toys which are manufactured are delivered to the retailers for direct sales to the customers of
the business. The company is known to have an effective customer service system and after sales
service record which is clearly shown in the case study which is shown in assessment.

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Review Strategy of Key Processes
In order to analyze the strategies which are related to the key processes of the business
which is operational activities and Product/Service Delivery. The business can identify the Key
results areas (KRAs) and Key Performance Indicators (KPI) for ensuring that the strategies
which are implemented for such processes are being followed or not as per the goals of the
business (Chua et al. 2013). The review strategy of the business will be including the following
measures:
 KRAs: The key results area of the business for measuring the operational performance of
the business are quality of the products, cost per products, raw material consumed. The
overall efficiency of the workers can also be considered to be key results area (Zin et al.
2013). In case of product delivery or sales team, the efficiency of the sales team is one of
the key results areas which can be appropriately be achieved by proper implementing
proper training program.
 KPIs: The key performance indicators of the business can be the increase in the profits of
the business, increase in the sales volume of the company, ease of availability of
financing sources (Parmenter 2015). All of these can be achieved through efficient
operational structure of the business. In case of Product delivery structure, the
performance indictors of the business will be reputation of the business among
customers, lesser amount of complaints or returns for products.
 Financial Performance of the Business: The financial performance measures which can
be reviewed by the management by considering the financial indicators of the business
which are net profit, share value of the company, returns on investments. In addition to

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this, the management can use tools like Ratio analysis, trend analysis and financial
analysis in order to measure the financial performance of the business (Yu et al. 2013).
 Sample Service Level Agreement: This is an agreement which is established between a
service provider and a customer. On the basis of such ab agreement transactions of goods
and services are provided to customers. A sample service level agreement is shown
below:
Authority Name and Signature Date
Sales Manager 15.06.18
Marketing Executives 15.06.18
Analysis of Key Strategies
Monitoring of Performance of Key Processes
The monitoring of performance of operational processes of A.C. Gilbert can be done by
applying the following tools which are discussed below:
 Budgets: One of the important tools which is generally used in most of the company to
monitor performance and also formulate plans is budgets (Brunelli et al. 2015). The
targets which are set by the management acts as guidelines for measuring the
performance of the business.
 Performance Reports: This is a report which are prepared by each department under the
operational structure of the company on a monthly or weekly basis (Yin et al. 2014).

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Such reports are used by businesses to monitor the performance of the business for a
period and any variances which are noticed can be adjusted with appropriate measures.
The monitoring for Delivery services of the business can be monitored by tools which are
given below:
 Customer Satisfaction Index: This an index which shows whether the customers are
satisfied with the services of the business or not. This index is an efficient means for
receiving feedbacks from the customers and also involves rating of the services which are
provided by the customers. The management can measure the effectiveness of the sales
teams with the help of such an index.
 Number of returns: A report which shows the returns of goods from customers or retailers
for poor quality, defective products or bad services is good source for identifying the
deficiencies of processes and thereby helping the management in monitoring such
processes.
Evaluation of the Review Program
As discussed in the above paragraphs, the important role of the management of A.C.
Gilbert is to first of all identify the key measures of performance and also identify the
weaknesses present in the overall management of the company. In addition to this, the business
can use policies and tools such as Budgets, ratio analysis, trend analysis, customer satisfaction
index to review the overall performance of the business. Therefore, it can be said that the review
strategy of the business is an efficient one and is estimated that the same will also be able to
monitor the performance of the processes and also apply control measures on the same.

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Suggestion for Further Improvements
The management can bring about further improvements in the key processes of the
business by adopting the following suggested measures:
1. Appointment of a Quality Control supervisor whose main role will be to monitor the
processes and also ensure quality standards are maintained.
2. Internal Checks can be initiated to promote monitoring, transparency and accountability
of the supervisors of key processes which can be on a quarterly basis.
3. Applications of security cameras and weekly performance reports is an important
measure to promote monitoring and effective management of the business.
Analysis of Variances
As per the plan and organizational structure of the business, the Key results areas of the
business are to be considered and any variances are to be investigated. As the business
environment of the toy industry changes as shown in the case study in the era of sixties, the taste
and preference of the customers also changes and more emphasis on advertisement became the
criteria for success. The variances which can occur in KRAs are given below:
 Quality and Design: As per the case study, the business is engaged in making engineering
sets, trains set which are generally for the boys. The quality of the products which are
manufactured by the business are of good quality as indicated in the case study.
Variances in quality can be assessed quality control checks.
 Sales: The sales of the business have decreased which is shown in the case study due to
the changes in the preference of customers and the changes in markets (Walker and

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Lloyd-Walker 2014). This is a reason for the variances from the plans which were set by
the management.
 Profits: As shown in the case study the sales of the business declines and thereby the
business earns losses. The business earned a loss of $ 5.7 million in 1963. Therefore,
variances arise as the plan of the management was to earn a revenue of $ 20 million in
1963.
 Product Delivery Service: The delivery services as demonstrated by the case study shows
the structure for delivery services is appropriate for the management and therefore no
variances can be expected from such an area.
 Business Growth: As per the case study, after 1960, the business started to change the
product line and further diversify the business which was expected to bring about growth
and development in the business but repetitive losses suffered by the company lowered
the market valuation of the business, hence the planned target of growth could not be
achieved.
Strength and Weaknesses of A.C. Gilbert before 1960
a. Market Share: The business had a strong and positive reputation in the market for toys
and the train sets manufactured by the company was preferred and therefore the business
had high market valuation.
b. Reputation: This was one of the strengths of the business as the company enjoyed good
reputation due to the effective after sales services provided by the business.
c. Stability: Due to the intense competition, the market was dynamic and as per the analysis
of the case study the business was stable in the fifties.

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d. Profit: As per the case study, the company was earning appropriate profits prior to 1960
and the business had created a brand name for itself in the market.
e. Sales: The sales which was achieved by the business was appropriate as the products
offered by the A.C. Gilbert were in demand and also the after sales services were
excellent and hence this can be considered to be a strength of the business.
f. Ability to adapt to changes: The ability of the business to adapt to changes is a weakness
as the business has one major product line which is engineer sets.
g. Customer service standards: The business has an effective policy regarding customer
services and therefore such can be considered as strength of the business.
h. Innovation: The business does not make changes in product line and therefore from the
innovative point of view such can be considered as a weakness.
i. Employee Performance: The performance of the employees as shown in the case study
shows that the employees are a strength in the business management.
j. Production and Manufacturing: The production and manufacturing system of the
company can be considered to be a strength of the business.
One of the missed opportunities of the business which the management can have used to
strengthen the market position of the business is diversification of products. The business should
have moved to action figures and dolls for girls for increasing the sales revenue of the business.
The business also missed opportunities where the business can effectively promote the product
by television advertisements.
Action Plan
Milestone: Action and/or objective Date Person
responsibl
Budget or
resources

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ADVANCE DIPLOMA LEADERSHIP AND MANAGEMENT
(to achieve all the strategic aims and
objectives of physical or human
resourcing)
e (wherever
applicable)
Appointment of Quality Control Supervisor 20th June
2018
Operational
Manager of
the business.
Quality Control
Reports and
Quality
Management
practices
Weekly performance reports with
application of tools like ratio and trend
analysis
23rd June Departmental
Managers
Initiation of the
planning, charts
and other kinds of
ordinary
requirements.
Installation of Security Cameras 25th June Operational
Manager
Monitoring
records
Services of Specialists
In case the business had survived the changes and adapted to some extent to the changes
in the market in the sixties, the management should have seek advice from marketing
professionals so as to come up with innovative strategies to effectively promote the products and
also attract the generation to the products offered by the business. In addition to this, the
management should have set up a R&D department for innovation and further developments of
products offered by the business.

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ADVANCE DIPLOMA LEADERSHIP AND MANAGEMENT
Task 2
Performance Improvement Strategy
The performance improvement strategies which can implemented by the business for
overall improvement in the management of the company are discussed below which relates to
significant areas of business.
 Strategic Goals: The management of the company should emphasis on formulating plans
for effective strategic management of the business. In order to do so the business needs to
conduct a market analysis which will consider SWOT analysis and Benchmarking
techniques to identify the strengths of the competitors and accordingly develop plans for
improvements in the operational structure of the company (Hill, Jones and Schilling
2014). The strategic goals will be focusing on the bring about improvements in
operational structure and also further diversifying the products which are offered by the
business (Goetsch and Davis 2014). This can improve the financial positions of the
company and reestablish the business in the eyes of the public. Beside this, the business