BSBMGT608 7: Revised Performance Improvement Strategy (Version 2)

BSBMGT608 7
Revised Performance Improvement Strategy (Version 2)
A.C Gilbert is a Company established in 1909 which for the past decades was
achieving an approximate Return on investment of $17 million.
When A.C. Junior took over in 1961, the company started facing great financial and
management challenges that he could not keep up with.
In 1960’s, A.C. Gilbert had dramatically decreased its sales and product
development. This was mainly due to poor staff performance which this strategy
intends to address.

Throw away your perceptions of a company in distress
It’s next to impossible to come up with one working definition of a company in
distress—and dangerous to think that you have one for your own company.
Force yourself to criticize your own plan

The biggest thing you can do to avoid distress is periodically review your business
plans. When you’re creating them, whether at the beginning of the year or the start of
a three-year cycle, build in some trigger points. A simple explicit reminder can be
enough
Focus on cash
A successful turnaround really comes down to one thing, which is a focus on cash
and cash returns.

We will be looking at various ways we can improve the performance at A.C. Gilbert.
One of the ways we will be doing this is through SMARTER goal.
Goal is to ensure we try to avoid A.C. Gilbert going bankrupt and so many people
losing their job.
S: Smart – increase sales by 10% within 12 months ($170, 000)
M: Measurable – supervise sales quarterly
A: Achievable – access to sales team to increase sales by 10%
R: Realistic – currently the company isn’t performing very good
T: Timely – 12 months’ timeframe
E: Conduct performance appraisals every 4 months
R: If the goals are achieved the Company will stay afloat and keep its employees

Specific techniques we will be using to achieve our goals are:
 Identify gaps: sales and marketing (diversify, new promotions); inefficiency
(supply chain was ineffective; resource wastage; poor quality of products;
poor management strategies). Reviewing programs, systems; policies and
procedures.
 Create and develop a performance improvement strategy for all personnel
 Implement the strategy: Consider offering employees an easier transition to
another company
 Consider upskilling/ reskilling personnel
 Monitor the implementation of the strategy
 Gather feedback

Change 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 and 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 they put pressure on their parents to buy, which their
parents 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 turn over 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, hyper colour clothing and visual stimulation provided by the swinging
sixties.

Types of meetings that could be used to improve and implement performance
strategies at A.C. Gilbert are below.
Meetings are a necessary evil for getting things done in your business. These are
some effectiveness of meeting which A.C.Gilbert can use for their company.

1 Invite the right people to the meeting.
2 Send out your meeting agenda ahead of time
3 Establish the meeting's goals. Some meetings are simply for informing employees
about new policies. Others are for generating ideas or making decisions. If the
employee goes into the meeting thinking that the group will make a decision, he
may
be disappointed that you've only generated ideas, not understanding that this was
the point of the meeting.
4 Stay on task. Occasionally, the direction of the meeting will veer off course, with an
employee asking an unrelated question. When this happens, draw the attendees
back to your original agenda.
5 Encourage a culture of listening.
Benchmarking
Benchmarking is a process of measuring the performance of a company's products,
services, or processes against those of another business considered to be the best
in the industry, aka “best in class.” The point of benchmarking is to identify internal
opportunities for improvement.

The reason we need to do benchmarking at A.C. Gilbert are:
he case for benchmarking suggests that a particular process in your firm can be
strengthened. Some organizations benchmark as a means of both improving
discrete areas of their business and monitoring competitor's shifting strategies and
approaches. Regardless of the motivation, cultivating an external view of your
industry and competitors is a valuable part of managing in this world of change.
There are a number of core drivers of benchmarking initiatives in a firm.
 The most common driver for benchmarking comes from the internal
perspective that a process or approach can be improved. Organizations will
collect data on their own performance at different points in time and under
different circumstances and identify gaps or areas for strengthening.
 Many organizations compare themselves to competitors in an attempt to
identify and eliminate gaps in service or product delivery or to gain a
competitive edge. The data gathered in a competitive benchmarking initiative
offers specific insights into a the competitor's processes and thinking.
 Strategic benchmarking, is used to describe when a firm is interested in
comparing its performance versus the best-in-class or what as deemed as
world-class performance. This process often involves looking beyond the
firm's core industry to firms that are known for their success with a particular
function or process.
Business limit execution estimation – to measure and consider the execution of

the going with business limits:
 Design (or imaginative work)
 Production
 Sales and advancing
 Human resource (personnel) organisation
 Supply

Key Performance Indicators
A Key Performance Indicator (KPI) is a measurable value that demonstrates how
effectively a company is achieving key business objectives. Organizations use
KPIs to evaluate their success at reaching targets.

Every area of business has specific metrics that should be monitored – marketing
metrics can include tracking campaign and program statistics, while sales metrics
may look at the number of new opportunities and leads in your database, and
executive metrics will focus more on big picture financial metric
The most common Key Result Areas (KRAs) identified for business are finance,
operations, sales, staff management and quality.

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BSBMGT608 7

Revised Performance Improvement Strategy (Version 2)

Force yourself to criticize your own plan

Business limit execution estimation – to measure and consider the execution of

operations, sales, staff management and quality.

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