Assessment 1 – Written Report · Accountant – Reports to CFO and keeps office hours; 9–5, Mon–Fri. Truck drivers (x20) – Report to office. Office team manager – Reports

Assessment 1 – Written Report

Instructions:

This assessment consists of two parts. Trainer may decide whether this will be an individual or a

group assessment.

Duration:

Trainer will set the duration of the assessment.

Questions:

Part A

Using the scenario 1 information supplied, the student will identify strategic change needs, review

existing policy, monitor trends in the external environment that impact on organisation’s objectives,

identify operational change objectives, prioritise change requirements and consult experts or

specialists to assist in identification of change requirements and opportunities. The student will then

write a report to management outlining the change requirements.

Part B

Based on the scenario 2 provided, you will write another report in which you outline a performance

and sustainability review strategy, evaluate the strategy, analyse performance reports and trends,

and describe how you would seek advice from specialists to identify technological solutions.

Procedure:

Part A

1. Review the scenario 1 information provided (in the Appendix 1) for Fast Track Couriers.

2. Prepare to write a report on change requirements for Fast Track by following steps 3 –10 below.

3. Analyse the organisational objectives provided in the scenario to identify the change requirements for

Fast Track Couriers:

a. Identify requirements for change

b. prepare an explanation of how your identified change needs link to the organisation’s strategic

plan goal/s.

4. Review the organisation’s current state to understand how the current policies, practices and

operations deliver against the organisation’s strategic goals.

5. Review the organisation’s performance against objectives with regards to its:

a. people

b. processes

c. technology

d. structure.

6. Monitor external trends to identify events or trends which may impact on the achievement of the

organisation’s strategic plan goals:

a. identify two external trends

b. develop an explanation of how the trends currently impact or will impact organisational

objectives .

7. Identify major operational change requirements:

a. identify changes due to performance gaps

b. identify changes due to business opportunities

c. identify changes due to threats

d. identify changes due to management decisions.

8. Identify specialists to be consulted to assist with identifying change needs:

a. identify specialists you will engage to help identify change requirements and be prepared to

explain your reasons for engaging these specialists

b. identify what consulting model you would adopt to engage the specialists and be prepared to

explain why you would use this model.

9. Assume your trainer is a specialist/expert of the kind you have identified in step 7. Consult with your

trainer to assist with identification of change management requirements and opportunities.

10. Identify the managers that need to be informed. Prepare a plan that identifies who, when and how

stakeholder managers wi ll be engaged to review and prioritise change requirements.

11. Assume your trainer is a manager you have identified. Consult with your trainer to review the changes

you propose and to help you prioritise changes. Suggest and justify the priority you have ass igned to

each change you recommend.

12. Prepare a 3–4 page report detail ing change requirements for the organisation. Include all of the

information you identified and explanations that you prepared in steps 3 –10.

13. Submit all documents to your trainer as per the specifications below. Ensure you keep a copy of all work

submitted for your records.

Part B

1. Read the case study ‘AC Gilbert’ in Appendix 1.

2. Analyse the information provided and prepare a report addressing the following six (6) points.

1. Describe the key systems and processes used by AC Gilbert:

a. Supply chain

b. Operational systems

2. Product/service delivery.

3. Analyse the three key systems and processes and develop the elements of your

review strategy: applying your knowledge of quality management and continuous improvement theory, develop performance and sustainability measures, assessment tools and techniques that you would use to evaluate the effectiveness of the three key systems and processes.

In your report, include if applicable:

a. Lists of key result areas (KRAs)

b. Lists of key performance indicators (KPIs)

c. A description of performance review processes

d. A sample service level agreement.

4. Using the data provided for results up to 1966, for each of the three key systems,

describe how each of your measures, assessment tools and techniques would monitor performance. Include specific examples or hypothetical cases to test the

effectiveness of the elements of your review strategy. Write an evaluation of the effectiveness of your review strategy. Suggest improvements to your strategy.

Refer to quality management and continuous improvement theory.

5. Using the data provided for results up to 1966, analyse the variances from plans and targets for the key result areas (KRAs). Include discussion on performance with regards to:

a. quality – design/manufacturing

b. sales

c. profit

d. supply chain performance (delivery)

e. business growth – staff and management performance and/or turnover.

6. Discuss trends relevant to the organisation. What trends did AC Gilbert fail to

identify in the late 1950s?

Consider the strengths and weaknesses of the AC Gilbert Company prior to 1960. Discuss

the following in your report:

a. market share

b. reputation

c. stability

d. profit

e. sales

f. ability to adapt to change

g. customer service standards

h. innovation

i. employee performance

j. production and manufacturing.

Apply creativity skil ls to identify missed opportunities to improve business performance.

Describe at least one missed opportunity in detail. Include an action plan for

implementing the improvement in your report.

7. Imagine the company did not close in 1967 and has somehow managed to continue operations until today. Discuss the possible use of advice from specialists. What specialists could be consulted to advise on and identify new technology or

electronic commerce opportunities? Consider:

a. Internal – engineers, production staff, manufacturing staff, sales personnel, human resources personnel.

b. External – marketing consultants, advertising experts, engineers or designers,

IT consultants.

3. Submit your report to your trainer as per the specifications below.

Your Tasks (Specifications)

Part A

You must provide:

One report detailing change requirements for the Fast Track Couriers Pty Ltd. Your trainer will be looking for:

A 3–4 page report including all information identified in the procedure above

knowledge of the impact of external trends on organisational change

knowledge of specific organisational requirements

learning skills to incorporate new ideas into your report on change requirements

planning skills to organise engagement with manager stakeholders

teamwork skills to consult with relevant people for input

verbal communication skills to describe, support, and negotiate change requirements and priorities with stakeholders

PartB

You must provide:

another report on performance review and sustainability for A. C. Gilbert company Your trainer will be looking for:

reference to, and application of, quality management and continuous improvement theories in review strategy

reference to and application of sustainability practices in review strategy

analytical skills to identify improvement opportunities

demonstration of creativity skills to think laterally and identify improvement opportunities

Appendix 1

Scenario 1- Fast Track Couriers Pty Ltd

You are an external change management consultant employed by Fast Track Couriers. You have

been asked by the General Manager to prepare a report to identify opportunities and requirements

for change for the organisation in the coming year.

You have been given some information about the organisation and the organisation’s strategic goals.

Specific operational and human resources goals were developed to support the strategic goals.

The strategic goals were developed as a result of external market research indicating an opportunity

for Fast Track Couriers to build market share in Sydney. The business has the opportunity to increase

Sydney market share by 7.5% on the back increased efficiency and shorter delivery times from larger

truck fleet and improved distribution systems.

You have also been given some information about employees and some background information

regarding the organisation’s workforce relations.

Before submitting the final report, you will need to review your proposed changes with all relevant

manager stakeholders. The General Manager is very concerned about identifying change

requirements in close consultation with key management stakeholders within the organisation in

order to ensure the least resistance to implementation.

Track Couriers

Fast Track About Fast Couriers is a courier company that has been operating in New South Wales for

the last 15 years. Its primary business function is delivering medium to large size packages across

metropolitan Sydney.

Strategic plan goals

The organisation’s strategic goals are:

to expand business in the metropolitan area so that small to medium package deliveries market share increases by 7.5%

to develop an integrated approach to distribution management utilising technology such as PDA devices and GPS

to develop and maintain a cohesive and well-motivated workforce. Strategic goals are supported by the following operational and human resources goals.

Operational plan goals

Testing of the distribution management system is to cease and allow implementation within the first quarter of the 2012 financial year.

The truck fleet will need to be expanded by 8 trucks within the 2012 financial year.

Human resources goals:

To incorporate a Human Resources function to facilitate the changes in workforce management in the first quarter of the 2012 financial year.

Introduce professional development and training to achieve organisational goals and promote understanding of organisation’s strategic goals in the first quarter of the 2012 financial year.

Eliminate industrial relations problems in the 2012 financial year. Conclude negotiations with employees and union.

Eliminate lifting injuries.

Employee profile

Fast Track Couriers employee the following people:

General manager (GM) – Generally on the road; never in office.

Chief financial officer (CFO) – Reports to GM and keeps office hours; 9–5, Mon–Fri.

Accountant – Reports to CFO and keeps office hours; 9–5, Mon–Fri.

Truck drivers (x20) – Report to office.

Office team manager – Reports to GM and keeps office hours; 9–5, Mon–Fri.

Office team members (x5) – Perform administrative, sales, customer relationship management duties. Monitor truck drivers and handle enquiries. Report to office team manager.

Head office employees

Covered under individual contracts.

Salary range $32,000–$75,000 annum.

Small team of mainly female employees, ranging in age.

Lots of opportunity to participate in learning and development programs due to management support; however little desire to participate.

High employee engagement scores. Employees cite team work and opportunities as motivating factors affecting the business success.

Drivers

Covered by an award.

Salary $45,000 per annum.

Heavily unionised.

Employee demographics are all male employees aged 25–65.

Little opportunity to participate in learning and development programs due to being on the road; however, little to no interest to participate in development opportunities.

Large number of workplace injuries due to heavy lifting.

Low employee engagement scores. Drivers cite pay as an issue.

Currently experiencing low turnover.

History of industrial disputes regarding pay and previous change initiatives.

Background to workforce management and relations

The company communicates with employees via email for head office employees and a printed

monthly newsletter for drivers. The company provides information regarding policies procedures

through documented manuals that are held in each truck as an employee manual. Office -based staff

can access copies of these manuals at the office.

All trucks are fitted with a GPS system to assist drivers with navigating to each pick up and drop off

location. Trucks are also assigned a PDA that provides drivers with the details of each pick up and

drop off and records when a job starts and finishes. The data from this device is sent back to head

office to monitor job progress but is not used to complete productivity reporting. When this device

was introduced, drivers were not happy as they felt the organisation was saying that it did not trust

the drivers to manually record the time spent on each job. Many of the drivers also resented having

to learn how to use the device and thought it was a waste of time.

Head office employees work very closely together and are a very cohesive and motivated team. They

are positive about the organisation’s direction and respond well to change.

Drivers have historically reacted negatively to change. Change implemented in the past has met with

resistance and was therefore difficult to implement. Drivers have in the past done their best to block

any changes from being implemented, even going to the lengths of threatening strike action and

having the union involved to assist with resolving the issue.

Fast Track Couriers currently allocates two drivers per truck to ensure that drivers are able to load

and unload heavy packages. The strategy going forward is to remove the need for having two drivers

per truck by installing an automatic lift gate on the back of each gate at a cost of $10,000 per truck.

This will mean that only one driver is needed per truck as no heavy lifting will be required.

It is Fast Track Couriers intention to use these surplus drivers to drive the new trucks that will be

purchased to enable the company to extend its services to regional NSW.

Drivers are currently happy with the work environment as they enjoy working as part of a two-man

team. The organisation typically leaves the drivers alone and lets them do their job as this is what

seems to make them happy. Management has tried in the past to have drivers partici pate in

organisational activities. These activities were not received positively and the drivers complained

and asked not to be involved. The drivers’ view is that their preferred team is their two -man driver

team and they only see the benefits of that specific working arrangement. There is a high value

placed on communication with trucking team members.

Scenario 2 – A. C. Gilbert

History 1909–1961

Alfred Carlton Gilbert was an inventor and a toy manufacturer who invented the Erector engineering

set. His original company, The Mysto Manufacturing Company, was founded in 1909 to manufacture

the Erector set. In 1916, Mysto became the A. C. Gilbert Company and gained a reputation for

producing quality toys.

By the 1950s, A. C. Gilbert was one of the leading toymakers in the United States with annual sales

regularly topping $17 million. This was an outstanding achievement for a relatively small company.

In 1961, A. C. Gilbert senior died, leaving the company in the hands of his son, A. C. Junior. At the

time A. C. Junior took over the firm, the company was established as a traditional, reliable and

profitable manufacturer of educational toys.

Product lines and rationale

A. C. Gilbert produced train sets but their most popular lines were chemistry sets, microscopes and

their best seller, the Meccano-like Erector engineering sets that had been popular with children for

more than 50 years.

A. C. Gilbert toys were not cheap. They were high quality, solidly crafted and made to endure. Parts

and packaging were designed to last for many years, with the Erector set packaged in long-lasting

metal boxes. The focus was on educational toys, primarily aimed at boys rather than girls. The

company had a limited range but what they did manufacture was top quality and highly regarded.

Systems and processes

A. C. Gilbert was a small company. The following model demonstrates the systems and processes in

place.

Design

Toys are designed by a small group of designers who develop the concepts for the products.

Planning

The planning department translates the concepts into designs and determines resource requirements, including raw materials. Planning also projects sales and develops production plans for each product, timeframes for production runs and scheduling of production runs.

Purchasing

Information gained from planning stage used to purchase raw materials for products and packaging from suppliers.

Manufacturing

Produces and packages toys for distribution.

Distribution

Delivers packaged toys to the warehouse for storage.

Note: These flowcharts have been included for assessment purposes only, and may not accurately

reflect the actual processes in place at A. C. Gilbert.

History 1961–1967

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.

Where the fifties represented solidarity and familiarity, the sixties embraced change. Everything was

bolder, brighter and more daring. A new young president and rising social activism by youth saw

changes in clothing, music and interests. Young people rebelled against the values of their parents

and embraced a more fast paced, exciting and riskier lifestyle.

Changes to the toy industry

Cultural changes had a huge impact in western toy markets. Barbie and Action Man became ‘must

have’ toys. Girls moved away from baby dol ls 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

towards exciting new slot-car racing sets and action figures from popular movies and television

shows.

Traditionally, toy advertising had been done via magazine promotions but the sixties brought in a

new phenomenon: television advertising. A hugely powerful medium, TV advertising became

increasingly ‘hard sell’, with toys heavily promoted, especially in the lead up to Christmas. Children

wanted the latest and greatest toys that they saw in these advertisements and put pressure on their

parents to buy, which they did.

Retailing of toys during this period reflected a shift in retailing in general. Small, specialty retailers

with experienced and knowledgeable staff were going out of business, replaced by large discount

stores catering for the mass market. The goal of this type of retailer was to turnover stock. Heavily

advertised lines were in demand and that is what they would stock. Cheap was in and giant retailers

were after a quick profit from easily saleable, inexpensive products. They weren’t interested in

catering to a niche market by stocking more expensive, harder to shift lines.

Packaging was bright and colourful in order to attract children growing up in a world of colour TV,

hypercolor clothing and visual stimulation provided by the swinging sixties.

Sales Team

•Take orders

from

customers

Distribution

•Arrange for

delivery of

goods to purchaser

using contract

transport

Retailers

•Sell the toys

directly to end

user

Affects on A. C. Gilbert

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 was sufficient to continue trading as before. The consequences of this short sightedness

soon became apparent.

1961 (figures approximate)

L/Y Sales Actual sales Difference Profit $12.6 million $11.5 million ($1.1 million) $20,011.00

This drop in sales was also reflected in a fall in the share price of the company.

Outcomes

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.

Actions taken by Jack Wrather

Set a goal to achieve sales of $20 million in 1963.

Replaced the top A. C. Gilbert executives with his own people.

Initiated a massive advertising campaign.

Increased sales staff by 50%.

Instructed sales staff to adopt an aggressive sales approach.

Introduced 50 new toy lines, raising the line to 307.

Changed the focus from traditional boys toys to ranges for pre-school children, dolls and other toys aimed at girls between the ages of 6 and 14.

Spent $1 million on changing the packaging for all lines to brighter, more colourful boxes.

Performance report

Year Sales Difference from previous year

Profit

1961 $11.5 million ($1.1 million) $20,011.00

1962 $10.9 million ($600,000.00) ($281,000.00)

1963 $10.7 million ($200.000.00) ($5.7 million)

1964 $11.4 million $700,000.00 ($2.6 million)

1965 $14.9 million $3.5 million ($2.9 million)

1966 $12.9 million ($2 million) ($12,872,000.00)

1967 A. C. Gilbert closed 1909–1967

Key milestones

1962:

Jack Wrather purchased 52% of A. C. Gilbert.

Replaced existing executives with his own people.


Implemented extensive television advertising.

Set an organisational goal to achieve sales of $20 million for 1963.

Company recorded a loss of $281,000.00.

Introduced 50 new lines in less than 12 months, using existing engineers and production departments who lacked training and experience in the new product range.

Repackaged existing lines at a cost of $1 million.

1963:

Sales and profits down on previous year.

Anticipated drop in profits due to expansion and cost of establishing new lines.

Sales fell short of expectations.

Decline in quality of toys – feedback indicated products poorly made and designed (dolls did not even come with a change of clothing).

New range perceived by customers as poor quality and over-priced – not value for money nor attractive to the target market.

1964:

Jack Wrather fired most of the top management team he hired two years previously.

Crisis management lead to multiple changes and dramatic measures being taken and then changed – often one measure contradicting the previous.

Jack Wrather hires new CEO – Isaacson.

Isaacson fires the entire sales team.

Isaacson makes huge cutbacks in spending.

Sales are channelled through independent manufacturer’s reps, which was cheaper than maintaining an in-house sales force.

Long-standing relationships soured as the independent reps worked on commission and pushed sales, with no interest in maintaining or building relationships with customers.

A. C. Gilbert had built its success on personal service and building relationships – that was destroyed within 12 months.

A. C. Gilbert Junior dies and is replaced as Chairman by Jack Wrather. Isaacson assumes the role of President.

Prior to Christmas, many of the previous year’s failed products were deleted and 20 new items introduced.

Reduced the price of core lines such as the Erector set from $75 to $20 but quality also impacted – cardboard box instead of metal boxes, and brittle parts instead of sturdy long-lasting parts.

Sales increased and there was some degree of optimism. 1965:

Sought to capitalise on popular crazes such as James Bond and The Man from Uncle by introducing action figures for Christmas.

Due to internal strife and staff cutbacks, the new lines were not delivered to the stores until after Christmas.

Operating on a skeleton workforce.

Due to lack of staff, A. C. Gilbert is unable to implement changes or introduce new lines quickly enough to capitalise on trends.

1966

Increased advertising spending to $3 million.

Introduced point of purchase display products supplied to dealers free of charge.

Borrowed $6.25 million, granted on the event that the company made a profit in 1996.

Company made a loss of $12,872,000.00. 1967

February – A. C. Gilbert closed its doors after 58 years.

Source:

Tibballs, G., 1999, Business blunders, ‘A. C. Gilbert: Toy Story’, Robinson Publishing Ltd, pp. 43.

Assessment 2 – Role Play

Instructions:

This assessment consists of two parts. Trainer may decide whether this will be an individual or a

group assessment.

If you are not sure about any aspect of this assessment, please ask for clarification from your

Trainer.

Duration:


Procedure

Part A

Using the scenario 1 information supplied, the student will undertake a cost-benefit analysis for

high-priority change requirements, undertake a risk analysis, identify barriers, and develop

mitigation strategies. The student will develop a change management project plan, assign resources

and develop a reporting process. The student will then present his/her analysis and project plan to

management for approval.

1. Review the simulated workplace information for Fast Track Couriers.

2. Develop a change management strategy for Fast Track, which you will present to management (your

trainer) for approval, by following steps 3–8 below.

3. Identify change goals and specify:

a. who/what is impacted

b. how they are impacted

c. when the impacts will be realised.

4. Identify the change goals you have identified are related to organisation’s strategic goals.

5. Undertake a cost-benefit analysis of the of the change requirements. Include:

a. the change requirements

b. the costs of changes

c. risks

d. the possible benefits of each change

e. assessment of the benefits against the costs and risks

f. categorised changes:

i . feasible (F)

ii . maybe feasible (MF)

iii . not feasible (NF).

6. Undertake a risk analysis of the change requirements:

a. identify the risks and barriers

b. analyse and evaluate the risks and barriers

c. identify mitigation strategy.

7. Develop a change management project plan. In order to justify your plan, include a brief explanation of

the change management theory/methodology followed to embed change. Your plan must reflect

theory and you must be prepared to explain to management how key elements of your plan, such as

stakeholder management, communication, educati on/training plans, show elements of a particular

theory.

8. Include the following components in your plan:

a. Stakeholder management:

i . identify key stakeholders and roles

ii . identify commitment level

iii . identify concerns/issues (and how can these will be addressed)

iv. consultation methods for engaging identified stakeholders.

b. Communication plan:

i . audience

ii . message

iii . when this communication will occur

iv. how the message will be communicated (e.g. email, face to face, newsletter)

v. person responsible.

c. Education/training plan:

i . participants

ii . the skil ls the training will provide

iii . when the training will occur

iv. how the training will be delivered (e.g. class room, online, on-the-job)

v. person responsible.

9. Your project plan should also include a measuring/reporting strategy. Measurement and reporting

strategy should include:

a. how you will measure success

b. how you will report success including:

i . format of reports

ii . when will reports be produced (weekly, fortnightly, monthly)

iii . who will receive a copy of the report.

10. Finally, your project plan should also include a l ist of resources (tools, supplies, etc.)

11. Deliver a formal presentation (using PowerPoint) to management (your trainer) to gain approval for

your change management strategy. Your trainer will approve your s trategy based on your completion of

this assessment task and satisfaction of specifications below.

12. Ask for authorisation to implement strategy.



Part B

Based on the scenario 2 provided, you will develop a performance improvement strategy, brief a

team of peers on the strategy, develop the strategy and encourage innovation within the group

session, and incorporate results of consultation into strategy. You will develop risk and cost-benefit

analyses which you will submit to your trainer for approval.

1. Read the case study ‘A. C. Gilbert’ (Appendix 2). Assume no improvements have been made and the

company is sti l l operating in the same way today as when it closed in 1967.

2. Consider the following scenario:

Your manager, as per organisational processes for continuous improvement, has asked you to develop a performance improvement strategy, brief the management team, develop the idea with the team, seek

the team’s approval and seek final approval from your manager. 3. Develop a one page performance improvement strategy related to competitiveness. Include:

a. strategic goals

b. description of proposed process or amendment to current process

c. brief explanation of how proposal will improve performance and competitiveness

d. KRAs, KPIs, targets.

4. Prepare to deliver a 20–30 minute management team briefing and consultation session:

a. distribute your proposed strategies to team (team members may be other lear ners, or other

group approved by trainer)

b. ask team to consider strategy, including:

i . pros and cons

ii . changes or improvements to strategy

iii . preparing to discuss changes or improvements at team briefing and consultation session

c. agree time for session (agree time with trainer to ensure trainer can observe session).

5. Lead session.

a. discuss options and work through group suggestions

b. use creative techniques to generate or develop ideas

c. work through implications of suggestions to trial them

d. encourage group to point out issues or potential problems during trail ing

e. if and when applicable, accept failure of ideas and recognise successful ideas.

6. Summarise results of session and seek group’s approval for amended strategy.

7. Incorporate results of session into revised strategy.

8. Develop a risk analysis for strategy.

9. Develop a cost-benefit analysis for strategy.

10. Arrange a time to meet with trainer (as your manager) to discuss strategy, risk and cost-benefit

analyses. Explain costs and benefits. Seek approval for strategy.

11. Submit documents to your trainer as per the specifications below. Ensure you keep a copy of all work


Your Tasks (Specifications)

Part A

You must present and then submit copy of:

One PowerPoint presentation containing analysis and change management project plan. Your trainer will be looking for:

knowledge of change management process or cycle

knowledge of components of change management project plan

knowledge of specific organisational requirements

knowledge of potential barriers to change

knowledge of a range of strategies for embedding change

leadership skills to gain acceptance of plan and gain trust

planning and organising skills

problem-solving skills to identify and respond to barriers to change and analyse risks

verbal communication skills to describe and promote change management plan

Part B

You must provide a:

one page performance improvement strategy

20–30 minute team briefing and consultation session (team members may be other learners, or other group approved by trainer)

revised one page performance improvement strategy

written risk analysis

written cost-benefit analysis. Your trainer will be looking for:

application of quality management and continuous improvement theories in improvement strategy

demonstration of creativity and innovation theories in group consultation

application of organisational learning principles

demonstration of cost-benefit analysis

demonstration of risk management

analytical skills to identify improvement opportunities

demonstration of creativity skills to think laterally and identify improvement opportunities that come from group

demonstration of learning skills to develop options for continuous improvement

demonstration of teamwork and leadership skills to lead group session.

Appendix 2

Scenario 1: Fast Track Couriers Pty Ltd

You are an external change management consultant employed by Fast Track Couriers. You have

been asked by the General Manager to develop a change management strategy and present the

strategy to management for approval.

Management has identified the following high-priority change requirements:

Goal A: Implement PDA/ GPS usage (productivity function) on truck fleet in the first quarter of the 2012 financial year.

Goal B: Implement one person/truck policy using automatic lift gates in the first quarter of the 2012 financial year.

Achievement of these goals should increase net profit in the next financial year by $200,000 due to

increased efficiencies and increased business.

Goal A is essential to the business to ensure (in priority order):

1. Most efficient use of resources to cover market needs. Management will look at more than

the raw hours spent on job and consider all factors such as job difficulty, traffic conditions in

order to optimise fleet usage.

2. Job performance measurement for training needs.

3. Recognition of outstanding performance (bonuses for exceeding targets; advancement/

leadership opportunities).

Goal B is essential to the business to ensure:

Most efficient use of resources to cover market needs.

Reduced need to hire external truckers; use present employees as much as possible.

Reduced possibility of lifting injury. The change management strategy, once approved by the General Manager, should be implemented

immediately.

People/structure

Fast Track Couriers has implemented and recruited the people required to fill the roles in the

following organisational structure:

Managerial duties/role description

General manager/CFO Oversees company; approves major business decisions

such as strategic goals, change management initiatives;

reports to board of directors; prepares financial reports.

HR manager Oversees and implements change management programs;

collect feedback, assessment results, and all other data

regarding change management; provides report to the

General Manager on implementation of major changes;

oversees recruitment.

Sales manager Coordinates sales team; provides sales team training;

manages performance of sales team.

Trucking /operations

manager

Coordinates activities of trucking team; manages

performance of trucking team; compiles productivity

reports; manages operations, authorises purchasing of

General Manager/CFO

Sales manager

Sales team (3)

Trucking manager

Trucking team (20)

Office manager

Accountant

Administrative support/reception

Human Resources manager

operational equipment etc.

Office manager Coordinates activities of accountant and administrative

support. Authorises payroll.

Resourcing/budget:

The budget for implementing the change strategy (excluding cost of new trucks, technology and lift

gates, lost productivity from truckers) is $25,000. Overruns must be approved by General Manager.

You will be employed for two weeks full-time (40 hrs/week) and 8 hours a week until end of the first

quarter.

Resources:

The following resources are available for your use:

Resource Cost Availability Project analyst/manager (you). $100/hour Length of project, as needed

Trucking manager (Bob Rogers). – Length of project, as needed

Sales team member with high-level oral

and written communication skills to assist

new Human Resources manager (Jessica

Smith).

– Length of project, as needed

New Human Resources manager Peggy

Anderson).

–

PDA/GPS trainer (Jack MacDonald). $150/hour Length of project, as needed

Lift gates trainer (Erin Mitchell) $150/hour Length of project, as needed

Head office training rooms equipped with

training supplies for five participants.

– 2nd week of July 2011 only.

PDA/GPS device, based at office. – Length of project, as needed

One new truck with tail gate based at

office

– Length of project, as needed

Other resources must be requested for approval by General Manager.

Education/ training

Goal A: Implement PDA/ GPS usage (productivity function) on truck fleet in the first quarter of the 2012 financial year. Requires a half-day training session.

Goal B: Implement one person/truck policy using automatic lift gates in the f irst quarter of the 2012 financial year. Requires a half-day training session.

Project management reporting

The General Manager would like you to report to her on a daily basis in the initial week of the

project and then weekly until the end of the first quarter. The HR manager should receive a copy of

this report.

Template

Fast Track Couriers policy mandates the use of the following project management template.

Green: completed

Amber: in progress

Red: not completed.

Reporting element Measures Status Change goal

Project management Delivery of project

activities as per project

plan for each stream

Overall status:

People

Process

Technology

Structure

Stakeholder Management Stakeholders engaged and

comfortable with current

position

Communication Communication plan

activities on schedule

Education Education plan activities on

schedule

Cost benefits Project budget on track

Cost benefits on track to be

realised

Risk Management Risk management plan

effectively managing risk

Background information: Fast Track Couriers Pty Ltd

About Fast Track Couriers

Fast Track Couriers is a courier company that has been operating in New South Wales for the last 15

years. Its primary business function is delivering medium to large size packages across metropolitan

Sydney.



To expand business in the metropolitan area so that small to medium package deliveries market share increases by 7.5%.

To expand the business to include small and medium package deliveries to regional NSW.

To develop an integrated approach to distribution management utilising technology such as PDA devices and GPS.

To develop and maintain a cohesive and well-motivated workforce. Strategic goals are supported by the following operational and human resources goals.




Small distribution hubs will be positioned at Maitland, Goulburn, Nowra and Bathurst each manned by two employees within the next eighteen months.

Fast Track Couriers will complete 20% of deliveries to regional locations in the next three years.






Employee profile (pre-changes)

Fast Track Couriers employee the following people:

General manager (GM) – Generally on the road; never in office.

Chief financial officer (CFO) – Reports to GM and keeps office hours; 9–5, Mon–Fri.

Accountant – Reports to CFO and keeps office hours; 9–5, Mon–Fri.

Truck drivers (x20) – Report to office.

Office team manager – Reports to GM and keeps office hours; 9–5, Mon–Fri.

Office team members (x5) – Perform administrative, sales, customer relationship management duties. Monitor truck drivers and handle enquiries. Report to office team manager.

Head office employees

Covered under individual contracts.

Salary range $32,000–$75,000 annum.

Small team of mainly female employees, ranging in age.

Lots of opportunity to participate in learning and development programs due to management support; however little desire to participate.

High employee engagement scores. Employees cite team work and opportunities as motivating factors affecting the business success.

Drivers

Covered by an award.

Salary $45,000 per annum.

Heavily unionised.

Employee demographics are all male employees aged 25–65.

Little opportunity to participate in learning and development programs due to being on the road; however, little to no interest to participate in development opportunities.

Large number of workplace injuries due to heavy lifting.

Low employee engagement scores. Drivers cite pay as an issue.

Currently experiencing low turnover.

History of industrial disputes regarding pay and previous change initiatives.






















This will mean that only one driver is needed per truck as no heavy lifting will be required.

It is Fast Track Couriers intention to use these surplus drivers to drive the new trucks that will be




seems to make them happy. Management has tried in the past to have drivers participate in





Scenario 2 – A. C. Gilbert

History 1909–1961

Alfred Carlton Gilbert was an inventor and a toy manufacturer who invented the Erector engineering

set. His original company, The Mysto Manufacturing Company, was founded in 1909 to manufacture

the Erector set. In 1916, Mysto became the A. C. Gilbert Company and gained a reputation for

producing quality toys.

By the 1950s, A. C. Gilbert was one of the leading toymakers in the United States with annual sales

regularly topping $17 million. This was an outstanding achievement for a relatively small company.

In 1961, A. C. Gilbert senior died, leaving the company in the hands of his son, A. C. Junior. At the

time A. C. Junior took over the firm, the company was established as a traditional, reliable and

profitable manufacturer of educational toys.

Product lines and rationale

A. C. Gilbert produced train sets but their most popular lines were chemistry sets, microscopes and

their best seller, the Meccano-like Erector engineering sets that had been popular with children for

more than 50 years.

A. C. Gilbert toys were not cheap. They were high quality, solidly crafted and made to endure. Parts

and packaging were designed to last for many years, with the Erector set packaged in long-lasting

metal boxes. The focus was on educational toys, primarily aimed at boys rather than girls. The

company had a limited range but what they did manufacture was top quality and highly regarded.

Systems and processes

A. C. Gilbert was a small company. The following model demonstrates the systems and processes in

place.

Design

Toys are designed by a small group of designers who develop the concepts for the products.

Planning

The planning department translates the concepts into designs and determines resource requirements, including raw materials. Planning also projects sales and develops production plans for each product, timeframes for production runs and scheduling of production runs.

Purchasing

Information gained from planning stage used to purchase raw materials for products and packaging from suppliers.

Manufacturing

Produces and packages toys for distribution.

Distribution

Delivers packaged toys to the warehouse for storage.

Note: These flowcharts have been included for assessment purposes only, and may not accurately

reflect the actual processes in place at A. C. Gilbert.

History 1961–1967

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.

Where the fifties represented solidarity and familiarity, the sixties embraced change. Everything was

bolder, brighter and more daring. A new young president and rising social activism by youth saw

changes in clothing, music and interests. Young people rebelled against the values of their parents

and embraced a more fast paced, exciting and riskier lifestyle.

Changes to the toy industry

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

towards exciting new slot-car racing sets and action figures from popular movies and television

shows.

Traditionally, toy advertising had been done via magazine promotions but the sixties brought in a

new phenomenon: television advertising. A hugely powerful medium, TV advertising became

increasingly ‘hard sell’, with toys heavily promoted, especially in the lead up to Christmas. Children

wanted the latest and greatest toys that they saw in these advertisements and put pressure on their

parents to buy, which they did.

Retailing of toys during this period reflected a shift in retailing in general. Small, specialty retailers

with experienced and knowledgeable staff were going out of business, replaced by large discount

stores catering for the mass market. The goal of this type of retailer was to turnover stock. Heavily

advertised lines were in demand and that is what they would stock. Cheap was in and giant retailers

were after a quick profit from easily saleable, inexpensive products. They weren’t interested in

catering to a niche market by stocking more expensive, harder to shift lines.

Packaging was bright and colourful in order to attract children growing up in a world of colour TV,

hypercolor clothing and visual stimulation provided by the swinging sixties.

Sales Team

•Take orders

from

customers

Dis tribution

•Arrange for

delivery of

goods to purchaser

using contract

transport

Retailers

•Sell the toys

directly to end

user

Affects on A. C. Gilbert

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 was sufficient to continue trading as before. The consequences of this short sightedness

soon became apparent.

1961 (figures approximate)

L/Y Sales Actual sales Difference Profit $12.6 million $11.5 million ($1.1 million) $20,011.00

This drop in sales was also reflected in a fall in the share price of the company.

Outcomes

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.

Actions taken by Jack Wrather

Set a goal to achieve sales of $20 million in 1963.

Replaced the top A. C. Gilbert executives with his own people.

Initiated a massive advertising campaign.


Instructed sales staff to adopt an aggressive sales approach.

Introduced 50 new toy lines, raising the line to 307.

Changed the focus from traditional boys toys to ranges for pre-school children, dolls and other toys aimed at girls between the ages of 6 and 14.

Spent $1 million on changing the packaging for all lines to brighter, more colourful boxes.

Performance report

Year Sales Difference from previous year

Profit

1961 $11.5 million ($1.1 million) $20,011.00

1962 $10.9 million ($600,000.00) ($281,000.00)

1963 $10.7 million ($200.000.00) ($5.7 million)

1964 $11.4 million $700,000.00 ($2.6 million)

1965 $14.9 million $3.5 million ($2.9 million)

1966 $12.9 million ($2 million) ($12,872,000.00)

1967 A. C. Gilbert closed 1909–1967

Key milestones

1962:

Jack Wrather purchased 52% of A. C. Gilbert.

Replaced existing executives with his own people.


Implemented extensive television advertising.

Set an organisational goal to achieve sales of $20 million for 1963.

Company recorded a loss of $281,000.00.

Introduced 50 new lines in less than 12 months, using existing engineers and production departments who lacked training and experience in the new product range.

Repackaged existing lines at a cost of $1 million.

1963:

Sales and profits down on previous year.

Anticipated drop in profits due to expansion and cost of establishing new lines.

Sales fell short of expectations.

Decline in quality of toys – feedback indicated products poorly made and designed (dolls did not even come with a change of clothing).

New range perceived by customers as poor quality and over-priced – not value for money nor attractive to the target market.

1964:

Jack Wrather fired most of the top management team he hired two years previously.

Crisis management lead to multiple changes and dramatic measures being taken and then changed – often one measure contradicting the previous.

Jack Wrather hires new CEO – Isaacson.

Isaacson fires the entire sales team.

Isaacson makes huge cutbacks in spending.

Sales are channelled through independent manufacturer’s reps, which was cheaper than maintaining an in-house sales force.

Long-standing relationships soured as the independent reps worked on commission and pushed sales, with no interest in maintaining or building relationships with customers.

A. C. Gilbert had built its success on personal service and building relationships – that was destroyed within 12 months.

A. C. Gilbert Junior dies and is replaced as Chairman by Jack Wrather. Isaacson assumes the role of President.

Prior to Christmas, many of the previous year’s failed products were deleted and 20 new items introduced.

Reduced the price of core lines such as the Erector set from $75 to $20 but quality also impacted – cardboard box instead of metal boxes, and brittle parts instead of sturdy long-lasting parts.

Sales increased and there was some degree of optimism. 1965:

Sought to capitalise on popular crazes such as James Bond and The Man from Uncle by introducing action figures for Christmas.

Due to internal strife and staff cutbacks, the new lines were not delivered to the stores until after Christmas.

Operating on a skeleton workforce.

Due to lack of staff, A. C. Gilbert is unable to implement changes or introduce new lines quickly enough to capitalise on trends.

1966

Increased advertising spending to $3 million.

Introduced point of purchase display products supplied to dealers free of charge.

Borrowed $6.25 million, granted on the event that the company made a profit in 1996.

Company made a loss of $12,872,000.00. 1967

February – A. C. Gilbert closed its doors after 58 years.

Source:

Tibballs, G., 1999, Business blunders, ‘A. C. Gilbert: Toy Story’, Robinson Publishing Ltd, pp. 43.

Assessment 3 – Project

Duration:


Procedure

Part A

Using the scenario 1 information supplied, the student will conduct an implementation review. The

student will then consult with a union representative and General Manager to receive input and

develop a revised communication plan. The students will action the revised plan by delivering a 15–

20 minute information session to employees. Finally, the student will consider making final revisions

to the communications plan and overall project plan and seek approval from the General Manager.

1. Review the workplace information for Fast Track Couriers.

2. Following the communications plan provided in Appendix 6, develop a survey to gather feedback from

employees.

3. Meet with a union representative (your trainer) to receive and discuss the results of the survey.

Anticipate possible resistance by this stakeholder and promote your plans to gain acceptance. Ask for

additional input to help you revise your change management communications strategy.

4. Draft revised communications plan and overall project plan (from Assessment 2 Pa rt A) in consideration

of barriers identified through consultation process (with your trainer acting as a union representative)

and those identified in risk analysis provided in Appendix 5. Highlight strategic elements in your plan

which you will deploy to gain trust and acceptance of change. Ensure you consider the needs of all

stakeholders to gain support for planned changes.

5. Meet with General Manager (trainer) to discuss ideas for revised communications plan and overall

project plan based on feedback.

Discuss the needs of all stakeholders.

Discuss creative technique, activity or tactic you will use to gain trust and acceptance in the 15 –20 minute information session you will deliver.

Ensure you anticipate possible resistance by this stakeholder and promote your plans to gain

acceptance.

6. Develop a plan for a 15–20 minute information session for truckers. Include an outline of what activities

you will be doing, how long and how the activity will achieve the goal of employee acceptance of

change process. Ensure you anticipate possible resistance from these stakeholders and plan to

overcome resistance.

7. Deliver session to employees (your trainer/other people enlisted by the trainer to perform in the role of

employees). Ensure you take a consultative approach to the session and invite participation, questions,

input, etc. and ensure you incorporate a creative technique, activity or tactic in the session.

8. Make final revisions to your communications and overall project plans based on feedback and

consultation (save these as separate documents to previous drafts). You may need to consider changes

to communication activities, training activities, and rollout of changes. Consult with GM (trainer) to

ensure changes are approved.



Part B

Based on Scenario 2 part 1 provided, you will develop an implementation plan to embed a new

process. Based on Scenario 2 part 2, you will need to amend your plan to ensure success.

1. Turn to the scenario 2 ‘implement an innovative process’ (Appendix 3).

2. Review ‘Part 1 – Implementation’. Examine all aspects of the new process to be implemented.

3. Develop action plans for 1) transition, and 2) communication. In ea ch action plan, include:

a. activities, objectives, measures (KPIs), timeframes

b. activities to promote the process and sustainability

c. activities to reduce any negative impact on people

4. Develop at least two contingency plans related to possible implementation issues you foresee in

relation to activities in your action plans.

5. Review ‘Part 2 – Follow up’. Examine implementation issues and failures.

6. Amend your action plans and contingency plans to address implementation failures.

7. Develop a schedule for evaluation and continuous improvement. Include regularly scheduled:

a. evaluation activities, regularly repeated over a suitable timeframe

b. evaluation activities to capture learning from all work activities

c. activities to embed learning into work processes

8. Submit documents to your trainer as per the specifications below. Ensure you keep a copy of all work


Your tasks (Specifications)

Part A

You must submit copies of:

one survey

drafts of communications and overall project plans to indicate review of plans (including highlighted strategic element/s)

planning and support documents for your 15–20 minute information session (such as a plan for the session, PowerPoint presentation, handouts, and a creative activity for gaining trust and acceptance of change process)

Your trainer will be looking for:

knowledge of change management process

knowledge of components of change management project plan

knowledge of specific organisational requirements from the scenario

knowledge of potential barriers to change from the scenario

knowledge of a range of techniques for embedding change and gaining trust

leadership skills to gain acceptance of plan and gain trust

innovation skills to develop creative ways of getting people to accept change

planning and organising skills

problem-solving skills to respond to barriers to change

project management skills to implement change management strategy

teamwork skills to consult with relevant groups for input

verbal communication skills to describe and promote change management plan

Part B

You must provide:

action plans for transition, communication

two contingency plans related to transition and communication action plans

amended action plans and contingency plans based on data in part 2 of the scenario 2

evaluation and continuous improvement schedule Your trainer will be looking for:

application of quality management and continuous improvement theories to planning and scheduling activities

application of creativity and innovation theories to scheduling evaluation and continuous improvement

application of organisational learning principles to continuous improvement planning

application of sustainability practices to planning/revising plans

analytical skills to identify improvement opportunities based on data in the scenari o

demonstration of creativity skills to think laterally and identify improvement opportunities to revise activities based on data in the scenario

demonstration of learning skills to develop options for continuous improvement from data in the scenario

Appendix 3

Scenario 1 – Task: Fast Track Couriers Pty Ltd

It is the end of the financial year and one month into the implementation of a change management

strategy. You are hearing that the implementation has not achieved the employee’s trust,

understanding and support that you expected and is essential for success, particularly among truck

drivers.

You are an external change management consultant employed by Fast Track Couriers to revise the

communications strategy. You have been asked by the General Manager to develop and deliver an

innovative and more effective communications plan.

Following the communications plan (provided in Appendix 4), you will need to evaluate the

management of truck drivers through the change management process. Develop a survey to gauge

trucker opinion on the following ten dimensions of employee satisfaction:

Dimension Description Training Adequate for role?

Role Clarity Are roles and responsibilities clear?

Trust Do employees trust the change management (CM) process and

management?

Evaluation Is performance fairly measured?

Leadership Is leadership adequate and does it inspire confidence?

Communication Is communication clear and two-way?

Procedures Are there clear and effective procedures to follow?

Recognition Is performance recognised?

Diversity Are individual differences valued and appreciated by Fast Track

Couriers?

Team work Is team work encouraged and promoted?

Once you have completed the survey, meet with the union representative (trainer) to discuss results

and get additional input.

Draft a revised communications plan to conform to the identified risks in the risk management

analysis.

After you have gathered input, meet with the General Manager (trainer) to discuss your suggested

revision of the communications plan.

You will then need to implement the revised plan. Part of the revised communications plan will

include a 15–20 minute information session that you will deliver to the employees.

Goals

FTC has the following goals for the Change Management strategy:

Goal A: Implement PDA/GPS usage (productivity function) on truck fleet in the first quarter of the 2012 financial year.

Goal B: Implement one person/truck policy using automatic lift gates in the first quarter of the 2012 financial year.

Achievement of these goals should increase net profit in the next financial year by $200,000 due to

increased efficiencies and increased business.

Goal A is essential to the business to ensure (in the following order of importance):

1. Most efficient use of resources to cover market needs. Management will look at more than

the raw hours spent on job and consider all factors such as job difficulty, traffic conditions in

order to optimise fleet usage.

2. Job performance measurement for training needs.

3. Recognition of outstanding performance (bonuses for exceeding targets; advancement/

leadership opportunities).

Goal B is essential to the business to ensure:

Most efficient use of resources to cover market needs.

Reduced need to hire external truckers and use present employees as much as possible.

Reduced possibility of lifting injury.

Scenario 2– Implement an innovative process

Part 1 – Implementation

John Jones, a Production Manager at A. C. Gilbert, has developed an idea for improving efficiencies

in the manufacturing process at A. C. Gilbert. The idea came as a result of the innovative ideas

program, and John has successfully trialled the program on one line in the processing plant.

The program has been evaluated and found to be successful, and you are now in the process of

implementing the program company-wide.

Overview of the program

The goal of the program is to increase productivity, reduce waste, improve sustainability, and reduce

errors on production lines by 20% by allocating specialist team members to individual lines.

A secondary goal is to reduce staff turnover from an average of 32% per annum to 20% per annum,

thus improving the skill levels and efficiencies of the plant and reducing costs in recruiting and

training new staff.

Production staff and process workers will be divided into five different teams. Each team will be

responsible for the manufacturing of five product lines. Team members will only work on their

specialty line, and rosters will be altered to ensure adequate staff on each line during the 12-hour

production cycle. This may involve changes to staff rosters, in some cases by implementing 12-hour

shifts, but will not impact on earnings or result in the loss of any hours of work.

John also suggested involving teams in goal and objective setting for their own product l ines. Each

month they meet to develop production and error rate projections for the next, with a goal to

continuously improving both rates to achieve a maximum of 4% error rate and a 40% increase in

productivity within 24 months. Current error rates are at 22%.

To incorporate this change, production lines will be closed for 48 hours for re -tooling. During this

period, staff will be re-trained in the production of their designated lines by shift supervisors.

Training required will include technical training, motivational training and quality control procedures

along with goal and objective setting workshops.

Costs

It is projected that the costs incurred for the change will be:

Development costs

● Initial trial $150,000

Implementation costs

● Re-tooling the production line

● Training

● Loss of productivity

$1.2 million

$20,000

$50,000

Ongoing costs

● Initial errors and reduced productivity $150,000

Anticipated savings

By implementing the above measures the following savings have been budgeted:

● savings of $300,000 per annum in staff turnover costs

● savings of $1 million per annum in lost productivity and errors

● savings of $200,000 per annum in service and repairs costs to equipment.

Benefits and concerns

During the trial, a number of advantages and concerns were identified. There were initial fears that

staff would become bored and complacent, continually producing the same lines. Analysis during the

pilot found that, after the first week, staff became quite ’proud‘ of their output and felt a degree of

ownership for the lines they were responsible for. Morale improved in a ’team’ environment.

Employees were initially reluctant to participate in setting their own error and productivity targets.

They tended to over-estimate the percentages and did not wish to commit to large improvements.

Managers feel it will take some time and training in understanding the financials and operational

reports for them to set realistic targets.

Many employees lack formal education and some have limited English, which was also an area of

concern when trying to involve them in what they perceived to be ‘management decisions’. This

style of management is a huge change in the workplace. Most employees were used to being

lectured for making mistakes, rather than encouraged to participate in decision-making and feeling

like they have some ownership of the process and outcomes. There is some reluctance and anxiety

involved as a degree of resistance from some long-term employees, who feel they are being asked to

do a management job and should be paid accordingly. Management fear there could be some

industrial relations implications.

Other concerns revolve around productivity levels during the transition. It is understood that it will

take some time for employees to operate at full productivi ty, as they will be working on new

production lines and different products. Concerns that deliveries won’t be met and customers

disadvantaged is a key concern for management.

From a technology standpoint, the new production lines will be faster and more ef ficient. However,

the current service technicians are used to the old lines and lack the experience to service and

maintain the new equipment. It is possible that breakdowns could impact on production targets.

Part 2 – Follow-up

Make the following assumptions:

● The new program has been in place for eight weeks with the following outcomes:

○ productivity has decreased by 8% to 66%

○ delays on the line have increased by 10%

○ waste has increased by 10%

○ error rates have fallen by 2% to 20%

○ 15 out of 300 staff have resigned since the new program was introduced, including two

shift supervisors.

● After 16 weeks:

○ productivity remains at 66%

○ delays on the lines have improved and are now at pre-change levels

○ error rates have remained steady at 20%

○ staff levels have remained steady.

● The following comments were raised at a staff forum held two months after the

implementation.

○ New machines are very different, training was not sufficient.

○ Employees feel that figures don’t mean much to them – they are struggling to

understand what % rates have to do with their day-to-day workload.

○ Employees understand the importance of sustainability, but have no idea how to apply

sustainable practices to workplace or amend own work practices to make them more

sustainable.

○ New rosters have been unpopular with some employees.

○ 12 hour shifts were introduced to keep teams together but they are causing difficulties

for staff with regards to managing their families.

○ Longer shifts are also resulting in people becoming tired and making errors.

○ The OHS representative is concerned that injuries might increase as a result.

Appendix 4– Progress of implementation

The project manager has prepared the following progress report:

Green: Completed

Amber: In progress

Red: Not completed

Reporting element Measures Status

Change goal Goal A: Implement PDA/

GPS usage (productivity

function) on truck fleet in

the first quarter of the 2012

financial year.

RED

Project management Delivery of project activities

as per project plan for each

stream

Overall status:

People GREEN

Process GREEN

Technology GREEN

Structure. GREEN

Stakeholder Management Stakeholders engaged and

comfortable with current

position.

RED

Communication Communication plan

activities on schedule.

GREEN

Education Education plan activities on

schedule.

RED

Cost benefits Project budget on track. RED

Cost benefits on track to be

realised.

RED

Risk Management Risk management plan

effectively managing risk.

RED

Appendix 5– Risk management analysis

Risk/Barriers Impact Likelihood Strategies for mitigating risk

Lack of trust

regarding use of

productivity data.

Refusal to

implement.

High impact Medium Communications and training to

outline business need. ‘Tracking

productivity helps improve the

efficiency of operations, where and

when resources are deployed; it is

not a tool to performance manage or

penalise individuals.’

Address employee concerns.

Perceived threat

to job security

Resistance to

implementation.

High impact High Explain connection between

business expansion plans and:

increased job security:

because of the need for

drivers to support

expansion; because overall

profitability and health of

the business reduces risk to

everyone

benefit of training and

consequent increase in

employability due to new

skills.

Industrial action. High impact Medium Address employee concerns.

Gain trust and acceptance.

Appendix 6 – Communications plan

Audience Message (with strategic elements)

When Communication method

Person responsible

HR manager Change management

strategy – duties of HR

manager.

9 am–10

am, 1 July

2012.

Email (invite

with agenda).

Face-to-face

(office

training

room).

CM

consultant



Person responsible

Trucking/

operational

manager

Change management

strategy – duties of

trucking manager.

11.30 am–

12.30 pm,

1 July

2012.

Email (invite

with agenda).

Face-to-face

(office

training

room).

HR manager

Management

team

Change management

strategy – duties of HR

manager.

2 pm–3

pm, 1 July

2012.

Email (invite

with agenda).

Face-to-face

(office

training

room).

HR manager

Trucking team Change management

strategy impacts to

trucking team.

Duties of truckers –

provide an explanation of

what will be required.

Business need – Gain

support by emphasising

possible negative effects

on jobs if change does

not happen.

Training schedule –

emphasise mandatory

nature and threaten

performance review

consequences for non-

compliance.

9 am–10

am, 4 July

2012.

Email

HR manager

(assistant

may draft)

Sales team Change management

strategy summary.

Benefits to organisation.

11 am–

11.30 am,

4 July

2012.

Face-to-face

(office

training

room).

Sales

manager to

run team

meeting



Person responsible

Office team:

Accountant;

Administrative

support

person

Change management

strategy summary.

Benefits to organisation.

11.30 am–

12 pm, 4

July 2012.

Face-to-face

(office

training

room).

Office

manager to

run team

meeting

Truckers

(All other

employees to

receive brief

summary only)

Request for feedback. three

weeks

post-

training.

Feedback

survey on ten

dimensions of

employee

satisfaction.

New CM

consultant to

design and

implement.

HR Manager

to research

benchmarkin

g.

Appendix 7 – Background information: Fast Track Couriers Pty Ltd

About Fast Track Couriers

Fast Track Couriers is a courier company that has been operating in New South Wales for the last 15

years. Its primary business function is delivering medium to large size packages across metropolitan

Sydney.



To expand business in the metropolitan area so that small to medium package deliveries market share increases by 7.5%.

To expand the business to include small and medium package deliveries to regional NSW.

To develop an integrated approach to distribution management utilising technology such as PDA devices and GPS.

To develop and maintain a cohesive and well-motivated workforce. Strategic goals are supported by the following operational and human resources goals.




Small distribution hubs will be positioned at Maitland, Goulburn, Nowra and Bathurst each manned by two employees within the next eighteen months.

Fast Track Couriers will complete 20% of deliveries to regional locations in the next three years.






People/structure

Fast Track Couriers has implemented and recruited the people required to fill the roles in the

following organisational structure:

Managerial duties/role description

General manager/CFO Oversees company; approves major business decisions

such as strategic goals, change management initiatives;

reports to board of directors; prepares financial reports.

General Manager/CFO

Sales manager

Sales team (3)

Trucking manager

Trucking team (20)

Office manager

Accountant

Administrative support/reception

Human Resources manager

HR manager Oversees and implements change management programs;

collect feedback, assessment results, and all other data

regarding change management; provides report to GM on

implementation of major changes; oversees recruitment.

Sales manager Coordinates sales team; provides sales team training;

manages performance of sales team.

Trucking /operations

manager

Coordinates activities of trucking team; manages

performance of trucking team; compiles productivity

reports; manages operations, authorises purchasing of

operational equipment etc.

Office manager Coordinates activities of accountant and administrative

support. Authorises payroll.






















This will mean that only one driver is needed per truck as no heavy lifting wi ll be required.

It is Fast Track Couriers’ intention to use these surplus drivers to drive the new trucks that will be




seems to make them happy. Management has tried in the past to have drivers participate in





Documents

Assessment 1 – Written Report · Accountant – Reports to CFO and keeps office hours; 9–5, Mon–Fri. Truck drivers (x20) – Report to office. Office team manager – Reports