Facilitate Continuous Improvement
- Problem definition statements template:-
Issues that have faced by the retail industry are the productivity issue with the inefficient customers’ services (Colledani, et al., 2010). The cause of issue is the lack of adoptions of continuous improvements in the project. It results in decline in productivity and customers services.
| What is the impact of the problem? | |
| Direct | The issues in project can directly influence performances of the employees, staff and workers. |
| Indirect | It indirectly influences the profitability and goodwill of the company. |
| Who is being impacted and to what extent? | |
| Directly | In case of retail companies, it effects directly the shareholders as they not able to generate high profit margin.
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| Indirectly | In this, indirectly employee’s performances and customers’ loyalty get influences with arising issues and it can maximise the chances of employee’s turnover and customer switching towards the other brand. |
| What behaviour needs to change?
The retail organisation should need to follow the continuous improvement strategy in their operations by increase the quality and innovation in their offering. This provide benefits to both employees and customers as employees can be work dedicatedly and able to rise the productivity and on other side customer can also get satisfy with the services.
So in order to bring the continuous improvement on the retail companies, top management should need to change the behaviour of employee so that they can ready to accept the changes in the management and can work accordingly. |
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| Who has that behaviour?
In case of accepting the changes, employees generally does not give positive behaviour towards the change and in that case management should need to impart training so that employees does not feel hesitate to bring the change. |
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| Summary Statement:
From the above discussion, it can be summarised that continuous improvement is the essential part of the retail companies as due to the technologies changes, customer demands innovation in the companies offering (Backlund, et al., 2015). So in that case, company need to focus on the training program with the aim to change the employee’s behaviour towards the acceptances of the change. Thus, this influences the company in a positive manner. |
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2) Identify Qualitative Issue
It is identify that manager, supervisors and frontline staff in the work area found that there is issue related to credibility of bringing the advanced technology, changing economic reforms etc. these qualitative issue influences the employee’s performances and create the conflicts among the different levels.
Besides that, retail companies to find the problems in the organisation, it requires to conduct the meeting on the monthly basis for identify the problems of the employees and in their performances (Milanović, et al., 2015).
So with the colleting of such information, company can redevelop strategic goals according to their arising issue.
Decision Matrix
| Potential projects | Continuous Improvement Projects Decision Matrix | Summary | |||||
| Ease of implementation |
Potential impact | Cost | Urgency | Most requested by int. or ext. customers | Obstacles | ||
| 4 | 3 | 3 | 5 | 1 | 3 | ||
| Quality management project | 2 | 3 | 3 | 4 | 1 | 2 | For the implementation for the quality management, company require to invest huge cost in order to influences the positively to the customers as well as the employees. |
| Improvement in Customer services | 3 | 3 | 3 | 2 | 1 | 3 | In order to make improvement in customer services, it requires bringing continuous improvements so that offering can be improved and efficient customer services makes the consumer satisfied. |
| Better resources implement | 2 | 3 | 1 | 5 | 1 | 2 | In order to utilise the resources in an effective manner, it is require that company should include eco-friendly activities and green practices in their production process so that customer can be attracted. |
| Innovation in products | 3 | 3 | 3 | 4 | 1 | 3 | Implementation of innovation is tedious task as it involves large number of human resources and capital of the company. |
| Product availability | 4 | 2 | 2 | 3 | 1 | 2 | Company should need to improve their distribution network in order to offer the product/ services at the right time. Especially for the retail companies, the product availability is the crucial part to achieve the targets on time. |
3) Operation plan: operational plan for the successfully implementation of the strategy
| Strategic Goals | Operational goals | ||||||||
| Goal | Focus | KPI | Reason/ barriers |
Department | Deliverable | Goal | KPI | Due | |
| Long term goals
Short term goals |
Achieving the quality in their offering | Increase of sales |
To increase the productivity
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| Marketing & sales department | Quality products | To maximise the efficiency and productivity level by using the standards tools and techniques. | Measure the level of satisfaction | ||||||
| Improvement in Customer services | Customers satisfaction |
To make the customer satisfy
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| Production and distribution network | After sales services | To maximise the sales of the retail company | Measure the sales and revenue of the company | ||||||
4) Project outline
| Description of problem | The problem that retail companies are facing is decreasing productivity of the company due to inefficient customer’s services. The situation is occurring due to the growing competition in the market that reduces the profit margin of the companies. |
| Key people |
Project leader: project manager
Project members: team members
Project sponsor: event manager, other retail companies like Tesco, HUL, ITC etc.
Other stakeholders: investors, employees, competitors and customers, suppliers etc.
|
| Recommendation/ method |
For the increasing profit margin of the company in the retail sector, it is recommended that company should focus on the differentiation and cost leadership strategy for attracting and retaining the customers |
| Key results area | Marketing and operational department is responsible for the implementation of the outputs within the business unit. |
| Goal | We will reduce/increase
__Increase the performances of the employees through conducting the training and optimum utilisation of resources by reducing the maximum wastage for enhancing the quality. (KPI)
by __approx. ___________approx. $ 5000_______________ (amount)
by _________8-06-2017___________________ (date) |
| Costs | Heavy cost incurred for making improvement in the customers services.
Quality management: $ 2000 Distribution system: $ 3000 Production units: $ 5000 |
| Benefits | Retail company can take competitive advantage against its competitors. |
| Sustainability | Practices of green production and offering of eco-friendly products |
| Approved by | Top management |
| Outcome | Outcomes of the goals:-
· Retail Company can able to improve the product quality. · It also make the customer satisfy · It also able to bring the innovation in their products · It can also make improvement in the employee’s performances. |
5) Organise Team:-
Team members: sales manager, accountant manager, operational manager, functional manager (Rogers, et al., 2010).
Stakeholders: suppliers, employees, shareholders, customers, competitors, investors
Sponsor: event manager, other retail companies like Tesco, HUL, ITC etc.
6) Monitoring plan
| Workplace monitored: | ||||
| Goal/objective: To evaluate that whether actual performances has been achieve with the standards performance. | ||||
| Process/outcome to be monitored | Measure used | Process | Communication process | Resources required |
| Employees performances | Methods:
360 performances appraisals Rating methods Graphic scale rating method Forced distribution method Checklist method
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Feedback | Establish performances standards.
Communicate performances expectations to employees Measure actual performances with standards Discuss appraisal with the employees |
IT process are required to communicate the feedback |
| Quality of the product/ services | TOM method is used to evaluate the equality of the product | Sales interview
Logistics accounts management |
Interview process | Human resources require such as interview team |
| Productivity of the employees | By estimating the output of the company | Estimate the inputs with the output | Calculation of revenue generations and profit margins | Operational human resources |
| Customer satisfaction | Survey customers needs
Understand expectations Access the competition Loyalty measurements |
Questionnaires IT systems | Survey method | Research and survey |
7) Meeting Minutes
| Item/issue | Action to be taken | When | Who |
| Inefficiency in customer services
Shortfall in product quality
Less productivity
Inefficient employees performances
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Feedback and survey the changing customer needs and preferences.
Use continuous improvements process for increasing quality of the offerings.
Bringing innovation in product line offering or making investment in other product portfolio.
Conduct training and development program
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During the customer services
At the time of the production of product
At the time when the existing product reach on the maturity stage
At the time of inefficient services
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Sales agent and retailers
Operational departments
Top management
Trainers
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8) Collection of data
In order to collect the data about the changing taste and preferences of the customers, retail companies can use the survey method for identifying their needs and wants. Besides that for making improvements in the employees’ performances, company can conduct the employee’s surveys through organising the meetings (Islam & Deegan, 2010). Thus, these are the best sources to collect the data about the employees’ performances and customer needs and wants.
9) Analyze the data
For the analysing of the collected data, it requires to follow the following procedures and these are as follows:-
- Data collection
- Data processing
- Data cleaning
- Exploratory data analysis that includes Descriptive statisticssuch as the average or median may be generated to help understand the data (Zu, et al., 2010). Data visualization may also be used to examine the data in graphical format, to obtain additional insight regarding the messages within the data.
10) Strategy documents
Goals: The goal is to increase the productivity by improving the customer services
Future Stakeholders: investors, suppliers, distributors, wholesalers/ retailers and customers
Costs: High investment is incurred
Sponsors: Events organisers
11) Obtain approval
In order to formulate or implement the action plan, firstly there is need to verify the strategy from the top management as without their permission the plan does not able to execute (Corredor & Goñi, 2011). So, that approval of the top management is the important task for the retail organisation in order to bring the continuous improvements in their process or offerings.
12) Action Plan
| Project: To make improve customer services in the retail industry | ||||
| Goal/objective: To achieve high customer satisfaction through proving quality services | ||||
| What? | How? | Who? | When? | Status |
| Employee performances | Conduct training and development program | Human resources departments | At the time of serving the customers | |
| Increase demands of the product | Develop effective promotional campaigns | Marketing and advertising departments | At the time of sale of product | |
| Improve quality of the product | Use the proper production and distribution channel | Operations and manufacturing departments | At the time of production of products/ services | |
| Bring innovation in the product line | Make an investment in different product line | Top management | At the time of delivery of products/ services | |
13) Recommendations
- Retail company should include the eco-friendly product in their product line for attracting the maximum customers
- Retail Company should include the online platform for promoting or create awareness about their product.
- Company should need to follow the differentiation and cost focus strategy for targeting the customers and making the customer more loyal towards the brand.
References
Backlund, F., Chronéer, D., & Sundqvist, E. (2015). Maturity assessment: towards continuous improvements for project-based organisations?. International Journal of Managing Projects in Business, 8(2), 256-278.
Chesbrough, H. (2010). Business model innovation: opportunities and barriers. Long range planning, 43(2), 354-363.
Colledani, M., Ekvall, M., Lundholm, T., Moriggi, P., Polato, A., & Tolio, T. (2010). Analytical methods to support continuous improvements at Scania. International Journal of Production Research, 48(7), 1913-1945.
Corredor, P., & Goñi, S. (2011). TQM and performance: Is the relationship so obvious?. Journal of Business Research, 64(8), 830-838.
Edquist, C. (2010). Systems of innovation perspectives and challenges. African Journal of Science, Technology, Innovation and Development, 2(3), 14-45.
Harish, V. S. K. V., & Kumar, A. (2014). Demand side management in India: action plan, policies and regulations. Renewable and Sustainable Energy Reviews, 33, 613-624.
Islam, M. A., & Deegan, C. (2010). Media pressures and corporate disclosure of social responsibility performance information: a study of two global clothing and sports retail companies. Accounting and Business Research, 40(2), 131-148.
Milanović, Z., Sporiš, G., & Weston, M. (2015). Effectiveness of high-intensity interval training (HIT) and continuous endurance training for VO2max improvements: a systematic review and meta-analysis of controlled trials. Sports medicine, 45(10), 1469-1481.
Rogers, J. G., Aaronson, K. D., Boyle, A. J., Russell, S. D., Milano, C. A., Pagani, F. D., … & Farrar, D. J. (2010). Continuous flow left ventricular assist device improves functional capacity and quality of life of advanced heart failure patients. Journal of the American College of Cardiology, 55(17), 1826-1834.
Teece, D. J. (2010). Business models, business strategy and innovation. Long range planning, 43(2), 172-194.
Zu, X., Robbins, T. L., & Fredendall, L. D. (2010). Mapping the critical links between organizational culture and TQM/Six Sigma practices. International journal of production economics, 123(1), 86-106.
