BSBMGT608 8

 
Key Result Area: Operations

Key Result Area KPI

Unit Costs $cost per placement

$ cost per payroll
$ cost per candidate registration

Profitability $ profit or % per client

$ profit or % per service

Temporary Recruitment Numbs temps per consultant

Time to placement
Average contract duration
Candidate utilization
Fill rate

Permanent Time to recruit

Recruitment Numbs shortlisted candidates
Fill rate

Key Result Area: Staff

Key Result KPI
Area

Staff experience Reduce staff turnover by 10% per years

Staff capability Training day up to 20 days per year

OH&S Incidents Reduce personnel incidents by 10% per year

Key Result Area: Quality
 
Key Result Area KPI

Quality % compliance with stated process

Number of non-conformances

Customer satisfaction 100% customer satisfaction

Feedback response rate
0% Number of customer complaints

Service Increase reviews and/or enhancements of:

enhancements Services
Service delivery procedures

 
 Key Result Area: Financial

Revenue Increase $10,000 revenue by business/ service/ team

s

Profit Increase company profit by 10% for business/ service/ team 

Margins Decrease cost in margins by 5%

Costs $15,000 decrease in cost by:

Overheads
major items
debtors

Growth 12% change from previous period, same time last year increase
growth 
 
As the 1950s moved into the 1960s, there were huge cultural changes across the
world. The fifties were a very traditional era of family values and morals,
conservative and staid. Then came the ‘swinging sixties’. The sixties were a time of
rapid change both technologically and culturally. Old-fashioned values gave way to
new moral freedoms.
 
Cultural changes had a huge impact in western toy markets. Barbie and Action Man
became ‘must have’ toys. Girls moved away from baby dolls and cots and wanted
dolls that were more grown up, modern and trendy. They wanted dolls they could
dress in the latest fashions and who had exciting ‘careers’, boyfriends and cars of
their own. Boys were moving away from the traditional train sets and towards
exciting new slot-car racing sets and action figures from popular movies and
television shows.

As a small, traditional company, A. C. Gilbert was slow to react to these changes. It

may have been that they were not aware of the changes or were overly confident
that their good name and reputation were sufficient to continue trading as before.
The consequences of this short-sightedness soon became apparent.
                                            
As a result of the falling profits and share price, the company became attractive to an
opportunistic businessman, Jack Wrather. Jack Wrather was an independent
television producer who had made his money producing the popular programs
‘Lassie’ and ‘The Lone Ranger’. Jack Wrather wanted to purchase a successful
business and felt that in
                                                        
A. C. Gilbert, he had the opportunity to use his knowledge of popular entertainment
and apply it to the production of toys. He purchased 52% of A. C. Gilbert for $4
million and immediately set about making his mark on the company. A. C. Junior
stayed on as Chairman but his influence was minimal.
                                            
                                
Impact of goals on business strategy
Business strategy has a direct impact on the effectiveness of training and vice-versa.
Business strategy impacts training options by time, money, access, and content.
 
The time within the scope of business strategy and talent development is paramount
to the success of initiatives. Allocating a specified amount of time for the creation,
implementation, use, and evaluation of talent development initiatives is key to
ensuring that there is a balance in the time needed to learn, apply, and grow.
Business strategy must consider a realistic timeline of key actions needed within
each phase of a talent development strategy.
 
Business strategy must be quantified. Understanding the indirect and direct costs
associated with talent development initiatives that align with business strategy will
help to justify the specific initiatives. To effectively quantify the investment of such
development tools, resources, and the time it will take to need to be quantified from a
micro and macro perspective. Micro – regarding the specific position and training
initiative. Macro – regarding the total package of aggregate training and positions.
Metrics should also be established to measure the outcomes to develop a running
understanding of the ROI on training initiatives.
 
Also identification of the specific needs of the workforce, competency needs, and
estimated impact training is paramount to crafting talent development plan. Think of
it regarding logistically crafting strategies that will have the greatest impact on the
short and long-term initiatives.
 
Content is critical. The needs assessment aims to identify the specific competency
gaps in skills, knowledge, and resources for training initiatives.

Risk Analysis
Risk analysis is the process of defining and analyzing the dangers to individuals,
businesses and government agencies posed by potential natural and human-caused
adverse events. In IT, a risk analysis report can be used to align technology-related
objectives with a company's business objectives. A risk analysis report can be either
quantitative or qualitative
 
Types of risk in a business
For AC Gilbert, there are the type of business risk as:

Strategic Risk
Strategic risks result directly from operating within a specific industry at a specific
time.
 

Compliance Risk
Risks associated with compliance are those subject to legislative or bureaucratic rule
and regulations, or those associated with best practices for investment purposes.
These can include employee protection regulations like those imposed by the
Occupational Safety and Health Administration (OSHA), or environmental concerns
like those covered by the Environmental Protection Agency (EPA) or even state and
local agencies.

Financial Risk
Direct financial risks have to do with how your business handles money
 

Operational Risks
Operational risks result from internal failures. That is, your business’s internal
processes, people or systems fail unexpectedly. Therefore, unlike a strategic risk or
a financial risk, there is no return on operational risks
 

Reputational Risk
Loss of a company’s reputation or community standing might result from product
failures, lawsuits or negative publicity.

 
Risk, likelihood and impact of mitigation measure at A.C. Gilbert.
 
A risk matrix is a matrix that is used during risk assessment to define the level of risk

by considering the category of probability or likelihood against the category of

consequence severity. This is a simple mechanism to increase visibility of risks and

assist management decision making.

            
Risk Impact Likelihood Mitigation Measures
Staff was High Very Change the staff
Provide training to staff
not likely Interview is necessary
Before choosing the staff ensure they have the skills
qualified
required

Poor Moderate Likely Improve the toys quality

Price should be similar quality
quality Use better quality materials for the toys
Use better packaging materials
and high

cost
Supply Likely Improve the skill of sales team
Need to improve delivery transport
chain Moderate Improve the delivery method
Improve the chain process from start to end to

ensure customers get their toys on

time                                                                      
Unable to High Likely Bring new changes to the company
Launch new product
change Culture change
Provide guidelines to all staff about work culture
work

culture
 
Money saving advantage examination it is critical that preceding any execution
change technique or thoughts being actualized that the money saving advantage for
the association is surveyed. On the off chance that the expense is less and
advantages is more than its useful for any organisation or association.
 
how to monitor risk or risk assessment at A.C. Gilbert.
 
There are some step for the good risk assessment for A.C. Gilbert:
1. Identify Your Company’s Risks
Consider what you define risk to be. A common definition of risk is any event that
negatively influences your ability to achieve your business goals.
2. Create Your Company’s Risk Library
Once you have analyzed your company’s risks, you should begin to establish a
company risk library which are in these categories:
·         Insurance Risk
·         Market Risk
·         Operational Risk
·         Strategic Risk
3. Identify Your Risk Owners For each of the risks within your risk library, you should
identify the most appropriate person to monitor and manage those risks - in other
words, the risk owner(s). The risk owner is responsible for assessing risks and
identifying associated controls. This role is also responsible for implementing and
maintaining appropriate controls within its associated area of responsibility, and for
reporting breaches of controls or risk appetite
 
4. Identify the Controls to Mitigate & Reduce Risks
Working with the risk owners, identify current controls that are in place to mitigate
and/or reduce risk.
 
5. Assess Risk Potential and Impact
The company’s risk appetite is based on its own evaluation of the tradeoff between
risk and return. Assessing the financial impact and likelihood of risk can aid
management in determining whether the company is operating within its stated risk
appetite and should accept, reject or reduce risk.
 
 
Cost – Benefit Analysis
A cost-benefit analysis is a process by which business decisions are analyzed. The
benefits of a given situation or business-related action are summed, and then the
costs associated with taking that action are subtracted. Some consultants or analysts
also build the model to put a dollar value on intangible items, such as the benefits
and costs associated with living in a certain town, and most analysts will also factor
opportunity cost into such equations.

 
Cost Benefit Analysis
Options Cost Risk Benefits
Change the $1 The last packing It can increase feasibility for the

packing million was going on from customer and provide another

long time marketing options

Advertisement $3 People do not People will know about the
latest
 million know about latest company product. It is feasible

product but needs to be carefully

managed.
 
Benefits of cost-benefit analysis.
Performing a cost benefit analysis gives you the opportunity to delve into specifics
about what you are spending to launch a product or to invest in an advertising
campaign.
A cost benefit analysis is in part a tool geared toward helping you make rational,
rather than emotional, decisions. By laying out the costs you will incur, to the best of
your knowledge, you circumvent the impulse to launch a venture simply because it
appeals to you or because you have an emotional tie to a vendor or to an anticipated
outcome.
 

 
 
 
 
 
Task 3 – Implement Innovation Processes
Action Plan for Transition
Action planb means identifying, prioritizing, and implementing the steps necessary to
successfully transfer the company to your successors. The exit planning process
should begin up to three years prior to succession, and the transition plan should be
implemented at least a year prior to departure. 
 
Transition Action Plan
Transition Action Plan

Activities Objectives KPI Timeframe

Only the specialist workers Reduce waste Maximum of 4% 12 months

will be working on their error rate
specialised lines

Production staff and Increase 40% increase in 12 months

process workers will be productivity productivity
divided into five different
 teams

Rosters will be altered to Improve Working maximum Once it has

ensure adequate staff on sustainability of 12 hours per been
each line during the 12- shift implemented
hour production cycle

Only the specialist workers Minimise Maximum of 4% 18 months

will be working on their errors error rate which is
specialised lines currently at 22%

Improving the skill levels Reduce staff 20% per annum 18 months
and efficiencies of the turnover
plant and people
 
Kotter’s 8 step process for A.C. Gilbert. 

Promote the process and sustainability: the whole process of transition can be
demonstrated by Kotter’s eight step process of transition:
1.    Create a sense of urgency for change – Organise meetings and point out any
emerging opportunities which your business can’t afford to miss and explain each
employee of A.C. Gilbert to make it happen.
2.    Establish a powerful coalition – Ensure that key staff members support the
reasons for proposed change. Employees will follow the lead of powerful and
respected leaders because when the seniors of A.C. Gilbert will challenge others to
follow them as well.
3.    Create a vision for change – Communicate the objectives of change and
highlight the responsibilities of different employees of A.C. Gilbert.
4.    Maintain regular communication – Regularly reinforce the need for change and
highlight achievements along the way to achieve the end objective. Celebrate the
positive contributions made by employees.
5.    Remove obstacles to change – Consider the factors which are obstructing the
implementation of change and develop appropriate strategies to motivate employees
of A.C. Gilbert.
6.    Focus on short term wins – Make a point of recognising and rewarding positive
steps along the way to the achievement of change.
7.    Build on the change – Consider improvements related to the initial change and
make everyone aware of the positive impact of technology and skill change.
8.    Anchor the change – Include the change in A.C. Gilbert policies and reinforce its
benefits whenever possible.
 
Activities to reduce impact on people: to make people aware of the positive changes

and impacts of new changes and the main idea is to communicate always.

Employees of A.C. Gilbert should have a fair idea of increased profits, improved

working efficiency, and the allocation of time for interesting business projects. It will
be necessary to maintain regular contact during a period of change. A.C. Gilbert

might have to answer questions about new processes and provide reassurances

about the limited impact of negative events. Recognise the efforts being made by

employees and present key data about the effects of any change. Encourage

employees and customers to give regular feedback and respond for the benefit of

A.C. Gilbert.

Action Plan for Communication

A communication plan describes what an organization wants to accomplish with the
information it sends out. It lists objectives, the tools used to produce communications
and intended recipients. The plan describes what information will be shared and how
it will be distributed. The plan also identifies the people responsible for building and
managing information, when it should be communicated and where records should
be stored.
Communication Action Plan

Communication Objectives of Medium Contact/ Deliverable

Method Communication Reference

Kick off meeting Introduce the Face to face Team  Agenda

project   leader  Meeting
minutes

Steering Review status Video Manager  Agenda

committee project with the conference CEO   Meeting
meeting team Face to face minutes

Technical design Discuss and Face to face Manager 

meetings develop technical Presentation  Agenda
design solutions  Meeting
for the project. minutes

Project status Report on the Face to face Manager, 

meetings status of the Presentation  team Agenda
project to leader  Meeting
management. minutes
 
Elements of communication plan
A communication plan includes the following essential elements:
Define your goals, what you are trying to accomplish and the outcomes you want to
achieve with your communication efforts.  Develop SMART objectives that will
support the accomplishment of your longer generic goals.
Identify your target audiences and get to know them.  Define common characteristics
and interests.  This element is essential in developing the content of your messages
and choosing the best channels, materials and activities, and timing to communicate
with your market.
Determine key points you want to get across to your audiences and stay focus on
them.  Develop personalized messages to communicate with each of your target
audiences.
 Find out the best time and frequency needed to get your messages across and
achieve your goals.  Sort out which message should occur when considering other
key dates and deadlines.
Assign who’s responsible for developing and delivering which message and make
sure to get their full commitment.
Calculate the financial resources needed to implement your communication plan to
make sure you have the budget and it is feasible.
Indicate how the results and effectiveness of the communication plan will be
measured.  A communication plan is a living document and should be evaluated on a
regular basis and improved over time.

Targets or goals for communication plan

Goals are the means to express the end points towards which effort is directed. They
are broad, relatively abstract and may be difficult to quantify (“Our goal is to increase
our share of the marketplace for [our product].”)
Objectives are subsets of goals and should be expressed in concrete, measurable
terms. Generally three types of goals :
 Reputation management goals
 Relationship management goals
 Task management goals

 
Contingency Plan for Transition and Communication Action Plan
A contingency is an unexpected event or situation that affects the financial health,
professional image, or market share of a company. It is usually a negative event, but
can also be an unexpected windfall such as a huge order. Anything that
unexpectedly disrupts a company's expected operation can harm the company
even if the disruption is because of a windfall.
 
Contingency Plan for Transition and Communication
Risk Impact Likelihoo Contingency action

d
Industrial action from High Likely Temporary workforce agency briefed on

employees due to potential requirement for staff in the

removal of jobs weeks surrounding the communication

 and implementation of proposed

changes.
Delays in processing Likely Provision for additional staff for two

orders as employees memium weeks post-implementation to

become familiar with processing times are not affected whilst

new process staff learn the new process

 
Key requirements for contingency for transition
A contingency plan should:
 Detail the owner's goals and wishes for the future of the business.
 Identify who should manage the business in the owner's absence and if
necessary, include a development plan to prepare the successor for this
responsibility over time.
 Include important business information, such as the names of the owner's
trusted advisors, including accountant, attorney, financial advisor, insurance
agent, banker, business consultant, etc. and their contact information.
 Detail other key, confidential information and assets including bank accounts,
safety deposit boxes, insurance, wills, etc. and passwords to access your
accounts.
 Reference an executed shareholder or “buy-sell agreement” if there is more
than one owner.
 Who can access liquid assets in the event of an emergency.
 All of the details for life insurance and disability policies so benefits may be
claimed.

Implementation Issues and Failures

 
Change affects every business at some point. They may range from minor staff
restructuring to merging or acquiring another company. These are some important
steps for A.C. Gilbert. 

Planning
Without step-by-step planning, change in an organization is likely to fall apart or
cause more problems than benefits.
 Lack of Consensus
If you fail to get everyone on board with the corporate changes, you are likely to face
barriers during the process. The decision to implement changes should come from
the top level of the organization. All management level staff needs to be on board
and able to deal with the changes or you may face dissension within the staff.
 Failing Communication
Failing to communicate with all employees invites rumors and fear into the
workplace, particularly if you're facing major changes, such as downsizing or a
merger. Employees want to know what's going on, whether it is positive or negative
news. The feeling of uncertainty when management doesn't communicate disrupts
work and makes employees feel as if they aren't a part of the decision.
Employee Resistance
In some cases, employees resist change. They become comfortable with the way
the business is run. They know the expectations and their role within the company.
When a major change disrupts their familiarity, some employees become upset.
They don't want to relearn their jobs or change the way they do things.

Implementation Issues and Failures

Implementation Issues Failures Reasons

New machines are very Productivity has Staffs are not used to the
different decreased by 8% to 66% new technology and not
enough training was
provided

New rosters and machine 15 out of 300 staff have Because of longer working
have been unpopular with resigned since the new hours and tiring work in
some employees program was introduced, the same line employees
including two shift struggled to manage
supervisors family life
 

Longer shifts are also Error rates have remained Error rate remained same
resulting in people steady at 20% because of tired staffs due
becoming tired and   to working longer hours
making errors
 

Employees are struggling Employees feel that As most of the staffs were
to understand what % figures don’t mean much not in their best level of
rates to them education numbers did not
mean much to them