(Tiểu luận) case study xibei’s organization and humanresource management report

Define criteria and processes for employees seekingcompressed workweeks or remote work due to specific needs.● Week 3-4: Training and preparation: Provide training to managers on Trang

FOREIGN TRADE UNIVERSITY

FACULTY OF BUSINESS ADMINISTRATION

Hanoi, December 2023

Table of content

1 PLANNING 5

1.1 Problem 1: Covid- 19 Pandemic 5

1.1.1 Situation 5

1.1.2 Cause 5

1.1.3 Solution & Recommendation 5

1.1.3.1 Work sharing with 4-day work week 5

1.1.3.2 Natural Attrition 6

1.1.3.3 Hiring Freeze 7

1.2 Problem 2: The autonomy and independent authority of managers at Xibei 8 1.2.1 Situation 8

1.2.2 Causes 8

1.2.3 Solutions and recommendation 8

1.2.3.1 Centralized planning and forecasting 8

1.2.3.2 Communication and Collaboration 9

2 RECRUITMENT AND SELECTION 11

2.1 Problem 11

2.1.1 Situation 11

2.1.2 Effect 11

2.1.3 Solutions and recommendation 11

2.1.3.1 Combine Referrals with Other Sourcing Methods 11

2.1.3.2 Implement Clear Guidelines and Training for Referral Programs 12

2.1.3.3 Use Objective Assessment Tools During the Selection Process 13

2.1.3.4 Communicate Effectively with Referrers and Candidates Throughout the Process 13

3 TRAINING AND DEVELOPMENT 15

3.1 Problem 1: Overspending on Training Programs at Xibei 15

3.1.1 Situation 15

3.1.2 Causes 15

3.1.3 Solutions and recommendation 15

3.2 Problem 2: Tolerance for Failure and Decision Making 16

3.2.1 Situation 16

3.2.2 Causes 16

3.2.3 Solutions and recommendation 16

3.2.3.1 Improved Impact Assessment 16

3.2.3.1.1 Enhanced Post-Failure Analysis: 17

3.2.3.1.2 Strengthened Feedback Mechanisms 18

3.2.3.2 Develop Accountability Guidelines for Xibei Corporation 19

4 PERFORMANCE MANAGEMENT 21

4.1 Problem: The company was short of standardized assessments of products and services 21

4.1.1 Situation 21

4.1.2 Analysis 21

4.1.3 Causes and results 22

4.1.3.1 Causes 22

4.1.3.2 Results 23

4.1.4 Solutions and recommendation 24

4.1.4.1 Substitution: Management by Objectives (MBO) 24

4.1.4.2 Quality PM measure 25

4.1.4.3 Longer time for well-thought-out preparation and official launch to brand managers 25

5 COMPENSATION 27

5.1 Salaries 27

5.1.1 Problem 27

5.1.2 Cause 27

5.1.3 Effect 27

5.1.4 Solution 27

5.1.4.1.Temporarily decreasing wages 28

5.2 Bonus and other incentives 29

5.2.1 Problem 29

5.2.2 Cause 30

5.2.3 Effect 30

5.2.4 Solution 30

5.3 Compensation structure for external senior executives 31

5.3.1 Problem 31

5.3.2 Cause 31

5.3.3 Effect 32

5.3.4 Solution 32

Founded in 1988 by Jia Guolong, Xibei Catering Group aimed to be a leading provider

of northwest Chinese cuisine By 2019, it boasted over 400 restaurants in 60 Chinesecities, generating annual revenue of ¥5.3 billion with a staff exceeding 20,000.Positioned as a premium brand, Xibei faced unforeseen challenges in 2020 due to theCovid-19 pandemic

Xibei's success was rooted in strategies such as the "Delicious Dish" initiative,large-scale chain store expansion, and a unique organizational structure The "SmallXibei" strategy aimed at daintiness and basic staff development, but faced challengesduring implementation

Xibei embraced a culture of innovation, tolerating failure and encouragingexperimentation This approach, coupled with a commitment to lifelong learning,resulted in the evolution of its store formats and menu offerings Despite setbacks,Xibei's resilience and openness to change fueled its growth

Jia's unique approach to HR emphasized profit-sharing, learning, and creating aplatform for staff growth The profit-sharing principle, inspired by Huawei, aimed tomotivate employees and foster a sense of ownership Learning initiatives, such as theXibei Institute, focused on values like diligence and joy The company's promotionsystem and competition-based performance management aimed to create motivatedand well-trained teams

The sudden impact of Covid-19 in 2020 forced Xibei to close its restaurantstemporarily, revealing financial vulnerabilities This crisis prompted a reevaluation ofthe company's organizational and management capacity The swift price hike oftakeaway products faced public backlash, challenging Xibei's reputation

Despite the challenges, Xibei sought to ride out the crisis and explore newdevelopment opportunities The company's rich history of overcoming obstacles,commitment to innovation, and employee-centric approach positioned it for continuedgrowth in China's dynamic restaurant industry

Xibei's journey reflects the complex landscape of China's restaurant market, marked

by fierce competition, technological advancements, and evolving consumerpreferences The case underscores the importance of adaptability, employeeengagement, and strategic management in navigating industry challenges As Xibeifaces the uncertainties of the post-pandemic era, its resilience and commitment to itscore values will likely play a pivotal role in shaping its future

List of Figures

Table1:DailyShiftManagement 6

Figure3-1:FMEAmodel 17

Figure3-2:KirkpatrickEvaluationModel 18

Figure4:StagesofthePerformanceManagementProcess 23

Figure5-1.AveragesalariesofemployeesworkinginHotelsandCateringServicesin China2020 28

Figure5-2.AveragesalariesforSalesandMarketingpositions 28

Figure5-3.AveragesalariesforHumanResourcepositions 29

1 Planning 1.1 Problem 1: Covid- 19 Pandemic

1.1.1 Situation

The Covid-19 pandemic led to a temporary closure of all Xibei restaurants, with staffbeing furloughed but still paid their full salaries This put a strain on Xibei’s financialresources, as the company’s cash reserves could only support this situation for aroundthree months This unexpected event likely required Xibei to reassess its labor demandand supply forecasts, as the company had to adapt to the changing circumstancescaused by the pandemic

1.1.2 Cause

Inaccurate demand forecasting of labor demand decline: Xibei's labor demand

forecasts likely didn't anticipate the Covid- 19 pandemic's impact, leading tooverstaffing and financial strain During the pandemic, Xibei suspended all offlinebusiness and only maintained the take-out business of around 100 restaurants.Considering its monthly loss of 700~800 million for operating revenue during theSpring Festival period plus the salary expenditure of its 20,000 employees, Xibeiestimated that the total cash in its accounts could last for three months at most Thesestatistics highlight the significant impact of the Covid-19 pandemic on Xibei’soperations and its Human Resource Planning process The company had to reassess itslabor demand and supply forecasts and adapt to the changing circumstances caused bythe pandemic

Limited supply insights: The case doesn't mention Xibei conducting thorough labor

market analyses to understand the availability of skilled workers in different regionsand for specific roles This could lead to difficulties in recruiting and retaining talent,especially in a competitive industry

1.1.3 Solution & Recommendation

1.1.3.1 Work sharing with 4-day work week

Goal: Implement a temporary 4-day work week along with job sharing across all

stores to reduce labor costs while minimizing employee income reduction

Recommendation:

● Week 1-2: Hold town hall meetings and distribute clear communication

materials explaining the program rationale, duration, and details (schedulerotations, flexible options, benefits) Conduct surveys or open forums to gaugeemployee sentiment and address potential concerns Develop and disseminateschedule rotations ensuring fairness and workload balance across all employeeswithin each store Define criteria and processes for employees seekingcompressed workweeks or remote work due to specific needs

● Week 3-4: Training and preparation: Provide training to managers on

effectively implementing and managing the 4-day work schedule Implement

nguồn… 100% (21)

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TIỂU LUẬN ĐÀO TẠO

VÀ PHÁT TRIỂN…quản trị

nguồn… 95% (20)

27

CÔNG TÁC TUYỂN DỤNG TẠI CÔNG TY…quản trị

nguồn… 100% (8)

26

Phân tích hệ thống đãi ngộ của tập đoà…quản trị

nguồn… 100% (7)

25

Tổng hợp đề trắc

the program in a limited number of stores to test its effectiveness and feasibilitybefore full rollout Closely monitor performance, employee satisfaction, andoperational challenges during the pilot phase.

● Week 5-6: Analyze pilot results: Evaluate the pilot program's impact on labor

costs, productivity, and employee morale Adjust program details if necessarybased on collected data and feedback Implement the 4-day work week acrossall remaining stores Continuous monitoring and feedback: Maintain regularcommunication channels to gather ongoing feedback, address concerns, andadjust the program as needed throughout its duration

Key metrics: Labor cost reduction, Employee satisfaction, Program utilization,

Productivity,

Communication and Implementation: Clearly communicate the rationale and details

of the work-sharing program to all employees Negotiate the program with employeerepresentatives or unions to ensure fairness and address concerns Develop atransparent system for scheduling reduced hours or furloughs, ensuring fairness andminimizing disruption Monitor the program's effectiveness and make adjustments asneeded to ensure it meets its objectives

Table1:DailyShiftManagement

1.1.3.2 Natural Attrition

Goal: Encourage voluntary departures through attractive early retirement incentives

and leaves of absence, reducing workforce size without layoffs

Recommendation:

● Month 1-2: Design attractive early retirement packages with enhanced pension

benefits and severance pay tailored for employees within 5-10 years ofretirement Establish clear program guidelines for sabbaticals (3-6 months) andextended leave (up to 1 year), including eligibility criteria, benefits, andreturn-to-work policies Launch information campaigns across all stores, usingvarious channels (internal website, emails, town halls) to inform employees

quản trịnguồn… 100% (2)Tiểu luận Qtnnl thực trạng Tuyển dụng…quản trị

nguồn… 100% (2)

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about the early retirement and leave options Offer optional personalizedconsultations with HR representatives to clarify program details and addressemployee questions or concerns.

● Month 3-4: Open application windows for both early retirement and voluntary

leave programs Conduct thorough applicant reviews based on programeligibility criteria.Inform program participants of their application status andprovide necessary paperwork and support for program implementation Offercareer transition services like resume writing workshops, job search assistance,and outplacement services for employees choosing early retirement or extendedleave

● Month 5-6: Track the number of accepted applications and departures to assess

program effectiveness in reducing workforce size.Conduct surveys or exitinterviews with departing employees to understand their motivations and gatherinput for potential program improvements Based on program results andfeedback, consider adjusting incentive packages, leave options, orcommunication strategies for future use

Key metrics: Early retirement program uptake, Voluntary leave program utilization,

Employee retention after program completion, Cost-effectiveness of incentives,

Communication and Implementation: Clearly communicate the benefits and

eligibility criteria for early retirement and voluntary leave programs Ensure fair andtransparent selection processes for programs with limited slots Provide ongoingsupport and guidance to employees utilizing these programs, promoting a smoothtransition

1.1.3.3 Hiring Freeze

Goal: Implement a temporary freeze on external hiring to prioritize internal

promotions and redeployment, optimizing workforce utilization and reducingrecruitment costs

Recommendation:

● Week 1-2: Inform all employees and departments about the immediate freeze

on external hiring.Analyze currently open positions to identify roles potentiallyfilled through internal promotions or redeployment.Conduct skill assessments

of existing employees to identify potential candidates for internal filling of openpositions Design and implement training programs to equip existing employeeswith necessary skills for identified redeployment opportunities

● Week 3-4: Open internal recruitment processes for all currently open positions,

providing detailed descriptions and eligibility criteria.Conduct interviews andevaluations to select the most qualified internal candidates for openpositions.Implement promotions and redeployments of successful internalcandidates, filling open positions effectively Monitor the progress of the hiring

freeze, including the number of positions filled internally and the effectiveness

of training programs

● Month 2-3: Regularly review the effectiveness of the hiring freeze and training

programs, considering adjustments based on fill

Key metrics: Internal promotion rate, Skill development program completion rate,

Time to fill open positions, Employee engagement and morale,

Communication and Implementation: Clearly communicate the hiring freeze to all

departments and employees, explaining its rationale and impact on internalpromotions Encourage existing employees to express their interest in open positionsand provide training and support for necessary skill development Regularly evaluatethe freeze's impact on workforce needs and adjust hiring restrictions as the situationevolves

1.2 Problem 2: The autonomy and independent authority of managers at Xibei 1.2.1 Situation

The autonomy and independent authority of managers at Xibei, particularly generalmanagers (GMs) of entrepreneurial branches and branch managers have creatednumerous problems for Xibei as they can impact Xibei’s labor demand, as thesemanagers had the authority to make decisions about recruitment, new store openings,and operations

1.2.2 Causes

Decentralized decisions about staffing levels can lead to inconsistencies acrossbranches, with some struggling with overstaffing due to overestimating local demand,while others might be understaffed due to miscalculations Individual branch decisionsmight not always align with the company's overall strategy or resource allocationplans If managers are solely focused on their own branch's success, it might createunhealthy competition between branches for resources, staff, and customers

1.2.3 Solutions and recommendation

1.2.3.1 Centralized planning and forecasting

Centralized planning and forecasting taken from Domino’s Pizza’s Perfect OrderPrediction In this system, advanced algorithms are used to anticipate peak demandperiods and schedule staff accordingly which helps reduce labor costs and ensureefficient service during busy times

Goal: Implement a comprehensive demand forecasting and resource allocation system

to optimize labor demand across Xibei branches

Recommendation:

● Month 1: Collect historical sales data, market trends, and economic indicators

for each branch Identify forecasting tools: Evaluate and select demandforecasting software or models suitable for Xibei's needs Train forecastingmodels using historical data and consider incorporating external factors likeweather patterns or local events Define criteria for allocating personnel,

budget, and equipment based on predicted demand, performance, and alignmentwith company goals.

● Month 2: Implement the models in a limited number of branches and monitor

their accuracy Analyze pilot test results and adjust models as needed toimprove accuracy Create training materials and presentations explaining theforecasting models and resource allocation framework to branch managers.Organize workshops to train managers on understanding and utilizing theforecasting models and resource allocation framework

● Month 3: Implement the demand forecasting and resource allocation system

across all branches Continuously monitor the system's performance, analyzeforecasting accuracy, and adapt models and allocation criteria as needed based

on real-world data and feedback

Key metrics: Forecasting accuracy: Track the accuracy of your demand forecasting

models by comparing predicted labor needs with actual labor requirements Analyzehistorical data and incorporate new factors to continuously improve the accuracy ofyour forecasts Labor cost reduction: Monitor the impact of the forecasting system onlabor costs Compare labor costs before and after implementation to quantify the costsavings achieved through optimized staffing levels Employee satisfaction: Conductsurveys or interviews with employees to gauge their perception of the new forecastingsystem Assess whether they feel it leads to fair and efficient scheduling and workloadallocation Inventory management: Evaluate the impact of the forecasting system oninventory levels Ensure accurate demand predictions prevent overstocking orunderstocking, improving inventory management efficiency

1.2.3.2 Communication and Collaboration

In this plan, we take inspiration from Google as they encourage a culture of opencommunication and collaboration through internal platforms, regular meetings, andcross-team projects This fosters knowledge sharing, innovation, and alignment ofindividual efforts with broader company goals

Goal: Foster open communication and collaboration between branch managers and

central management to ensure alignment and address challenges

Recommendation:

● Month 1: Set up regular communication channels like weekly conference calls,

online collaboration platforms, or internal forums Develop dashboards withkey performance indicators (KPIs) accessible to all managers, providingreal-time insights into branch performance Organize quarterly meetings wheremanagers can share best practices, discuss challenges, and receive updates fromcentral management

● Month 2: Create an internal platform where managers can share documents,

best practices, and operational manuals Establish a system for comparingperformance across branches and identify areas for improvement Encourage

knowledge exchange and collaboration through mentorship programs orcross-branch visits.

● Month 3: Gather feedback from managers and employees on the effectiveness

of communication and collaboration efforts Based on feedback, identify areasfor improvement and adjust communication channels, content, or frequency asneeded Plan regular team-building events or workshops to foster interactionand collaboration between managers and employees from different branches

Key metrics: Employee engagement: Conduct surveys or focus groups to assess

employee engagement and morale Monitor changes in employee sentiment afterimplementing new communication and collaboration channels Ask employees abouttheir perceived effectiveness of the new communication and collaboration channels.Identify areas for improvement based on their feedback Knowledge sharing: Track theutilization of internal knowledge sharing platforms, the number of documents shared,and the participation in collaborative activities Monitor the frequency and reach ofcommunication channels to ensure all employees are receiving necessary informationand updates Measure Performance improvement: Track key performance indicators(KPIs) across different branches before and after implementing new communicationand collaboration strategies Assess whether these strategies have led to measurableimprovements in performance

2 Recruiting and Selection 2.1 Problem

However, there may be disadvantages to this hiring strategy as well:

Bias and Favoritism: Referrals may prioritize personal relationships over

qualifications, leading to favoritism This can lead to nepotism and bias, with lessqualified candidates getting hired over more suitable ones based solely on personalconnections

Unrealistic Expectations: Referrers, especially close friends or colleagues, might

overestimate the referred candidate's abilities or exaggerate their accomplishments.This can lead to disappointment during the selection process or performance issuesafter hiring

Overlooking External Talent: Over-reliance on referrals can cause companies to

neglect the wider talent pool available through traditional sourcing methods This canlead to missing out on highly qualified candidates who wouldn't have been noticedthrough the referral network

Lack of Diversity: Referrals, especially those reliant on close-knit circles, can

unintentionally limit the pool of candidates to similar backgrounds and experiences

As most of the referral staff come from rural regions, this can lead to a homogenousworkforce and miss out on valuable diverse perspectives and skills

2.1.3 Solutions and recommendation

2.1.3.1 Combine Referrals with Other Sourcing Methods

The objective is to diversify the talent pool by combining employee referrals withother sourcing methods, reducing the reliance on a single channel for recruitment.Given Xibei's focus on the restaurant industry, it can integrate partnerships withculinary schools and leverage their alumni network for potential hires Thiscomplements the employee referral program, broadening the talent pool to includeindividuals with formal culinary training

Goals: Increase diversity in the candidate pool, enhance the skill set and experience of

candidates and strengthen the overall recruitment strategy

Recommendation:

Step 1: Identify Target Partnerships: Research and identify culinary schools or

training programs with a reputation for producing skilled professionals

Step 2: Establish Partnerships: Reach out to selected institutions to establish

partnerships, emphasizing mutual benefits

Step 3: Develop Collaboration Agreements: Create formal agreements outlining the

terms of collaboration, including the referral process and any incentives for theeducational institutions

Step 4: Integrate Systems: Work with the institutions to integrate their career services

systems with Xibei's recruitment platform for seamless referral tracking

Step 5: Launch Joint Awareness Campaigns: Collaborate on marketing initiatives to

promote the partnership and encourage potential candidates to apply

Step 6: Monitoring and Evaluation: Implement tracking mechanisms to monitor the

effectiveness of each channel Regularly evaluate the success of the combinedapproach and make adjustments as needed

2.1.3.2 Implement Clear Guidelines and Training for Referral Programs

To optimize the referral program, clear guidelines and training sessions will beintroduced to ensure consistency, fairness, and understanding among employees

Goals: Enhance the quality of referrals, standardize the referral process and encourage

employee engagement in the recruitment process

Recommendation:

Step 1: Development of Clear Guidelines: Create a comprehensive document

outlining the referral program guidelines Specify the type of candidates eligible forreferral and the associated rewards

Sample Referral Program Guideline:

Eligibility: All employees are eligible to participate in the referral program Referral Rewards: Successful hires from referrals will receive a monetary reward

equivalent to 1% of the referred candidate's annual salary

Quality Criteria: Referrals should align with Xibei's core values, possess relevant

skills, and demonstrate a cultural fit

Process: Referrers must submit referrals through the online portal, providing

detailed information about the candidate's qualifications

Step 2: Monitoring and Feedback Mechanism:

Establish regular communication channels to address employee queries about thereferral program Provide updates on successful referrals and recognize employeeswho contribute significantly Implement a system to monitor the quality and success ofreferred candidates Gather feedback from both referrers and candidates to identifyareas for improvement

Step 3: Periodic Program Review: Conduct periodic reviews of the referral program

effectiveness Modify guidelines based on feedback and changing organizationalneeds

2.1.3.3 Use Objective Assessment Tools During the Selection Process

For each position, Xibei can incorporate objective assessment tools to ensure fair andunbiased candidate evaluations during the selection process The assessment toolscould be: Technical Tests, Cognitive Ability Tests, Situational Interview,

Goals: Enhance the accuracy of candidate assessments, mitigate biases in the selection

process, improve overall hiring decision-making

Example: Pre-Employment Tests For Cooks

Using Pre-Employment Tests For Cooks from Criteria, each applicant applying for thecook position will be required to do a dish as a means of evaluating their technicalskills after advancing through the interview process

● The test examine top skills and abilities that Xibei seeks in a cook, including: Oral Comprehension, Time Sharing, Selective Attention, Active

Listening and Social Perceptiveness

● Top 3 tasks involving in the test include:

Prepare, season, and cook a wide variety of foods

Clean food preparation areas and ensure work surfaces and equipment aresanitary

Ensure freshness of ingredients and food by evaluating quality, rotating stock,and ordering supplies

2.1.3.4 Communicate Effectively with Referrers and Candidates Throughout the Process

Clear communication with referrers ensures they are engaged in the process,understand the status of their referrals, and feel valued for their contributions Itencourages ongoing participation For each candidate, effective communicationprovides candidates with a positive experience, even if they are not selected Timelyupdates, constructive feedback, and transparency contribute to a positive employerbrand and enhance the likelihood of candidates reapplying or recommending others

Goals: Improve candidate and referrer satisfaction, enhance transparency in the

recruitment process, strengthen the employer brand

Recommendation:

Step 1: Communication Plan Development: Develop a comprehensivecommunication plan outlining touchpoints with referrers and candidates throughoutthe recruitment process Specify communication channels and frequency For Xibei,this could be through direct internal communication channels such as messaging apps

Step 2: Referrer Onboarding: Create an onboarding process for referrers, explaining

the recruitment stages and their role in the process Provide referrers with regularupdates on the status of their referred candidates

Step 3: Candidate Communication: Implement automated communication to keep

candidates informed about their application status Provide timely and constructivefeedback to candidates, even if they are not selected

Step 4: Regular Check-ins: Schedule regular check-ins with referrers to gather

feedback on the recruitment process, address any concerns or queries promptly

Step 5: Feedback Mechanism:

Establish a feedback mechanism for candidates to share their experience anonymously.Use feedback to identify areas for improvement in the recruitment process

3 Training and Development 3.1 Problem 1: Overspending on Training Programs at Xibei

3.1.1 Situation

Xibei Catering Group faces a concern regarding excessive spending on trainingprograms, with executive tuition reaching substantial amounts This has resulted insignificant financial implications, exemplified by the company's expenditure of $100million in 2017, representing 2% of their total revenue and nearly 25% of profits

3.1.2 Causes

The heavy reliance on individual chefs' skills, make standardization challenging.Xibei adopted hands-on methods with on-the-job learning, establishing the XibeiInstitute for intensive training, which resulted in a fivefold increase in training costsfrom 2014 to 2018

Poorly informed strategies in 2018, including retail pricing increases, led to asignificant profit reduction of 309 million

3.1.3 Solutions and recommendation

Solution: Peer-to-Peer and Team Training

Xibei should conduct a comprehensive assessment of its training needs to pinpointareas where personnel require training Implementing Peer-to-Peer training and TeamTraining can be effective methods for the company Employees with expertise inspecific areas can train others, reducing training expenditures and fostering acollaborative organizational culture

Goal: Cultivate a Collaborative Learning Culture Leading to Improved Employee

Skills and a 20% Reduction in Training Expenditures Within the First Year

Recommendation:

Step 1: Development

Conduct a comprehensive analysis to identify specific areas where training is essential,ensuring alignment with organizational goals This could be achieved with a TrainingNeed Analysis

Develop clear guidelines for Peer-to-Peer training and Team Training, outliningresponsibilities, expectations, and measurable outcomes

Step 2: Implementation

Launch a Peer-to-Peer training policy, pairing experienced employees with thoserequiring training Experienced employees can share practical insights, real-worldexamples, and best practices, facilitating a more comprehensive learning experience.Team Training encourages collaboration and collective skill development It creates asupportive environment where team members learn from each other, fostering a sense

of shared responsibility for skill enhancement

Establish a support system to monitor the effectiveness of Peer-to-Peer training,ensuring ongoing assistance and feedback: If certain aspects of the training are notdelivering the expected results, the support system enables prompt corrective actions

This can include regular check-ins, surveys, or dedicated communication channels forquestions and feedback.

Xibei should also assign mentors to employees undergoing Peer-to-Peer training.These mentors can provide ongoing support, answer questions, and guide learnersthrough the training process

Step 3: Assessment

KPI: Achieve a 20% reduction in training expenditures within the first year

3.2 Problem 2: Tolerance for Failure and Decision Making

3.2.1 Situation

Xibei Corporation encourages innovation by embracing failure However, thisapproach has led to an excessive acceptance of failure, potentially causing suboptimaldecision-making, reduced diligence, and a noticeable lack of accountability across theorganizational hierarchy While Jia acknowledges the permission for failure,exemplified in successful instances like the 3rd-gen model, cases such as WangLonglong's highlight the negative outcomes of poorly informed decisions The keychallenge arises from an overapplication of the tolerance for failure, fostering anenvironment where employees may not take sufficient measures to prevent or addressfailures

3.2.2 Causes

Overemphasis on Experimentation:

There may be an overemphasis on experimentation without a balanced focus on riskassessment and mitigation

Limited Impact Assessment:

The culture of experimentation might have led to limited post-failure impactassessments

Without thorough assessments, the organization might struggle to identify the rootcauses of setbacks and apply lessons learned to future projects

Lack of balance between Accountability with Innovation

Xibei's high tolerance for failure has fostered innovation but resulted in setbacks Thechallenge is to balance accountability without stifling creativity

3.2.3 Solutions and recommendation

3.2.3.1 Improved Impact Assessment

This is crucial for Xibei to enhance its decision-making processes and minimize therecurrence of failures By implementing a standardized post-failure analysisframework, Xibei gains a systematic approach to extract valuable insights fromfailures, preventing the repetition of similar mistakes

KPI: A 30% reduction in the recurrence of failures.

3.2.3.1.1 Enhanced Post-Failure Analysis:

Step 1: Development:

Create a post-failure analysis framework that incorporates key elements from theFMEA model (Failure Mode and Effect Analysis), which helps identify potentialfailure modes in a system, understand their causes and effects, and prioritize thembased on their impact

Figure3-1:FMEAmodelThis framework will guide the analysis process, ensuring that Xibei examines failurecauses comprehensively, understands their effects on operations, and developsstrategies to address and prevent similar failures in the future

Step 2 - Implementation for Staff

Organize workshops and training sessions dedicated to the enhanced post-failureanalysis process

This hands-on, interactive format provides a platform for engaging participantsdirectly in the learning experience

The workshops and training sessions should provide explanations for the enhancedpost-failure analysis process, provide hands-on training to teams using thestandardized framework, and emphasize the critical importance of applying the gainedinsights to decision-making processes