BSBMGT608 Knowledges and Guideline

Contents
Overview 3
Resources 4
Preparation 6
Conducting lessons 7
Learning outcomes 8
Topic 1: Continuous improvement and innovation theories 9
Topic 2: Review programs, systems and processes 17
Topic 3: Develop options for continuous improvement 20
Topic 4: Implement innovative processes 24
Review and assessment 30
BSBMGT608 Manage innovation and continuous improvement Trainer Guide
Overview
Topics Content
Topic 1: Continuous improvement and  Continuous improvement and innovation
innovation theories
 Continuous improvement theories
 Plan, Do, Check Act model
 Kaizen
 Lean
 Six Sigmas
 Total Quality Management
 Models for creative thinking and
generation of ideas
 Diffusion of innovations
 Disruptive innovation theory
 Ozborn-Parnes model of creative problem
solving
 Double diamond
 Synectic’s
Topic 2: Review programs, systems and  Analyses and evaluate systems and
processes performance
 Systems and processes
 Reviewing overall performance
 Reviewing products and services,
processes and systems
 External environment scan
Topic 3: Develop options for continuous  Options for continuous improvement and
improvement innovation
 Consulting with staff
 Creative thinking
 Brainstorming
 Mind maps
 Risk management
 Cost benefit analysis
Topic 4: Implement innovative processes  Approval processes
 Implementation plans
 Contingency planning
 Change management
 Resistance to change
 Strategies to address barriers to
QIBA Pty Ltd | RTO Code: 5304 © 2020 RTO Works Page 2
Topics Content
organisational change
 Key phases of a change management
process
 Failure of ideas and learnings
 Why do innovations fail?
Unit review and assessment tasks
Resources
Trainer Guide
The Trainer Guide has been developed for the trainer/assessor and includes:
 guidance with structuring lessons
 class activities
 links to websites containing relevant information (if the links are broken, copy and paste into a
web browser).
Supporting material
The following supporting material has been provided with this Trainer Guide:
 Student Guide
 Session Plan Mapping
 PowerPoint slideshow.
Recommended text
The recommended text can be used to support students’ learning:
Leadership and Management Theory and Practice, Cole, Kris, 7th Ed (2019)
 Chapter 19 Increasing performance and productivity with the five keys, continuous
improvement and innovation
Industry expertise
To enhance the industry relevance, it is recommended that you invite an industry expert (or
experts) to give short presentations to students.
These industry experts are not trainers but are people who can provide expert industry information
to students to assist them with their learning.
Preparation
Lesson preparation
Before you commence delivery of these lessons, take the time to undertake the following:
 Adjust the content, timing and the number of sessions to suit your delivery model as required.
 Read through this document from start to finish, as some preparation may be required,
including:
o sourcing videos
o checking web links
o preparing any technical resources required
o planning role plays
o setting up activities such as presentations
o general planning.
 Read through the relevant chapters of the recommended text.
 Conduct further research on the internet if any concepts are not clear for you.
For activities:
 Some activities may require time for research, preparation and delivery of a presentation.
Timings may need to also be adjusted depending on class sizes and when the activity takes
place.
 Activities are directed to the students. When guidance is provided for the trainer/assessor
only, this has been indicated in red. This text will not be in the Student Guide.
 Read through all activities with the students.
 Provide any further instruction or help which will support students in undertaking the activity.
 Where appropriate, provide time at the end of the activity for class discussion and feedback.
 Some activities may require the students to submit work that the trainer/assessor on which the
trainer/assessor will be required to provide written feedback. Where this is the case it will be
indicated at the bottom of the activity.
For video clips:
 Video clips should be presented to the class on an overhead projector.
 If presented in class, discuss the video, highlighting the main outcomes and encouraging
group discussion.
Equipment:
 Computers with appropriate software and Internet access.
 Whiteboard.
 Projector.
Conducting lessons
Induction and administrative procedures
Provide your RTO’s induction and housekeeping procedures or follow the suggested outline:
Cover any general housekeeping such as:
 college administration
 emergency procedures
 location of toilets and fire exits
 WHS and security
 break times
 plagiarism and any other policies and procedures that the college requires the student to
acknowledge or read and agree to, such as mobile phone policies or internet usage policies.
Lesson context
A simulated work environment is to be used when carrying out these lessons. Therefore, activities:
 reflect real life work tasks
 are required to be performed within industry standard timeframes as specified by the trainer/
assessor in relation to each task
 are assessed using assessment criteria that relate to the quality of work expected by the
industry
 are performed to industry safety requirements as relevant
 use authentic workplace documentation
 require students to work with others as part of a team
 require students to plan and prioritise competing work tasks
 involve the use of industry-standard workplace equipment such as computers and software
 ensure that students are required to consider workplace constraints, such as time and
budgets.
Homework/self-study
At the end of each topic homework/self-study can be set at the trainer/assessor’s discretion.
Assessment
The assessment is to be made available to the students, along with the deadlines and procedures
for submission.
Learning outcomes
By the end of this unit, students will be able to have the skills and knowledge required to sustain
and develop an environment in which continuous improvement, innovation and learning are
promoted and rewarded.
Outcomes include:
 Reviewing programs, systems and processes
 Developing options for continuous improvement
 Implementing innovative processes
Topic 1: Continuous improvement and innovation

theories
Continuous improvement and innovation

Continuous improvement is an ongoing effort within an organisation to improve its products and/or
services, as well as systems and processes.
A successful company will generally not be happy with the status quo and will always seek to
continuously improve. This in turn is likely to mean the company’s performance will improve, along
with profitability.
Innovation on the other hand is about creating and implementing new ideas, creating dynamic
products or improving existing services. Innovation can be a catalyst for the growth and success of
a business and can help the business to adapt and grow in the marketplace.
The words continuous improvement and innovation are sometimes used interchangeably. The
following article provides a useful insight into the differences.
Activity: Further reading and discussion
Read through the information at:

https://www.ellevatenetwork.com/articles/7022-knowing-the-difference-between-
innovation-vs-improvement
The trainer/assessor will facilitate a class discussion about the differences.
Continuous improvement theories

Before looking at managing and implementing continuous improvement and innovation, it is useful
to look at the range of theories on quality management and continuous improvement as well as
creativity and innovation theories.
These theories and concepts can provide useful information and processes for managing and
implementing continuous improvement.
Plan, Do. Check Act Model

Among the most widely used tools for continuous improvement is a four-step quality assurance
method called the Plan Do Check Act (PDCA) Model. The PDCA approach is used for continually
improving processes, products or services and for resolving problems. It involves systematically
testing possible solutions, assessing the results, and implementing the ones that are shown to
work.
The Model sometimes also called the Deming Wheel or Deming Cycle was developed in the 1950s
by Dr William Edwards Deming. The model was developed by Dr Deming in order to create a way
of identifying what caused products to fail to meet customers' expectations. His solution was
designed to help businesses to develop hypotheses about what needs to change, and then test
these in a continuous feedback loop.
The four phases of the PDCA model are:
 Plan: identify and analyse the problem or opportunity, develop hypotheses about what the
issues may be, and decide which one to test.
 Do: test the potential solution, ideally on a small scale, and measure the results.
 Check/Study: study the result, measure effectiveness, and decide whether the hypothesis is
supported or not.
 Act: if the solution was successful, implement it.
Activity: Video
Watch this short video with more information about the PDCA:
https://www.youtube.com/watch?v=ij0y7bqRP6Q (04:40)
The trainer/assessor will facilitate a class discussion about the outcomes from the
video.
Kaizen
Kaizen is a Japanese work and essentially means to change for the better. It is a general
philosophy that could also be applied to a person’s personal life and not just to a business
organisation. The two core beliefs that inform how Kaizen operates are that everything can be
improved and that small gradual changes can lead to significant overall and long-term
improvements. The philosophy of Kaizen developed from the Toyota Way, an approach that grew
Toyota into one of the largest manufacturers of cars in the world.
Kaizen can be applied in a number of simple ways in the workplace. For example, asking staff to
look around their work area to discover small problems and at the same time to consider a way to
resolve the problem. There could also be a suggestion box for staff that allows staff to continuously
locate gaps, inefficiencies and other suggestions for improvement. All ideas from staff could go up
to a “Kaizen Committee” which meets to discuss ideas from staff.
Activity: Further reading
Read more about how to use Kaizen for continuous improvement in the workplace at
the following link:
https://www.linkedin.com/pulse/20140610090246-4806191-how-to-use-kaizen-in-the-
workplace-for-continuous-improvement/
Take any notes to summarise what you have read and keep for future reference.
Lean
In contrast to Kaizen, which is a general approach to continuous improvement, Lean is a
methodology with a background in manufacturing that focuses on specific type of metrics. The
methodology was formulated a long time ago and contributed to the success of Henry Ford’s Model
T. The main focus of this model is to eliminate waste in order to free up time to increase value to
customers.
The main target of this approach is efficiency across the system (value stream). It has proven quite
successful in improving or removing all the inefficient steps of a process that waste time, energy,
finance or raw materials. Lean provides a competitive edge since it allows a business to
manufacture products or provide services faster and at lower costs. It also is easy to learn, which
makes it easy for all employees to be involved in improvements.
Activity: Video
Watch this short, amusing video about Lean, Kaizen and continuous improvement:
https://www.youtube.com/watch?v=_PcAGlXvXJ4 (03:24)
video.
Six Sigma
Kaizen and Lean both look at resources and ways to optimise a process. However, the main focus
of Six Sigma is achieving consistent and reliable results. It is primarily focused on improving the
quality of the result or outcome of the process.
Six Sigma strives to achieve near perfection in terms of a process such that the process succeeds
99.99966% of the time. To achieve this seemingly impossible result, training and coaching is
required in order to learn the tools and framework. Ultimately use of the model is designed to
achieve lower costs, improved customer satisfaction, and helps to drive continuous improvement in
order to achieve higher and higher sigma levels.
Activity: Video
Watch this short video about Six Sigma:

https://www.youtube.com/watch?v=nSIZB8aEfDs (02:06)
video.
Total Quality Management

Total Quality Management (TQM) is an approach that seeks to improve quality and performance
which will meet or exceed customer expectations.
The approach focuses on achieving this through integrating all quality-related functions and
processes throughout a business. TQM focusses on the overall quality measures used by a
company including managing quality design and development, quality control and maintenance,
quality improvement, and quality assurance.
TQM takes into account all quality measures taken at all levels and involving all company
employees
A number of key principles can be identified in defining TQM, including:
 Top management act as the main driver for TQM and create an environment that ensures its
success.
 Staff receive regular training on the methods and concepts of quality.
 Improvements in quality should improve customer satisfaction.
 Quality decisions should be made based on measurements.
 Use of appropriate methodology and tools ensures that non-conformance incidents are
identified, measured, and responded to consistently.
 Companies should continuously work towards improving manufacturing and quality

procedures.
 The culture of the company should aim at developing employees ability to work together to
improve quality.
 Staff should be encouraged to be pro-active in identifying and addressing quality related

problems.
Activity: Video
Watch this short video about Total Quality Management:

https://www.youtube.com/watch?v=gwHngq4Bw0w (04:57)
video.
Models for creative thinking and generation of ideas

Creative thinking techniques can facilitate innovation within a company. Creative thinking can
result in identifying opportunities that are beyond the obvious, thinking outside the box and
challenging existing thinking including:
 Exploring a current practice in a totally different industry context
 Radically changing the ways things are undertaken
 Challenging existing assumptions and preconceptions
 Researching the use of new technologies
 Making connections between unrelated activities
As with innovation, there are a number of models that address creativity and innovation.
Diffusion of innovations
The diffusion of innovations is an example of a past innovation theory. It was developed in 1962 by
Everett Rogers. The key purpose of the theory is to explain how over a period of time, an idea or
product gains momentum and diffuses (or spreads) through a specific population (or social
system).
The end result of this diffusion is that individuals who are part of the social system adopt the new
idea, product where adoption means that the individual does something different such as purchase
or use a new product or behave in a different way.
The theory maintains that the key to adoption is that the person must perceive the idea or product
as new or innovative and thus that diffusion is possible. The theory also focuses on the fact that
there are different types of adopters i.e. some people are more likely to adopt the innovation than
others. The theory breaks adopters into five categories being innovators, early adopters, early
majority, late majority and laggards. The majority of the population tend to fall into the middle
categories.
This theory has a number of limitations. For example, diffusion is difficult to quantify because
humans and human networks are complex, and it is very difficult to identify and measure what
exactly causes adoption of an innovation. Diffusion of innovation theory cannot account for all
variables involved in adoption and may therefore miss critical predictors of adoption.
Disruptive innovation theory
Disruptive innovation theory is a more modern theory of innovation developed by Clayton M.

Christensen beginning in 1995 and has been called the most influential business idea of the early
21st century by some.
In disruptive innovation theory, an innovation is one that creates a new market and value network
and eventually disrupts existing ones, thereby displacing established companies, products and
alliances. It is important to understand what a disruptive innovation is, for example, the introduction
of cars was not a disruptive innovation because they were so expensive, it did not disrupt existing
transport mechanisms. What was a disruptive innovation was when Ford (in the USA) mass
produced and marketed a low price Ford Model T which therefore changed the transportation
market given the masses access to cars.
The focus of disruption theory is very different to diffusion theory as it focuses on disruptive
innovations initiated by companies and although the disruptive process can take longer, once
deployed to the market, a fast penetration and high degree of penetration can be achieved.
Therefore, in this model, innovation is not dependent on adopters.
Ozborn-Parnes model of creative problem solving

Creative Problem-Solving theory can be traced back to the work of Alex Osborn and Sid Parnes in
the 1950s but has been developed further over time. Creative problem-solving theory has at its
heart that everyone is creative in some way and that creative skills can be learned and enhanced.
The theory indicates that there are five stages to creativity being fact findings, problem finding, idea
finding, solution finding and acceptance finding.
This theory provides clear principles, as well as the steps above that can be applied in the
workplace to come up with creative solutions and solve problems. For example, the following are
key principles to apply:
 Asking problems as open-ended questions. This is because solutions are more readily invited
and developed when challenges and problems are restated as open-ended questions with
multiple possibilities.
 Defer or suspend Judgment – An instantaneous judgment in response to an idea shuts down

idea generation.
 Focus on the positive – When generating information and ideas, it is important to be positive
and receptive to all thoughts and ideas.
See the following websites for further information on this model:

https://prezi.com/ae99kapkqx6y/the-osborn-parnes-model-of-creative-problem-
solving/
http://members.optusnet.com.au/charles57/Creative/Brain/cps.htm
Double Diamond
The Double Diamond approach is another model that can be applied to creative processes. In all
creative processes a number of possible ideas are created (‘divergent thinking’) before refining and
narrowing down to the best idea (‘convergent thinking’), and this can be represented by a diamond
shape. The Double Diamond concepts indicates that this process in fact happens twice – once to
confirm the problem definition and once to create the solution. The theory states that one of the
greatest mistakes is to omit the left-hand diamond and end up solving the wrong problem.
There are four phases of the Double Diamond approach.
 Discover customer problems
 Define specific customer problems
 Develop potential solutions
 Deliver feasible and viable solutions
For more information on the practical application of double diamond see:

https://medium.com/seek-blog/design-thinking-101-the-double-diamond-approach-ii-
4c0ce62f64c7
Synectic’s
Synectic’s is a creative problem-solving technique promoting creative thinking, it uses methods
such as:
 Headlining and in-out listening
 The Problem owner
 Spring boarding
 Excursions
Synectic’s is similar to brainstorming as it suspends judgment, but it also widens and deepens the
process of suspending judgment in different ways than brainstorming.
It has a number of characteristics. It allows judgment of the problem description to be suspended
and encourages alternative perceptions of a problem. It uses obvious irrelevant thoughts and
images as clues to new ideas, allows absurd ideas and uses excursions to reproduce the
phenomenon of getting new ideas apparently from nowhere.
Synectic’s also includes idea development which takes new approaches which are not practical
and modifies them into feasible courses of action.
Synectic’s has three dimensions: creative thinking, creative action, and creative
behaviour. Creative thinking is a technique to generate new ideas. Creative action is the
implementation of these ideas, and creative behaviour is the behavioural skills required to build a
supportive atmosphere.
Activity: Video
Watch the following short video:

https://www.youtube.com/watch?v=X-AfXP3lyiE (04:13)
video.
Topic 2: Review programs, systems and processes
Analyse and evaluate systems and performance

A key focus of many of the continuous improvement theories reviewed is an initial review to find out
the problems. Thus, in aiming to create a better and more effective work environment within an
organisation, the first step is to review current products/services, systems and processes and
identify any issues.
Systems and processes

Business systems are procedures and processes that enable an organisation to provide products
or services to clients. Nearly every job in an organisation is used by a system to produce or support
a product or service.
 Systems: Require inputs, processes and outputs.
 Inputs: People, Material, Technology, Time
 Processes: Activities that are carried out
 Output: The service or product produced from the input and process.
Effective systems and processes provide a number of benefits to the business, its employees and
clients, one of which is continuous improvement.
Over time evaluation, review, past experience, new situations and changes in the environment
such as technological developments, mean that the system needs developing if it is to remain
effective. Having a structured system enables it to be easily reviewed to ascertain which step/s
need changing or updating. Over time the systems can be improved and refined making some
steps simpler, faster or even more cost effective. Anything learned from using the system can be
incorporated to benefit future use.
Reviewing overall performance

A review of overall objectives and performance measures will assist in the analysis and evaluation
of performance of a business. Such objectives and performance measures will usually be found in
a Strategic or Business Plan.
Objectives and performance measures can be at an organisational level e.g. an objective could be
to operate a profitable business. The performance measure could be that profits increase by 10%
in a specific year. Objectives and performance measures can also be relevant to specific
departments. For example, in a business where there is a human resources department, then
overall objectives may be to promote a harmonious and productive workforce with specific
measures being, for example, number of employees who have participated in training and have the
required skills to do the job.
Thus, an analysis and evaluation of a business’ current position should always be informed by its
overall objectives, performance measures and performance against such measures.
As a Manager then, it is likely that you will need to work in with other members of the organisation
such as the finance department or human resources department to gain an overall picture of the
organisation and performance against such objectives.
Reviewing products and services, processes and systems

A typical review might be conducted as outlined below.
Reviewing products/services
Thinking about the RTO with whom you are studying, the person who is responsible for continuous
improvement may decide to review all current course offerings.
They might do this through reviewing surveys from students and staff that give their feedback on
this. They would also check to see if there are any objectives and performance measures in place
to measure course effectiveness and measure performance against these. For example, an
objective may be to maximise student success with a performance measure allocated to this
objective that 80% of students complete and pass their course.
Review of both the feedback from staff and students and the performance information will assist
the review of this area and to consider if improvements may be needed to increase performance.
Sometimes processes may not be in place to ensure that data to inform continuous improvement
can be collected. Therefore, it may be necessary to implement surveys to collect data from staff
and students or developing additional performance measures that can assist with review of
courses.
Reviewing systems
In looking at reviewing systems, we might look at how well current systems within an organisation
are working. A company may use many types of systems, for example, a customer relationship
management system, a human resources information system and so on. A review of the system
might involve looking at the user friendliness and/or functionality of the current system. This
information is most likely to be gained from surveying staff who use the system and to find out the
effectiveness of the system and whether there needs to be changes.
Reviewing processes
In looking at reviewing processes, a company could look at how well their current policy and
procedures are working. A good example to illustrate this is the use of paper-based job application
forms. While these may be a common way of getting information from job applicants to inform the
recruitment process, it may not necessarily be the best way. A better way could be of
implementing an online system through which job applicants can apply and which could also
integrate into the human resources information management system directly. These improvements
cost money of course but in the end may even save money through less staff time on the manual
enrolment process.
A range of strategies might be employed to find out this type of information such as surveys.
However, a thorough review of the organisation and its systems and processes may be required.
The continuous improvement models can help with this noting for course the Kaizen model that it
may be beneficial to implement small improvements bit by bit and that improvements will be
identified over time rather than all in one go.
External environment scan

Looking outwards can sometimes be an important first step in moving towards continuous
improvement and innovation. Looking outwards can reveal trends in the environment and
opportunities, as well as competitor behaviour.
Identifying sources of information on trends for a specific industry will be a first step. There are
many of these such as government reports, research reports (through), general publication and
articles in the press.
For example, if your College is looking at trends in the environment, a useful documentation is the
National Strategy for International Education 2025. The Strategy sets out a 10-year plan for
developing Australia’s role as a global leader in education, training and research. The documents
states that Australian international education is a world-leading brand and that hundreds of
thousands of students are attracted to Australia each year, and Australian teaching and research is
delivered around the world.
The strategy specifically states that there continue to be significant opportunities to expand and
improve education offerings. The report is rich with ideas about the opportunities to be had.
Therefore, review of such a report can provide information on trends, as well as opportunities.
Activity: Research and discussion
Choose a company you are interested in. Identify a source of information that could
provide information on trends and opportunities relevant to the industry in which the
business operates and could be used to inform continuous improvement and
innovation.
research.
Topic 3: Develop options for continuous improvement
Options for continuous improvement and innovation

The analysis and evaluation (i.e. review of products/services, systems and processes) will have
highlighted a range of issues and from there it will be possible to develop a range of options for
continuous improvement and innovation.
For example, say a review found that customers did not find the information on the web site to be
user friendly. An obvious continuous improvement would be to put measures in place to update the
information.
However, the same review may have also found that not only is your web site information not user
friendly but that the products you offer are much the same as everyone else. Therefore, some
creative thinking to come up with some innovative ideas could be worthwhile.
In coming up with options, there are also a number of processes to consider including consulting
and collaborating with staff, undertaking risk management and cost benefit analysis. This is all
covered in the following sections.
Consulting with staff

As per the example above, assume that the review and evaluation has determined that that the
content of the web site need to be improved so that it is more engaging and user friendly.
Before deciding whether to pursue this option, however, it will be very important to consult with staff
to give their input.
Consulting with staff can occur through a range of ways such as meetings as a group or with
individuals, through newsletters, direct emails and so on.
However, if exploring ideas for new products, then this presents not just an opportunity to consult
with staff but to get them to come up with innovative ideas for new products.
In the previous section, we looked at creative thinking models. Below we explore some creative
thinking techniques that could be used with staff to come up with ideas
Creative thinking
There are a range of creative thinking techniques that are used to generate ideas and creative
concepts and promote innovation:. For example:
 Brainstorming
 Mind mapping
Brainstorming
Brainstorming is a process used for generating creative ideas/solutions. It uses a free-for-all group
discussion. All members of the group are encouraged to participate, suggesting as many ideas as
possible – no holds barred. It is only after the brainstorming session that the issues/ideas raised
should then be analysed and discussed in further detail.
Activity: Video
Watch the following short video about brainstorming:

https://www.youtube.com/watch?v=-QIGWIxp_Co (03:03)
video.
Activity: Further reading and discussion
Read through the information at:

http://www.businessdictionary.com/definition/brainstorming.html#ixzz47ju32QWa
The trainer/assessor will facilitate a class discussion about the differences.
Mind Maps
Mind maps are used to map out the basic ideas from a central
problem. They are used in brainstorming sessions or individuals
use them to visualize ideas.
The basic problem is written in the centre and then the ideas are
branched out from it in order to arrive at a number of different
possible approaches.
This provides a spatially visual overview, which can be easier to
then understand or approach
Activity: Video
Learn how to use mind mapping:

https://www.mindtools.com/pages/article/newISS_01.htm (02:55)
video.
Activity: Research and discussion
What other creative thinking techniques can you think of that could be used to
develop innovative ideas? Identify at least one and make notes.
research.
Risk Management
Risk management is also a very important tool is considering options relating to continuous
improvement and risk.
A risk can be defined as an event or circumstance that has a negative effect on a business.
Risk management is a process that is used to identify, assess and control threats to an
organisation, for example, risks related to a lack of finance or staff.
It comprises of identifying risks (noting risks the business may face), assessing risks (working out
the level of risk and prioritising risks) and managing risks (deciding what action to take).
Read more about risk management assessment and planning at:
https://www.business.gov.au/Risk-management/Risk-assessment-and-planning
Risk management can also be applied to continuous improvement and innovation as can be seen
from the following example:
A company has decided to introduce a new product.

Risks identified by the company include the failure of the market to adopt it or
copycat behaviour of competitors.
The level of risk has been identified as significant in terms of the damage it would
cause to the company and likely in terms of this happening.
Therefore, the risks are considered to be high.
A risk management strategy could include getting feedback from trusted
stakeholders about the course before release.
Read the risk management scenarios at:

https://www.business.gov.au/risk-management/risk-assessment-and-planning/risk-management-
scenarios
Cost benefit analysis
Cost benefit analysis is an important tool in better decision making and again is key in considering
whether to introduce a range of continuous improvement and innovation options.
Cost benefit analysis provide a systematic approach to identifying the costs and benefits of a range
of alternatives and then comparing these to find out the net costs or benefits of each alternative
and ultimately the preferred option/s.
Review this simple chart and information at the following link to find out about a step by step
process for cost benefit analysis:
https://ceowatermandate.org/files/Cost_Benefit_Analysis_Guidance/Cost_Benefit_Analysis_Guidan
ce.pdf
Going back to the previous example, cost benefit analysis can be applied to continuous
improvement and innovation as can be seen from the following example:
A business has decided to introduce new products. However, they have the option of
introducing any of three new products.
Establishment costs identified for each product are as follows:
Course 1: $50,000
Course 2: $75,000
Course 3: $100,000
Benefits are considered to be:
Product 1: Many similar products on the market but easy to sell
Product 2: Easy to sell lots of the product
Product 3: Highly innovative product
The business will therefore need to weigh up the costs and benefits and come to a
decision based on such. As you can see from this example, it would not be
necessarily straight forward.
The following article also provides interesting guidance on cost benefit analysis:
https://web.utk.edu/~nolt/courses/costbene.html
Topic 4: Implement innovative processes
Approval processes
There may be organisational process in place that need to be followed for approval of the actions
to be undertaken. Most likely this will include gaining senior management approval which could
occur through a formal meeting to discuss and approve actions or through the submission of a
formal report to senior management which is then reviewed and approved.
Part of gaining approval would also include setting out implementation issues.
Implementation plans
The implementation plan needs to include objectives, timeframes and measures. Therefore, an
example related to a continuous improvement or innovation might look as follows:
Consider the following example:

The college where you are studying has decided to implement a new innovative course. There are
many implementation issues to consider, including:
 What will the resource implications be for the new course i.e. staffing and financial?
 What will be the mode of delivery?
 How will we market it, especially to protect our innovative ideas?
 Who will design it?
 Who will write it?
 How will be test it?
 How will we evaluate it?
The implementation plan will follow from the issues identified. The action plan could then be
developed as follows:
Actions required Who When Performance

measure
Develop proposal for new course RTO Manager End June 19 Proposal for new
including budget and outline course submitted
by end of June in
new course
template and
including budget
Submit proposal to senior Compliance Mid July 19 Proposal for new
management for approval Manager course accepted.
Develop new course Instructional November 2019 New course ready
designers for consultation

by end November
Consult with staff on new course All staff December 2019 Feedback on new
course
incorporated
Develop course materials and Compliance January 2019 All materials
update student handbook to Manager ready for
reference new course publication mid-
January
Market course Marketing staff January 2019 50 students enrol
into the course
Provide training for all staff involved Compliance February 2019 Staff participate in
in the course Manager training and can
apply
understandings.
Enrol new students Compliance February 2019 50 students
Manager commence the
course
Monitor new course through surveys Compliance July to 50 students
Manager September complete the
course
It is important to remember that a key part of implementation is communication. Note the above
plan includes both communication to all staff, as well as students. It also includes training for staff
who will be affected by the new course.
An important part of the implementation process is also planning how the new course will be
monitored and evaluated. Monitoring could occur through surveys of stakeholders such as staff
and students and could focus on how well or not the new course is working. The evaluation would
then review this feedback to make a judgement on how well the new course is working...
Contingency planning
Contingency planning is also a key part of implementing processes. Contingency planning is
therefore building in actions to implementation so that:
 Returning to operations as soon as possible
 Protecting resources
 Preparing for unseen events
 Minimising inconvenience and down time
 Assigning specific responsibilities
Further information: http://www.mindtools.com/pages/article/newLDR_51.htm
Activity: Further reading and video
The following clips highlight the main points of contingency planning.

https://www.youtube.com/watch?v=XSUsM_bv5W8 (03:06)
https://www.youtube.com/watch?v=OdKVGsnUh7g (03:57)
video.
Change management
Change is an unavoidable element of all of our lives, and the ability to seize the opportunities it
provides underpins the success of all organisations. It is not enough for employees to simply
survive change; people need to flourish in an ever-changing environment if they are to realise their
potential and thus contribute to organisation success: this requires courageous leadership. This
leadership must be underpinned by good strategies, techniques and approaches.
Change management therefore needs to be carefully considered and factored in when making
changes concerning continuous improvement and innovation.
Leading change requires a manager to utilise their resources, implement improvements effectively,
understand workplace culture and consult to ensure there is the least resistance to the changes.
Top 10 barriers to change include:
1. Not enough understanding about the change itself and poor alignment behind it - for example,
no clear vision, direction, priorities
2. Lack of leadership - this is needed to inspire and engage people’s energies as well as to keep
relentlessly moving forward
3. Lack of focus and strong project management of the change - no clear accountabilities and
inter-dependencies between roles
4. No engagement and/or buy-in of key stakeholders - start with a failure to identify the key
stakeholders (they could be any or all of the following: employees, shareholders, customers,
executive/Board, the community) and then a failure to undertake detailed analysis of their
needs/preferences and a detailed communication and engagement strategy
5. No clear process for managing endings and beginnings, and co-ordinating the change process
6. People’s issues/ barriers to change are not defined and there are no actions to address them
leading to low engagement, poor morale, a fast return to 'the old ways' and a sort of 'let's sit it
out' environment
7. People are not involved in developing quick wins and communicating them - this is needed to
build credibility around change
8. People practices are not reviewed and re-aligned - this is needed to ensure the change is
sustained and to enable people to operate in a new way
9. Successes are not recognised, communicated and/or celebrated - this is needed to increase
the pace of change and gain commitment to the new way of doing things. Change is very tiring
and is often something that requires extra effort - people need to see that this effort is paying
off and their contribution is valued.
10. Progress is not measured, and the learning is not reviewed - this is needed to sustain the
change
Source: http://www.mlhconsulting.co.uk/blog/10-common-barriers-to-change/38
Resistance to change
Resistance to change comes from:
 Fear of the unknown – strategy to overcome could include involving employees from the
outset in decision making
 Habits – used to the way things are – strategy to overcome could be ensuring that the benefits
of change are explained and understood.
 Security – existing structures give job security – as above, explain the benefits of the change
and give clear guidance on the impact on employees.
 Selective information processing – individuals do not take in all information about changes
because they do not wish to – multiple communication channels that students cannot ignore
 Threat to established relationships within the workplace – communication and consultation is

essential.
Strategies to address barriers to organisational change

There are a range of strategies that can be used to address change as described below.
 A possible strategy is to ensure that there is a communication process in place to explain the
benefits of change to all stakeholders, including outlining a promising future vision based on
the change processes.
 Another strategy is consultation, that is involving stakeholders in the change from beginning to
end and allowing them to voice their concerns and opinions. It would also be beneficial to
incorporate employee suggestions into the change process.
 Another strategy is to gain support by outlining negative effects if change does not occur. For
example, that the business may become less competitive and therefore that this may mean
job losses.
Key phases of a change management process

The key phases of an effective change management process should therefore include:
 recognising the need for change through conducting a situational analysis
 communicating the proposed change to all stakeholders
 consulting on the required change with staff and seeking input and feedback
 creating a change management plan to incorporate changes identified and agreed upon
 implementing the changes required
 testing and feedback once implementation has been completed
 evaluation and monitoring including final feedback and objective checking.
Change management: https://www.youtube.com/watch?v=PQ0doKfhecQ (04:49)

Further reading: 10 principles of leading change management:
https://www.strategy-business.com/article/00255?gko=6c601
video.
Failure of ideas and learnings

Sometimes even with the best of inventions, ideas can fail.
Going back to the example of the new course, assume that despite careful planning, the course
has not had the enrolments expected. A thorough investigation of the causes should therefore
occur.
This might involve:
 A review of the external environment to determine if trends have changed
 A review of the effectiveness of the marketing process
 A review of the course itself
Sometimes there may be clear causes and in other cases, it may not be. The challenge will be to
decide what to do. In the example above then, it could be to engage in more aggressive marketing.
It could be that the message from the above is that current course offerings whist not innovative
are the safest and should therefore be focussed on.
Such investigation and learnings should always be captured within the organisation’s knowledge
management system. This might be a database but could equally be a simple system whereby all
reports about activities are stored in a folder.
What is most important is that these learnings are captured and can inform future work i.e. Lessons
Learned.
Regarding lesson learned, a lot of insight can be gained from the project management field. Read
this article about lesson learned and see the format used to record lesson learned:
https://www.projectmanagementdocs.com/template/project-closure/lessons-
learned/#axzz5p4twcU69’
Why do Innovations fail?
Read the following top ten causes of innovation failure:

http://innovationexcellence.com/blog/2013/03/05/top-ten-causes-of-innovation-failure/
Insight Trends look at why the innovation process can fail:
http://www.altitudeinc.com/3-reasons-why-the-innovation-process-fails/
The following article from Innovate UK looks at why innovations fail:
https://innovateuk.blog.gov.uk/2016/03/11/why-do-innovations-fail/
Top ten innovations that failed

https://www.youtube.com/watch?v=04O_cjVqm34 (03:52)
The Moment – Why does innovation fail?
https://www.youtube.com/watch?v=04O_cjVqm34 (04:18)
Insider Perspective: Dan Hackman – Innovative business Model Success
https://www.youtube.com/watch?v=89iQvauUVvE (04:05)
video.
Review and assessment

The content of this unit has now been covered.
Review and completion

Allocate time for students to complete any outstanding activities, reading, role plays, meetings,
presentations or further tasks that require observation or submission to the trainer/assessor.
The trainer/assessor should allow time to review any topics or activities undertaken by students to
consolidate their learning.
Discuss the assessment tasks

Take time to discuss each task in detail if required and ensure that the students understand the
assessment procedures, submission instructions and deadlines.
Students should use these sessions to work on their assessment tasks, with support from the
trainer/assessor where relevant. Reasonable adjustment should be made where appropriate.
Support
The trainer/assessor should provide as much support as is appropriate for students while they
undertake their assessment tasks. The trainer/assessor may have to timetable meetings or role
plays that require observation for assessment, therefore it is important to ensure this has been
considered into the lesson planning.
Housekeeping
Provide some time at the end of the last session for housekeeping such as administrational duties,
student feedback and farewells.

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Contents

 guidance with structuring lessons

 Session Plan Mapping

o checking web links

o preparing any technical resources required

o planning role plays

o setting up activities such as presentations

 Read through the relevant chapters of the recommended text.

 Read through all activities with the students.

For video clips:

 Video clips should be presented to the class on an overhead projector.

 Computers with appropriate software and Internet access.

 location of toilets and fire exits

 WHS and security

 reflect real life work tasks

 are performed to industry safety requirements as relevant

 use authentic workplace documentation

 require students to work with others as part of a team

 require students to plan and prioritise competing work tasks

 Reviewing programs, systems and processes

 Developing options for continuous improvement

 Implementing innovative processes

Topic 1: Continuous improvement and innovation

Continuous improvement and innovation

Activity: Further reading and discussion

Read through the information at:

Continuous improvement theories

Plan, Do. Check Act Model

The four phases of the PDCA model are:

 Act: if the solution was successful, implement it.

Activity: Further reading

Watch this short video about Six Sigma:

Total Quality Management

 Staff receive regular training on the methods and concepts of quality.

 Improvements in quality should improve customer satisfaction.

 Quality decisions should be made based on measurements.

 Companies should continuously work towards improving manufacturing and quality

 Staff should be encouraged to be pro-active in identifying and addressing quality related

Watch this short video about Total Quality Management:

Models for creative thinking and generation of ideas

 Exploring a current practice in a totally different industry context

 Radically changing the ways things are undertaken

 Challenging existing assumptions and preconceptions

 Researching the use of new technologies

 Making connections between unrelated activities

Disruptive innovation theory

Disruptive innovation theory is a more modern theory of innovation developed by Clayton M.

Ozborn-Parnes model of creative problem solving

 Defer or suspend Judgment – An instantaneous judgment in response to an idea shuts down

Activity: Further reading

See the following websites for further information on this model:

 Discover customer problems

 Define specific customer problems

 Develop potential solutions

 Deliver feasible and viable solutions

Activity: Further reading

For more information on the practical application of double diamond see:

 Headlining and in-out listening

 The Problem owner

Watch the following short video:

Topic 2: Review programs, systems and processes

Analyse and evaluate systems and performance

Systems and processes