RWBI BIO0226: Identifying Strategic Themes for Board of Directors

This report addresses the Board of Directors, focusing on themes crucial for a company's strategic direction and long-term survival. It explores complex human systems, highlighting Toyota's HRM challenges as an example. The SPICE Framework is presented as a tool for robust decision-making, emphasizing strategy, patterns, individual development, context, and emergence. Effective decision-making is outlined in a seven-step process. The report also advocates for social innovation, emphasizing environmental and social responsibility to enhance brand image and customer base. The report concludes with recommendations for the Board to implement these practices effectively, manage human systems efficiently, and invest in social innovation for sustainable growth.

Running Head: BUSINESS ISSUES 1
Real World Business Issues

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Table of Contents
Introduction.................................................................................................................................................4
Complex Human Systems............................................................................................................................4
SPICE Framework.........................................................................................................................................5
Strategy...................................................................................................................................................6
Patterns...................................................................................................................................................6
Individual.................................................................................................................................................6
Context....................................................................................................................................................7
Emergence...............................................................................................................................................7
Effective Decision Making............................................................................................................................7
Social Innovation.........................................................................................................................................9
Conclusion and recommendations for the Board of Directors..................................................................10
References.................................................................................................................................................11

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Introduction
For a company, strategic direction is the course of action which leads it to attain the objectives of
organization’s strategy. Through this, the organization identifies its objectives and specific ways
to attain them. In an organization, there may be some themes or areas which assist its strategic
direction. These themes are such as complex human systems, SPICE Framework, effective
decision making and Social Innovation. This report discusses all the above themes in context of
businesses in general. It will be presented to the Board of Directors of the company.
Complex Human Systems
In general, human system is the development of human resources including the capability to
entice the proficient people, engage them and register them as the members of company’s
culture. In an organization, human complex system emphasizes on the face-to-face interaction
among heterogeneous people. It examines that how the organizational culture and its social
structure co-develop to impact the interaction and behavior, thus influencing performance of
overall system (Bratton, & Gold, 2017). The initial objective of this system is to entice the
potential employees, choose the most appropriate and orient them to the way of organization.
The organizations in this sector needs to focus on the management of human resources as it is
one of the biggest concerns for businesses. In can be understood though the below-given
theoretical framework of Butterfly complex human system.

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To understand the complex human system in automotive sector, the example of Toyota can be
taken into consideration. The human system of Toyota is very complex and it has faced various
issues in managing its people. Due to complexities in HRM system, the company has faced the
manufacturing defects in its products and then it has recalled them (Toyota Global, 2018). The
lower level employees and managers of firm had complained about declining quality of Toyotas
products before these recalls. But top level management did not take these complaints seriously.
Moreover, its human system became complex due to failure risk management process. It is due
to lack of employees to risk management process. However, Toyota has experienced a
significant growth in past few years and it was not able to manage its human system. It failed to
ensure that human resources are working with proper skills and knowledge to perform their job
roles at optimum levels. The firm of Board of Directors can face the issues like Toyota
(Hasenfeld, 2009).
In this industry, the future of human system will be changing with the advancement of
technology. The firms will use updated technologies to manufacture the cars and other
automobile products (Cascio, 2018). It can be stated that in the near future, new models and
systems can be explored that functions like humans with feeling and emotions. Advanced
Information Technology will assist the Board of Directors in making its complex human system
simpler.

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SPICE Framework
To generate robust and innovative solutions in challenging times, the SPICE Framework is the
major resource for the entrepreneurs, managers and leaders in a company (Croft, 2016). It can
represent a simple framework which can be implemented to the challenges like performance
management, talent management, change management, operational and strategic decision
making.
Strategy
Strategy is the first components of the SPICE Framework that assists the development of thriving
businesses via altering vision and aspiration into a plan with measurable effects (Wallace, 2017).
Under this, the red zone of the strategy enables the reasoned planning, impact and delivery for
development. The strategy is the outcome of the deliberate decision making process for the
organization.
Patterns
Patterns are the ways in which situations, challenges and opportunities are perceived by the
organization and its managers. About this dimension, it can be stated that each of employees
identify and respond to the patterns is partly inbuilt and partly learned on the basis of experience.
The more company and its people enhance skills in organizing different ways of identifying
patterns, the more their decision making quality will enhance (Biondi, et al, 2014).

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Individual
This framework allows the people to flourish through developing work relationships and
working on their strengths. It is the most important component of SPICE model as its assists the
leaders to balance their needs against the business’ needs. In a firm, the best decisions can be
made by the flourished and developed people.
Context
This dimension of framework empowers the businesses to flourish by evolving clarity of
objectives and vision. Every company has a story to tell the people and a clear vision for its
business operations. High performing firms make more focus on this component of SPICE.
Emergence
Emergence assists the organization in developing insights for the sustainable innovation and
future development. By looking at this, the company needs to capture the future possibilities and
opportunities and make the decisions accordingly (Croft, 2016).
The Board of Directors of the company needs to understand that implementation of SPICE
Framework can assist them in enhancing the performance of organization in long term. They can
develop it by face-to-face training and coaching. In the future, they can develop it via e-learning
and app-based resources.
Effective Decision Making
Effective Decision Making can be defined as the process through which alternatives are chosen
and then managed via execution to attain business goals. These firms use a step-by-step decision
making process which assist them in making more deliberate and thoughtful decisions by
managing the related information and avoiding the alternatives (Brodbeck, & Guillaume, 2015).
There are 7 steps which are generally considered by the organization while making any decision
for company.

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The Board of Directors of the Company should focus on these steps:
Identify the issues
In this step, the company will identify the issue and reason behind making any decision. It will
define the nature of decision that the company is going to take.
Collect the Related Information
After this, it will gather some relevant and specific information that will be required in the
processes. For an organization, the information can be gathered from both internal and external
sources (Ferrell & Fraedrich, 2015).
Identify the Alternatives
As the organization collects the data, it will identify several possible alternatives. It can use the
additional data to make new alternatives.
Weigh the Evidence
In this step, the company will draw the data and emotions to imagine what it would be if the
company carries all the options to the end. It will place all the alternatives in the priority order
according to their usefulness and significance.

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Select the Best among Alternatives
Once the company will have weighed all the evidences, it will be ready to choose the best
alternative among all. It can choose more than one alternatives as the best.
Take Action
Now, the company is ready to take the required action by starting the implementation of the best
alternatives in action.
Review the Decisions
This is the final step of effective decision making process in which it will consider the outcomes
of decision and analyze whether it is able to resolve the issue identified in the step 1. After, it can
take the action accordingly and implement it.
Board of Directors of the organization can practice this process to make the decisions which
support the long term growth and success of organization (Phillips et al, 2015).
Social Innovation
Nowadays, people are becoming very aware about the environment and society. They are being
more environmental-friendly and making investment in safeguarding the environment and its
different components (Manzini & Coad, 2015). Thus, it is very important for the organization to
engage in social innovation. Social innovation is the process of creating and implementing
effective solutions to the threatening and systematic social/environmental issues to support the
social development. In this context, an author stated that social innovation is not the privilege of
company. These solutions generally need the active engagement of people across the business,
government and non-profit organizations. It emphasizes on the solutions and ideas which
develop social value and the procedures through which they are produced (Cajaiba-Santana,
2014).
The Board of Directors of company needs to consider the drivers of social innovation. It will
educate the future managers and leaders about the environmental and social change. Under this,
the company can meet the mission of bringing the social and environmental changes to the
world. This is the practice of utilizing creativity to generate the solutions that enhance the well-

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being of society (Skoll World Forum, 2013). It promotes the creative thinking, collaborative
action and creative action to fulfill the social needs. Currently, the role of social innovation is
increasing in both public and private sector organizations. Leadership plays an important role in
driving social innovation in the organization (Drucker, 2014). The leaders have been realizing
that the best manner to drive social innovation is by going beyond society volunteering and grant
making to apply the power of core business. Social innovation can assist the organizations to
grab the attention of more people. It will increase the customer base of organization which in
turn support the long term growth and survival of business. Board of Directors can adopt this
technique that will lead the organization in achieving predetermined goals and objectives of the
organization (Kemp, 2015).
Conclusion and recommendations for the Board of Directors
From the above analysis, it can be concluded that there are some important areas which can
support the business of Board of Directors. The above mentioned themes and areas will support
the business in gaining more growth and long term survival in the industry. It can be
recommended to the Board of Directors that they should implement these practices in an
effective manner. They should make efforts to manage its human system efficiently. SPICE
Framework is one of the best models that can support the organization in implementing best
strategies to make effective decisions. These areas can provide the strategic important and
strategic direction to the growth of business. In addition to this, they should make investment in
the social innovation considering the changes and trends in the market. Social Innovation can
assist them in enhancing brand image of organization among the people. To enhance the
capabilities of managers and leaders, Board of Directors should go ahead with the
implementation of SPICE Framework that will support in the development of business. In this
way, they can practice different themes in the interest of organization and its employees.

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References
Biondi, A., Manfredi, P., Vande Ginste, D., De Zutter, D., & Canavero, F. (2014). Variability
analysis of interconnect structures including general nonlinear elements in SPICE-type
framework. Electronics Letters, 50(4), 263-265.
Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. UK: Palgrave.
Brodbeck, F. C., & Guillaume, Y. R. (2015). Effective decision making and problem solving in
projects. In Applied Psychology for Project Managers (pp. 37-52). Berlin: Springer.
Cajaiba-Santana, G. (2014). Social innovation: Moving the field forward. A conceptual
framework. Technological Forecasting and Social Change, 82, 42-51.
Cascio, W. (2018). Managing human resources. US: McGraw-Hill Education.
Croft, M. (2016). The SPICE Framework An Introduction. Retrieved from
http://www.spiceframework.com/SPICE-An-Introduction.pdf.
Drucker, P. (2014). Innovation and entrepreneurship. UK: Routledge.
Ferrell, O. C., & Fraedrich, J. (2015). Business ethics: Ethical decision making & cases.
Australia: Nelson Education.
Hasenfeld, Y. (2009). Human services as complex organizations. US: Sage Publications.
Kemp, R. (2015). Social innovation as an emerging phenomenon of great societal importance.
Retrieved from http://www.transitsocialinnovation.eu/blog/social-innovation-as-an-
emerging-phenomenon-of-great-societal-importance.
Manzini, E., & Coad, R. (2015). Design, when everybody designs: An introduction to design for
social innovation. US: MIT press.

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Phillips, W., Lee, H., Ghobadian, A., O’Regan, N., & James, P. (2015). Social innovation and
social entrepreneurship: A systematic review. Group & Organization
Management, 40(3), 428-461.
Skoll World Forum. (2013). The Critical Role Of Leadership In Driving Social Innovation.
Retrieved from https://www.forbes.com/sites/skollworldforum/2013/12/27/the-critical-
role-of-leadership-in-driving-social-innovation/#3ec1268a2413.
Toyota Global. (2018). Toyota Motor Corporation Global Website. Retrieved from
http://www.toyota-global.com/.
Wallace, D. (2017). Environmental policy and industrial innovation: Strategies in Europe, the
USA and Japan. UK: Routledge.