BSBMGT403 Implement Continuous Improvement

1. With a focus on customer service, identify where there is room for improvement in the systems and processes (e.g. where would a policy and procedures document on continuous improvement [CI] belong
2. Draft questions about implementing CI systems that you will ask at the collaboration workshop to encourage others to participate in decision-making, taking responsibility and exercising initiative (e.g. HR procedures on staff skills, recruitment strategies, training needs in light of customer service focus, and the need for a policy of continuous improvement).
3. As part of a collaboration workshop, create and deliver a presentation (maximum 15 minutes) that:
   1. gives examples of CI processes
   2. evaluates the effectiveness of CI processes and decisions in terms of how well they meet the stated goal/s of Australian Hardware
   3. includes a brainstorm session to identify systems and data for benchmarking and monitoring performance for CI
   4. identifies measurement tools (e.g. what will be measured and how) and describes the data sets
   5. identifies monitoring tools (e.g. how will staff performance be monitored and what records will be kept.

Australian Hardware is an organization that is based out of Australia and set up its first store in the year 1921 in Sydney. The company provides its customers with the best quality hardware, homeware, garden supplies along with building material. The store managed to establish a good market share and customer base over the years. Currently, it has 138 stores and there are over 10,000 members of staff that are engaged with these stores (Australianhardware, 2017).

The mission statement of the company states that the company provides the best quality hardware, homeware, garden supplies along with building material to the customers at low prices. The quality of the products, services that are provided and the level of engagement is kept at the top priority.The company has a vision of emerging as the top player in Australia in its field in the next five years.

Organization Chart

The company has also defined and developed business plan, marketing plan and risk management plan to make sure that it is able to achieve the business goals and objectives as per the defined path.

There are; however, certain loopholes that are present in all of these areas that can be improved in order to make sure that the company achieves its goals successfully.

Improvement in Systems & Processes 

Continuous improvement also referred as CI is a series of steps that are taken for streamlining the business operations and for better organization of products, services and processes that are associated with a particular organization (Huang, Rode & Schroeder, 2011).

In the case of Australian Hardware, there are numerous areas that have been identified that can be improved.

• There are a variety of products that are offered by Australian Hardware to its customers. There are also numerous vendors and suppliers that are contacted and collaborated for the supplies. The company looks out for the suppliers from Australia and beyond to provide quality and innovative solutions. However, the vendor selection process can be improved by making use of data analytics tools to study the vendor data and information present in the market. This will lead to the selection process to be quicker and more accurate (Zain & Kassim, 2012).
• The pricing strategy that is followed in the company focuses upon maintenance of margins without compromising on the quality of the products. The company shall also launch discount deals and offers for the new customers as well as for the existing customers. Such pricing offers will improve the customer engagement and will also lead to the expansion of the customer base.
• Customer service that is offered by the company is both on-line and off-line. Such services can be improved by making use of automated incident recording and responding systems. This would allow the service and support staff to provide better assistance to the customers.
• The company has taken up social and environmental responsibility to ensure that the waste management is adequately done in the company. The company shall also incorporate a group of volunteers along with the collaboration from local agencies and suppliers for better waste handling and management.
• There can also be improvements done in the customer engagement strategy by introducing customer loyalty and reward schemes.
• The e-commerce model that is currently being followed in the company is Business to Consumer Model (B2C). The company shall also include and provide services around the e-commerce model as Business to Business (B2B).
• The cost of operations and sales can be reduced by shifting towards the scheme of bulk buying.
• Training schedule and plans that are being followed at the organization can also be improved by making use of automated resource trackers, activity trackers etc.
• There are new entrants in the market that are giving tough competition to the company. The same can be handled and the strategies can be improved by offering distinguished services to the customers (Ketata, Sofka & Grimpe, 2014).
• There are several risks that are probable to occur in association with the services and processes that are carried out at the company. Such risks are currently being handled by administrative and operational measures. There are improvements that can be done by incorporating logical and technical tools for assessment and management of the risks (Crane, 2013).

Questions on Implementation of CI Systems & Brainstorming Session

HR Procedures on Staff Skills:

• What are the classification of skill sets that are followed in the company?
• Who is responsible for the allocation of projects to the members of the staff? (Ridgway, 2008)
• What are the initiatives taken by the company for the development of employee skills?
• Are there any soft skills training program that is carried out in the company?
• What are the parameters on which the technical skills and abilities of the employee is reviewed?
• What is the frequency of employee-manager discussion that takes place?
• What are the mandatory soft skills that are looked out for?
• What is the order of preference given to years of experience, soft skills, technical skills, managerial skills and academic qualifications?

Recruitment Strategies:

• What are the different phases that are involved in the recruitment processes?
• Who is responsible for the development of job descriptions?
• On what basis is the interview panel selected?
• How many rounds are carried out before the selection of an employee in the organization?
• Who is the final decision maker in the process of recruitment?
• How often is the recruitment strategy revised?

Training Needs:

• Does the company have a training cell and department set up?
• Who is responsible for the development of training schedule and plan?
• What are the tools that are used in the conduction of trainings?
• Are there any customer-oriented training sessions organized?
• What is the feedback process followed during the training sessions?
• On what basis is the skill and knowledge of the trainer determined?

Policy of Continuous Improvement:

• What are the Continuous Improvement (CI) practices that are carried out in the company?
• Are the employees at each level aware about the CI needs and requirements?
• What are the initiatives taken by the employees at their level for continuous improvement? (Olaru, 2013)
• What are the administrative changes that are made annually and monthly in the organization?
• What is the frequency of technical updates that are carried out?

Examples of CI Processes and Effectiveness

The CI processes that can be carried out in the company have been listed in the section Improvement in Systems & Processes above.  

The set of CI processes can be grouped in different categories as CI processes for quality improvement. These can include the Six Sigma and Total Quality Management (TQM) initiatives that can be taken for the enhancements in the product and service quality (Coy & Adams, 2012).

The CI processes that are associated with enhancement of services include the modification in the vendor selection process, pricing strategy along with the customer service and assistance activities.

There are also several processes that can be carried out in terms of the improvements in the risk management and assessment strategy, initiatives to deal with the new entries in the market, e-commerce models and likewise.

Security is one of the areas that can be impacted adversely with the occurrence of security risks and attacks. There are limited steps and initiatives that have been witnessed in the area of security. There shall be CI processes that shall be included for the improvement of security by making use of security tools and mechanisms in the form of anti-malware tools, anti-denial tools, network security tools and access control mechanisms (Ntu, 2017).

The above set of processes will be effective for Australian Hardware as these will make sure that the quality and speed of services offered to the customers is improved. This will lead to the improvement in the customer engagement and satisfaction levels. The customer trust in the organization will also improve as a result and there will also be better revenues and profits that will be earned. The market share captured by the company in the Australian market is currently 8%. The top player in the list is Bunnings with 15% of the market shares. The percentage for Australian Hardware will also improve with the execution of these steps. (Awen, 2013)

Measurement Tools

There are a number of measuring tools that can be used to measure the success of the CI initiatives.

• There are assessment tools such as radar charts or reliability excellence matrix can be used to measure the effectiveness and success of the CI initiatives and processes.
• There are also comparison tools that can be used to measure the values of financial parameters and return on investment (ROI) that is earned by the organization.
• Stakeholder assessment tools can also be used to make sure that the satisfaction levels of the stakeholders is high with all the initiatives that are carried out.

Monitoring Tools 

There are also a number of monitoring tools that can be used for understanding the level of implementation and progress that is made.

• Tracking tools: These are the automated tools that can be used to track the activities and progress made by the CI team in terms of the percentage of work completed and pending.
• Review and Evaluation Tools: These are the tools that can be used for the verification and validation of the activities that are carried out under CI.

Feedback to the Collaboration Group

The feedback process to the collaboration group shall be based upon the following parameters:

• Status of the work done
• Highlights associated with the process
• Areas of improvements
• List of risks, conflicts and issues that came up
• Additional comments
• Overall experience rating

Set of Recommendations

Continuous Improvement (CI) is a set of activity that has a significant role in the process of ensuring that the organization improves upon the set of practices, processes and methods that are carried out. There are several initiatives that Australian Hardware must take for improving upon the set of practices and methods. These shall include the execution of CI processes in the areas of security, quality, customer service and support, employee trainings, risk management strategy, marketing plan and procedures.

Review of the Scenarios

 

Customer Data Sheet

Results of Performance-to-date

The results can be seen in the three tables that have been depicted above. There is a massive difference that can be seen in the estimated and actual values associated with staff KPIs.

• The number of sales that are performed by the employees are good with few exceptions. In most cases, they exceed the expected levels.
• The safety checks and norms are not being followed by the employees (Schultz, 2007).
• The training hours and sessions are being attended and the minimum requirement is fulfilled by all the employees.
• The record keeping activities are satisfactory.
• Coaching CI and the activities around the same are not being effectively carried out.
• There are higher number of complaints that are witnessed in specific departments that need to be handled.
• The sales leads are higher than the expected levels.
• Staff leads are lower than the expected levels.
• CI implementation can also be improved as the actual state is not up to the mark.
• Team support is good (Martin, 2008).

Key Areas for Improvement

• Incompatibility issues in the sales procedures and tools
• Reliance of the customers on the offline processes of enquiries and incident reporting which shall be replaced by online measures
• Number of complaints is high
• The state of CI implementation process
• Information sharing around quality measures and steps
• Coaching and mentoring sessions
• Updates of the technical tools
• Record keeping activities

Suggestions for Improving Processes 

• There are a number of incompatibility issues that are witnessed with the sales tools and processes that are carried out. These shall be removed by making use of the regular updates and the incorporation of latest technical measures
• Online incident reporting and recording team shall be set up and the customers shall be made aware about the same through the stores and the online marketing mediums. Email notifications shall also be sent on the same (Addison, 2004).
• The number of complaints will drop by using the advanced forms of customer service and support tools.
• The implementation process of CI shall be evaluated and monitored by the senior management at regular intervals.
• The social media platforms shall be used for sharing the information around quality tools and procedures with the customers. The same shall be uploaded on the website and the blogs.
• The coaching and mentoring sessions shall be carried out at regular intervals and the compliance towards the same shall be checked regularly.
• The technical tools and equipment that are used shall be reviewed and updated regularly.
• The record keeping activities can be improved by making use of automated tools and controls for the same (Piskurich, 2006).

Definition of Continuous Improvement (CI), Elements Implemented at Australian Hardware & Role Description 

Continuous improvement also referred as CI is a series of steps that are taken for streamlining the business operations and for better organization of products, services and processes that are associated with a particular organization.

In the case of Australian Hardware, there are numerous areas that have been identified that can be improved, such as customer service, risk management strategy, quality procedures, coaching and mentoring sessions and likewise.

The role for CI at Australian Hardware was associated with the identification of the areas of improvements by analyzing the services and processes being carried out along with the development of the decisions and strategies required for the execution of the CI initiatives.

Driving Forces for CI

The mission statement of the company states that the company provides the best quality hardware, homeware, garden supplies along with building material to the customers at low prices. The quality of the products, services that are provided and the level of engagement is kept at the top priority.

The company has a vision of emerging as the top player in Australia in its field in the next five years.

These goals enabled the management to work towards achieving the CI processes and initiatives so that the business objectives were met. Also, customer focus and engagement were the primary driving forces behind the execution of the CI strategy (Murray & Chapman, 2003).

Achieving the KPIs

Achieving the KPIs will make it easy to achieve the goals associated with the CI processes. This is because of the reason that the current performance-to-date scenario includes a number of loopholes and areas of improvements.

There are a lot many customer oriented strategies and decisions that will be achieved with the achievement of the KPIs which will result in higher customer engagement and increased customer trust.

Set of Tools

• There are assessment tools such as radar charts or reliability excellence matrix that were used to measure the effectiveness and success of the CI initiatives and processes.
• There are also comparison tools that were used to measure the values of financial parameters and return on investment (ROI) that is earned by the organization.
• Stakeholder assessment tools were also used to make sure that the satisfaction levels of the stakeholders is high with all the initiatives that are carried out (Ni & Sun, 2009).
• Tracking tools: These are the automated tools that were used to track the activities and progress made by the CI team in terms of the percentage of work completed and pending (Chaffee, 2008).
• Review and Evaluation Tools: These are the tools that were used for the verification and validation of the activities that are carried out under CI.

Outcomes of the CI Process

Discussion of Feedback

The feedback process that was collected from workshop and coaching sessions focused upon the parameters and steps that can be undertaken for achieving better customer engagement and trust.

There were several initiatives that were taken in the CI processes in this regard in terms of the deployment of online incident recording and reporting team, revisal of the risk management strategy, use of social media platforms and updates of the technical tools.

The initiatives made sure that the number of complaints dropped; however, there are still improvement activities that need to be carried out.

Areas of Need for Coaching & Mentoring

• Quality measures and aspects
• Customer expectations
• CI implementation process
• Information sharing and transmission
• Security tools and practices
• Tools and equipment being used
• Record keeping activities

Additional Recommendations

There are several initiatives that Australian Hardware must take for improving upon the set of practices and methods. These shall include the execution of CI processes in the areas of security, quality, customer service and support, employee trainings, risk management strategy, marketing plan and procedures. There are a large number of data sets that are associated with the company. These data sets can be managed efficiently by using Big Data tools and techniques.

Also, it has become necessary to carry out several data related operations with the expansion of the business operations and activities. These data operations shall be carried out with the use of Business Intelligence tools, such as data analytics, data mining and data warehousing tools. These tools will make sure that the required patterns and statistics are provided.

Change Management Techniques  

Change management techniques play a significant role in the continuous improvement processes. The change management techniques are necessary because the business landscape in terms of the number of customer involved, market trends and customer expectations will keep on changing. These changes will be required to be handled carefully and the continuous improvement processes shall be integrated with the same.

The change management techniques shall make use of a defined path comprising of preparation of the changes, management of the changes along with the reinforcement of the changes.

Conclusion

Organizations are required to make sure that they take initiatives to improve upon the set of services and practices that they carry out. Also, the business opportunities must be explored continuously to deal with the competition in the market and to provide the customers with the enhanced services. Australian Hardware must also carry out the CI processes for achieving its business goals and objectives. There are numerous areas of improvements that are associated with the company that shall be addressed as specified in the report.

There will be a number of benefits that will be offered to the company as a result. The list of benefits will include increased market shares, increased revenues and profits along with improvements in the customer base and customer engagement.  The company will also be able to deal with the competition in the market and will be able to gain a competitive advantage in the market. These initiatives will also provide the capability to deal with the security events and occurrences in a better way. The quality of the services will also be enhanced.

References

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