Pearson SRF BTEC Level 6 Professional Diploma in Business Innovation Management (18772)

Transcription

1 Pearson SRF BTEC Level 6 Professional Diploma in Business Innovation Management (18772) A Pearson Self-regulated Framework qualification Specification First teaching January 2015 Issue 2

2 Edexcel, BTEC and LCCI qualifications Edexcel, BTEC and LCCI qualifications are awarded by Pearson, the UK s largest awarding body offering academic and vocational qualifications that are globally recognised and benchmarked. For further information, please visit our qualification websites at or Alternatively, you can get in touch with us using the details on our contact us page at www. edexcel.com/contactus About Pearson Pearson is the world s leading learning company, with 40,000 employees in more than 70 countries working to help people of all ages to make measurable progress in their lives through learning. We put the learner at the centre of everything we do, because wherever learning flourishes, so do people. Find out more about how we can help you and your learners at: Pearson s Self-regulated Framework qualifications This qualification has been approved by Pearson as meeting the criteria for Pearson s Self-regulated Framework. Pearson s Self-regulated Framework is designed for qualifications that have been customised to meet the needs of a particular range of learners and stakeholders. These qualifications are not accredited or regulated by any UK regulatory body. For further information please see Pearson s Self-regulated Framework policy on our website. This specification is Issue 2. Key changes have been side-lined. We will inform centres of any changes to this issue. References to third-party material made in this specification are made in good faith. We do not endorse, approve or accept responsibility for the content of materials, which may be subject to change, or any opinions expressed therein. (Material may include textbooks, journals, magazines and other publications and websites.) ISBN: All the material in this publication is copyright Pearson Education Limited 2014

3 Contents 1 Purpose of this specification 1 2 Qualification summary 2 Key information 2 Aim of the qualification 2 3 Centre resource requirements 3 4 Qualification structure 4 5 Assessment 5 6 Centre and qualification approval 5 Approvals agreement 5 7 Quality assurance 5 8 Programme delivery 6 9 Access and recruitment 7 10 Unit format 8 Units 11 Unit 1: Financial Principles and Techniques for Non-specialists 13 Unit 2: Strategic Management 21 Unit 3: Innovation and Creativity in Business 29 Unit 4: Supply Chain Management 39 Unit 5: Management and Leadership 47 Unit 6: Entrepreneurship in Business 55 Unit 7: Change Management 63 Unit 8: Contemporary Issues in Business 73 Unit 9: Applying Lean Principles to Business Operations 81 Unit 10: Project Management for Engineering 89

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5 1 Purpose of this specification All customised qualifications on Pearson s Self-regulated Framework have a specification developed by Pearson. The purpose of this specification is to set out: the aim/objective of the qualification the structure and rule of combination of the qualification the resources required by the centre to offer the qualification the knowledge, skills and understanding which will be assessed as part of the qualification the method of assessment and any associated requirements relating to it the criteria against which learners level of attainment will be measured (for example assessment criteria). This specification must be used for delivery and teaching. It will be used by Pearson to externally verify and certificate the approved qualification. If you need any guidance or support related to customised qualifications you should contact your Pearson representative, who will be happy to provide advice. Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 1

6 2 Qualification summary Key information Pearson SRF BTEC Level 6 Professional Diploma in Business Innovation Management Minimum total Notional Learning Hours (NLH) Minimum qualification value (NLH/10) European Credit Transfer and Accumulation System (ECTS) Assessment Unit grading information Overall qualification grading information ECTS credits* This qualification is assessed via centre-devised assessment (internal assessment) Pass Pass * The ECTS credit value is calculated on the basis that one credit represents 20 NLH. The recognition of ECTS credit is at the discretion of Higher Education institutions, and will depend on the relevance of the prior learning and associated learning outcomes. Aim of the qualification The Pearson SRF BTEC Level 6 Professional Diploma in Business Innovation Management is for learners who work in, or want to work in, business management. It gives learners the opportunity to initiate and carry out projects, make business decisions in complex and unpredictable contexts and identify viable solutions to problems. Learners will apply their knowledge and practical skills in the workplace. Full-time learners have the opportunity to do this through formal work placements and parttime learners through their employment experience. Learners will be workplace ready and have academic progression opportunities (to Level 7 qualifications) for lifelong learning. This qualification enables learners to become effective and competent business unit managers across the entire value chain. Learners will gain the knowledge and skills which can be applied across a variety of sectors and to organisations of all sizes. This qualification will provide equal benefit for self-employed learners or start-up owners. 2 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

7 3 Centre resource requirements As part of the approval process, the centre must make sure that the resource requirements below are in place before offering the qualification. The centre must have appropriate physical resources (for example equipment, IT, learning materials, teaching rooms) to support the delivery and assessment. Staff involved in the assessment process must have relevant expertise and occupational experience. There must be systems in place to make sure that there is continuing professional development for staff delivering the qualification. The centre must have appropriate policies in place relating to the delivery of the qualification. The centre must deliver the qualification in accordance with current equality legislation. Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 3

8 4 Qualification structure Pearson SRF BTEC Level 6 Professional Diploma in Business Innovation Management The Pearson SRF BTEC Level 6 Professional Diploma in Business Innovation Management qualification is a minimum of 1200 Notional Learning Hours (NLH). Learners must achieve all eight mandatory units to the value of 120 to achieve the qualification. Mandatory units (all units must be taken) Unit Unit title Level Notional Learning Hours Value (NLH/10) 1 Financial Principles and Techniques for Nonspecialists Strategic Management Innovation and Creativity in Business Supply Chain Management Management and Leadership Entrepreneurship in Business Change Management Contemporary Issues in Business Learners may choose to study additional units if they want to specialise in lean business operations and/or project management in the engineering sector, to meet their employer's needs and/or progress to further study. Additional units must not replace any of the mandatory units. Additional units Unit Unit title Level Notional Learning Hours Value (NLH/10) 9 Applying Lean Principles to Business Operations Project Management for Engineering Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

9 5 Assessment All units in this qualification are internally assessed. Assessment is a process of measuring learners work reliably against criteria, to produce results that are a valid interpretation of knowledge or performance. To avoid over-assessment the centre is encouraged to link delivery and assessment across units, where appropriate. Each unit has specified outcomes of learning and assessment criteria. To pass a unit, learners must meet all the outcomes of learning. The centre will need to devise a range of assessment methods to allow learners the opportunity to meet the outcomes of learning and assessment criteria. 6 Centre and qualification approval The centre must be approved before delivering and assessing customised qualifications on Pearson s Self-regulated Framework. Centres that have not previously been approved will need to apply for, and be granted, centre recognition as part of the process for approval to offer this qualification. Before you offer this qualification you must meet both centre and qualification approval requirements. Please refer to the centre approval guidance on our website at: Approvals agreement All centres are required to enter into an approval agreement that is a formal commitment by the head or principal of a centre to meet all requirements. If the centre does not comply with the agreement this could result in the suspension of certification or withdrawal of approval. 7 Quality assurance Quality assurance is at the heart of customised qualifications on Pearson s Selfregulated Framework. The centre internally assesses this customised qualification and is responsible for making sure that all assessors and Internal Verifiers adhere to their internal verification processes, to ensure consistency and validity of the assessment process. Pearson uses quality assurance to check that all centres are working to the agreed standard. It gives us the opportunity to identify and provide support, if needed, to safeguard certification. For guidance, please refer to the Pearson s Self-regulated Framework (SRF) Quality Assurance Handbook on our website at: Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 5

10 8 Programme delivery The centre is free to offer this qualification using any mode of delivery (for example full-time, part-time, evening only, distance learning) that meets their learners needs. Please refer to the policy pages on our website at: Whichever mode of delivery is used, the centre must make sure that learners have access to the required resources, outlined in the specification, and to the subject specialists delivering the units. Centres must give due regard to Pearson s policies that may apply to different modes of delivery. For this qualification, delivery methods include: face-to-face tutor-led classes for full-time learners work-based learning for part-time learners. 6 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

11 9 Access and recruitment Pearson is committed to providing qualifications with no artificial barriers. A full statement, included in our Equality Policy, can be found on our website at: Equality and fairness are central to our work. We are committed to making sure that qualifications do not discriminate and all learners achieve the recognition they deserve from undertaking a qualification and that this achievement can be compared fairly to the achievement of their peers. Restrictions on learner entry Centres should review potential learners' prior qualifications and/or experience, considering whether this profile shows that they have the potential to achieve the qualification. This qualification is suitable for learners aged 18 and above. Centres must give due regard to Pearson s policies that apply to the fair and equal recruitment of learners to all Pearson qualifications. Full-time learners Qualification requirement (one of the following): Pearson BTEC Level 5 HND Diploma in Business, or in another sector e.g. Design/Engineering if the learner is actively self-employed or a start-up owner OR European equivalent at EQF Level 5 (120 ECTS) OR International equivalent at UK Level 5 (240 UK credits). Note: Work experience is desirable for full-time learners entering this programme. Part-time learners Qualification or experience requirement (one of the following): Pearson BTEC Level 5 HND Diploma in Business, or in another sector e.g. Design/Engineering if the learner is actively self-employed or a start-up owner OR European equivalent at EQF Level 5 (120 ECTS) OR International equivalent at UK Level 5 (240 UK credits) OR 1 to 3 years management experience. Note: For part-time learners the minimum age requirement is 18, however in most cases learners will be 25+. Part-time learners should have confirmation that their current or prospective employer will support the work-based learning mode. Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 7

12 10 Understanding the units All units in this qualification have the following sections. Title The title is a short description of the content of the unit. Level The level of the unit indicates the complexity and demand expected to achieve it. The level places the unit on a framework of comparability with other units and qualifications at that level. Notional Learning Hours (NLH) Notional Learning Hours (NLH) are the total amount of time a learner is expected to take, on average, to complete the unit to the required standard, including teaching, study and assessment time. Unit value The unit value is calculated by dividing the Notional Learning Hours (NLH) by 10. SRF unit code The unique approval code for the unit. Unit aim Says what the aims of the unit are in terms of what is covered and what the unit will enable learners to do. Unit introduction The introduction gives a short description of the unit, and details the key knowledge, skills and understanding the learner will gain through studying the unit. The introduction highlights the focus of the unit and how it links to the vocational sector to which the qualification relates. Outcomes of learning Outcomes of learning state what a learner can be expected to know, understand or be able to do as a result of completing a programme of learning for the unit. Assessment criteria Assessment criteria specify the standard required by the learner to achieve each outcome of learning. 8 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

13 Unit content In the unit content section topics are listed as bullets to provide detail on what is required to design and deliver a programme of learning. Not all topics have to be covered to be able to meet the assessment criteria. Centres are able to select the topics they deliver, ensuring that learners produce evidence of sufficient depth and breadth to meet the assessment criteria. Information for delivery staff This section gives delivery staff information on delivery and assessment. It contains the following subsections. Delivery guidance offers guidance on possible approaches to delivery of the unit. Assessment guidance gives information about the evidence that learners must produce, together with any additional guidance if appropriate. This section should be read in conjunction with the assessment criteria. Suggested resources indicates resource materials that can be used to support the teaching of the unit, for example books and journals. Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 9

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15 Units Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 11

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17 Unit 1: Financial Principles and Techniques for Non-specialists Level: 6 Notional Learning Hours: 150 Value (NLH/10): 15 SRF unit code: 20440E This unit is internally assessed Unit aim This unit aims to give the learner understanding of some financial accounting and reporting principles, together with the skills to apply financial and management accounting principles in business. Unit introduction This unit provides an introduction to the context of both financial and management accounting and financial reporting. It looks at how the financial statements of a range of business entities differ, as well as the common elements between them. Learners will be able to explain the constituent elements and purpose and uses of the three main financial statements. Learners will also gain practical experience of preparing both the statement of financial position and income statement for limited companies, and the balance sheet and profit and loss account for sole traders. Learners will gain practical experience of analysing the performance of a business through the use of financial ratios and become familiar with the components of published financial statements. The unit covers the role of external auditors and the debate surrounding the development of international accounting standards. The unit then deals with cost accounting for businesses. Learners will gain experience of determining the unit costs of production. Finally, the unit looks at budgetary control procedures and performance evaluation. Learners will gain practical experience of producing budgets, flexing budgets based on actual output, and calculating variances between budgeted and actual results. Learners will be able to identify possible causes of variances and suggest corrective actions to be taken by management. Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 13

18 Outcomes of learning and assessment criteria To pass this unit, the learner needs to demonstrate that they can meet all the outcomes of learning. The assessment criteria determine the standard required to achieve the unit. Outcomes of learning 1 Understand the principles of financial accounting and financial reporting Assessment criteria 1.1 Explain the role of UK and international accounting standards in financial accounting 1.2 Critically evaluate the impact on businesses of one set of accounting standards being used on a worldwide basis 1.3 Analyse the differences in the accounts of a range of different types of business 1.4 Describe the constituent elements of the statement of financial position and income statement for companies 1.5 Analyse the constituent elements of the balance sheet and profit and loss accounts for sole traders 1.6 Evaluate the importance and structure of a cash-flow statement for companies 2 Be able to apply the principles of financial accounting and financial reporting 2.1 Prepare financial statements for given businesses, making adjustments and from incomplete records 2.2 Evaluate the importance of consolidated financial statements for groups of companies 2.3 Evaluate the significance and importance of the constituent parts of a given annual report 2.4 Analyse the results and position of a given company using financial ratios 2.5 Analyse the importance of the relationship between a company s external auditor and its directors 3 Be able to apply principles of management accounting to a given business 3.1 Calculate the unit costs of a given business using appropriate techniques 3.2 Suggest improvements to reduce costs and enhance value in a given business 3.3 Select appropriate budgeting methods for a given business and its needs 3.4 Prepare a cash budget from given information for a given business 3.5 Calculate variances from flexed budget, identify possible causes and recommend corrective action 3.6 Prepare an operating statement reconciling budgeted and actual results 3.7 Report findings to management in accordance with identified responsibility centres 14 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

19 Unit content 1 Understand the principles of financial accounting and financial reporting Role of accounting standards: UK and international, comparability, harmonisation process Entity financial statements: sole trader, partnership, limited company, charity Constituent elements of financial statements: financial position and financial performance, assets, liabilities, equity, revenue, expenses, cash flows, accrual accounting Cash flow statement: cash flows from operating activities, financing activities and investing activities 2 Be able to apply the principles of financial accounting and financial reporting Preparation of financial statements: recording of financial transactions preparation of statement of financial position, balance sheet, income statement, profit and loss account Consolidated financial statements: rationale for consolidation Annual reports: financial statements, notes to accounts, auditors report, chairman s statement Financial ratio analysis: profitability, management performance, liquidity, gearing, efficiency, investor ratios comparisons with competitors and previous accounting periods Role of external auditors: appointment, role, independence, agency theory Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 15

20 3 Be able to apply principles of management accounting to a given business Unit cost measurement: cost types (materials, labour, overheads, direct and indirect, fixed, variable and semi-variable) measurement appropriate techniques improvements cost reduction value enhancement The budgeting process: purpose benefits links with organisational objectives/strategy the budget manual budgets as planning, coordinating, motivation and control devices behavioural aspects Budget preparation: limiting or key factors master, subsidiary and functional budgets cash budgets the preparation of sales budget, debtors budgets, creditors budgets, production costs, raw materials and finished goods budgets Budgeting methods: incremental zero-based fixed and flexible Variances: types analysis calculation flexed budget possible causes corrective action 16 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

21 Reporting: operating statement reconciliation of budgeted and actual results Responsibility centres: relevance to budgeting identification of responsibility for variances Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 17

22 Information for tutors Delivery guidance This unit provides an essential background to external financial accounting and reporting and internal management accounting for both companies and sole traders. It will enable learners to understand the wider accountancy framework within which businesses operates. Delivery of the unit can be undertaken in a variety of ways, ranging from an integrated approach to discrete topic delivery. The unit could be delivered in the outcome of learning order, or alternatively outcomes of learning 1 and 2 could be taught alongside each other as part of a larger assignment. Alternatively, outcome of learning 3 could be delivered first if accompanied by a suitable introduction. If the unit order is followed for delivery purposes, then there could either be separate assignments for each outcome of learning, or preferably a case study could be constructed which links all or some of the outcomes of learning together. An integrated approach could be based upon a hypothetical business, for which learners are required to prepare both internal and external reports of a company. External financial reports could be prepared from either incomplete records or from detailed accounting transactions. Learners could then be asked to provide advice for a company if it were to become part of a larger group as well as to use ratio analysis to interpret the financial performance over a number of years. Internal management reports could be prepared starting with the subsidiary budgets culminating in the master budget. Variance analysis could then be performed to compare actual results with the original and flexed budgets. There are many websites that can provide basic information for learner research. Learners could be encouraged to undertake research regarding the layout of the financial statements of a range of business entities which are freely available. Representatives from local accountancy and audit firms may also be able to provide some input. Assessment guidance It is important that assessment shows the learner s understanding of the different accountancy roles both within and external to a business. Ideally this should be achieved through application in case studies and business scenarios investigating real or simulated businesses. 18 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

23 Suggested resources Books Atrill P and McLaney E Accounting and Finance for Non-specialists with MyAccountingLab, 7th Edition (Financial Times/Prentice Hall, 2010) ISBN Dyson J R Accounting for non-accounting Students, 8th Edition (Financial Times/Prentice Hall, 2010) ISBN Gowthorpe C Business Accounting and Finance for Non-specialists, 2nd Edition (Cengage Learning EMEA, 2005) ISBN Walsh C Key Management Ratios, 4th Edition (Financial Times/Prentice Hall, 2008) ISBN Weetman P Financial and Management Accounting: An Introduction, 5th Edition (Financial Times/Prentice Hall, 2010) ISBN Journals Accountancy (CCH) Accountancy Age (Incisive Financial Planning Limited) Accounting Technician (Association of Accounting Technicians) PQ Magazine (PQ Publishing) Websites Accounting news, information and case studies Accounting news, information and case studies A business education resource site Help and support for businesses Business guidance for businesses, including accounting An example of a specific local business support website Office for National Statistics UK government statistics, including the Retail Price Index The Times 100 case studies Educational website for business and economics Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 19

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25 Unit 2: Strategic Management Level: 6 Notional Learning Hours: 150 Value (NLH/10): 15 SRF unit code: 20441E This unit is internally assessed Unit aim This unit aims to give the learner understanding of the importance of strategy to an organisation in providing direction and scope over the long term. The unit also gives the learner the skills to assess an organisation s strategic position in order to gain an advantage through combining its competencies and resources. Unit introduction Strategic management is constantly changing and it is important that learners understand the strategic position of an organisation. This involves the analysis of business environments, the evaluation of strategic capability and the development of strategic purpose. Learners will examine how an understanding of culture can help managers develop the strategies of their organisations. The cultural web model which allows managers to analyse culture and its influence on strategy will be introduced. Strategic choices are concerned with decisions about an organisation s future and the way in which it needs to respond to the pressures and influences. The consideration of strategies must take into account the realities of turning strategy into action which in turn can be a significant constraint on strategic choice. The strategy of going international is considered, including the sources of advantage and the methods of market selection and entry. The importance of effective change management is explored which is a critical success factor in strategic management. Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 21

26 Outcomes of learning and assessment criteria To pass this unit, the learner needs to demonstrate that they can meet all the outcomes of learning. The assessment criteria determine the standard required to achieve the unit. Outcomes of learning 1 Understand how strategic choices are made in organisations 2 Understand the importance of culture within strategic positioning in organisations 3 Understand the risks involved in an organisation deciding to internationalise 4 Be able to assess the strategic position of an organisation 5 Understand the importance of change in strategic management Assessment criteria 1.1 Analyse the different levels of strategy in an organisation 1.2 Compare methods of strategy evaluation in organisations 2.1 Assess the importance of culture in organisations 2.2 Evaluate how organisational culture influences strategy in an organisation 2.3 Analyse the cultural web of an organisation 3.1 Evaluate the drivers that encourage organisations to internationalise 3.2 Critically evaluate national and international sources of advantage for an organisation 3.3 Assess methods of market selection and entry for an organisation 4.1 Carry out an analysis of the business environment of an organisation 4.2 Evaluate the strategic capability of an organisation 4.3 Develop a strategic purpose for an organisation 5.1 Explain the methods for diagnosing change situations 5.2 Critically evaluate different change management styles and roles 5.3 Evaluate the management of strategic change programmes in organisations 22 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

27 Unit content 1 Understand how strategic choices are made in organisations Levels of strategy: business level strategy corporate level strategy Ansoff s Product/Market Growth Matrix international strategies Strategy evaluation: suitability of the strategy threats, opportunities, weaknesses, strengths (TOWS matrix) ranking strategic options decision trees scenarios acceptability returns analysis (financial, cost benefit, shareholder value, risk, ration, sensitivity) feasibility of the strategy financial resources deployment of resources 2 Understand the importance of culture within strategic positioning in organisations Culture: national and regional cultures the organisational field sets of assumptions, norms and regimes organisational culture Organisational culture and strategy: the management of culture culture as a driver of strategy development of strategy implementation of new strategies assessing corporate performance adopting a suitable paradigm Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 23

28 Cultural web: tool for analysing culture elements of the web paradigm 3 Understand the risks involved in an organisation deciding to internationalise Drivers to internationalise: Yip s drivers of globalisation National and international sources of advantage: Porter s Diamond model the international value network international strategies simple export complex export multidomestic strategy global strategy Market selection and entry: market characteristics political, economic, social, legal, competitive characteristics entry modes exporting joint ventures and alliances licensing foreign direct investment 4 Be able to assess the strategic position of an organisation The business environment: macro environment industries and sectors competitors Porter s five forces framework industry life cycle strategic groups market segments opportunities and threats 24 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

29 Strategic capability: methods for evaluating strategic capability Strategic purpose: corporate governance business ethics and corporate social responsibility stakeholder expectations stakeholder power organisational purpose, values, mission, vision, objectives 5 Understand the importance of change in strategic management Methods for diagnosing change situations: types of strategic change big bang, incremental, realignment, transformational, cultural context force field analysis Change management styles and roles: roles in managing change strategic leadership education, participation, intervention, direction, coercion Management of strategic change programmes: strategic reconstruction turnaround strategy managing revolutionary and evolutionary strategic change Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 25

30 Information for tutors Delivery guidance For outcome of learning 1, learners need to understand the strategic position of an organisation. This could involve the learners working in small groups undertaking a review of the business environment of selected organisations from different sectors. They should be encouraged to apply Porter s five forces to the particular area under investigation and to use SWOT analysis and the value chain to assess strategic capability. A review of strategic purpose should also take place which should focus on corporate governance, business ethics and corporate social responsibility. For outcome of learning 2, learners need to understand the importance of culture within strategic positioning which could involve small group work examining case studies focusing on particular cultures within a variety of organisations and the impact these cultures have on their strategic positioning. Learners need to understand that culture is a key driver of strategy and that culture in any organisation can be analysed using the tool known as the cultural web. Learners could through case studies or with reference to their own organisations use the cultural web to analyse the cultural arrangements in place. For outcome of learning 3, learners should also understand that when an organisation makes a strategic decision to go international, a series of risks will emerge. Learners need to be made aware of the key drivers that exist that encourage organisations to go international. Again case studies can be used to identify sources of advantage of entering foreign markets and the decision making process involved associated with market selection and entry. For outcome of learning 4, learners need to understand the importance of strategy development and the difference between intended and emergent strategies. Class and small group discussions can help learners identify these various strategic developments in place in their own organisations. Learners will also need to understand the importance of organisation structure and the effective management of resources both physical and human in strategy development. For outcome of learning 5, learners need to understand that when change is to take place in an organisation, there are various different types of change situations and that these can be diagnosed using various tools and techniques. The importance of change management styles and roles also needs to be examined and this can be successfully delivered through case study material, information from the learners own organisations and relevant guest speakers who can take learners through the various stages of successful change management programmes that they may have been involved with. Assessment guidance The preferred method of assessment for this unit is to have one full unit assignment allowing the learner to research aspects of strategic management in their own organisation or another organisation that will allow them access. The assignment could if desired, be broken down into 2, 3 or 4 or smaller assignments. The evidence could be in the form of a presentation or report covering the five outcomes of learning and all the assessment criteria. It is advisable to teach the outcomes of learning in their outcome of learning order (1 to 5) as each outcome of learning builds on the knowledge of the previous one. 26 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

31 Suggested resources Books Asch D and Bowman C Readings in Strategic Management (Palgrave Macmillan, 1989) ISBN Barney J Gaining and Sustaining Competitive Advantage (Prentice-Hall, 2007) ISBN Davenport T and Norton D The Strategy-focused Organization (Harvard Business School Press, 2000) ISBN Cusumano M and Markides C Strategic Thinking for the Next Economy (Jossey Bass, 2001) ISBN De Wit B and Meyer R Strategy: Process, Content, Context (Thomson Learning, 2004) ISBN Grant R Contemporary Strategy Analysis (Blackwell, 2004) ISBN Gratton L Living Strategy: Putting People at the Heart of Corporate Purpose (Prentice Hall, 2000) ISBN Harrison J Strategic Management: Concepts and Cases (Wiley, 2002) ISBN Johnson G, Scholes K and Whittingham R Exploring Corporate Strategy (Prentice Hall Ed 8, 2008) ISBN Johnson G Exploring Public Sector Strategy (Prentice Hall, 2000) ISBN Kaplan R and Norton D The Strategy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment (Harvard Business School Press, 2000) ISBN Lynch R Corporate Strategy (Prentice Hall, 2005) ISBN McGee, J, Thomas, H and Wilson D Strategy: Analysis and Practice (McGraw-Hill, 2005) ISBN Mintzberg H The Rise and Fall of Strategic Planning (Prentice Hall, 2000) ISBN Mintzberg H, Ahlstrand B and Lampel J Strategy Safari: A Guided Tour through the Wilds of Strategic Management (Prentice Hall, 2001) ISBN Pettigrew A, Thomas H and Whittington R The Handbook of Strategy and Management (Sage, 2001) ISBN Schwartz P The Art of the Long View (Wiley, 1997) ISBN Stacey R Strategic Management and Organisational Dynamics (Prentice Hall, 2002) ISBN Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 27

32 Journals Academy of Management Journal (Academy of Management) British Journal of Management (Blackwell) California Management Review (University of California, Berkeley) European Management Journal (Elsevier) Harvard Business Review (Harvard Business School) Journal of Business Strategy (Blackwell) Journal of Management Studies (Blackwell) Long Range Planning (Elsevier) MIT Sloan Management Review (MIT Sloan School of Management) Strategic Change (John Wiley & Sons Ltd) Strategy and Leadership (Emerald) Websites Financial Times Chartered Management Institute Strategic Planning Society 28 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

33 Unit 3: Innovation and Creativity in Business Level: 6 Notional Learning Hours: 150 Value (NLH/10): 15 SRF unit code: 20442E This unit is internally assessed Unit aim This unit aims to give learners an understanding of the importance to organisations of creativity and innovation. The unit also gives learners the skills to overcome barriers and influence others to support innovation in business. Unit introduction Innovation is becoming essential to growth and prosperity of business organisations and countries. In this unit, learners start by exploring the need for business organisations to continuously innovate in order to maintain competitive advantage and the impact of innovation on national economies. Learners study the work of theorists seeking to understand the processes of creativity in individuals. They then experiment with using some of the many techniques designed to encourage creativity and innovation in individuals and groups. Learners will examine the theoretical approaches to the fostering or conversely the stifling of innovation in organisations. This includes exploration of types of motivation, culture, climate, leadership and innovation management processes found in organisations. Learners will plan the development and implementation of an innovative idea of their own and in doing so apply some of the theory from this unit. In the final outcome of learning, learners identify and plan to overcome barriers to the implementation of their innovative idea. This includes examination of internal barriers such as culture and resistance to change, as well as external barriers such as the market, legislative framework and infrastructure issues. Overall, the unit examines innovation in business from viewpoints of individual creativity in individuals through to the drivers and actions of organisations and national government. It links theory with practical application. Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 29

34 Outcomes of learning and assessment criteria To pass this unit, the learner needs to demonstrate that they can meet all the outcomes of learning. The assessment criteria determine the standard required to achieve the unit. Outcomes of learning 1 Understand the importance of innovation to business 2 Understand how creativity can be fostered Assessment criteria 1.1 Explain the value of innovation to organisations 1.2 Evaluate support for a recent innovation in a selected organisation 2.1 Analyse key theoretical concepts about creativity in individuals 2.2 Use analytical tools to identify potential creative ideas 2.3 Critically evaluate key theoretical concepts about creativity 3 Understand how innovation can be fostered in an organisation 4 Be able to influence others to effect innovative change in an organisation 3.1 Analyse how to lead others in an organisation to positively embrace innovation 3.2 Critically evaluate current processes for managing innovation within a selected organisation 4.1 Plan a creative idea to effect innovative change in an organisation 4.2 Produce an appropriate rationale to persuade stakeholders of an organisation of the benefits of a creative idea 4.3 Communicate the idea to effect innovative change in an organisation to stakeholders 4.4 Critically evaluate the idea and its prospects of success 5 Be able to plan to overcome barriers to implementation of creative and innovative ideas in an organisation 5.1 Assess the barriers to the implementation of a creative and innovative idea in a selected organisation 5.2 Plan a strategy to overcome identified barriers to the implementation of a creative and innovative idea in an organisation 5.3 Evaluate the extent to which the plan will increase the likelihood of success of an innovation within an organisation 30 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

35 Unit content 1 Understand the importance of innovation to business Innovation in engineering: definitions of innovation formats of innovation level of change innovation space mapping Importance to organisations: increasingly competitive trading environment building and maintaining competitive advantage types of competitive advantage Support for innovation: government policies supporting innovation 2 Understand how creativity can be fostered Key theoretical concepts: comparison of approaches forms of creativity creative process personality traits for innovation Creativity tools and techniques: positive negative interesting (PNI) mind mapping visioning fishbone diagram problem-solving techniques Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 31

36 Analytical tools: SWOT (strengths, weaknesses, opportunities and threats) cost/benefit analysis Pareto analysis risk analysis value Evaluation: criticisms of theoretical concepts and tools and techniques 3 Understand how innovation can be fostered in an organisation Fostering innovation in organisations: theoretical approaches culture and climate encouraging innovation intrinsic versus extrinsic motivation impact of type of tasks Leadership: climate reward work roles to support innovation Innovation strategies: pioneering versus following leapfrog speed to market perfection market hedge product hedge outsource and alliance innovation protection strategies Organisational processes: innovation strategies innovation process management development and models 32 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

37 4 Be able to influence others to effect innovative change in an organisation Plan creative idea: identify problem/opportunity human resource, physical and technical requirements working environment idea generation Rationale for stakeholders: identification of stakeholders analysis of stakeholder viewpoints and importance benefits of innovative idea Communicate/evaluate idea: segmentation and targeting of stakeholders communications mix media selection stakeholder group interaction evaluation and selection processes financial measures market factors 5 Be able to plan to overcome barriers to implementation of creative and innovative ideas in an organisation Internal/external barriers to innovation: organisational culture organisational climate resistance to change types of resistance to change legislation infrastructure lack of government support market reaction Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 33

38 Overcoming barriers: participation education involvement communication staff selection and rewards relocation lobbying adaptation Evaluation /increasing success: measures of success factors enhancing success rates causes of failures 34 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

39 Information for tutors Delivery guidance This unit draws from a variety of disciplines and a variety of learning methods could be used. A range of recent work of theorists on innovation is included and this contextualised into the business studies world through drawing on established principles from marketing, economics, finance and management. As consumers and users of services, learners will be familiar with the results of innovations, e.g. social media, and case studies of how these organisations innovate would be valuable in bringing this unit to life. Learners with experience of working in innovative or traditional organisations or that fall somewhere between these two opposites, could be encouraged to use and share their experiences in group discussions and in their assessed work. Outcome of learning 1 sets the context and enables learners to explore why innovation is regarded as so important at both organisational and national level. It would be beneficial for learners to be exposed to a wide variety of current material from the business world through reading quality newspapers and journals. Learners could collect key statistics on innovations over a recent time period and then share them with fellow learners. It would also be useful for learners to hear the views of those involved in government or in running businesses on government support for innovation in business. In outcome of learning 2, learners study the work of theorists investigating the somewhat mysterious processes of creativity in individuals. Traditional styles of delivery such as lectures and reading can be used for this content. This outcome of learning also includes a practical element whereby learners can experiment with using different techniques for developing creative ideas. The well-known methods given in the unit content can be used, however other less well-known methods could be tested by learners instead or as well as the methods given. Learners could be given problems relevant to their own lives. Books or websites based on developing creative thinking could also provide suitable exercises. A technique sometimes used is for learners to keep an innovation or creativity log throughout their programme of study. Outcome of learning 3 is about the theory relating to how innovation can be fostered or discouraged by the way the organisation is managed. The theory could be taught through lectures or through learners reading selected materials. The theory could be further explored through applying it to organisations with which learners are familiar and to case study material. Outcome of learning 4 is less abstract and more practical and learners will be applying the theory learnt in the other outcomes of learning and also revisiting learning from other units in the programme. Learners should have already studied stakeholders, marketing communications and project evaluation techniques so for these areas teaching should complement what has gone before and help learners to relate it to the management of the development of an innovative idea. Some techniques, such as the bubble diagrams, are specific to this unit but the factors used within it are common to many business studies units. Learners could be given opportunities to practise using all the techniques in small groups, using a case study or a hypothetical idea for the development of a service in their own institution. Outcome of learning 5 is practical rather than theoretical and focuses on the implementation of an innovative idea. Much of the content follows on from the theoretical content from the other outcomes of learning although some content relates to resistance to change which learners may need to explore through lectures Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 35

40 or reading before practising application of the principles to case studies. Analysis of a current campaign which supports a controversial change could provide an interesting way of delivering this part of the programme. Assessment guidance Assessment for this unit could be in the form of one large assignment covering all criteria or it could be split into two or perhaps three assessments. It is envisaged that outcomes of learning 4 and 5 would be assessed together and linked to outcome of learning two. The theme of this assignment would be the development and planning for the introduction of an innovative idea. Outcomes of learning 1 and 3 could be linked into an assignment based on a study of an organisation. In designing the assessments, consideration should be given to ensuring these learners can adequately research the organisation used for many of the outcomes of learning, especially 4 and 5. Learners will need to be able to fully understand factors in the internal operations of the business and its external environment. Learners who are in employment may have access to this information through their work roles. For other learners, assessments for this unit could be based on a period of work experience, or from an in-depth study of an organisation. Case-study material could be provided and then supplemented by learners own research. The learning institution could provide a context for an assessment whereby learners plan innovative ideas for tackling current challenges faced by different sections of the organisation. In this case, it is recommended that a different organisation is used for the other assignment in the unit so that learners have exposure to innovation in a commercial environment. It is unlikely that a fictitious context could provide enough detail to enable the learners to cover the criteria. There is a need to ensure that the assessment programme includes opportunities for learners to use the analytical tools and it may be that this is better done in groups. If group work is used for any of the criteria it is necessary to ensure that the guidance on the use of group work is followed. Evidence should be produced identifying that each learner has achieved each assessment criterion. Assessment outcomes for most of the assessment criteria are likely to be in the form of reports, plans and presentations. Suggested resources Books Ahmed P K and Shepherd C D Innovation Management: Context, Strategies, Systems and Processes (Financial Times/Prentice Hall, 2010) ISBN Drucker P F Innovation and Entrepreneurship (Butterworth-Heinemann, 2007) ISBN Hammer M and Champy J Reengineering the Corporation: A Manifesto for Business Revolution (Harper Paperbacks, 2004) ISBN Jones T Innovating at the Edge: How Organizations Evolve and Embed Innovation Capability (Butterworth-Heinemann, 2002) ISBN Kotler P, Armstrong G, Wong G and Saunders J Principles of Marketing, 5th Edition (Financial Times/Prentice Hall, 2008) ISBN Tidd J and Bessant J Managing Innovation: Integrating Technological, Market and Organizational Change, 4th Edition (John Wiley and Sons, 2009) ISBN Specification Pearson SRF BTEC Level 6 Professional Diploma qualification