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BSBMGT608 Knowledges and Guideline
BSBMGT608 Knowledges and Guideline
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
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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:
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
PowerPoint slideshow.
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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.
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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 general planning.
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.
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.
If presented in class, discuss the video, highlighting the main outcomes and encouraging
group discussion.
Equipment:
Whiteboard.
Projector.
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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
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:
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
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.
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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:
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designed to help businesses to develop hypotheses about what needs to change, and then test
these in a continuous feedback loop.
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.
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.
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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)
The trainer/assessor will facilitate a class discussion about the outcomes from the
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.
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Activity: Video
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.
Use of appropriate methodology and tools ensures that non-conformance incidents are
identified, measured, and responded to consistently.
The culture of the company should aim at developing employees ability to work together to
improve quality.
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Activity: Video
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.
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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.
Focus on the positive – When generating information and ideas, it is important to be positive
and receptive to all thoughts and ideas.
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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.
Synectic’s
Synectic’s is a creative problem-solving technique promoting creative thinking, it uses methods
such as:
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
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implementation of these ideas, and creative behaviour is the behavioural skills required to build a
supportive atmosphere.
Activity: Video
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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.
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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/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
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may be beneficial to implement small improvements bit by bit and that improvements will be
identified over time rather than all in one go.
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.
The trainer/assessor will facilitate a class discussion about the outcomes from the
research.
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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
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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
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
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What other creative thinking techniques can you think of that could be used to
develop innovative ideas? Identify at least one and make notes.
The trainer/assessor will facilitate a class discussion about the outcomes from the
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:
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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
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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:
What will the resource implications be for the new course i.e. staffing and financial?
The implementation plan will follow from the issues identified. The action plan could then be
developed as follows:
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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:
Protecting resources
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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
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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
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.
consulting on the required change with staff and seeking input and feedback
creating a change management plan to incorporate changes identified and agreed upon
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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’
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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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