Table of Contents [627072]

Table of Contents
Executive Summary
1.Background description ………………………….. ………………………….. ………………………….. …………………….. 1
1.1 Purpose ………………………….. ………………………….. ………………………….. ………………………….. …….. 1
1.2 Problem formulation ………………………….. ………………………….. ………………………….. ……………… 1
1.3 De limitation ………………………….. ………………………….. ………………………….. ………………………….. …… 1
1.4 Clarification of concepts ………………………….. ………………………….. ………………………….. …………….. 2
2. Introduction: Goods -in department ………………………….. ………………………….. ………………………….. …… 2
3. Change and company implications ………………………….. ………………………….. ………………………….. ….. 3
3.1 The change Kaleidoscope ………………………….. ………………………….. ………………………….. …………… 3
3.2 Kotter’s 8 steps of change ………………………….. ………………………….. ………………………….. …………. 4
3.3 The Change curve ………………………….. ………………………….. ………………………….. ………………………. 4
4. Motivation and employees ………………………….. ………………………….. ………………………….. ……………….. 5
5. Leadership and management implications ………………………….. ………………………….. ………………….. 7
6. Conclusion ………………………….. ………………………….. ………………………….. ………………………….. …………… 8
Bibliography ………………………….. ………………………….. ………………………….. ………………………….. …………….. 9

Executive summary

The following report is aimed to address which fact ors are required to be considered to
successfully implement lean boards and a continuous improvement mind -set in Dansk
Supermarked’s Non-food terminal, goods -in department.
Firstly, the description of the company’s structure led to the identification of the company being
a functional organisation while at the same time the mechanistic organiz ational behaviour was
highlighted . This has been beneficial when considering the changes required , by pointing out
the hierarchical authority that would supervise the implementation process. Furthermore, the
change kaleidoscope was considered as being a tool to be used by the top management before
considering implementi ng the changes. In the next phase , Kotter’s 8 steps was taken into
account due to the fact that this will provide the management with a frame that would result in
a successful implementation of lean boards and adopting a continuous imp rovement mind -set.
Motivation was further considered in order to find out what motivates the employees and for
that, Maslow’s pyramid of needs was analysed.
Leadership was also consi dered as being an important part in the implementation process,
since a go od leadership will result in a good influence on the employees , thus facilitating the
change . Moreover, different leadership styles were looked into, since this will provide the
management with the necessary knowledge in how to approach the employees witho ut them
strongly opposing the changes. The Situational leadership model was also considered, since
this has proved to be a good tool for the management to assess the current development status
of the employees and providing an insight on what specific meas ures should be taken into
account in order to develop the employees from being unqualified and resistant to change to
having the necessary qualifications and supporting actively the implementation process.
After considering the need of change, motivation and leadership, the company will benefit by
having trained employees with a continuous improvement mind -set, eager to make changes,
that will support to the overall strategy of the company to reduce costs.

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1. Background description

Dansk Supermaked Group is a Danish own company founded in 1906 which is considered to be
the biggest retailer in Denmark, con ducting its business through its over 1400 physical stores
represented by Bilka hypermarkets , Føtex, Netto discount stores , Salling and also along with
franchise stores in cooperation with Starbucks and Carl’s Junior (Dansk Supermarked, 2017)
The company is also operating outside Denmark in countries such as Germany, Poland and
Sweden through its Netto discount stor es, having an overall number of 1320 physical stores.
(Dansk Supermarked, 2017)
The company has identified the opportunity that e -commerce brings for their retail business,
therefore Dansk Supermarked has penetrated the online segment via its e -commerce business
represe nted by wupti.dk, iposen.dk, bilka.dk, foetex.dk and salling.dk. (Dansk Supermarked,
2017)

1.1 Purpose

The following report will address the implementation process of lean boards and continuous
improvement within Dansk Supermarked's Non – food terminal, goo ds-in department.
1.2 Problem formulation

How can Dansk Supermarked’s goods -in department successfully implement lean boards and
focus on continuous improvement?
 How will the organization type influence the implementation process and what are the
factors to be considered?
 Why is motivation important to achieve the end result?
 How will leadership influence the implementation process?

1.3 Delimitation

The repo rt will consist of a theoretical approach of the case and it is not based on quantitative
analysis.
Furthermore, the focus of the report is on goods -in department, thus the analysis is not
orientated on the overall company.

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The motivational theories will not all be discussed in depth, but only Maslow’ s Hierarchy of
Needs will be considered in depth.
1.4 Clarification of concepts

Lean board – a visual management tool that will facilitate the information flow regarding
certain aspects such as health and safety, KPI’s in connection with the production, tracking the
progress of problem solving i.e using PDCA, or specific information that can be communicated
to the employees.
PDCA –‘’ (plan -do-check -act, sometimes seen as plan -do-check -adjust) is a repetitive four -stage
model for continuous improvement ( CI) in business process management. ‘’ (Techtarget, 2017)
Continuous improvement – ‘’or Kaizen, is a method for identifying opportunities for
streamlining work and reducing waste’’ (Leankit, 2017)

2. Introduction: Goods -in department

By looking at the organizational structure of the department, it can be seen that the
department is managed by one person, which is responsible with the decisi on making process,
budgets and aligning the departments strategy with the overall company.
Furthermore, the department is operating on two shifts, where each shift is coordinated by two
supervisors: one responsible with the decision making in the overall shift and the second person
responsible with assigning the daily workload and assis ting the operators with any problems
that might arise.

The operators working in goods -in department are not considered to be highly skilled, thus upon
employment each employee is being introduced to a manual where all the procedures
necessary for carrying out the daily tasks are specified. Since the work tasks differ between the
two shifts, meaning that in the morning the focus is placed on receiving deliveries arriving on
trailers whereas in the afternoon unloading goods arriving via containers, the opera tors are
cross – trained to be able to execute both tasks. Furthermore, employees work in a close
collaboration where one can share his knowledge with other colleagues, facilitating the training
of each employee. The daily responsibilities can vary between unloading goods, receiving,
driving and processing documents.
Since the company is operating a highly automated warehouse, standardised operating
procedures are implemented, in order to secure that the pallets sent to be stored from the
goods -in department will not cause any stoppages for the automated system.
Therefore, it can be concluded that the department is organised in a functional structure, with a
manager at the top follow ed by the supervisors, and, further down the operators from the floor.
Furthermore, there is a clear separation regarding the authority in the department. The
administrati ve theory of H. Fayol can be applied , hence the segregation between coordination
and specialization, where the employees respond to one person i.e operator s to the supervisor
and the supervisor to the manager, while the management can attend special tasks , and

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furthermore, the supervisors/ manager can be specialised in tending different tasks than a
regular operator (Jørgen L., Mille B., 2006, p. 15).
Furthe rmore, the company can be identified as embracing a mechanistic system with every
action being carefully planned and performed. A few characteristics of the mechanistic
organization can be identified when looking at the coordination of the workload which i s done
by the immediate superior on the hierarchical level and the same case applies for the control
where communication, authority and control are structured in a hierarchical level. Furthermore,
the tasks are done under the own terms, without any special regard to the overall organisation
and the daily tasks are broken down into specialised job functions. One operator is responsible
only with handling documentation while other operator is responsible with rework, and some
operators are responsible with un loading goods while others are responsible with receiving the
goods in the system.

3. Change and company implications

By having as a starting point the strategy that the company is embracing, cost reduction and
shortened lead times to the customers, the company is subjected to changes that will enable
the achievement of its goal.
3.1 The change Kaleidoscope

From the definition of the change kaleidoscope: ‘’the change kaleidoscope was created to help
managers design a context sensitive approach to change within their organisation’’ (Balogun J.,
Hope H., Veronica, 1999 , p.248 )
The tool consists of several different factors that must be addressed before consideri ng the
implementation of a specific change.
The time aspect refers to the urgency of the change to be implemented. Considering that the
company is striving for cost reduction, the implementation of a lean board that will support the
strategy is required a s soon as possible.
The scope of the change refers to which part of the organization will be affected by the change.
In this case, the change will affect the employees from goods in department.
The preservation factors in this case are to be considered as well, where one of the practices
that is of great importance refers to the standardised operating procedures. Diversity will
include consideration of the employees while at the same time, in the capability area, the
management has to address the competenc e of itself and the operators to implement the
change.
Another factor to be considered is capacity, were the management has to look at the cost,
necessary resources and the time required to make the change. The last two factors are
represented by the readi ness of change, where the management investigates if the employees
are aware of the required change, and the power factor that has to pinpoint if the person
leading the change has the sufficient influence over the employees.

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3.2 Kotter’s 8 steps of chang e

In order to assist the company in pursuing the required changes, Kotter’s 8 steps (Jørgen L.,
Mille B, 2006, p.111) will be considered further .
Since each change might result in a strong opposition coming from the people affected by it,
the top managem ent has to undergo a certain process in order to have a successful
implementation. Therefore, the first action that has to be taken is for the top management to
raise the necessity of having certain changes implemented that would support the company’s
overall strategy, while gaining the support of the supervisors and presenting them with
arguments why is the change crucial. More specific, how would lean boards and focus on
continuous improvements will benefit the company.
Next, the idea of change has to be presented to the operators while explaining the benefits that
such changes will provide focusing on their daily workload and on the company. This will result
in more challenging opportunities for the employees to contribute to the future changes, while
suggestions are discussed among the top management and the employees. The management
can organise daily meetings where the progress is being discussed, while the employees can
benefit of certain incentives to encourage them to keep focus.
At the same time, th e employees are motivated to develop ideas that might result in making
their job easier while reducing the costs by increasing the amount of inbound deliveries.
3.3 The Change curve

In order to aid the monitoring of the specific change, the manager might make use of the
change curve.
This tool considers four stages that the people affected by the change are going through and by
knowing the stages, the management can react in order to implement the required change
successfully (educational business articles , 2017) .
The first stage of the change curve represents the denial phase where the operators are posing
resistance. As in Kotter’s 8 steps, the management must communicate clearly with the
operators what will the change imply and the benefits that will re sult, moving in the certain
direction.
In the next phase, anger, the management must keep close communication with the
supervisors and the operators, and since the change required, respectively the implementation
of lean boards, will be enforced, the next phase is reached: exploration. The operators will at
this phase realise that the lean board is implemented and thus they will accept it, moving to the
next phase which is acceptance. In the last step, the lean board will be embraced by the
employees and f urthermore, they will actively participate in coming up with suggestions of
improvements.

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4. Motivation and employees

In order to have a successful implementation of the lean board, it is not necessary sufficient to
have established a good communication between the top management and the employees.
Motivation accounts as an important part in implementing changes and the employees can
have different motivation factors that will urge them to accept/ contribute to a certain change.
According to figure 3.5 Outline of approaches to motivation (Jørgen L., Mille B, 2006, p.45),
motivation can be divided into two categories : Inne r motivation and outer motivation whereas
each category is subsequently divided into different categories such as rational factors,
irrational factors, job design and financial and social factors.

Even though there are multiple theories addressing spe cific factors that would motivate the
employees, and considering the fact that the company is focusing on cost reduction, the theory
to be approached in the following part is Maslow’ s Hierarchy of Needs.

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According to figure 3.6 Maslow’s pyramid of needs (Jørgen L., Mille B, 2006, p.54) , the model
divides the human needs into five different categories.
Self- actualization needs refers to the needs of the employees to achieve one selves potential.
In this case, the operators might be motivated by i.e receiv ing training that would facilitate the
achievement of their need or getting more responsibilities that would bring in new challenges.
This can also influence the self -esteem of the operators by receiving the appreciation of the
management or the fellow emp loyees for achieving certain results. Furthermore, this can be an
important factor when considering continuous improvement mind -set, since it will motivate the
employees into contributing with new ideas.
The social needs can be identified as the working r elationship that the employees have. Safety
and security needs address the security of the environment where the daily tasks are performed
and also the policy that the company has regarding its employees. Since all the workers are
benefiting of a good pens ion scheme and a senior employee policy, the operators can be
motivated even further on improving the safety of the working environment through continuous
improvements.
The physiological needs refers to the physical working environment, the remuneration and the
health insurance.
Considering the fact that the company is located in Denmark, the health insurance is included
in the contract together with the pension scheme.
Having in mind these fac tors, the management has to take into consideration a discussion with
the employees regarding their needs, and not to assume what they think the needs of the
employees are.
Furthermore, the motivational theories have to be considered as an overall boost f or motivating
the employees, since each of the theories are addressing different motivational factors.
Based on the above mentioned factors regarding motivation, it is of high importance to secure
that the employees are highly motivated when pursuing a cha nge that will affect them in any
way.

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5. Leadership and management implications

From the previously discussed factors that have an influence on the successful implementation
of lean boards within goods -in department, it is clear that the top management h as a
significant role in encouraging, coordinating and communicating the implementation of the
change.
According to Kouzes and Posner ’’, good management requires good leadership and good
management. The good manager is thereby both a good leader and a goo d manager’’ (Jørgen
L., Mille B, 2006, p.94). Having this in mind, it is indicated that a good manager is not
necessarily a good leader that would inspire the employees be it on their daily tasks or when
facing the implementation of changes. The traits tha t a good manager possesses are different
than of a leaders.
On the manager’s side, the strengths required are represented by good planning where
procedures are followed, timetables and financing are in place and analysing results in
comparison with the pla ns.
On the other hand, the leader possesses traits as good communication with the employees
where the vision is clearly shown while in the same time motivating and inspiring the
employees in overcoming possible obstacles that might occur.
According to Tanne nbaum -Schmidt continuum of leadership behaviour, ‘’Leadership occurs
when a person tries to influence another persons’ or groups’ way of behaving’’ (Jørgen L., Mille
B, 2006, p.96). Based on this statement, every person that might influence other peop le’s
behaviour has the potential to become a leader. Having this in mind, the management has to
be able to influence the operators in implementing the changes.
In figure 5.3: Tannenbaun -Schmidt: Continuums of Leadership Behaviour (Jørgen L., Mille B,
2006, p.97) , it is suggested that the leader has the possibility of opting for different style when
approaching the employees.

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According to the model, there are different degrees of freedom for the leader: from one
extreme where the leader has very high deg ree of freedom which is considered to be very
authoritarian and task -oriented to the opposite extreme where the degree of freedom is at its
low, meaning that the followers will benefit of high degree of freedom, thus being a more
relation -oriented and a de mocratic approach.
Based on this model, the company’s management behaviour has to be adapted based on the
situation at hand. There is however a pitfall, since if the degree of freedom of the followers is
very high, that could result in a very long process of implementing the change and a low
influencing authority , and in contrast, if the degree of freedom for the leader is very high, that
might lead to a higher opposition to implement the requested change.
In order to aid the implementation process both fr om the management perspective and the
employees, the situational leadership model of Hersey and Blanchard (Jørgen L., Mille B, 2006,
p.100) is considered in the following part.

Based on the model, the management is able to assess the development of a certain employee
in different stages and the implications that are required to aid the implementation process. In
this case, the management will strive to develop its employees from the point where they are
not qualified or interested to make a change, to a stage where the employees have the
requested qualifications and they are willing to embrace the change.
The development of the employees might be a time consuming process, considering that
training must be provided and they have to be constantly assisted by the management, but on
the long run, having in mind the continuous improvement philosophy, it will benefit the
company by providing its employees with the correct mind -set, therefore motivating the
employees to contribute with ideas of what can be done in a more optimal way.

6. Conclusion

Based on the analysis performed, the company must create the sense of urgency while pointing
out the issues that will be solved and the benefits that these changes will imply on the
employees’ daily tasks. Furthermor e, the management has to provide the required assistance

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and training to the employees, while at the same time motivate the employees by adopting a
specific behaviour for each and one of them. This will result to be beneficial both for the
employees, and in the long run for the company as well. Furthermore, by having motivated
operators eager to make improvements , it will provide a better working environment, thus
eliminating waste that will result in aligning with the overall strategy, cost reduction.

Bibliography
Balogun Julia & Hope Hailey, V., 1999. Exploring strategic change. 1st edition. Prentince Hall,
Harlow
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https://dansksupermarked.com/brands/stores/
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