The Place of High-Tech and Low-Tech Creativity, Innovation and Change at TNT

The Place of High-Tech and Low-Tech Creativity, Innovation and Change at TNT

Overview

TNT is a renowned express delivery global company. TNT manages at least one million packages daily. Various issues that are related to change, innovation, and lean management are discussed in the case study. TNT uses a Six Sigma methodology that is intended to improve efficiency, reduce wastage and ensure customer service is exemplary. The inefficiency is highlighted by TNT’s review of the current parcel delivery process. By the time the study was conducted, at least twenty-five of TNT’s vehicles had gone into Sydney’s city centre. The vehicles carried parcels from three or four depots. The company had considered having employees deliver the parcels in Brisbane and Melbourne on foot. However, this would require a change of payment systems. The drivers were happy to use their cars and received $25,000 annually for this decision (Dawson & Andriopoulos, 2017). After reviewing the activities that the drivers conducted in a day, TNT realized that they spent more time handling and organizing their cars as opposed to making actual parcel deliveries.

This realization created a need to find a way of increasing efficiency by ensuring that sufficient time was spent on the core task and less on other activities. Ideas such as finding storage areas in the central business district were explored. The most reasonable solution involved carparks that were underutilized. Car parks are safe due to surveillance, making them ideal for the storage of packages. The council official hinted to the lean manager about the need to place containers in unutilized spaces in car parks (Dawson & Andriopoulos, 2017). In addition, some of the car park operators were struggling financially. The discussion took time because car park operators, city council officials, and employees had to be involved (Mariana & Nadina, 2015).

The biggest challenge was the introduction of the potential solution to employees, who were likely to put up resistance. The change was expected to rile up resistance due to uncertainty, different work procedures, and changes in routines. To avoid such resistance, the lean manager opted to engage employees in the process of change and ensure they understood its necessity. This approach would also mitigate negative feelings and fallouts, as well as tension and conflicts that are likely to result from the process (Dawson & Andriopoulos, 2017). This aspect of the case highlights innovation, lean management, and change management.

The second aspect of the case highlights the need for innovation. It involves the loss of profits due to the time spent recovering barcode labels. TNT’s dilemma lies between upgrading the current tracking system to radio frequency identification (RFID) and optimizing the current mode of tracking parcels. The upgrade would cost more money and fail to solve the current challenges. Using a simulation, TNT realized that the maximum profits were realized at a throughput of about 5500 parcels at every shift (Dawson & Andriopoulos, 2017). Therefore, the new RFID system would not necessarily change this. The required solution would have to change the reduction of profit during failures that occur when the labels are misplaced.

Questions and answers

How did this creative idea come about, and what can we learn about the process by which a new idea is translated into innovative change?

The new idea came about through discussions with other people within or outside the organization. The initial discussion amongst TNT employees highlighted the direction that the company should take. However, it did not pinpoint the exact solution that was appropriate for the situation. The process created an opportunity to identify a fitting solution once an individual encountered such. This process teaches that solutions to an organization’s issues can be found even within the external environment. All it takes is an individual, such as the council official, who is willing to identify opportunities and match them to problems within their environment in an innovative manner (Collins, 2018).

Try to take the perspective of a TNT driver working in Sydney CBD and write down
What do you see as the main threats and opportunities for the proposed changes? Also, reflect
on whether you would resist these changes, and if you would, outline why and how you would go about them.

Threats

Loss of $25000 annual payment for using my vehicle

Loss of contact with established acquaintances, colleagues, and friends

More physical exertion

Opportunities

Participation in physical activities through walking

Better performance through proper time management

Less vehicle repair expenses

As a driver in the CBD, I would accept the changes because they benefit the organization and myself. While I may lose the annual payment, I would be required to replan my finances, which may be sufficient because the vehicle would require fewer repairs. I would also have a chance to become physically fit and contribute to the organization’s growth.

If you were the manager tasked with implementing these changes, how would you go
about it? (Ensure that you consider the people aspects of managing change.)

I would convene a meeting with all the staff members, highlight the findings of time management and have them provide their opinions on the issue and the best way forward. I would also highlight the solutions that the company is providing and discuss the threats from their perspectives as well as opportunities. The emphasis of this process would be ensuring that they all understand the importance of the change (SHRM, 2021).

Traditionally, decisions on technology adoption would have been made without
considering the impact of technology reliability. How do failure rates affect the cost–
benefit analysis?

The rate of failure is obscured by the cost-benefit analysis. While an organization should concentrate more on reducing the rate of failure in technology processes, they focus more on the investment and returns. This leads to a lack of reliability because the rate of failure does not reduce, and profits continue to dwindle.

Given the effect that scanning failures have on the profitability of the logistics operation, what other information would be needed to make an effective decision?

The organization would need to review the process of installing the stickers with the barcode information and the manner of stacking or arranging parcels. This should identify loopholes that tend to increase the information loss rate and lead to mitigation.

If you were a manager tasked with setting the throughput for the logistics facility and
bearing in mind the observed impact of risk on profitability, at what level would you set
the expected throughput for the operation? Why?

I would set it at 5500 parcels for every shift because the employees barely attain this mark when the rate of failure is high. When there is no rate of failure, the employees can only achieve this as the maximum throughput. Therefore, this should enable maximization of the process.

What does this case tell us about the relationship between creativity, innovation and
change?

Creativity and innovation are inseparable because one leads to the other. However, change is inevitable because innovative ideas must be implemented. This implementation calls for efficient management of change to ensure that all stakeholders are on board.

Critical Aspects and/or Assessments

In this case, the critical aspects include change management, innovation and creativity, efficiency, profitability, and maximization of current systems. These elements are chosen because they affect the organization’s well-being and ability to compete effectively (Goldsworthy & McFarland, 2017). As observed, TNT’s lean manager is focused on reducing inefficiencies that may affect the worker’s productivity. This means that changing current operation procedures is necessary to ensure that any loopholes are eliminated. To achieve this end, creativity and innovation are critical because they enable the company’s managers to find solutions to the current issues.

At the same time, the ability to think critically while trying to innovate allows the company to maximize the current systems of operation instead of blindly making new investments that do not solve the problem at hand. Once solutions have been identified, it is necessary to initiate the change process and manage it in a way that leads to minimal resistance. Employee engagement is a significant aspect of managing this change (Mariana & Nadina, 2015). Finally, all these aspects are tied to the company’s profitability. If the organization achieves efficiency and constantly innovates, it can sufficiently retain its profitability.

Reflection

Global leadership is challenging because of the unique characteristics that are found in every environment. These unique aspects of every location call for unique solutions that match the situation. An organization’s leader in a specific location is responsible for ensuring that the goals are met and values are observed, while strategies may differ from other locations. Keenness and innovation are critical aspects that ensure an organization attains and retains its competitive advantage. This sustains its profitability. Gaining efficiency is a significant aspect of profitability. Retaining this efficiency demands constant innovation (Dawson & Andriopoulos, 2017).

References

Collins, B. (2018). 3 Strategies For Developing Innovative Thinking. Forbes.

Dawson, P., & Andriopoulos, C. (2017). Managing Change, Creativity & Innovation. Sage.

Goldsworthy, S., & McFarland, W. (2017). Organisational Change as Competitive Advantage. Today’s Manager(3).

Mariana, P., & Nadina, R. R. (2015). Employee Involvement In A Change Process – A Case Study For Romanian Organizations. Annals of Faculty of Economics, 1(1), 1158-1164.

SHRM. (2021). Managing Organizational Change. Retrieved from https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/managingorganizationalchange.aspx

W1 Assignment: Complete Case 1.1 The Place of High-Tech and Low-Tech Creativity, Innovation and Change at TNT (Managing Change, Creativity & Innovation, Pages 11-17) address the following directives:

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1. Carefully READ the entire CASE first, and review the chapter(s) about the case(s) again. Take time to think critically about all of the aspects of the case(s).
2. Write a brief Overview/Summary of the case in your own words describing the nature and/or background information about the case. (Minimum 1/2 -1 page)

3. In your opinion, what were some critical aspects of the case that were identified? What were some critical aspects that you perceived to be very vital? (Minimum 1 page)
4. How were you able to make those Assessments of selecting the critical aspects or components for the case author/writer and for yourself? (Minimum 1 page)
5. Identify and/or list some of the Outcomes, Solutions and/or Resolutions you extrapolated from the case. (Minimum 1 page)
6. Write a Reflection on what you learned from the case pertaining to global leadership. (Minimum 1 page)
7. Make sure your paper format is outlined with the: (1) Cover Page Sectional Headings; (2) Overview/Summary; (3) Questions and Answers; (4) Critical Aspects and/or Assessments; and (5) Reflection page.