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Optimizing leadership and strategy to develop an expenditure-reduction plan: an improvement study

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Optimizing leadership and strategy to develop an expenditure-reduction plan: an improvement study

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Optimizing Leadership and Strategy to Develop an Expenditure-Reduction Plan:
An Improvement Study

by

Ed Balderas

Rossier School of Education
University of Southern California
A dissertation submitted to the faculty
in partial fulfillment of the requirements for the degree of
Doctor of Education

May 2022

© Copyright by Ed Balderas 2022
All Rights Reserved

The Committee for Ed Balderas certifies the approval of this Dissertation

Eric J. Canny
Kenneth Yates
Adrian J. Donato, Committee Chair

Rossier School of Education
University of Southern California
2022
iv
Abstract
This study explored the knowledge-based, motivational, and organizational root causes that
prevented Apex Pacific Industries from developing an expenditure-reduction plan. In addition,
this study examined the challenges that led management development to lack a strategy and
solution that aligned with the organization’s mission and goals. Gap analysis provided this
study’s conceptual and methodological framework. Using explanatory sequential mixed
methodology, this study examined the relationships between the knowledge, motivation, and
organizational factors affecting managers’ performance. The study combined surveys,
interviews, and documents to answer the following research questions: What knowledge and
motivation needs to be addressed to develop the plan to reduce expenditure by 50%? What is the
interaction between organizational culture and context and leadership knowledge and
motivation? What are recommended knowledge, motivation, and organizational solutions?
Results from surveys and interviews verified nine influences on the problem of practice in the
areas of factual, procedural, and metacognitive knowledge, task value, self-efficacy, team
efficacy, attributions, cultural models, and cultural settings. The verified influences were utilized
to select evidence-based recommendations for solutions and create an integrated implementation
and evaluation plan using the new world Kirkpatrick model. The suggested program informs a
training certification course for management development that will assist in developing an
expenditure-reduction plan to meet the organization’s success.
Keywords: expenditure-reduction plan, management development

v
Dedication
To my beloved late grandmother. Your goal and love to influence me to pursue an education,
indeed, was effective.

To my late uncle. Together we shared many fun and exciting times. I wish you were here to
share this experience.

To my kids, whose intensity and early outlook towards school are evident despite only being at
the early stages of their educational journey. You fueled me to move forward in setting and
achieving my academic goals as I observe your hunger for learning. You have made me stronger,
better, and more fulfilled than I could have ever imagined. I want you to know that you have
every option and support available from your mother and me to reach your dreams. Always
believe in yourself as I believe in you. You’re the best, and I love you.

vi
Acknowledgements
Thank you to my dissertation committee members for their guidance in developing and
completing my dissertation. To my chair, Dr. Donato, who has proved to be incredibly
supportive and positive by providing the advice needed to complete this project and building my
confidence along the way. Thank you to Dr. Yates for agreeing to serve on the committee. Your
vast expertise in my field of study was instrumental in allowing me to conduct my research with
the skills needed and provided a meaningful study to defend. Finally, Dr. Canny, I am grateful to
you for inspiring me and for your mentorship.
Thank you to Hao Pengshung and Robert Mb Flak for your support. Whether reviewing
coursework, discussing strategies, or our sidebar joking during class, you both made this
experience fun. We stuck together and formed a brotherhood. You both have big goals, and I am
confident you will continue to succeed.
Thank you to Mr. Howard Freidman. Despite the years that have passed, I have never
forgotten that I received a second chance to complete my education through your vision and
innovation. You were also responsible for leading me to attend my first experience in college. I
always had you in mind when I earned a degree. Again, I think of you and your faculty, who
helped pave the way for my educational and future opportunities. Thank you, Howard.
Thank you to my parents for their sacrifices. You have always taught me valuable lessons
as to why education was important. I remember and appreciate those lessons.
Lastly, thank you, Evelyn. There were moments when I was like a lost sailor at night with
no instruments or stars to guide me, but you were there to navigate me in the right direction.
vii
Table of Contents
Abstract .......................................................................................................................................... iv
Dedication ........................................................................................................................................v
Acknowledgements ........................................................................................................................ vi
List of Tables ...................................................................................................................................x
List of Figures ............................................................................................................................... xii
Chapter One: Introduction of the Problem of Practice ....................................................................1
Background of the Problem .................................................................................................1
Organizational Context and Mission ...................................................................................3
Importance of Addressing the Problem ...............................................................................4
Organizational Performance Status......................................................................................5
Organizational Performance Goal........................................................................................6
Stakeholder Group for the Study .........................................................................................8
Purpose of the Project and Questions ..................................................................................8
Conceptual and Methodological Framework .......................................................................9
Definitions............................................................................................................................9
Organization of the Project ................................................................................................10
Chapter Two: Review of the Literature .........................................................................................11
Influences on the Problem of Practice: Organizational Leaders’ Financial Planning .......11
Role of Stakeholder Group of Focus .................................................................................17
Knowledge, Motivation and Organizational Influences Framework .................................18
Conceptual Framework: The Interaction of Stakeholders’ Knowledge and Motivation
and the Organizational Context .........................................................................................33
Conclusion .........................................................................................................................35
Chapter Three: Methods ................................................................................................................36
Participating Stakeholders .................................................................................................36
viii
Survey Sampling Criteria and Rationale............................................................................37
Survey Sampling, Recruitment, Strategy, and Rationale ...................................................38
Interview Sampling Criteria and Rationale........................................................................39
Interview Sampling, Recruitment, Strategy, and Rationale ...............................................39
Observation Sampling Criteria and Rationale ...................................................................40
Document Analysis Sampling Criteria and Rationale .......................................................40
Data Analysis Sampling, Access, Strategy, and Rationale ................................................40
Data Collection Instruments and Procedures .....................................................................41
Data Analysis .....................................................................................................................44
Credibility and Trustworthiness .........................................................................................45
Validity and Reliability ......................................................................................................46
Ethics..................................................................................................................................47
Limitations and Delimitations............................................................................................48
Chapter Four: Results and Findings ...............................................................................................50
Participating Stakeholders .................................................................................................50
Data Validity ......................................................................................................................52
Results and Finding for Knowledge Causes ......................................................................52
Results and Finding for Motivation ...................................................................................59
Results and Finding for Organization ................................................................................70
Summary of Validated Influences ......................................................................................75
Conclusion .........................................................................................................................76
Chapter Five: Conclusion ..............................................................................................................78
Organizational Context and Mission .................................................................................78
Organizational Performance Goal......................................................................................79
Description of Stakeholder Groups ....................................................................................79
ix
Goal of the Stakeholder Group for the Study ....................................................................80
Purpose of the Project and Questions ................................................................................81
Introduction and Overview ................................................................................................81
Recommendations for Practice to Address KMO Influences ............................................83
Integrated Implementation and Evaluation Plan ..............................................................100
Strengths and Weaknesses of the Approach ....................................................................116
Limitations and Delimitations..........................................................................................117
Future Research ...............................................................................................................118
Conclusion .......................................................................................................................118
References ....................................................................................................................................120
Appendix A: Survey Protocol ......................................................................................................145
Appendix B: Interview Questions ................................................................................................158
Appendix D: Information Sheet ...................................................................................................161
Appendix E: Sample Survey Items Measuring Kirkpatrick Levels 1 & 2 ...................................163
Appendix F: Sample Survey Items Measuring Kirkpatrick Level 3 Drivers ...............................164
Appendix G: Sample Blended Evaluation Items Measuring Kirkpatrick Levels 1, 2, 3, & 4 .....165

x
List of Tables
Table 1: Stakeholders’ Performance Goals 7
Table 2: Knowledge Influences, Types, and Assessments for Knowledge Gap Analysis 23
Table 3: Assumed Motivation Influence and Motivational Influence Assessments 28
Table 4: Organizational Influences and Organizational Influence Assessments 32
Table 5: Participants 51
Table 6: Task Value 60
Table 7: Summary of Results and Findings, Reported as Identified Assets and Validated
Influences 76
Table 8: Summary of Knowledge Influences and Recommendations 84
Table 9: Summary of Motivation Influences and Recommendations 89
Table 10: Summary of Organization Influences and Recommendations 97
Table 11: Outcomes, Metrics, and Methods for External and Internal Outcomes 102
Table 12: Critical Behaviors, Metrics, Methods, and Timing for Evaluation of Managers 104
Table 13: Required Drivers to Support Critical Behaviors of Managers 105
Table 14: Evaluation of the Components of Learning for the Program. 110
Table 15: Components to Measure Reactions to the Program. 111
Table A1: Factual Knowledge Survey Items 146
Table A2: Procedural Knowledge Survey Items 147
Table A3: Metacognitive Knowledge Survey Items 148
Table A4: Task Value Survey Items 149
Table A5: Self-Efficacy Survey Items 151
Table A6: Team Efficacy Survey Items 153
Table A7: Attribution Survey Items 155
Table A8: Cultural Model Survey Items 157
xi
Table A9: Cultural Settings Survey Items 157
Appendix C: Document Analysis Protocol 160
Table E1: Sample Survey Items for Level 1 163
Table E2: Sample Survey Items for Level 2 163
Table F1: Sample Survey Items for Level 3 164

xii
List of Figures
Figure 1: Core Operations 4
Figure 2: Conceptual Framework 34
Figure 3: Factual Knowledge Influence 54
Figure 4: Procedural Knowledge 56
Figure 5: Metacognitive Influence 58
Figure 6: Self-Efficacy 63
Figure 7: Survey Findings for Rate Your Confidence in Your Team Implementing Each of the
Lean Manufacturing Principles to Reduce Cost (0 Least Confident to 10 Most Confident) 66
Figure 8: Attribution 68
Figure 9: Cultural Model 70
Figure 10: Cultural Setting 73
Figure 11: Reduction Plan by Month 114

1

Chapter One: Introduction of the Problem of Practice
Management interprets key performance indicators that reflect the efficiency and
effectiveness of operations and achieving profits (Cupać et al., 2019). An internal commonality
among organizations may be managers who face operational expenditure processes that are not
ready to take on the responsibility. Management may also lack decision-making skills resulting
in financial losses. Factors leading to overspending can also result from external rather internal
reasons, such as acts of God, that lead to unexpected costs which need to be considered when
planning. Clark and Estes (2008) stated that increasing knowledge, skills, and motivation (KMO)
and focusing on these assets are keys to success for organizational goals. According to Garicano
and Rayo (2016), budgetary and macroeconomic issues represent 83% of the reasons for
business failures. Therefore, understanding management’s accountability in operations and
business trends is vital in the economic vitality of the United States.
Background of the Problem
Research has shown that financial performance data has served as the measure of success
and failure in organizations (Beer et al., 1994). Berryman (1983) noted that failed firms are
grouped in three areas of causes: behavioral problems of the owner/manager, the
owner/manager’s inability to plan, and economic downturns affecting the company.
Approximately 55% of all new ventures fail due to managerial shortcomings (Dun & Bradstreet,
1981; Siropolis, 1986). Other primary causes are incompetence (O’Neill & Dunker, 1986), and
the high failure rate is associated with poor management (Alpander et al., 1990). Existing
literature describes inadequate and poor management that can cause employees’
counterproductive outcomes, and negative employee engagement leads to costs, productivity,
and absenteeism (Pyc et al., 2017). Other negative management traits can lead to disadvantages
2

such as micromanaging employees’ productivity, where their creativity suffers as the employee
tends only to do what is necessary to get by and will not make suggestions regarding
improvements (Shuford, 2019). Employees reflect management, and management faces
challenges in their social influences, which affect their personal development through the
competencies, values, and interests these influences promote (Wood & Bandura, 1989). It is
essential to understand and utilize accountability, which can start when the leadership develops
strategic objectives and action plans, implementation, and advises how progress is measured
(Stecher & Kirby, 2004).
Managers readily undertake challenging activities and pick social environments; they
judge themselves as capable of managing (Wood & Bandura, 1989). They also note that
unsuccessful business owners did not successfully combine their analytical skills with their risk-
taking ability. In contrast, neither age nor education influenced their perception of critical
problem solving and decision-making progress (Alpander et al., 1990). These factors can lead to
overspending when managers spend beyond the allocated funding for their departments. As a
result, managers have found themselves having to balance their continued exposure to traditional
budgetary controls and imperatives. These measures progress towards predetermined financial
targets, with the more broadly based and intense demands imposed by the need to pursue
strategic initiatives (Frow et al., 2005). Prior research on performance budgeting (PB) and
accountability focused on whether PB arrangements produce information that allows conclusions
about efficient and effective public expenditure and the factors that influence the use of PB
information (Lu et al., 2015).

3

Organizational Context and Mission
Apex-Pacific Industries (API) is a lumber company offering premade builders’
production packages, for speed of service, with various lumber supplies. In addition, vineyard
operators and landscape architects provide irrigation systems and parts, domestic trellising,
harvest storage, safety gear, and pruning tools for the whole team. Overall, API’s mission
includes being a leading, diversified, top 100 U.S. building supply company serving professional
builders and vineyard operators in Northern California. It is a regional industry leader with over
$100 million in sales, five warehouses, 41 acres of inventory, 55 delivery vehicles, two fully
stocked production yards that sell over 100 million board feet each year, one prefabricated wall
facility, and is an export/import business. Today, as a progressive 21st-century company, the
organization remains on the leading edge, expanding its capabilities and utilizing modern tools to
improve its customer focus and service. The organization was founded in 1955 and has been
family-owned and operated for three generations. Its commitment to the communities it serves
has never waned, and it has been working with developers, builders, framers, and farmers who
have helped it grow and develop. In 2003 the third-generation owner became president and chief
executive officer (CEO) of the company and its affiliates, growing its service orientation,
customer focus, and operational efficiency. In 2014, API re-branded itself to reflect the diversity
of its current company serving professional builders and vineyard operators.
The core operations activities of the organization around producing premade builders’
production packages relate to firm infrastructure, human resources, new product development,
manufacturing, research and development, distribution/sales, and marketing (Figure 1). The area
of focus in this study is the manufacturing and distribution/sales operations related to premade
builders’ production packages.
4

Figure 1
Core Operations

Importance of Addressing the Problem
The problem of the API department’s overspending in producing premade builders’
production packages is important to solve for various reasons. Specifically, the manufacturing,
distribution and sales operations department deals with recurring financial issues. Executive
management decided to pursue cost-saving objectives. Yet, upper management, tasked with the
project, faces challenges in finding a remedy to stay within its financial boundaries. The
department has faced multiple obstacles by continuous overspending and uncertainty in
executing the executive’s intent. The organization aims to reduce spending by 50% per month; it
currently spends 120% of its budget per month. The performance gap is 70%. This problem
impacts the organization’s mission because budgetary overspending exposes financial risks.
These risks may lead to the organizational consequences of providing fewer products and
services to customers. With fewer products and services to provide, the organization’s revenue
will be affected, which will lead to personnel reduction by layoff or firing. Similar financial
5

management decisions can occur in any of the organization’s departments. Bennett (1998) stated
that strategic decision-making is an unstructured process with various conflicting internal and
external influences that may only be understood as tacit knowledge by top managers. Thus,
solving the management and financial issues are important in determining whether the issues lie
in the management’s lack of resources or the cognitive nature and its subjective (individual) or
objective (collective, tradition-based) dimensions (Collins, 2004; Dreyfus & Dreyfus, 1986) of
financial knowledge.
Organizational Performance Status
The organizational problem is the financial performance and management oversight
measured monthly, quarterly, and yearly, resulting in unfavorable results. The primary
measurement is the total business and generated revenues. The measure of a firm’s overall
financial success has been positive. However, the operations department has been hindering the
maximized revenue potential due to the constant overspending. The leadership is aware of the
financial management issue and aims to eliminate the department’s overspending.
During fiscal year 2023, the goal will be to reduce overall costs, including allocated funds
and overspending, by 50% in the production of premade builders’ production packages. The
CEO, chief financial officer (CFO), and chief operations officer (COO) established this goal and
delegated responsibilities to the senior vice president of operation (SVPO) to implement and
execute the processes to meet the goal. Failing to reduce spending will continue to affect net
profit, which will affect stakeholders’ interests and goals. By lowering expenditures, the
company will set a pattern in ensuring the operations department’s ability to meet all of the
stakeholder’s needs and goals in the future.

6

Organizational Performance Goal
The organization’s goal is that by May 2023, it will cut costs by 50% of its current budget
allocations. The CFO and the COO established this goal after meeting quarterly goals with the
CEO. The leadership mentioned concerns about the consistent overspending of the department’s
budget through the vast majority of the year. As a result, the CFO delegated to the SVPO to
streamline all aspects of the department to fulfill the executive leadership goals. In addition,
audits will measure the results of their financial performance through June 2023.
Description of Stakeholder Groups
The stakeholders for API are the board of directors, managers, and employees. This
specific lumber service organization consists of several departments. API is a functional
organization structure, whereas a hierarchy oversees groups categorized by the employees’ skills
and knowledge. These internal stakeholders are affected by an organization’s effectiveness and
efficiency. Without the assistance, the other stakeholder will not function or manage daily
operations without the other.
The board of directors selects and hires the CEO. The chairman of the board is related to
the CEO. Their influence and intent are to support the CEO and review his performance. They
also ensure effective strategic planning, ensuring the company has the resources to be successful
and manage the resources effectively. The return on investment for the board of directors’ hinges
on its strategy’s success or failure.
Employees are API’s key to success and have proven to be its most valuable asset. They
are the first to ensure customers’ demands are fulfilled. By providing lumber as a product and
service, customers are more likely to repeat business. In addition to serving and delivering
material on demand, which produces job satisfaction and revenue, it will give API a competitive
7

edge within the industry. The employees’ job is their livelihood; thus, contributing to
productivity and efficiency will motivate them to return on investment.

Table 1
Stakeholders’ Performance Goals
Organizational mission
API exists to serve the building community as craftsmen, artists, engineers, planners, and
problem solvers by supplying some of the region’s best-built projects.
Organizational performance goal
By 2023, API will reduce its operational spending by 50%.
Leadership
(VPs, directors, managers)
Employees Shareholders/board
By 2023, the leadership will
develop an expenditure-reduction
plan.
By 2023, employees
will execute the
leadership’s intent to
reduce the
operation’s
department
expenditures.
By 2023, the board of
directors will support and
ensure the company’s
success by collectively
supporting the expenditure-
reduction plan while
meeting the interests of its
stakeholders.

8

Stakeholder Group for the Study
Although a complete analysis would involve all stakeholder groups, this study focuses
on the SVPO, directors, and managers for practical purposes. Leadership in the operations
department supports the SVPO’s decisions. The stakeholders’ objective in the top-down
approach is to reduce the department’s spending. The current CEO assesses the overall direction
of the business. The ideas and direction the CEO determines his larger goals will filter down to
the CFO, who proposes his plans and seeks recommendations or feedback from the COO. The
COO then delegates these plans, goals, and budgets to the SVPO. The SVPO is now responsible
for ensuring these plans are performed and achieved within the agreed-upon budget. After the
SVPO accepts his objective, he spearheads daily operations while having the aid of his directors
and managers. At this point, the SVPOs must demonstrate productivity in management styles or
approaches. Examples of the SVPO productivity or obstacles are the competencies of realistic
planning, goal setting, and effectiveness. In achieving these goals, the company’s revenue will
not be affected. Customers will continue to receive their supply goods, vendors’ services will
continue, and employees will not worry about being laid off. The organization’s competitors can
also capitalize on this opportunity if the SVPO continues to overspend within the department’s
budget. The goals align with the stakeholders, who are focused on reducing spending by 50% of
the current budget.
Purpose of the Project and Questions
The purpose of this project was to conduct a gap analysis to examine the KMO influences
that interfere with reducing the operations departments’ spending by 50%. The analysis began by
generating a list of possible or assumed interfering influences that were examined systematically
to focus on actual or validated interfering influences. While a complete gap analysis would focus
9

on all stakeholders, for practical purposes, the stakeholder to be focused on in this analysis is the
leadership in terms of decision making, performance, and effectiveness.
1. What knowledge and motivation need to be addressed to develop the plan to
reduce expenditure by 50%?
2. What is the interaction between organizational culture and context and leadership
knowledge and motivation?
3. What are recommended knowledge, motivation, and organizational
solutions?
Conceptual and Methodological Framework
Clark and Estes (2008) stated that a gap analysis is a systematic, analytical method that
helps clarify organizational goals and identify the gap between the actual performance level and
the preferred performance level within an operations department. The gap analysis helped
analyze the problem. The methodological framework is a qualitative research study. Assumed
KMO barriers that interfere with organizational goal achievement will be generated based on
collective knowledge and related literature. These influences were assessed through surveys,
interviews, literature review, and content analysis. Research-based solutions are recommended
and evaluated comprehensively.
Definitions
• C-Suite: Term refers to the executive-level managers within a company.
• Cost saving: A term used by companies to reduce their costs and increase their profits
• Financial management: A term meaning planning, organizing, directing, and
controlling financial activities like procurement and utilization of the enterprise’s
funds.
10

• Performance management: A term used for a process of ensuring that a set of
activities and outputs meets an organization’s goals effectively and efficiently.
• Tacit knowledge: This is the kind of knowledge that is difficult to transfer to another
person through writing it down or verbalizing it.
Organization of the Project
Five chapters are used to organize this study. This chapter provided the key concepts and
terminology commonly found in a discussion about leaders who will develop an expenditure-
reduction plan to reduce operational spending by 50%. The organization’s mission, goals,
stakeholders, and the initial concepts of gap analysis were introduced. Chapter Two provides a
review of the current literature surrounding the scope of the study. Topics of organizational
leaders’ financial planning, the intersection of leadership planning, and resource utilization
strategy will be addressed. Chapter Three details the assumed interfering KMO elements and
methodology for choosing participants, data collection, and analysis. In Chapter Four, the data
and results are assessed and analyzed. Chapter Five provides solutions, based on data and
literature, for closing the perceived gaps and recommendations for an implementation and
evaluation plan for the solutions.

11

Chapter Two: Review of the Literature
An inherent commonality among organizations is leaders who face issues in financial
planning. Financial issues that start at the planning phase may lead to losses or minimal profit
because of the leaders’ decision-making skills. Reasons leading to overspending rather than
increasing net profit can initiate from many factors that may not be considered when planning.
Clark and Estes (2008) stated that increasing knowledge, skills, and motivation and focusing on
these assets are keys to meeting organizational goals. According to Garicano and Rayo (2016), a
study indicated that budgetary and macroeconomic issues represent 83% of the reasons for
business failures. Therefore, understanding management’s accountability in financial planning
operations and business trends is vital in the economic vitality of the United States.
This chapter reviews organizational leaders’ financial planning, the intersection of
leadership and planning, and resources utilization strategy. Then, I examine the leaders’ roles
and explain the KMO influences’ lens used in this study. Lastly, I focus on the leader’s KMO
influences and complete the chapter by presenting the conceptual framework.
Influences on the Problem of Practice: Organizational Leaders’ Financial Planning
The purpose of financial planning is to strategize and develop the business goal, taking
into account the leaderships’ attitudes and behavior and using the organization’s financial data to
explain and predict current and future outcomes that will help the organization reach its goals.
The financial plan should be created and implemented to use resources effectively and
efficiently, whereas profit is measured by a certain standard (Khan, 2017; Steiss & Nwagwu,
2001). Research states financial planning is essential so that business leaders use strategic goals,
foresee the impact of their decisions on future results, and adapt by making corrections when
noticing that performance results start to yield negatively (Narkunienė, & Ulbinaitė, 2018).
12

Financial planning is an essential component for leaders achieving the goal, profit-maximizing
(Azarenkova et al., 2017; Guide et al., 2003). These goals in planning will involve expenditure-
reduction planning, process of cost reduction, and resources utilization strategy.
Expenditure-Reduction Planning
Leaders aim to increase profit. Therefore, they strategize to develop a financial plan to
reduce costs accumulated from the organization’s expenditures. Financial budgets must
supersede operating strategies and business forecasts that focus on drivers’ milestones, such as
processes, activities, and the monitoring of critical assumptions and indicators of future
performance (Alexander, 2018). Financial planning and analysis teams must prioritize their
needs for thinking and judgment to plan, measure, review, and identify improvements in business
and key drivers, including net growth, margins, operating, and capital effectiveness (Alexander,
2018; Vassell, 2016). The current market, economic climate, and work tempo changes have
significantly increased the need for effective financial planning, and leaders need to identify the
indicators for performance improvement (Alexander, 2018). Strategic planning creates important
factors such as acknowledging collective decision making, a systematic process, and
understanding how to excel within an organization (Shaw et al., 1998). Strategic planning
consists of various tasks, such as reviews, meetings, and creating plans (Doll, 2020).
Expenditure-reduction planning requires a strategic approach in critical thinking, consisting of
processes that make an organization operate. Leaders must know what financial planning entails
before implementing a method of expenditure-reduction plans.
Process of Cost Reduction Planning
The process of expenditure reduction requires a financial plan that incorporates policies
and sequences. Financial planning is identified as developing a method of planned indicators to
13

ensure the efficient formation and use of financial resources (Klishina & Likhacheva, 2019;
Nekhaychuk et al., 2019; Sakharna et al., 2018). An indicator may consist of preparing a
comprehensive, integrated business plan that will serve the organization in viewing the effects of
the future uncertainty on its financial plan (Lytton et al., 2012; McKeever, 2016). Proper
planning will lead to appropriate implementation and evaluation to increase efficiency and
reduce costs (Chandran et al., 2019). The effectiveness of financial planning formation and its
use affect profits and other aligned goals such as cost reduction. Financial planning for cost
reductions begins with the organization’s leaders (Čalopa, 2017), who must intersect their
knowledge and planning expertise.
Intersection of Leadership and Planning
When leaders are planning, they should focus on planning for improvement. This process
is to identify low performance and raise the organization’s achievement with goals that matter,
such as budget decisions (Starr, 2019). The gap between the leadership changes and the culture
of valuing financial planning to reduce cost and build net profit can be intentionally planned
(Kuslina & Widjaja, 2018) for improvement and effectiveness. Leadership can practice strategic
planning to improve organizational performance, as evidence proves as they achieve their goals.
Many organizations failed due to not practicing or applying a strategy in planning to improve
performance or manage the right culture (Cameron & Quinn, 2006; Connolly et al., 2011;
Schein, 2004). Organizational effectiveness increases when leaders enable the culture of
problem-solving to improve effectiveness and be accountable in financial planning that will
prove essential to an organization.

14

Leadership’s Accountability in Financial Planning
Leaders’ pivotal role is to ensure a strategic, developed, and successful financial plan for
their organization exists. Leaders are not immune to failure, as there is immense responsibility
and accountability in managing the organization’s economic resources (Haesevoets et al., 2016;
Spitzer, 2005). Leaders with expertise must control financial planning and integrate any change
into the financial plan. A responsible leader must practice caution by applying their knowledge
to their decision-making adaptability throughout the planning (Eagly, 2018; Saayman, 2016;
Waldman et al., 2020).
Negative impacts can minimize making the right decisions supported by strategic
planning. In making a budget, leaders must be accountable for their choices in support of the
strategic plan, which is the first step in building a financially stable organization (Israel & Kihl,
2005). Also, accountability is an organizational response rather than compliance (Elmore, 2005;
Gray et al., 2017). Leaders are involved with financial planning and hold themselves accountable
or held accountable by the organization if they are not successful in their financial planning.
Thus, leadership must be in consensus when developing these financial plans.
Leadership’s Consensus in Developing Plans
A leader’s confidence and trust in using their team’s expertise helped meet organizational
goals. Team members who trust their leaders and are receptive to their values add to their
knowledge in developing the organization’s financial plan. However, establishing trust and
building team cohesion is challenging when leaders need to address concerns about others’
behavior or performance or in a relationship of unequal power (Bryk & Schneider, 2002;
Simpson, 2007; Sinnem et al., 2013). Leaders must build the capabilities required to develop a
team committed to addressing and resolving challenges (Meyer et al., 2017). Successful leaders
15

ensure their knowledge is sufficient, and they know when to seek the help of their team members
who are more knowledgeable than them (La Fasto et al., 2001). Trust builds through a leader’s
strength and behavior (Rath & Conchie, 2008). These traits and actions show the leader’s
competence and intentions for the team’s development and performance. When the team believes
their leader is trustworthy, competent, and cares about their work, they will be receptive to
sharing information with the leader (Lee et al., 2010). Trust is a two-way approach, and leaders
must trust personnel as much as the staff trusts leaders to build consensus. Hence, the payoff of
leaders trusting personnel results in them working harder and being more dedicated to the
organization’s leaders and success. Having confidence and trust in employees produces more
exceptional results, but the leader must ensure personnel has the resources to succeed in their
job.
Resources Utilization Strategy
Strategy leaders can execute to increase positive employee engagement, and
organizational effectiveness is to provide employees with the resources to achieve their goals
(Albrecht et al., 2018; Waters et al., 2003). A leader must know which resources to align and
then align their allocation with the organization’s goals and priorities (Bridgman, 2007;
McLaughlin, 2004; Waters et al., 2003). Leaders may turn to their resources for outsourcing in
seeking financial experts as a quick solution and understand that outsourcing had a strategic role
that helped improve the organization’s innovation and knowledge. If so, to avoid interrupting
operations and stress, this plan must be controlled and communicated (Jyoti et al., 2017; Syakur
et al., 2020).

16

Resources for Outsourcing Financial Expertise
An organization can utilize a resource option such as outsourcing financial experts to
assist it during its financial planning. Financial outsourcing indicated resources and services
relevant and influential to the overall organizational performance (Kotabe & Mol, 2009).
Outsourcing services are key factors for improving companies’ financial performance within a
level not to be exceeded (Höglund & Sundvik, 2016; Sanchís-Pedregosa et al., 2018). An
effective and efficient assessment of outsourced resources and services helps identify technical
efficiencies and cost-efficiencies of various activities and subsequently identifies those activities
outsourced to enhance quality and profitability (Nyameboame & Haddud, 2017; Strumickas et
al., 2017). The decision to outsource is not based on the logic of outsourcing non-essential
operations activities but rather on activities central to operations to achieve a competitive
advantage (Cox & Pilbauer, 2018; Nordigården et al., 2014). Outsourcing has its benefits and
will reflect on management’s decisions and willingness to seek external help, thus helping
organizations run more effectively and efficiently (Pomering & Kammerer, 2019), improve
organizational performance, and achieve a competitive advantage. Whether a business
outsources for financial planning, the organization’s internal and external communications
channels will be needed to develop plans.
Communication Channels Within the Organization
Communicating is essential among all organization stakeholders to be strategic and
proactive in business-related issues. Communication is vital in every organization, whether
between the departments or with other organizations, and success depends on the quality of
communication; therefore, it is a necessary process (Ghibanu, 2018). Quality and efficiency of
communication among the employees, users’ trust and satisfaction (Lee, 2018), increased profits,
17

and the creation of competitive advantage are the most important factors for the organization’s
continued growth (Stevanović & Gmitrović, 2015). The lack of information on essential
organization events demotivates employees (Edwards & Fredriksson, 2017). Staff wants to be
involved with the organization, as communication builds values in addition to passing
information, creating an ideology of changes that motivate and educate those employees
(Jakubiec, 2019; Keyton, 2017). Communication within a business is a powerful and impactful
tool. All staff should be informed to ensure involvement within an organization that values
essential factors and proves beneficial.
Summary
Understanding the development of plans promotes self and team efficacy, motivation,
and a culture valuing improving performance by strategizing and adapting behaviors such as
commitment and cooperation (Senko & Tropiano, 2016) in achieving the leaders’ goals. A factor
in learning specific competencies increased opportunities for growth in the learning process’s
improvements towards developing these competencies (Dweck, 1986; Senko & Tropiano, 2016).
Leaders’ relationships and their mastery of KMO influences affected their strategy and
development in financial planning that reduced cost and increased net profit. These influences
were further explored in the following sections, as the problem caused a gap through the lens of
KMO root causes.
Role of Stakeholder Group of Focus
This study’s primary stakeholder is leadership, as they have the most significant impact
on achieving daily operations and staying within budget. Leaders are responsible for developing
a financial plan to reduce expenditures and ultimately increase net profit. Increasing net profits
has benefits, such as bigger bonuses for leaders and maintaining employees. Leadership sets the
18

organization’s culture and ensures meeting goals. The leaders model the desired behaviors of
achieving profit and directly model the behaviors that echo and demonstrate the social cognitive
theory. The development of people’s cognitive, social, and behavioral competencies occurs
through modeling, often mirrored by leadership, cultivating people’s beliefs in their capabilities
to effectively use their talents and skills (Bandura, 1988). In this gap analysis (Clark & Estes,
2008), the knowledge-based and motivational barriers to developing a financial plan for
expenditure reduction were studied alongside the broader organization to reach its goal of
increasing net profits.
Knowledge, Motivation and Organizational Influences Framework
Clark and Estes’s (2008) gap analysis framework helped study the stakeholders’
performance and the organization’s problem. The problem-solving process is understanding
stakeholder goals and identifying assumed performance KMO influences, general theory,
context-specific literature, and current understanding of the organization processes. In this study,
Clark and Estes’s framework problem-solve this improvement model for organizational leaders
optimizing financial planning. The stakeholder-specific KMO followed these assumed
influences. This section explores the literature on the potential knowledge-based and
motivational influences of the leaders’ ability to develop a plan regarding the organization’s
financials, along with barriers related to reducing expenditures by half of its current allocated
funding, leading to improving financial and increasing net profit.
Stakeholder Knowledge, Motivation and Organizational Influences Knowledge and Skills
Knowledge is defined in four models: factual, conceptual, procedural, and metacognitive
(Krathwohl, 2002). Declarative knowledge splits into two areas: factual and conceptual
knowledge. These represent things that people know and understand. Procedural knowledge is
19

the third type, and it highlights knowing how to do something (Rueda, 2011). This type of
knowledge can include skills, techniques, and methods. The last type of knowledge is
metacognitive, and it refers to thinking about thinking (Baker, 2002). Metacognitive knowledge
is knowing and controlling cognition while being able to self-reflect and self-regulate
(Krathwohl, 2002).
Factual Knowledge
Leaders needing to reduce costs will need to create a financial plan to follow and meet
performance and problem-solving methods (Riley & Greeno, 1988). The leaders’ knowledge can
assist in problem solving, such as in financial planning, which can help reach the goal of cost
reduction (Benjamins et al., 1996). According to PWC Insurance (2016), knowledge to make the
right choices based on the following core competencies means having a clear view of strategy,
aligning cost to strategy, aiming high in new ways of working, setting direction, showing
leadership, and creating a culture of cost and optimization. Tan and Kao (1999) stated the results
indicate that accountability and knowledge jointly moderate task complexity and performance,
demonstrating a leader must have the know-how and self-reflect on the team’s success. Also,
performance decline affects increasing complexity only under combinations of low knowledge
and high accountability or low accountability and high knowledge. Performance is unaffected by
increasing task complexity when employees have high knowledge and high accountability (Tan
et al., 2002).
The factual knowledge influence examined in this study was that leaders need to know
the organization’s core competencies for financial planning. Leaders must evaluate the
continuous knowledge and experiences needed to carry out business objectives (Kopczewski &
Plucienniczak, 2019). Being a competent leader who possesses the know-how occurs during the
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process of becoming such a leader, which, in turn, becomes their identity. Leaders should
experience continuity and change, progress and stand-still, knowing, and not knowing (Bolander
et al., 2019), and this knowledge and experience will be evident. Also, knowledge integration
leads to a sustainable competitive advantage, but the relationship among knowledge,
management, and competence is often fragmented because of various conceptualizations (Bashir
& Farooq, 2019).
Procedural Knowledge
The procedural knowledge influence evaluated in this study was that leaders need to
know how to develop a financial plan for expenditure reduction. The organization’s leaders’
strategic financial planning impacts whether the net profits increase or decrease. Hence, the
budget requires continuous attention and interaction from managers of all levels with their
flexibility to adapt to the increasingly complex and unpredictable changes (Abernethy &
Brownell, 1999). Planning is the activity that every other activity in the organization depends on
to make various decisions. The strategy uses the available means within an integrated process
prepared and planned to create a margin of action (Alhusseinawi, 2017). An organization will
choose an individual manager who understands financials in the context of strategic thinking and
sets financial goals (Aaltola, 2019).
Procedures influence knowledge in many aspects; however, for this study, the leader’s
financial strategies in developing a financial plan are essential in increasing net profit. Key
milestones in the strategic financial planning process are external and internal factors from the
organization’s perspective that are identified, analyzed, and taken into account when preparing to
implement a long-term financial strategy (Georgieva, 2018).
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Processes that have emerged in organizations, from strategic planning to resource allocations, all
build on a presumption that leaders have the expertise and wisdom to make decisions on behalf
of the organization (Birkinshaw & Goddard, 2009). A resolution should address the assumption.
Creating and setting goals gives direction, inspiration, focus, satisfaction, better prioritizing, an
opportunity to evaluate and learn. However, how to develop goals can be challenging but can be
turned into a positive (Korneliusson & Mohammadi, 2018).
Metacognitive Knowledge
Leaders who simply have information about an organization’s financial plans are not
sufficient for them to make decisions (Antonietti et al., 2016). Metacognitive knowledge is
defined as thinking about thinking (Baker, 2006), and for this purpose, leaders think about their
leadership decision. Metacognition involves the self-regulation of one’s conceptual learning and
self-reflection about oneself as a learner (Dembo & Eaton, 2000; Flowers & Banda, 2016;
Mathabathe & Potgieter, 2017). Self-reflection of how they function as leaders within an
organization is necessary, and, more importantly, they need to be able to make decisions based
on the ability to perform their primary task (Bang et al., 2019).
The metacognitive influence evaluated in this study was that leaders need to reflect on
and adjust their knowledge when developing an expenditure-reduction plan. Effective leaders
regularly engage in the process of reflection. They facilitate problem-solving strategies that
promote objectivity (Bensimon, 2005; Di’Tomason et al., 2007). Promoting a general awareness
and improving self-knowledge and regulatory skills in a learning environment are conducive to
the use of metacognition (Schraw, 1998). Self-reflecting is an accountability tool that can
increase when individual roles and expectations align with the organizational goal (Elmore,
2002). Thus, effective accountability must ensure that financial resources are in place to meet
22

organizational financial goals (Dowd & Grant, 2006). Table 2 provides information on the
organizational mission, organizational and stakeholder goals, and the knowledge influences
discussed in this chapter. The table demonstrates samples of assessments used to study the
stakeholder’s knowledge.

23

Table 2
Knowledge Influences, Types, and Assessments for Knowledge Gap Analysis
Stakeholder goal
By 2023, the leadership will develop an expenditure-reduction plan.
Knowledge influence Knowledge type Knowledge influence assessment
Leaders need to know the
organization’s core
competencies for financial
planning.
Declarative/factual This will be assessed through the use
of surveys and interviews.

Survey: Match the following items.
Interview: Describe your
organization’s core competencies
or principles used for financial
planning.
Document analysis
Leaders need to know how to
develop a financial plan for
expenditure reduction.
Procedural This will be assessed through the use
of surveys and interviews.

Survey: I implement lean
manufacturing principles by
performing the following
procedures.

Interview: Describe how you would
develop an expenditure-reduction
plan.

Document analysis
Leaders need to reflect on and
adjust their knowledge when
developing an expenditure-
reduction plan.
Metacognitive This will be assessed through the use
of surveys and interviews

Survey: I assess my own progress of
lean manufacturing principles
implementation in the following
ways:

Interview: Please explain your
approach to your expenditure-
reduction plan using lean
manufacturing principles.

Document analysis

24

Motivation
In addition to gaps in knowledge, other causes of organizational problems are
motivational issues, which can be impactful. According to Clark and Estes (2008), motivational
problems are another possible root cause of organizational problems. According to research,
motivation issues can occur, and job motivation depends on the availability of quality goals
(Clark & Estes, 2008; Pinder, 2014). It also depends on eliminating demotivators, such as basing
motivation with outdated, wrong, or incomplete strategies or using incentives to reach the
desired performance and close performance gaps (Clark & Estes, 2008, Spitzer, 2005; Stolovitch
et al., 2002). Many factors influence motivation; however, literature on self-efficacy theory,
attribution theory, and goal orientation theory were reviewed for this study.
Task Value
Leadership can benefit from driving a culture of achieving its tasks through congruence
in employees’ and leaders’ value of sharing knowledge and motivation. An organization’s task
value involves the leaders’ need for the knowledge to make them successful. In doing so,
employees may also need to have this knowledge, even if it is only basic knowledge, in addition
to being motivated to acquire and use that knowledge. The organization’s value of achieving its
tasks must be a value shared by employees whose performance supports their commitment to
successful results. A culture of employees sharing their knowledge and the same values as their
leaders can create job satisfaction and their perception of leaders’ commitment and proper
behavior, which in turn, fuels employee motivation (Byza et al., 2019; Eisenberger et al., 1986;
Sabir & Khan, 2011; Sawitri et al., 2016;).
The task value influence examined in this study was that leaders need to consider an
expenditure-reduction plan important for the organization. Leaders take a decisive approach that
25

can create a value of what they want to achieve, such as financial planning. Assigning an
organization-wide task of increasing the net profit will require everyone to work towards this and
hope to achieve this goal. Leaders must create a culture of shared values where everyone feels
responsible for outcomes, requiring the entire team’s engagement and cooperation (Vassell,
2016). The principle of shared values involves creating economic value in a way that also creates
value for all stakeholders (Porter & Kramer, 2019). Leaders can take responsibility for their
decisions and instill initiative and strive for excellence (Abraham, 2006) by modeling a culture
of what is valued. Employees have a collective mindset, principles, and values, which will
enhance the possibility of having an organization where everyone is going in the same direction
(Korneliusson & Mohammadi, 2018). Leaders need to know the definitions of critical
competencies for financial planning.
Self-Efficacy Theory
Bandura and Wessels (1997) describe self-efficacy as an employee’s understanding of
their own mastery over tasks in various areas that impact their lives. Self-efficacy is developed
by four main sources of influence; one of these is mastery, which is associated with success and
failure (Bandura, 1994). The study of self-efficacy is to learn about confidence and apply it to
learning and career development (Betz, 2006; Betz & Hackett, 1981; Betz Klein & Taylor, 1996;
Betz & Schifano, 2000; Brown & Hackett, 1994; Lent, 2005). Also, self-efficacy refers to the
idea that a goal is achievable with the right support and effort (Bandura, 1993). Finally, a
leader’s self-efficacy stems from having confidence in their abilities. Leaders need to be
individually confident in developing an expenditure-reduction plan successfully.
The self-efficacy influence evaluated was that leaders need to be individually confident
they can successfully develop an expenditure-reduction plan. Leaders should know an
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individual’s ability, including the cognitive, social, and emotional state. A leader’s confidence
may result from a more influential leadership that evolves due to committing to self-
development, working with improvements, and goals in the daily work to a higher degree
(Korneliusson & Mohammadi, 2018). Mastery leads to confidence, which can produce
significant direct paths to a level of decisiveness (Lent et al., 2017) that can improve financial
planning. A leader’s self-efficacy hinges on their ability to self-regulate, motivate, assess their
environment, and act successfully across a span of challenges and tasks in their current context
that will support their level of confidence (Hannah et al., 2012).
Team-Efficacy
Empowering leadership is positively related to both knowledge sharing and team
efficacy, which were both positively related to performance (Srivastava et al., 2006).
Improving efficiency in the organization requires the engagement of the entire team and
leaders must create a culture of excellence where everyone feels responsible for the outcomes,
(Vassell, 2016).
The team efficacy influence examined here was that effectiveness increases when
leaders are confident in their team’s ability to develop their expenditure-reduction plan.
Leaders have teams and should utilize their roles for maximum efficiency. Part of the
leadership is to recognize this strategy and use its personnel in tasks such as planning or
assisting in planning processes since they maintain a level of expertise. Leaders must focus
their efforts to contain costs and improve efficiency, and the team needs to know that among
their priorities, critical thinking and good judgment must prevail (Vassell, 2016), especially
in building their leader’s confidence in their abilities. Performance management can enhance
team functioning and effectiveness (Chan, 2019) as the communication-based process that
27

employees and management can work together to plan. Leaders can use new approaches to
management that include self-management and delegation of decision making (Strielkowski
et al., 2016), giving employees a sense of freedom where they can organize and help develop
a plan.
Attribution
Attribution theory speaks of an innate desire held by individuals to understand what
causes behaviors and outcomes and that the attributions for these behaviors and outcomes shape
emotional and behavioral responses (Harvey & Martinko, 2009). Attribution theory is based on
assumptions that individuals are conscious, motivated by mastery, and try to connect their
understanding of the environment with their behaviors and affect the motivational states
considered the locus of causality and stability (Weiner, 1992, 1995). The locus, stability, and
controllability are the three interconnected characteristics for the dimensions of attribution
(Anderman & Anderman, 2006)
The attribution influence evaluated in this study was that leaders need to believe the
success or failure of creating the plan is in their control. Leaders need to believe the success or
failure of developing the cost reduction plan is in their own control. Accountability is a valuable
trait. Leaders set the limits of success in their organizations by managing change (Bruhn, 2004).
The role of leaders in establishing and monitoring adequate governance arrangements leads them
to focus on the quality of decision making and accountability and should always be accountable
for their actions (Storer, 2018). A well-rounded leader’s attributes include the ability to regulate,
be culturally intelligent, and understand how to affect organizational change, recognizing that
this, as well as engaging and communicating with their people, should be how they spend most
of their time (Storer, 2018). Also, contribution to knowledge emerges from developing the
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underlying processes affecting learning from failure (Walsh & Cunningham, 2017). Table 3
provides information on the organizational mission, organizational and stakeholder goals, and
the knowledge influences discussed in this chapter. The table demonstrates samples of
assessments used to study the stakeholders’ knowledge.

Table 3
Assumed Motivation Influence and Motivational Influence Assessments
Assumed motivation influences Motivational influence assessment
Task value: Leaders need to consider an
expenditure-reduction plan important for the
organization.
This will be assessed through the use of
surveys and interviews.

Survey: Rate the lean manufacturing
Principles according to what is most
important to you.

Interview: Can you share with me the lean
manufacturing Principles you consider to
be important in your efforts to implement
a cost reduction plan?

Document analysis

Self-efficacy: Leaders need to be individually
confident they can successfully develop an
expenditure-reduction plan.
This will be assessed through the use of
surveys and interviews.

Survey: Rate your confidence in performing
each of the lean manufacturing principles
to reduce cost.

Interview: Can you share with me how you
feel about your ability to perform each of
the lean manufacturing principles?

Document analysis

Team efficacy: Effectiveness increases when
leaders are confident in their team’s ability to
develop an expenditure-reduction plan
This will be assessed through the use of
surveys and interviews.

29

Assumed motivation influences Motivational influence assessment
Survey: Rate your confidence in your team
implementing each of the lean
manufacturing Principles to reduce cost.

Interview: Can you share with me how you
feel about your team’s ability to
implement the following lean
manufacturing principles?

Document analysis

Attribution: Leaders need to believe the success
or failure of developing the expenditure-reduction
plan is in their control.
This will be assessed through the use of
surveys and interviews.

Survey: Success in applying lean
manufacturing within my control as a
manager.

Interview: What do you believe are the
reasons you experience success in
applying lean manufacturing principles?

Document analysis

Organization
An organization’s culture can be analyzed based on the cultural settings and cultural
models that exist in it (Gallimore & Goldenberg, 2001). Cultural settings are concrete and
include the employees, their tasks, how and why tasks are completed, and the social context in
which their work is performed. Cultural models refer to cultural practices and shared mental
schema within an organization (Gallimore & Goldenberg, 2001). Employees with top
motivations and exceptional knowledge and skills, missing resources can miss performance
leading to achieving goals (Clark & Estes, 2008)

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Stakeholder-Specific Factors
Leadership, specifically the CFO, who is in consensus with the COO, bases the
decision of distributing the specific monthly allocation to departments utilizing historical data.
The funds are delegated to the SVPO, who must develop his departmental financial plan to
reduce cost. Yet, the department’s continuous overspending eliminates any chance of
increasing the main objective of increasing net profit. Strategic planning is an analytical
process that programs and formalizes existing strategies, whereas strategic thinking involves
intuition and creativity (Aaltola, 2019). It is necessary to quantify the achievement gaps
between the leader’s and the organization’s, meaning the quantity of performance may need to
be known to close the gap and achieve the organization’s objectives (Clark & Estes, 2008).
From a cultural setting perspective, two specific factors may explain the cause of
organizational problems within support programs. For instance, despite having to face audits
or audit committees, researchers express concerns that CFOs continue to be in control (Beck
& Mauldin, 2014), thus not needing to be concerned with consequences for their decisions in
planning. Also, trends in organizational design and budget allocation must recognize the
crucial importance it has on the organizational environment or its profit (Allen et al., 2016).
Leaders Identify the Organization ’s Values in Developing an Expenditure-Reduction Plan
Regardless of a leader’s expertise, they must have a general understanding of terms
related to the organization’s finances to have a greater ability to manage the financial resources
(Broadbent & Cullen, 2012). Financial performance will maximize profits, but businesses that do
not engage in financial and strategic planning (such as ensuring adequate funds) will fail or not
be as successful as businesses that demonstrate best practices in financial planning (Long, 2019).
An important component of financial planning involves the understanding and use of budgets. A
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budget is an approved plan of income and expenses for a work plan and shows how much money
is needed for each activity and task in the work plan (Talib & Ismail, 2017). Successful
companies had a culture in which people were deeply aware of and internalized the mission,
vision, and core values needed to execute the company’s strategy (Kaplan & Norton, 2004) that
consists of financial planning that will result in increased net profit (Inkinen, 2016). Creating a
positive ethical culture in an organization sustains performance and offers a competitive
advantage (Madu, 2012).
Leaders Ensure That Adequate Fiscal Resources Are in Place to Meet Organizational Goals
of Developing an Expenditure-Reduction Plan
Research reveals that top-tier advisors within an organization achieved the highest deal
completion rates amongst any other advisors but commanded the highest fees (Sahyoun et al.,
2018). Financial experts will have a stronger relationship with earnings quality than non-
accounting financial experts within an organization. Leaders who know how to manage do better
jobs, allocating the organization’s resources and creating more positive outcomes in the
organization (Huang & Sun, 2017).
Mission and strategic goal development, organizational ‐level implementation intentions
in the form of strategic plans and dynamic capabilities, individual goal internalization, and
implementation plans at the individual level (Gagné, 2018) all play a factor in how successful an
organization and employees commit to a goal. All leadership levels need to be aligned, linked,
and held accountable, creating an integrating framework (plan) for crafting a fit among strategy,
organizational design, and performance management (Miles & Van Clieaf, 2017). In addition to
the alignment within the leadership, an arrangement must also exist among different
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departments. The intent is for acceptance and accountability within the entire organization
regarding the new policies and procedures proposed (Volk & Zerfass, 2018).
Table 4 provides information on the organizational mission, organizational and
stakeholder goals, and the knowledge influences discussed in this chapter. The table
demonstrates samples of assessments that were used to study the stakeholder’s organizational
influences.

Table 4
Organizational Influences and Organizational Influence Assessments
Assumed organizational influences Organization influence assessment
Cultural Model Influence 1: Leaders identify
the organization’s values in developing an
expenditure-reduction plan.
This will be assessed through the use of
surveys and interviews.

Survey: I share the organization’s values.

Interview: Please describe the organization’s
values in developing an expenditure-
reduction plan using the lean manufacturing
principles.

Document analysis

Cultural Setting Influence 2: Leaders ensure
that adequate fiscal resources are in place to
meet organizational goals of developing an
expenditure-reduction plan.
This will be assessed through the use of
surveys and interviews.

Survey: The organization provides me training
in lean manufacturing Principles.

Interview: What resources are needed to help
develop the expenditure-reduction plan
using the lean manufacturing principles?

Document analysis

33

Conceptual Framework: The Interaction of Stakeholders’ Knowledge and Motivation and
the Organizational Context
A conceptual framework represents the interactions between the concepts, assumptions,
expectations, and theories that inform a study’s methodological and analysis choices (Maxwell,
2013). Merriam and Tisdell (2016) referred to this as a theoretical framework, which is the
supporting structure or scaffolding of a study. The frameworks can be narrative or visual to
highlight the relationships between the essential concepts, variables, and theories that frame the
study (Maxwell, 2013; Merriam & Tisdell, 2016). In earlier phases of enacting Clark and Estes’
(2008) gap analytic framework to investigate root causes of a performance problem, influences
on the issue are intentionally developed in isolation and divided into KMO categories. The
conceptual framework allows an opportunity to explore the connections between the influences
and establish a working theory to frame a research question (Maxwell, 2013). In previous
sections of this chapter, the knowledge and motivation influence of a leader’s ability to strategize
a financial plan was explored. Knowledge and motivation influences were followed by exploring
the cultural models and settings active within the organization. Figure 2 shows the relationship
between these influences in a visual that highlights the working theory framing this research
study.

34

Figure 2 illustrates the conceptual framework of an improvement planning model that
begins with established performance goals. Next, the organization identified performance
outcomes showing its current effectiveness in achieving its performance goal. Afterward, the
performance gap is identified and analyzed to determine the causes for the gap, and those root
causes are identified for validation. Finally, based on the validated causes, solutions must be
used to address the performance gap’s causes. Once the gap is closed, the goals will be aligned
with the organization’s mission and goals.

Figure 2
Conceptual Framework

35

Conclusion
Chapter Two explored possible root causes for gaps in strategizing and developing the
financial planning for the organization. Bandura’s (1977) motivational construct of self-efficacy
was presented in terms of the factors known to improve leaders’ and employees’ self-efficacy in
organizations and the relationships between these factors and accountability of the leadership’s
development (whether formal education or hands-on training) and expertise was explored. While
there is a known connection between low self-efficacy, team efficacy, and financial planning
gaps, a broader look at all knowledge-based, motivational, and organizational influences on
leadership competencies were explored in the second half of Chapter Two using Clark and
Estes’s (2008) gap analytic KMO methodology. A conceptual framework for this dissertation
was then established by highlighting the interrelationships among KMO influences. While self-
efficacy is situated in the motivation category, its connections to other influences on leadership
engagement in strategizing, understanding, and implementing an effective financial plan in the
conceptual framework. Chapter Three will present the study’s methodological framework used to
explore the connection between development, as promoted through the cultural settings of
competency generation, and self-efficacy for employees in organizations.

36

Chapter Three: Methods
This chapter presented the overall research design and the data collection and analysis
methods used to pursue the three research questions that guided this study.
This study focuses on the following research questions:
1. What knowledge and motivation needs to be addressed to develop the plan to reduce
expenditure by 50%?
2. What is the interaction between organizational culture and context and leadership
knowledge and motivation?
3. What are recommended knowledge, motivation, and organizational solutions?
This chapter describes the stakeholder group’s choice for the study and outlines the
sampling and recruitment strategies. The chapter describes the data collection and
instrumentation and an overview of the data analysis techniques employed to process it. The
following sections describe the steps taken to ensure the qualitative data’s credibility,
trustworthiness, validity, and reliability of the quantitative data. The chapter concluded with a
reflection on the ethics and limitations of the study.
Participating Stakeholders
The stakeholders in this study are part of API’s leadership team responsible for day-to-
day operations, including the delegation overseeing the allocated funding for their specific
department. The stakeholders in the operations department include personnel among certain
levels of the leadership team. These staff members are the SVPO, two directors who report to the
SVPO, and five managers who report to the SVPO. The CFO did not participate because he only
establishes the budget for the departments. The COO was not part of the study because he
delegates the handling of funds to the SVPO. These eight staff members were invited to take a
37

survey and be interviewed for this study. Creswell and Creswell (2018) mentioned mixed-
methods studies where researchers collect, analyze, and integrate the deductively quantitative
concept of testing and validity and the inductive qualitative theory. In this study, API’s
stakeholders have different perspectives that influence decision making for the current
distribution and handling of the operations department budgeting based on historical data.
Therefore, specific criteria focused on particular target populations and the number of
stakeholders to recruit for the surveys and interviews.
Survey Sampling Criteria and Rationale
Criterion 1
The first criterion was to target and understand leaders’ ability to understand and adapt to
the given information and stipulation in doing their jobs. The needed information referred to all
aspects of the operations department, especially financial planning. Financial knowledge is
critical in understanding and interpreting figure-based facts to identify the current and enhance
the organization’s future state (Lusardi & Mitchell, 2014). Hence, the leadership must have the
education, training, and experiences to fulfill their role.
Criterion 2
The second criterion is the level of proficiencies these individuals must meet before
taking on their leadership roles. Organizations may view specific skills possessed by personnel to
succeed in their roles. Dierdorff and Rubin (2007) mentioned factors that influence work role
requirement judgments has been largely ambiguous. Thus, understanding and accepting the
managerial background for their roles may have a cause and effect in meeting the organization’s
objectives.

38

Criterion 3
The third criterion is that participants needed to be senior managerial personnel in API’s
operations department. Thus, having an authoritative position or status serves as a resource of the
department’s day-to-day functioning. The eight personnel are involved in the operations of the
allocated funds distributed to their department. However, only the SVPO has decision-making
authority as he oversees the department’s budget, while the directors need the authorization to
spend the funds. Managers have knowledge, exposure, and execution (when directed) of the
funds but do not have any decision-making authority regarding the spending.
Survey Sampling, Recruitment, Strategy, and Rationale
Leaders at API were the sample population. They were appropriate participants for this
study because the research questions focus on their experience, education (formal and training),
and influence in creating and implementing their organization’s financial plan. I selected the
SVPO, two directors, and five managers using a purposeful sampling method. The reasoning was
to ask specific leadership questions of those who oversee the budget’s planning, managing, and
execution. These participants understood the department’s performance management, efficiency,
and effectiveness as a result of their financial plans. They were the only participants relevant to
my study.
Creswell and Creswell (2018) stated survey design provides a quantitative description of
trends, attitudes, and opinions of a population, among variables of a population, by studying a
sample of that population. Thus, Likert-type items assessed stakeholders’ beliefs about KMO
that were related to the research questions.

39

Interview Sampling Criteria and Rationale
Criterion 1
Participants leaders will be able to answer questions about the financial planning for the
operations department. They have the most insight into what happens with the funds and
developing a new expenditure plan.
Criterion 2
Leaders who are the actual decision-makers once the allocated funds are delegated funds
and reach the department. Thus, the leaders who authorize or request authorization to manage the
funds.
Criterion 3
Leaders who conduct operations on a smaller scale and understand how the department is
spending its funds. Managers who may not necessarily be part of the planning but may have
knowledge that can be valuable for future planning.
Interview Sampling, Recruitment, Strategy, and Rationale
Purposeful sampling was the primary strategy used in this study. I deliberately selected
members of the population needed to participate in this study to provide relevant information to
the research questions. This research used a small selective sample of eight of API’s leaders,
similar to the sample populations used for the survey. These leaders were used to study and
obtain more informative procedures or descriptions of financial planning across different levels
of leadership. This phase of the study focused on open-ended qualitative interviews to collect
detailed views of the participants. Interviews led to similarities and differences between
participants’ understanding and perceptions of financial plans and their processes. In addition,
data collected in these interviews assisted stakeholders in becoming aware of the unknown KMO
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factors that influence perceptions on the effectiveness and efficiency of the expenditure-reduction
plan.
Observation Sampling Criteria and Rationale
Observation sampling is an essential aspect of qualitative research methodology, where
the researcher observes and takes field notes on the behavior and activities of individuals at the
research site (Creswell & Creswell, 2018). However, due to the COVID-19 pandemic, there were
restrictions for building occupants and remote work for safety reasons. Therefore, there was no
intent to use observations due to distance and restrictions set by API.
Document Analysis Sampling Criteria and Rationale
Criterion 1
The first criterion was that public or private information such as reports, policies, plans
showed proof of performance. Information from sources with at least two separate was preferred
to have two measurements to compare different points of time for effectiveness.
Criterion 2
The second criterion was that sources, like the organization’s social media sites, online
newspapers, or comments and reflections, provide notification of events and accomplishments.
Criterion 3
The third criterion was that physical artifacts provide information on financial reports,
profit margin reports, or standard operations procedures that provide financial efficiency.
Data Analysis Sampling, Access, Strategy, and Rationale
According to the institutional review board’s (IRB) standards and API’s internal
protocols, there was no annotated personal information in this research. Participants’ names, and
that of the organization, were not mentioned. Thus, there was no way to identify anyone; the
41

pseudonyms used in place of these names could not be linked to anyone. I did not have access to
API’s internal documents, and interactions with the primary stakeholder group were limited. Any
public or internal documents pertaining to the organization were requested for the study via a
written proposal to address ethical concerns (Creswell, 2014).
Data Collection Instruments and Procedures
This study consisted of mixed-methods research, integrating qualitative and quantitative
approaches to collecting and analyzing data. This research included purposefully selected
individuals to help me gather quantitative and qualitative information to study and incorporate
the research problem (Creswell & Creswell, 2018). First, the interviews were part of the
descriptive qualitative research and focused on meaning and explanation (Creswell, 2014;
McEwan & McEwan, 2003). Second, the surveys were part of the quantitative approach’s data
collection and focused on measuring a quantity to answer theory-guided research questions and
hypotheses (Creswell & Creswell, 2018). In triangulation, these different methods verify one
another, checking if the methods with different strengths and limitations support a single
conclusion (Maxwell, 2013). For this study, data triangulation occurred among individual staff
members with different job responsibilities, education, training, and experiences to examine the
consistency of data within the survey results and perspectives mentioned in the interviews.
Survey
The survey questions aligned with the KMO influences on the problem of practice, as
shown in the conceptual framework. The systematic analysis ensured that the results would
generate detailed descriptive measurements about the influences (Pazzaglia et al., 2016). The
objective of this quantitative approach is to collect data through purposeful sampling for
interviews consisting of closed-ended questions (Fink, 2013). The survey’s scales of
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measurements are the assignment of values to outcomes following a set of rules (Salkind, 2014),
which this survey used nominal, ordinal, interval, and ratio measurements. In this study, API’s
leaders were the appropriate participants because the survey questions focused on asking specific
management questions of those who oversaw or used their experience, education, and influence
to create and implement the financial plans. The surveys used a forced-choice method or Likert
scale to represent the degree to which the participants chose an option or were forced to express
an opinion.
Leaders received an anonymous survey. The survey was anonymous and sent to the
participants via Qualtrics (a survey tool). I developed a survey with 11 questions about the
leadership approach to financial planning. I asked questions about the participants’ experience,
responsibilities, opinions regarding their leadership, and leadership values via closed- and open-
ended questions to generate leads to other questions. Asking questions about the participants’
abilities helped create a baseline in understanding how long they have been in their role and their
level of expertise. Understanding the leaders’ education (formally or informal) or financial
planning experience also addressed the research questions.
Interviews
This study used a semi-structured interview to create a partially informal conversational
interview. Each of the eight participants was interviewed once. These interviews were one-on-
one and lasted between 15 and 75 minutes. The interviews were semi-structured and consisted of
open-ended questions to probe for additional information. The questions were not shared with
the participants in advance to avoid having ready or politically correct answers (Merriam &
Tisdell, 2016). Not sharing the questions also allowed me to respond to statements, viewpoints,
or situations or define a concept or term (Merriam & Tisdell, 2016). I had the flexibility to
43

decide the sequence and wording of the interview questions to encourage a more conversational
interview (Patton, 2002). The interview questions focused on specific professional and
educational backgrounds and workflow processes; some were probing questions to obtain a
greater extent of data (Maxwell, 2013). Additional (impromptu) probing questions were
generated during the interviews to clarify or gain thoroughly detailed information about a
response (Merriam & Tisdell, 2016). All interviews were conducted via Zoom video
conferencing with the participant’s recorded verbal consent at the beginning of the meeting.
They authorized me to record to ensure the accuracy of their interview. Zoom also provided the
option to produce transcripts, which was an alternative in capturing the participants’ comments.
The conceptual framework influenced the research questions. The interview questions
were developed from the KMO influences determined by me. The participants’ answers
described how financial planning strategies and processes affect the relationship between the
stakeholders’ KMO and its impact. Other interview questions referred to the participants’
perceptions and opinions, which directly addressed the second research question on attitudes and
perceptions of organizational culture regarding increasing net profit and participants’ knowledge
and motivation. The collected data from these interviews benefited the leaders to understand the
KMO factors that affect perceptions of financial planning to reduce cost leading to increasing
profit, directly aiding in the study’s third research question on recommended leadership
solutions.
Observation
Despite the importance of the advantages that can be gained from observation sampling
during a qualitative study, collecting field notes at API was not be an option at this time.
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Observations were not possible as a precaution due to the pandemic and to maintain the
employees’ safety. Non-employees were not allowed on the premises.
Documents and Artifacts
Document analysis was part of this study. I collected these documents related to
stakeholders’ expectations and assumptions outlined in the framework. Public records (policy,
reports), personal documents (social sites, news), and tangible evidence (training books,
agendas) will be used as part of triangulation to provide credibility (Bowen, 2009; O’Leary,
2014). I requested authorization to access the organization’s finances. The approval for this
request was to be determined. I also asked the SVPO for access to other reports used to reflect on
the department’s performance and ability. These internal reports are distributed to leaders
periodically. Leaders review these reports to ensure performance standards follow the
expenditure-reduction plan and initiate corrective action if necessary. The SVPO notified this
researcher once these reports became available.
Data Analysis
Descriptive statistical analysis was conducted once all survey results were submitted. For
surveys and interviews, data analysis began during data collection. I wrote analytic notes after
each interview. I documented my thoughts, concerns, and initial conclusions about the data in
relation to my conceptual framework and research questions. Upon completion, interviews were
transcribed and coded. In the first analysis phase, I used open coding, looking for empirical
codes and applying a priori codes from the conceptual framework. The second analysis phase
was conducted where empirical and a priori codes are aggregated into analytic/axial codes. In the
third phase of data analysis, I identified pattern codes and themes that emerged in relation to the
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conceptual framework and study questions. I analyzed documents for evidence consistent with
the concepts in the conceptual framework.
Credibility and Trustworthiness
This section discussed credibility, trustworthiness, and this study’s qualitative methods.
Credibility and trustworthiness describe the quality of qualitative research. Credibility and
trustworthiness are essential and require being aware of how a researcher may influence what
participants say, what is analyzed, and the data (Maxwell, 2013). Credibility refers to the quality
of the findings, texts needing evaluation, and accuracy (Horowitz, 1994). Trustworthiness is
being able to trust research results given the study’s careful design and applying well-developed
standards (Merriam & Tisdell, 2016). Trust applies to both researcher and the data collection and
analysis.
In this study, the conceptual framework’s alignment, research questions, literature
review, interview, survey, and data analysis created this crucial coherence and a trustworthy
process. Being a trustworthy researcher requires both a carefully constructed process and
articulating positionality. The researcher must explore biases while also reflecting on the
reflexivity created when a human is the primary instrument of data collection (Maxwell, 2013;
Merriam & Tisdell, 2016). Reflexivity describes the qualitative approach and includes the
researcher’s background and self-reflection, which can shape their interpretations of the data and
how their experience may shape the study (Creswell & Creswell, 2018; Merriam & Tisdell,
2016). In addressing reflexivity as an issue, a careful design ensured that interview questions
were structured, scripted, and not leading.
This researcher is a progressive manager researching other managers at different levels
who may affect the quality of discussion regarding leadership style, approaches, budgeting, and
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financial planning. Over 20 years of management experience overseeing many roles involved
with operations and financial planning could lead to optimistic data interpretations in this study.
Having this positionality, it is essential to be clear about personal assumptions, values, and
beliefs leading to biases and how these may influence results (Maxwell, 2013; Merriam &
Tisdell, 2016; Miles et al., 2014). I was conscious of avoiding biases.
Validity and Reliability
Validity is defined as whether one can draw meaningful and useful inferences from
scores on a particular instrument. Reliability refers to whether scores to items on an instrument
are internally consistent stable over time and in scoring (Creswell & Creswell, 2018). Validity
demonstrates the accuracy of a quantitative research instrument that measures what it intends to
measure. Reliability describes internal and external reliability. Internal reliability is the degree to
which a study would yield the same results if repeated, and external reliability describes the
results’ generalizability to other situations (Maxwell, 2013). According to Firestone (1987), a
quantitative study must convince the reader that procedures have been followed accurately by
offering a description with enough details to show that the researcher’s conclusion makes sense.
Quantitative methodologies must be reliable and valid, and there are three forms of validity for
questions on a survey measure: content, criterion, and construct validity (Salkind, 2017). By
focusing strictly on opinion, a survey increased validity because opinions cannot be wrong (Fink,
2013).
The survey for this study gathered essential information on API’s stakeholders’
background and opinions on whether the issues from the concept and research were met. Salkind
(2017) stated that to increase reliability, surveys should include uniformity in instructions,
clarity, and be taken with minimal distractions. I was available to answer the participants’
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questions and discuss their concerns. I had no authoritative influence or holds over the
stakeholders, thus not affecting the survey participants’ responses. The survey response rate is a
factor in the validity of making the survey easy to complete and submit (Fink, 2013). Despite
Fink’s (2013) suggestion of incentives being another method to increase the response rate, there
were no incentives.
The survey distribution to API’s stakeholders was via email, and they returned the results
anonymously. This survey was voluntary, but the expectation was that all stakeholders would
participate.
Ethics
The driving ethical principle in research with human subjects is not to harm the
participants (Glesne, 2011; Merriam & Tisdell, 2016; Rubin & Rubin, 2012). Participants should
be informed participants that their involvement is entirely voluntary. Subjects could stop their
participation in the study, and their responses will be kept confidential (Krueger & Casey, 2009).
Merriam and Tisdell (2016) argued that beyond just the ethics of procedures, as prescribed by
IRBs, there were also layers of relational and situational ethics in qualitative research settings. A
complete list of intended interview questions and possible follow-up probe questions and IRB
approval were in place. I followed the interview protocol during interviews (Rubin & Rubin,
2012). At the beginning of the interview, API’s stakeholders knew that removing themselves
from the study is an option (Krueger & Casey, 2009). They were also informed that the study’s
results would not disclose their personal information. Their names were not included in the data
analysis. Using pseudonyms during interviews and transcripts and storing all data in password-
protected files (Glesne, 2011) was standard practice. I am not part of the leadership, nor does he
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influence the participants’ evaluations, promotions, or employment status. I had no impact on the
participants’ employment.
The ethical considerations extend beyond the test subjects and include addressing their
own biases (Merriam & Tisdell, 2016). I entered into this study with over 20 years of
management experience, with firsthand experiences in overseeing budgets, training and
development, operations, and streamlining procedures. To avoid a conflict of interest, interview
questions were developed not to lead the participants to report on experiences that resonated with
my background (Patton, 2002). I was also aware of presenting the research purpose to the
participants in a clear and not influencing manner (Glesne, 2011).
Limitations and Delimitations
This study had potential limitations that should be noted, beginning with the sample size.
This researcher risked not having enough participants, meaning the required minimum of eight.
Had a participant decided to stop, the study would have come to a halt until another participant
could be recruited. The organization’s restricted access to financial data was another limitation.
Having access to financials would assist in having more details about funds allocation and trends
in planning methods. Generalizability also sets a limitation when using mixed methods,
specifically in qualitative research. Hence, a researcher must control biases and positionality
(Bogdan & Biklen, 2007; Bowen, 2009; Merriam & Tisdell, 2016) by becoming objective and
impartial before developing interview questions or conducting interviews. Therefore, a careful
process of bounding the study and articulating limitations was necessary for a credible,
trustworthy, and ethical study (Merriam & Tisdell, 2016).
The questions asked on the survey and the interview are linked directly to the KMO
conceptual framework, creating logical reasoning among all essentials of this research process. A
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limitation was to purposefully sample leaders in the operations department experienced in the
decisions made regarding the budget. They are experienced and exposed to the decisions made
regarding the budget. This criterion helped to ensure that self-efficacy and team efficacy were
more likely from an organizational culture that valued increasing profit. Another consideration is
the outside or external influences affected by the environment, such as acts of God (i.e., weather
and natural disasters) that are not included in the conceptual framework or within the study.
The focus on what could be discovered about API’s leadership’s knowledge within the
context of theory mastery of financial planning may be an issue, so I applied mindful awareness
in discussing the knowledge gap. An unexpected limitation in this study included distance and
pandemic. As the stay-home order and quarantine were mandated, the possibility of traveling to
the site became impossible. Several months later, API’s leadership took steps to ensure the
functioning of operations but continued not to permit non-personnel to enter their facilities.
Lastly, having one point of contact became a challenge. It is challenging to control interactions
with participants without the presence of the SVPO. If he was sick, busy, traveling, or tired,
gaining information or scheduling future conversations became difficult. These limitations
motivated me towards strategic planning and awareness for increasing credibility and
trustworthiness.

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Chapter Four: Results and Findings
This chapter reports the findings from the analysis of data related to assumed KMO
influences. These findings identified a gap affecting the operation’s department implementing
actions and minimizing their daily operating costs of premade builders’ production packages in
developing an expenditure-reduction plan. Data from multiple sources were used to assess the
assumed KMO caused identified in Chapters Two and Three. The results were organized into
corresponding assumed KMO categories. The gap analysis approach (Clark & Estes, 2008)
helped to analyze the KMO challenges and obstacles in achieving the organization’s goals of
developing an expenditure-reduction plan to increase net profit. The stakeholders were the
managers. Also, this chapter concludes with a summary of the validated KMO influences used to
generate recommendations and an implementation and evaluation plan in Chapter Five. The
questions that guided this study were the following:
1. What knowledge and motivation needs to be addressed to develop the plan to reduce
expenditure by 50%?
2. What is the interaction between organizational culture and context and leadership
knowledge and motivation?
3. What are recommended knowledge, motivation, and organizational solutions?
Participating Stakeholders
The primary stakeholders in the study were personnel holding managerial roles at API.
Quantitative data were collected through a survey distributed to nine managerial-level
employees. Table 5 presents the participants’ information relevant to this study. Of the nine
participants who completed the survey, seven agreed to a follow-up interview. However, only six
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completed the interview. A purposeful sample allowed the data analysis to validate the KMO
influences on developing an expenditure plan.

Table 5
Participants
Management
participants count
(n = 9)
Survey respondents
(n = 9)
Interview
subjects (n = 6)
Management levels
Lower 6 (67%) 6 (67%) 3 (33%)
Mid 2 (22%) 2 (22%) 2 (22%)
Senior 1 (11%) 1 (11%) 1 (11%)
Gender

Female 2 (22%) 2 (22%) 2 (22%)
Male 7 (78%) 7 (78%) 4 (44%)

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Data Validity
This gap analysis study utilized mixed methods, consisting of a survey, interviews, and
document analysis to investigate the validity, partial validity, or nonvalidity of the presumed
KMO influences. The data were used to determine the effects and needs of developing and
implementing the expenditure-reduction plan to increase net profit for the organization. The
results from the survey provided the criteria for determining the resources and needs of the
assumed KMO influences. The criteria for determining needs from the survey data on assumed
KMO influences for developing and implementing a financial plan were as follows. The
threshold for each item was assessed at 89% based on the level of importance in achieving the
stakeholder’s goals. Results with less than the desired threshold indicated a need. The higher
thresholds were established because the sample used in this study was small. Among a small
sample of managers, the majority will need to have the knowledge and skills to meet the
objectives. All interviews ranged from 15 to 75 minutes and were transcribed upon completion
and coded to determine which influences were addressed. Interviews and surveys are weighted
equally assessed due to the information obtained.
Results and Finding for Knowledge Causes
The results and findings of the knowledge needs were reported using the knowledge
categories and assumed knowledge influences for each type. Management for the API operations
department had their knowledge, skills, and experiences regarding lean manufacturing principles
assessed using surveys and interviews. In the knowledge category, three types of knowledge
were examined: factual, procedural, and metacognitive knowledge. The results highlight the
significant gap across all three types of knowledge. In addition, the results were used to assess
whether the assumed knowledge causes should be considered for improvement.
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Surveys and interviews were used to assess API’s factual knowledge. The managers were
surveyed on the factual knowledge necessary to determine knowledge about utilizing lean
manufacturing principles as a resource, assessing cost savings, and cultural competence. Results
were organized and evaluated to assess whether there was a gap regarding the assumed causes.
Finding Factual Knowledge Influence: Leaders Need to Know the Organization’s Core
Competencies for Financial Planning
Survey: Match the Following Values
Survey participants were asked to match 10 core competencies to a list containing the
proper definition for each competency essential to avoiding operational waste and reducing
costs. Participants were only allowed to select one option and could not progress with the survey
unless they made a selection. This restriction may have led to the participants guessing. All the
participants were not effective in identifying the correct definition. The accurate matches ranged
from 11% to 56%. The participants could not answer correctly, leaving a minimum of 33%
factual knowledge gap. Figure 3 illustrates the percentages and correct responses. Based on the
89% cut score, management fell far short, which explained that the influence is validated.

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Figure 3
Factual Knowledge Influence

Interview Findings. Describe Your Organization ’s Core Competencies or Principles Used for
Financial Planning
Interview participants (n = 6) were asked to describe the organization’s core
competencies or principles for financial planning. Although only one could speak competently of
a few core competencies after assessing the participants’ responses, three were familiar with at
least one competency, which was referred to as a standard operating procedure. P3 said, “I was
trained through previous employment but never had any use here,” and P5 and P6 stated, “I
never received any training in lean manufacturing principles or financial planning.” Two
mentioned they had never heard of lean manufacturing Principles. Four mentioned the value map
streaming principle. The survey results showed a median of 11% and a mean of 18.8% in
matching the competencies with its definition. Thus, the six interviews align and support the
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33% factual knowledge gap, as shown in the surveys of nine management participants. Based on
the 89% cut score from the interviews, management lacks factual knowledge of the core
competencies, and the influence was validated.
Summary
Based on surveys and interviews, the 89% cut score was not met. Management needs to
know the meaning of each of the core competencies. Both results indicated that participants did
not have sufficient knowledge of the competencies. Hence, the organization has a need. The
influence is validated.
Finding Procedural Knowledge Influence: Leaders Need to Know How to Develop a
Financial Plan for Expenditure Reduction
Survey Findings. I Implement Lean Manufacturing Principles by Performing the Following
Procedures
Survey participants were asked to match 10 core competencies to a list describing the
proper procedure for each principle that will assist in developing a financial plan. Participants
were only allowed to select one option and could not progress in the survey unless they answered
the question. Figure 4 illustrates the number of correct responses per core competency. The
suitable matches ranged from 11% to 55%. The participants appeared to be familiar with the map
value stream principle, as 55% answered correctly. However, only a total average of 22% of the
survey answers are correct, thus leaving a 78% procedural knowledge gap and validating the
influence being a need.

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Figure 4
Procedural Knowledge

Interview Findings: Describe How You Would Develop an Expenditure-Reduction Plan
Interview participants were asked to describe how they would implement an expenditure-
reduction plan needed for financial planning. Only Participant 1 (P1) explained four procedures
to implement several core competencies when assessing the participants’ responses. However,
these competencies were not a part of the operations department protocols. Two participants are
familiar with at least one principle. However, P2, despite their experience in the lumber industry,
said, “I only knew the principles taught by [P1]” and could not repeat applying the principles. P2
occasionally stated, “You should probably ask [P1] for a better description of the procedures in
his interview answers.” P3 said, “I was trained before working at my current position, but I
forgot most of the information due to never having to apply any principles.” P4 through P6 were
unfamiliar with procedures used for lean manufacturing principles. The interview results showed
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that most participants did not match the competencies with its definition. The six interviews
resulted in the influence being validated.
Summary
Based on surveys and interviews, the 89% cut score was not met. The surveys and
interviews confirm the management’s lack of procedural knowledge of the core competencies.
The survey and interview results supported results from participants who did not select the
correct answers on the surveys. During interviews, only one participant explained some of the
principles. Yet, none of the participants could explain how to use lean manufacturing procedures
to develop an expenditure-reduction plan. Therefore, both the survey and interview results
determine the influence is validated.
Finding Metacognitive Knowledge Influence: Leaders Need to Reflect on and Adjust Their
Knowledge When Developing an Expenditure Reduction Plan
Survey Findings: I Assess My Own Progress of Lean Manufacture Principles Implementation
in the Following Way
Survey participants were asked to match each core competency with a list annotating the
methods of assessing progress when implementing lean manufacturing principles. Figure 5 only
shows the correct answers selected by the participants. Map value stream and continuous
progress principles were not selected despite being mentioned by the participants during the
interviews. The highest scoring principle was Eliminating Waste, at three participants. The
metacognitive knowledge section of the survey did not meet the threshold and showed the
influence is validated.

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Figure 5
Metacognitive Influence

Interview Findings. Please Explain Your Approach to Your Expenditure-Reduction Plan
Using the Lean Manufacturing Principles
Interview participants were asked to explain their approach to the expenditure-reduction
plan, but the lack of knowledge about the core competencies hindered their answers. P1
mentioned, “Financial planning is not the responsibility of junior managers” and has several
unsuccessful plans to implement a plan to reduce cost. P2 said, “Leadership was receptive to
management’s input at one point in time, but managers no longer have a role in planning
expenditure reduction.” P2 also said, “The leadership has to provide the plan to save cost” P3
mentioned, “I had experience in finances, but I do not hold any financial responsibilities, despite
those responsibilities as part of their job description.” P4, P5, and P6 stated, “I have no
experience in financial planning,” yet P5 and P6 were asked for ideas based on job knowledge to
save costs on several occasions. The participants did not meet the cut score of 89%, as no
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participant could explain an approach to their expenditure-reduction plan. The interviews
validated the influence is a need.
Summary
Based on surveys and interviews, the 89% cut score was not met. The data analysis
confirmed the management does not have a metacognitive understanding of how to process,
plan, monitor, and assess their performance in relation to utilizing core competencies in the
development of an expenditure reduction plan. The surveys and interviews show there is no set
evaluation process or matrix other than the end-of-month financial reports. The end-of-month
reports only indicate whether the objective was achieved or missed. Participants cannot explain
core competencies and procedures, which are needed before monitoring and assessing their
performance. Both the surveys, and the interviews did not reach the 89% cut score, and the
results did not conflict with one another. Thus, the influence was validated as a need.
Results and Finding for Motivation
Finding Task Value Motivation Influence: Leaders Need to Consider an Expenditure-
Reduction Plan Important for Themselves
Survey Findings: Rate the Lean Manufacturing Principles According to What Is Most
Important to You
Survey participants were asked to rank the 10 core competencies from most to least
important. There is no correct answer as these principles may be ranked according to the
participants’ culture, training, experience, or opinion. According to the findings annotated in
Figure 6, participants rated the importance of each competency from 1 (not important) to 10
(important). As shown in Table 6, the highest four chosen competencies were Continuous
Improvement, Map Value Stream, Value, and Pursuit perfection. The survey answers reflect the
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participants’ previous survey answers that identified a gap in their lack of knowledge of the
competencies. Without having the knowledge, the participants cannot rank the competencies in
order of importance and may have guessed. Each of the competencies did not achieve the
ranking cut score of 89%. Nevertheless, the surveys show that the influence is validated.

Table 6
Task Value
Competency Number of
participants
1. Map value stream 4
2. Eliminate waste 3
3. Value 4
4. Continuous improvement 5
5. Pursuit perfection 4
6. Level production 3
7. One-piece flow 3
8. Create flow 3
9. Just-in time production 3
10. Establish pull 3

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Interview Findings: Can You Share With Me the Lean Manufacturing Principles You
Consider to Be Important in Your Efforts to Implement a Cost Reduction Plan?
Interview participants were asked to share which core competency they consider essential
to implement an expenditure-reduction plan. The P1 stated, “Lean manufacturing is important to
the job, but I wouldn’t know or could say which is more important than the other.” P2 shared,
“All the principles should be equally important.” P3 and P6 referred to map value stream and the
customers’ values as necessary, and the remaining participants did not have an opinion.
According to the interview results, participants may have made assumptions based on what they
believed would be important without the knowledge or understanding of the importance of each
competency. The results proved a lack of understanding of the core competencies and in the
expenditure-reduction planning among management. Interviews findings show the influence is
validated.
Summary
Based on surveys and interviews, the 89% cut score was not met. The surveys and
interviews confirm the management’s lack of motivation for task value and the processes used to
plan and assess their understanding and performance. The surveys and interviews both supported
participants who did not select the correct answers on the surveys. During the interviews, the
participant’s perception of a task’s interest, usefulness, and importance was valued, but they
could not discuss which core competency was more important. Since the principles are not used
to assist in the expenditure-reduction planning, the influence was validated.

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Finding Self-Efficacy Motivation Influence: Leaders Need to Be Individually Confident
They Can Successfully Develop an Expenditure-Reduction Plan
Survey Findings: Rate Your Confidence in Performing Each of the Lean Manufacturing
Principles to Reduce Cost (0 Least Confident to 10 Most Confident)
Survey participants were asked to rate the ten core competencies according to their
confidence in performing each competency. According to the findings annotated in Figure 7,
participants rated themselves on the low end (0–4). The participants who answered zero for the
specific core competency were purposely included in the figure. The highest three chosen
principles were Eliminate Waste (44%), Map Value Stream (33%), and Continuous Improvement
(33%). Thus, the survey illustrates the participants’ results lacking the confidence to perform the
core competencies showing the influence is validated.

Figure 7
Self-Efficacy

63
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Interview Findings. Can You Share With Me How You Feel About Your Ability to Perform
Each of the Lean Manufacturing Principles?
Interview participants all lacked the confidence to perform the core competencies. P1
being the most knowledgeable, said he would be willing to receive formal training to build his
confidence in practicing lean manufacturing. P3 said, “I do not feel confident, but I know I will
feel more confident and be able to apply the principles after a refresher course.” The other
participants expressed not having confidence or had no comment. The interviews prove there is a
need, and the influence is validated.
Summary
Based on surveys and interviews, the 89% cut score was not met. The surveys and
interviews support that all participants have given themselves a low rating for self-efficacy in
performing any core competency highlighting their low confidence in performing the principles.
In addition to the participants giving themselves a low rating in the survey and verbally
mentioning they do not know the principles or expressed they want to receive training for
professional devolvement. These findings validate the influence.
Finding Team Efficacy Motivation Influence: Effectiveness Increases When Leaders Are
Confident in Their Team’s Ability to Develop an Expenditure-Reduction Plan
Survey participants were asked to rate the 10 core competencies regarding their
confidence in their team performing each competency to develop an expenditure reduction plan.
There is no correct or wrong answer to this question. This is based on the participant’s belief,
opinion, or experience regarding their confidence towards their team’s accomplishment in
implementing the core competencies. According to the findings annotated in Figure 8,
participants rated their team on the low end (0–2), far less than themselves. The participants who
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answered 0 for a specific principle were included in the figure as zero has no value. Regardless
of the principles that were rated the highest, the score was still too low in meeting the 89% cut
score. The survey illustrates the participants’ results lacking the confidence in their teams the
core competencies that will help develop an expenditure reduction plan validating the influence.

Figure 8
Survey Findings for Rate Your Confidence in Your Team Implementing Each of the Lean Manufacturing Principles to Reduce Cost (0
Least Confident to 10 Most Confident)

66
67

Interview Findings: Can You Share How You Feel About Your Team ’s Ability to Implement
the Following Lean Manufacturing Principles?
Interview participants were asked to rate their team’s ability to implement the core
competencies. P1 stated, “No one in my team knows any of the lean manufacturing principles.”
P2 said, “P1 has the best understanding of the principles among everyone.” Some of the
members have had some exposure to some extent, while others have not. The participants’ lack
of confidence towards their team was evident in the surveys and interviews. The results
collaborated that the influence was validated as a need.
Summary
Based on surveys and interviews, the 89% cut score was not met. This outlook was at a
100% consensus showing a need that is alluded to by the survey and interview results. In
addition, the assumed influence that API managers need to have to be confident in team
members knowing, planning, and implementing the core competencies as assessed through the
survey, interview, and aligned processes validated the influence.
Finding Attribution Motivation Influence: Leaders Need to Believe the Success or Failure
of Developing the Expenditure-Reduction Plan Is in Their Control
Survey Findings. Success in Applying Lean Manufacturing Is Within My Control as a
Manager
Survey participants were asked to select from a 4-point Likert scale whether in applying
the core competencies that are within their control as a manager. Out of six participants, two
disagreed, five agreed, and two strongly agreed with the accountability statement. The 22% who
disagree may show a different perspective of why they believed the core competencies will not
be a beneficial tool. Figure 9 shows that the cut score of 89% was not achieved. The motivational
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attributes are lacking, and management is still expected to ensure the organizational goals are
met. Survey results validated the influence as a need.

Figure 9
Attribution

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Interview Findings. What Do You Believe Are the Reasons You Experience Success in
Applying Lean Manufacturing Principles?
Interview participants did not initially understand how the benefit of using the core
competencies, specifically towards expenditure reduction planning, was their responsibility. P5
was receptive when asked about learning the principles but later mentioned “experience is just as
practical as training,” and having this asset would suffice in what they need to succeed. P6 was
willing to train “if everyone else became trained, or if training became mandatory.”
P1, P2, and P3 understood there were benefits to using the core competencies, which can reduce
cost and performance efficiency but did not train, retain, or advocate using the methodology. The
range in perspectives demonstrated a gap in managers knowing why they experience success in
applying the competencies, validating the influence as a need.
Summary
Based on surveys and interviews, the 89% cut score was not met. The survey and
interview findings display low attribution motivation towards the principles. However, for most
participants, there is the awareness that their actions lead to success when applying the
principles. Although the participants have a sense of success by meeting the supply and demand
of the customers’ needs, they have not completed the leadership’s goals of reducing cost, which
validates the influence as both surveys and interviews validate the influence as a need.

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Results and Finding for Organization
Finding Cultural Model Organization Influence: Leaders Identify the Organization’s
Values in Developing an Expenditure-Reduction Plan
Survey Findings. I Share the Organization ’s Values
Survey participants were asked whether they share the organization’s values. The survey
was not specific to what the organization’s values were. Figure 10 shows one of the participants
strongly disagreed, 1 (11%) disagreed, and seven agreed with the organization’s values. Thus,
there are two participants who do not have buy-in with the model set forth by the organization.
Having only seven participants agreeing falls short of the 89% (eight participants) threshold,
which leaves a gap of 11% that validates the influence as a need.

Figure 10
Cultural Model

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Interview Findings. Please Describe the Organization ’s Values in Developing an Expenditure-
Reduction Plan Using the Lean Manufacturing Principles
Interview participants were asked to describe the organization’s values. Schein (1985,
2010) suggested that artifacts are organizational beliefs and values represented in visible
behaviors and objects. During the interview, there was a magnitude of different perspectives
about the organization’s values in developing an expenditure reduction plan. P1 said, “the
leadership wants to increase net profit, and there were financial incentives in doing so,” and this
was their importance of reducing cost by 50%. P2 said,
I think it is an alien in our culture. It’s a matter of being competitive. Every business is
competitive, but the lumber business can be very competitive at times. Then the margins
can be skinny at times, so you think the same and that we’re constantly focusing on being
as efficient and less wasteful and to increase our net profit as much as we can so we all
try to meet our budget and exceed our budget.
P2 mentioned meeting their budget without knowing how to plan or possessing the
knowledge of principles but attempting to waste less. Note, P2 appeared to have buy-in. P3 said,
“We only hear about cost savings towards the end of the fiscal year.” This perspective, as P2
stated, is that reducing cost is not a consistent part of their culture. P4 said, “I’ve given input, but
that advice was ignored, so I don’t concern myself with it.” P5 said, “Yeah, they do,” but was not
involved, so was not concerned. P6 said, “No, we’re not, but I mean me. Our goal is to always
try and save some money; however, it is that we can do it.” The interview results validate the
influence as a need.

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Summary
Based on surveys and interviews, the 89% cut score was not met. The survey and
interview findings show a gap regarding the cultural model. The interview and survey results
differ, yet both align with one another. Managers have different experiences within the same
organization and do not align with the organization’s mission and values. The expenditure-
reduction plan has different priority tiers among management. There is awareness; by five of the
six participants, three of the six are not concerned, and one is only concerned at the end of the
fiscal year. The influence is a validated need.
Finding Cultural Settings Organization Influence: Leaders Ensure That Adequate Fiscal
Resources Are in Place to Meet Organizational Goals of Developing an Expenditure-
Reduction Plan
Survey Findings: The Organization Provides Me Training in Lean Manufacturing Principles
Interview participants were asked whether the organization would provide training in the
core competencies in lean manufacturing used to assist in expenditure-reduction planning.
Assessing the participants’ responses (Figure 11), only two strongly disagreed, five disagreed,
and two agreed. There is a right and wrong answer for this question based on the organization’s
policy on staff development. Training can be considered off-site external setting, internal
classroom setting, training during non-working hours, or other available methods. Most of the
participants answered there is no such training in place. Seven participants who answered no fall
below the 89% threshold, validating the influence as needed.

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Figure 11
Cultural Setting

Interview Findings. What Resources Are Needed to Help Develop the Expenditure-Reduction
Plan Using the Lean Manufacturing Principles
Interview participants were asked to explain the organizational resources needed to help
develop an expenditure-reduction plan. The participants interpreted this question as to whether
the organization would pay for staff development training. The question was reiterated for a
better understanding to each participant, and the participants were allowed to answer how they
deemed the answer fitting. The participants mentioned the following, P1 said “Yes and no.
Slower times of the year where those opportunities, if requested, I’m pretty sure would be
approved as long as you provide some type of justification.” P1 did provide a confident answer.
One group was aware of a program but did not have any details. P2 said, “We have a a
program where if you need extra courses and training there is a certain reimbursement. I forgot
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what that is, but yes, we were open to that. And we encourage that” and “We haven’t been doing
it that much lately, but we definitely encourage growth within the company.” P3 said, “I know
this was something that was brought up, especially like through my onboarding, something I
haven’t questioned, but to be honest, I haven’t really followed through, and I haven’t really heard
the organization ever mention it after that.” P4 said,
Yes. I’m pretty sure they would. If I took the course and showed completed. I’ve heard
they had a program like that in the past, and it’s got to be work-related. Anything we get,
like a certification that you completed, they would reimburse me for it.
The second group was to the point, as the organization did not provide any financial
resources in supporting managers in seeking external education to assist in improving their
knowledge and skills. When asked whether the organization provided any assistance, P5 said
“No,” and P6 said, “No, they do not.” This conflict of resources awareness offered by the
organization validates the influence is a need.
Summary
Based on surveys and interviews, the 89% cut score was not met. The survey and
interview findings show a gap regarding the cultural setting. The interview and survey were
challenging as the path of the interpretation was a trend. Again, management has had different
knowledge and experiences within the same organization. The unsuccessful development of an
expenditure-reduction plan had no influence from the core competencies since the competencies
were not offered as training . There is awareness; four of the six participants state there are
financial resources in which all of them were unsure or did not have details of the criteria for
using this resource. Two participants stated there were no financial resources to assist them in
getting extra job-related training. Yet, the survey showed seven out of nine participants disagreed
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with the organization-provided training. There is a contradiction between the survey and
interview findings showing that both surveys and interviews proved the influence is validated
there is a need.
Summary of Validated Influences
This chapter utilized quantitative results and qualitative findings from surveys and
interviews to provide answers to the first two research questions, reporting first on the progress
towards organizational and stakeholder goals and then validating or not validating KMO
influences as needs. When making assertions from the data, 89% agreement on survey items was
the threshold, and interview data used as evidence also had a threshold of 89% among interview
participants. Similarly, the degree to which an influence was validated depended on the overall
percentage of agreement in the survey and interview data. Given these metrics, influences
validated a need when the data indicated less than 89% of employees surveyed or 89% of
participants interviewed were experiencing a KMO challenge. Influences impacting 67% of
survey respondents or 67% of interview participants were considered partially validated.
Influences affecting less than 67% of the survey respondents or less than 67% of the interview
participants were considered not validated. Table 7 illustrates the summary of results and
findings.

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Table 7
Summary of Results and Findings, Reported as Identified Assets and Validated Influences
Assumed influence Validated Partially
validated
Not validated
Leaders need to know the organization’s core
competencies for financial planning (factual
knowledge).
X
Leaders need to know how to develop a financial
plan for expenditure reduction (procedural
knowledge).
X
Leaders need to reflect on and adjust their
knowledge when developing an expenditure-
reduction plan (metacognitive knowledge).
X
Leaders need to consider an expenditure-reduction
plan important for themselves (task value,
motivation).
X
Leaders need to be individually confident they can
successfully develop an expenditure-reduction
plan (self-efficacy, motivation).
X
Leaders need to be individually confident they can
successfully develop an expenditure-reduction
plan (team efficacy, motivation).
X
Leaders need to believe the success or failure of
developing the expenditure-reduction plan is in
their control (attribution, motivation).
X
Leaders identify the organization’s values in
developing an expenditure-reduction plan
(cultural model, organization).
X
Leaders ensure that adequate fiscal resources are in
place to meet organizational goals of developing
an expenditure-reduction plan (cultural setting,
organization).
X

Conclusion
The conceptual framework that guided this study highlighted the relationships, as
determined by a literature review, between theories of knowledge and motivation: the conceptual
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framework situated all knowledge and motivational influences within the organization’s cultural
settings and cultural models. The results and findings highlighting both KMO identified needs
and validated influences will frame the recommendations in Chapter Five.

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Chapter Five: Conclusion
In Chapter Four, the stakeholders’ goals were evaluated, several knowledge-based,
motivational, and organizational influences on the problem of practice were identified. This
chapter builds on the previous chapter reviewing results and findings. The findings guided the
selection of evidence-based solutions and recommendations, particularly to the categories of
confirmed needs as KMO challenges. This chapter will then utilize the new world Kirkpatrick
model to generate an integrated implementation and evaluation plan for the recommended
solutions (Kirkpatrick & Kirkpatrick, 2016). To structure this chapter in the context of the
organization’s mission, performance goals, stakeholders’ goals, and research questions that
guided this study. The chapter begins by returning to the essential sections of Chapter One.
Organizational Context and Mission
The organization of focus, API, is a lumber company that offers premade builders’
production packages with various lumber supplies. Vineyard operators and landscape architects
provide irrigation systems and parts, domestic trellising, harvest storage, safety gear, and pruning
tools for the whole team. The organization’s mission includes being a leading, diversified, top
100 U.S. building supply company. It is a regional industry leader and an export/import business.
The organization remains on the leading edge, expanding its capabilities and utilizing modern
tools to improve its customer focus and service. API has been family-owned and operated for
three generations since 1955. Its commitment to the communities it serves has never waned. For
over 65 years, it has worked with developers, builders, framers, and farmers who helped the
organization grow and develop. In 2003 the third-generation owner became president and CEO
of the company and its affiliates, growing its service orientation, customer focus, and operational
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efficiency. In 2014, API NLC Builders re-branded itself to reflect the diversity of its current
company serving professional builders and vineyard operators.
Organizational Performance Goal
The goal for API is that by May 2023, it will cut costs by 50% of its current budget
allocations in producing premade builders’ packages. The chief financial officer and the chief of
operations established this goal after meeting quarterly goals with the CEO. The leadership
mentioned their concerns about the consistent overspending of the department’s budget through
the vast majority of the year. As a result, the CFO delegated to the SVPO to streamline all
aspects of the department to fulfill the executive leadership’s goals. In addition, audits will
measure the results of their financial performance through June 2023.
Description of Stakeholder Groups
The stakeholders for API are the board of directors, managers, and employees. This
organization consists of several departments. It is a functional organization structure, whereas a
hierarchy oversees groups categorized by the employees’ skills and knowledge. These internal
stakeholders are affected by the outcome of an organization’s effectiveness and efficiency.
Without the assistance of one, the other stakeholder will not be able to function or manage daily
operations without the other.
The board of directors selects and hires the CEO. The chairman of the board is related to
the CEO. Their influence and intent are to support the CEO and review his performance. They
also ensure effective strategic planning, ensuring the company has the resources to succeed and
managing the resources effectively. The return of investments for the board of directors’ hinges
on the success or failure of their strategy.
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Employees are API’s key to success and have proven to be their most valuable asset.
They are the first to ensure customers’ demands are fulfilled. By providing lumber as a product
and service, customers are more likely to repeat business. In addition to serving and delivering
material on demand, which produces job satisfaction and revenue, it will give API a competitive
edge within the industry. The employees’ job is their livelihood; thus, contributing to
productivity and efficiency will motivate them to provide a return on investment.
Goal of the Stakeholder Group for the Study
Although a complete analysis would involve all stakeholder groups, this study focused on
leadership consisting of the SVPO, directors, and managers for practical purposes. Leadership in
the operations department supports the SVPO’s decisions. The stakeholders’ objective of the top-
down approach is to reduce the department’s spending. The current CEO assesses the overall
direction of the business. The ideas and direction the CEO determines as his larger goals will
filter down to the CFO, who proposes his plans and seeks recommendations or feedback from the
COO. The COO then delegates these plans, goals, and budgets to the SVPO. The SVPO is
responsible for ensuring these plans are performed and achieved within the agreed-upon budget.
After the SVPO accepts his objective, he spearheads daily operations with the aid of his
directors and managers. At this point, the SVPOs must demonstrate productivity in management
styles or approaches. Examples of the SVPO productivity or obstacles are the competencies of
realistic planning, goal setting, and effectiveness. In achieving these goals, the company’s
revenue will not be affected. Customers will continue to receive their supply goods, vendors’
services will continue, and employees will not worry about being laid-off. API’s competitors can
also capitalize on this opportunity if SVPO continues to overspend within the department’s
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budget. The goals are aligned with the stakeholders who are focused on reducing spending by
50% of its current budget.
Purpose of the Project and Questions
The purpose of this project was to conduct a gap analysis to examine the KMO influences
that interfere with reducing the operations department spending by 50%. The analysis began by
generating a list of possible or assumed interfering influences that were examined systematically
to focus on actual or validated interfering influences. While a complete gap analysis would focus
on all stakeholders, for practical purposes, the stakeholders of focus were the leaders in terms of
decision making, performance, and effectiveness. Three research questions guided this study:
1. What knowledge and motivation need to be addressed to develop the plan to reduce
expenditure by 50%?
2. What is the interaction between organizational culture and context and leadership
knowledge and motivation?
3. What are recommended knowledge, motivation, and organizational solutions?
Introduction and Overview
Chapter Four provided insights into the first two research questions. The purpose of
Chapter Five is to answer the third question. Solutions were recommended for validated
knowledge-based, motivational, and organizational influences and by creating an integrated
implementation and evaluation plan to guide enacting those solutions. Each set of validated
influences aligns with principles from the literature to generate context-specific
recommendations. These recommendations inform the development of a program to be
implemented as a research-based solution to the problem of practice. In this study, the program is
a management development program that incorporates data and findings to improve
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effectiveness and value for managers having input in developing an expenditure-reduction plan.
In the end, this is expected for the managers to apply the newly learned methodology and
provide information in developing an expenditure-reduction plan to reduce operational costs for
the organization.
After aligning influences with recommendations, later sections in this chapter articulate
the development of an integrated implementation and evaluation plan using the new world
Kirkpatrick model (Kirkpatrick & Kirkpatrick, 2016). While the Kirkpatrick model for training
evaluation has always emphasized four levels of intended outcomes for training events, including
reactions, learning, behavior, and results, the new world model approach uses an integrated
approach and begins with Level 4 results (Kirkpatrick & Kirkpatrick, 2006, 2016). In this
chapter, the planning for the program starts with Level 4 by articulating the leading indicators of
successful accomplishment of the organizational and stakeholder goals. Level 3, planning,
follows and entails identifying critical stakeholder behaviors for accomplishing goals along with
the factors that would drive the development of those behaviors. Finally, in Level 2, learning
objectives are articulated, along with the context-specific recommendations from the first half of
this chapter, to inform the program’s design.
Concurrent to backward designing the program, which would be considered the
implementation component of the integrated implementation and evaluation plan, metrics, and
timelines for evaluation at all four levels are articulated. The integrated plan concludes with a
presentation of sample survey items and proposals for data visualization for various key
stakeholders. The planning is performed with the end in mind, and evaluation is integrated into
implementation during program planning and execution.

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Recommendations for Practice to Address KMO Influences
Knowledge Recommendations
The data analysis validated all three assumed influences on the problem of practice. The
assumed KMO influences related to the cost reduction planning leading to implementation at
API were examined to determine the organization’s strengths and areas for improvement in the
completion of their savings at the end of each month. Despite the organization’s current and past
success, employees demonstrated KMO gaps relating to the benefits of eliminating waste, saving
time and money related to reducing cost competencies. It is projected that advocating and
providing training and education on these influences would help to minimize gaps in
management’s competencies. Table 8 presents the knowledge influences and literature-based
principles that guide a list of context-specific recommendations developed in the sections that
follow.

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Table 8
Summary of Knowledge Influences and Recommendations
Assumed
knowledge
influence
Validated as a
gap?
Priority

Principle and citation Context-specific
recommendation
Leaders need to
know the
organization’s
core
competencies
for financial
planning.
(declarative
knowledge)
Yes Yes When employees
indicate not
knowing
procedures to
accomplish a goal
there is a clear
example of a loss
of known
information to
complete the task.
(Clark & Estes,
2008).
Assist management with
training to learn core
concepts and skills they
are expected to have and
link it with (if any) prior
knowledge regarding
financial planning to
reduce operational costs
for production of premade
builders’ production
packages.

Leaders need to
know how to
develop a
financial plan
for expenditure
reduction.
(procedural
knowledge)
Yes Yes To develop mastery,
individuals must
acquire component
skills, practice
integrating them,
and know when to
apply what they
have learned
(Schraw &
McCrudden,
2006).
Provide accurate feedback
that identifies the skills or
knowledge the individual
lacks, followed by the
steps to follow in applying
skills to reduce
operational costs in the
production of premade
builders’ production
packages.

Leaders need to
reflect on and
adjust their
knowledge
when
developing an
expenditure-
reduction plan.
(metacognitive
knowledge)
Yes Yes Self-regulatory
strategies,
including goal
setting, enhance
learning and
performance
(APA, 2015:
Dembo & Eaton,
2000; Denler et al.,
2009).
Provide opportunities for
learners to check their
progress and adjust their
learning strategies as
needed. Provide timely
feedback that links the use
of learning strategies with
improved performance to
reduce operational costs
for production of premade
builders’ production
packages.

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Declarative Knowledge Solutions
Declarative knowledge is information about facts and concepts known and part of the
organization’s practices and factual knowledge of elements and terminology used to solve
problems (Krathwohl, 2002; Rueda, 2011). The findings in this study showed that the
management team in the operations department has a 33% factual knowledge gap of lean
manufacturing that will assist in developing an expenditure-reduction plan. To gain the needed
skill information, the first solution in the table is the factual knowledge about providing
management with training concepts and skills expected to learn and linking this with prior
knowledge regarding financial planning to reduce operational costs. Information learned
meaningfully and connected with prior knowledge is stored more quickly and remembered more
accurately because it is elaborated with prior learning (Schraw & McCrudden, 2006). The
management team must be involved in creating the expenditure-reduction plan and know what
concepts are needed in their daily activities to achieve their financial planning objectives.
Despite the findings showing that most of the management team were slightly familiar with the
methodology, there was a gap in factual knowledge about lean manufacturing principles and in
applying these principles to reduce waste that will save costs. Therefore, the recommendation is
to assist management with attaining their lean manufacturing certification through online training
to learn and apply the concepts and skills they need to develop an expenditure-reduction plan.
To improve the identified gaps, Clark and Estes (2008) defined training as any situation
where people can acquire knowledge, and education is defined as people acquiring the
knowledge and skills to handle future problems. Also, organizations differentiate the knowledge,
skills, and abilities important to maintain a competitive advantage (Aguinis & Kraiger, 2009).
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Training would give managers the knowledge to assist senior leadership with the expenditure-
reduction plan by providing input from performing lean processes in daily operations. The
recommendation to address this gap is to offer training about the concepts and skills needed to
work effectively and efficiently and increase profit. Training and implementing knowledge is
essential so that leaders use strategic goals to predict their decisions’ impact on future results and
adapt by making corrections when noticing that performance results yield negatively
(Narkunienė & Ulbinaitė, 2018). For the training concepts and skills to be valuable and
maximized for management development, the organization’s leadership will ensure an accredited
training agency or certified training official facilitates the curriculum in alignment with lean
manufacturing principles. Having legitimized training for the development process will increase
managers’ financial planning as an essential component in achieving the profit-maximizing goal
(Azarenkova et al., 2017; Guide et al., 2003).
Procedural Knowledge Solutions
Procedural knowledge is the knowledge needed to know how to do certain activities or
tasks (Rueda, 2011). The results and findings from this study indicated that 78% of managers
lack the procedural knowledge leading to knowing how to develop an expenditure-reduction
plan. Management needs the understanding of know-how to perform the basic procedures
necessary to assist in developing such a plan. If managers do not need actual learning and
practicing of the procedures and still indicate a lack of procedural knowledge, then the
information is all that is necessary to reduce their uncertainty regarding achieving a performance
goal (Clark & Estes, 2008). Tuckman (2009) asserted that the environment shapes behavior and
that immediate feedback reinforces desirable behaviors. Mayer (2011) stated that information
processing theory also highlights the effectiveness of frequent performance feedback during
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learning. The recommendation, therefore, is for API to provide accurate feedback that identifies
the skills or knowledge the individual manager lacks, followed by the certification training of
these skills and knowledge.
At API, management does not properly know how to align operational processes and
procedures with developing an expenditure-reduction plan. This situation suggests that
management, as the learners, needs multiple opportunities in various settings to acquire
knowledge and implement what they learned. Training is any situation where people can practice
how-to knowledge and skills and receive corrective feedback in the process (Clark & Estes,
2008). Schraw and McCrudden (2006) recommend that to develop mastery, individuals must
acquire component skills, practice integrating them, and know when to apply what they have
learned; additionally, complex tasks must be broken down, and individuals must be encouraged
to think about content in strategic ways. In addition, training will provide information plus
guided and corrective feedback (Clark & Estes, 2008).
Metacognitive Knowledge Solutions
The data from this study indicates that 77% of employees lack metacognitive knowledge
related to their ability to monitor their progress towards achieving and developing an
expenditure-reduction plan. API’s managers need to know how to reflect on their progress in
aligning the processes and procedures. Baker (2006) suggested that metacognitive strategies
facilitate learning and advocate modeling one’s metacognitive process by assessing their
strengths and weaknesses. According to Pintrich & Schunk (2002), metacognitive thinking and
self-regulation are cognitive processes that learners can monitor and regulate their thinking and
learning. Through self-reflection, individuals become more aware of their metacognitive
knowledge and their strategies for learning and thinking. The recommendation is for API’s
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leadership to allow learners to check their progress and adjust their learning strategies as needed.
Provide timely feedback that links the use of learning strategies with improved performance.
Managers should have opportunities to engage in guided self-monitoring and self-
assessment. Baker (2006) suggested that knowledge is relevant to ensuring the basic processes
are used effectively and appropriate strategies are set up; thus, learners also need to have
awareness and control of their cognitive processes. Baker also mentioned metacognitive
strategies facilitates learning. This concept would suggest managers benefit from time and
practice after learning lean manufacturing to develop an expenditure-reduction plan better and
cross-reference it with historical cost data as a valuable baseline to make adjustments. Thus, the
organization can provide its managers with opportunities for guided self-monitoring and self-
assessment when planning their approach to develop an expenditure-reduction plan. The
assertion is that managers knowing and controlling their cognitive processes enhances their
learning.
Motivation Recommendations
Gaps in knowledge and motivational issues are the root causes of organizational
problems (Clark & Estes, 2008). The data analysis in the previous chapter supported the
validations for the second influence. These influences are in the scope of task values, self-
efficacy, team efficacy, and attribution. Influences will be discussed with the help of motivation
literature such as Clark and Estes (2008) and Rueda (2011). Specifically, self-efficacy will also
support the reflections on motivation influences (Bandura, 1997, 2013). Table 9 presents these
influences as well as literature-based principles that guide a list of context-specific
recommendations, which will be developed in the sections that follow.

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Table 9
Summary of Motivation Influences and Recommendations
Assumed motivation
influence
Validated as a
gap?
Priority

Principle and
citation
Context-specific
recommendation
Leaders need to
consider an
expenditure-
reduction plan
important for the
organization.
Yes Yes Value, the more a
person values a
task and the
more they think
they are likely to
succeed at it, the
greater their
motivation to do
it (Wigfield &
Eccles 2000).
Provide managers
modeling of values,
enthusiasm, and
interest in the premade
builders’ production
packages to develop an
expenditure-reduction
plan for the
organization.
Effective change
begins by
addressing
motivation
influencers; it
ensures the
group knows
why it needs to
change. It then
addresses
organizational
barriers and then
knowledge and
skills need
(Clark & Estes,
2008).

Leaders need to be
individually
confident they can
successfully
develop an
expenditure-
reduction plan.
Yes Yes High self-efficacy
can positively
influence
motivation
(Pajares, 2006).
Learning and
motivation are
enhanced when
learners have
positive
expectations for
Use models that build
self-efficacy and
enhance motivation.
Provide instruction,
controlled practice, and
immediate feedback
that will create a
positive environment
and encourage
expectations of
successful plan
development.
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Pintrich (2003) described motivation as the combination of energization and direction,
answering the questions of what moves individuals and towards what. Motivational problems
can arise during three phases of task achievement; getting to start, or active choice; sticking with
it, or persistence; and completing it to a high standard, or mental effort (Clark & Estes, 2008).
There are many factors that influence motivation; however, in this study, literature on self-
efficacy theory, attribution theory, and goal orientation theory will be reviewed.

success (Pajares,
2006).
Effectiveness
increases when
leaders are
confident in their
team’s ability to
develop an
expenditure-
reduction plan.
Yes Yes Modeling to-be-
learned strategies
or behaviors
improves self-
efficacy,
learning, and
performance
(Denler et al.,
2009).
Use models that will
build team efficacy and
enhance motivation.
Use effective
communication
strategies to build and
maintain positive
relationships with
employees.
Leaders need to
believe the success
or failure of
developing the
expenditure-
reduction plan is
in their control.
Yes Yes Learning and
motivation are
enhanced when
individuals
attribute success
or failures to
effort rather than
ability.
(Anderman &
Anderman,
2006).
Provide attributional
retraining through
feedback in which
success or failure is
attributed to effort and
ensure the feedback is
specific to career
development needed to
meet organizational
goals.
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Task Value
Eccles (2005) defined task value as “a quality of the task that contributes to the
increasing or decreasing probability that an individual will select it” (p. 109). The results and
findings of the study indicated that all managers expressed low value in their engagement and
expectation in the lean manufacturing principles that will assist them in developing an
expenditure-reduction plan. Value is the importance an individual places on a task, and
productivity is a function of the employees' expectations (Porter & Lawler, 1968; Rueda, 2011).
It is important to increase the managers’ value perception. Eccles (2009) suggested that
attainment value refers to the link between the task being performed and the individual’s own
identity as preferences. In addition, Clark and Estes (2008) mentioned most motivation research
agrees there are three types of motivational processes in a work environment: active choice,
persistence, and mental effort. These processes mean that the value one puts on a task influences
one’s persistence in achieving that goal. The correct mixing of these facets of motivated
performance generates increased performances (Rueda, 2011). Thus, it is recommended the
organization provide leaders modeling of values, enthusiasm, and interest in the expenditure-
reduction plan for the organization.
Motivation in the realm of expectancy-value challenges an individual’s beliefs about the
significance of a task and whether it has value for themselves or the organization. According to
the National Research Council (2004), values are most influential in starting an activity, while
expectations are most influential in persisting at an activity. The higher an individual values an
activity, the more likely they choose it, persist, and engage in it (Rueda, 2011).
Learning and motivation are enhanced if the learner values the task, and the interest and value
one puts into a task influences the outcome of the task (Eccles, 2006, 2009). A recommendation
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based on expectancy-value theory will be used to close the value gap (Vroom, 1964). Elliot and
Harackiewicz (1996) mentioned learning or task involvement goals focused on the development
of competence and task mastery. This suggests managers would benefit in their productivity
from learning about the value of completing the lean manufacturing training.
Self-Efficacy
Self-efficacy refers to an individual’s belief in his or her capacity to execute behaviors to
produce specific performance (Bandura, 1977, 1986, 1997). The results and findings of this
study indicate that without training on the lean manufacturing principles, 66% of managers are
only confident about three of the principles while the remaining 34% are not familiar with any,
which again falls below the threshold and shows low levels of self-efficacy. Pajares and Miller
(1994) determined that self-efficacy is the most powerful predictor of performance over other
theories of learning and motivation. The construct of self-efficacy suggests that an individual’s
motivation to accomplish a task is influenced by the belief in their ability to produce the desired
outcome (Bandura, 1991; Pajares, 2006). Bandura (1996) contributed to motivational theory by
developing the constructs of self-efficacy, referring to the belief that someone can accomplish a
task. A recommendation embedded in the self-efficacy theory was selected to address this
confidence gap in learning lean manufacturing as a tool to prepare a manager in having input to
develop an expenditure-reduction plan. The recommendation is to use models that will build
team efficacy, enhance motivation, and use effective communication strategies to build and
maintain positive relationships with employees.
Organizations must realize the importance of helping managers establish higher levels of
confidence. High self-efficacy can positively influence motivation as well as learning and
motivation are enhanced when learners have positive expectations for success (Pajares, 2006).
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Managers with high confidence levels are more likely to initiate and pursue action and persevere
to success (Stajkovic, 2006). This likelihood suggests that when individuals are engaged in their
work, they invest personal energy in that work, and they experience an emotional connection
with that work; doing so provides a competitive advantage for that organization (Christian et al.,
2011; Rich et al., 2010). Also, self-efficacy increases as individuals succeed in a task (Bandura,
1997). Self-confidence allows individuals to be certain about their abilities to succeed
(Northouse, 2016). Bandura’s (1986) articulation of the theory of self-efficacy stated four key
influences on self-efficacy development: mastery experiences, vicarious experiences, social
persuasions, and physiological states. To cultivate a compelling sense of self-efficacy, managers
must experience success on a task, see similar models experiencing success, receive
encouragement, and experience limited negativity during the learning process.
Team Efficacy
Team efficacy is a mediating variable (Bandura, 1986; Campion et al., 1993) that
explains the mechanism underlying the relationship between team inputs, such as team ability
(Hecht et al., 2002), and collective team leadership (Sivasubramanian et al., 2002). The results
and findings of this study indicate that managers rated their confidence in their team on the low
end (less confident 0–2 out of 10 most confident), far less their self-efficacy rating, which falls
below the threshold. An individual’s self-efficacy can also be impacted by feedback received
during social (team) interactions that occur within different cultural settings like work (Gallimore
& Goldenberg, 2001; Pajares, 2006). Studies showed that encouraging a collaborative
environment promotes an ongoing integration of ideas and interdependency among multiple
stakeholders and suggested a collective rather than individual approach to leadership within an
organization (Raelin, 2016; VanVactor, 2012). Expanding the collective of individuals’ self-
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efficacy for more oversight in team efficacy are several motivation influences that contribute to
teams engaging and persisting in whatever tasks they must perform (Rueda, 2011). These
influences include value, self-efficacy, and attributions. When workgroups have known
procedures and understand each other’s contributions overall, performance improves in
unexpected and complex situations (Clark & Estes, 2008). The recommendation involves using
models that will build team efficacy and enhance motivation. Use effective communication
strategies to develop and maintain positive relationships with employees.
The individual manager will improve their confidence in learning and applying lean
manufacturing principles, collaborating as a team, and using effective communication strategies
to build and maintain positive relationships with employees. Collaborative leaders facilitate,
encourage, and enable stakeholders to work together effectively (Ansell & Gash, 2012). Building
and sustaining confidence in teams prove to be overall beneficial. Hence, improving team
efficacy. Bandura’s (1986) four key influences on self-efficacy development that can also be
used in a team setting. To cultivate a compelling sense of team efficacy, managers must
experience success on a task, see similar models experiencing success, receive encouragement,
and experience little negativity during the learning process. Modeling to-be-learned strategies or
behaviors improves efficacy, learning, and performance (Denler et al., 2009).
Attribution
Attribution theory refers to a field of inquiry on the focus of study that concerns
inferences about the causes of events and outcomes, including achievement, failures, and
consequences of these beliefs (Weiner, 2010). The results and findings of this study indicate that
a sense that success in applying lean manufacturing principles is within the control of the
managers is lacking as 22% of managers strongly agreed, 55% agreed, and 22% disagree, falling
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below the threshold and showing low levels in attribution. Anderman and Anderman (2009)
mentioned learning and motivation are enhanced when individuals attribute success or failures to
effort rather than ability. A potential leader’s belief that ability is flexible and effort is valuable
attributes success or failure to internal and controllable conditions (Hochanadel & Finamore,
2015). Levels of attribution should increase with collaborative support and feedback from the
organization. Thus, current and incoming managers would benefit from support, encouragement,
and advocacy of learning the methodology. The recommendation is for API to provide
attributional retraining through feedback in which success or failure is attributed to effort and
ensure the feedback is specific to career development needed to meet organizational goals.
Anderman and Anderman (2009) explained that attribution theory provides a method for
examining and understanding motivation by reviewing an individuals’ beliefs about why certain
occurrences happen and correlating those beliefs to motivation. At API, managers should learn
the alignment processes of each lean manufacturing principle to help enhance their contribution
in developing an expenditure-reduction plan that will directly impact the company’s success.
Pajares (2006) stated that past successes create intrinsic motivation, which creates a value for
attribution. Managers must attribute their success and failure to complete lean manufacturing
training to their efforts. Weiner (1986) proposed that learners (managers) undertake an
attributional search to understand what happened. Doing so will cause a desire to learn, effort,
ability to have more significant input on the processes and provide valuable input related to
improving the expenditure-reduction plan.
Organization Recommendations: Strategies for Completing the Organization
As a result of the data analysis, the assumed organizational influences were validated.
The data from this study confirmed cultural needs on the organizational influences for
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identifying the organizational values and providing the resources for professional development
opportunities that will help in financial planning. Clark and Estes (2008) mentioned that faulty or
inadequate development processes and support are the leading cause for performance gaps that
can prevent success. Organizational culture has an important role in the development of values
and affording resources. This section explains the two concepts involving the cultural setting and
the cultural model.
Cultural settings are the who, what, when, where, why, and how of the daily routines
within the organization, and cultural models are the shared mental schema and normative
understanding of how organizations work or ought to work (Gallimore & Goldenberg, 2001).
Rueda (2011) showed that the relationships between cultural models and settings were common.
Hence, the recommendations were structured around the concepts of cultural models and cultural
settings as defined by Gallimore and Goldenberg. Table 10 highlights the cultural model and
cultural setting recommended for the adjustment that affects change regarding the problem of
practice. Strategies for addressing these organizational influences also include assessing the
comments made by the managers and creating research-based solutions to close the gaps in
performance that are culturally essential for the organization.

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Table 10
Summary of Organization Influences and Recommendations
Assumed organization
influence
Validated as a
gap?
Priority? Principle and
citation
Context-specific
recommendation
Leaders identify the
organization’s
values in
developing an
expenditure-
reduction plan.
Yes Yes Organizational
culture is created
through shared
experience,
shared learning,
and stability of
membership. It is
something that
has been learned.
It cannot be
imposed (Schein,
2004).
Develop a core value
decree about the
expenditure-
reduction plan,
which will be
mandatory
(management level
only) to be viewed
through videos on
the managers’ work
computer or mobile
device.

Leaders ensure that
adequate financial
resources are in
place to develop an
expenditure-
reduction plan to
meet organizational
goals.
Yes Yes Effective change
efforts ensure
that everyone has
the resources
(equipment,
personnel, time,
etc.) needed to do
their job and that
if there are
resource
shortages, then
resources are
aligned with
organizational
priorities (Clark
& Estes, 2008).
Align the allocation of
resources with the
goals and priorities
of the organization.

Cultural Models
The results and findings of this study indicate 78% of the survey participants agreed with
the identified values of the organization’s objective to develop an expenditure-reduction plan.
However, only 44% of the interview participants agreed that the organization has a culture
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advocating these values. While the survey and interview responses slightly contradict one
another, both ratings are below the threshold of 89%, showing symptoms of an organizational
issue. Gallimore and Goldenberg (2001) called cultural models “a shared mental schema or
normative understanding of how the world works, or ought to work” (p. 47). The
recommendation is to develop a core value decree about the expenditure-reduction plan, which
will be mandatory (management level only) to be viewed through videos on either the managers’
cell phones or work on a computer.
Rueda (2011) emphasized that organizational structures, policies, and practices can
influence whether the performance goals of individuals, groups, or the entire organization are
met. Cultural models are the intangible set of values that create the objective of an organization
through which experiences are collectively interpreted and are used to accomplish these goals.
Organizational culture can be a model with three levels of assumptions: artifacts, the visible
structures and behavior; espoused beliefs and values, and assumptions of what should be; and
basic underlying assumptions, unconscious beliefs or values that determine behavior (Schein,
2004). A focus on establishing a shared organizational value system of inclusivity in planning for
expenditure reduction is an essential lever in building managers’ self-efficacy, participation, and
performance.

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Cultural Settings
Cultural settings provide for environmental conditions which provide tangible aspects of
an organization like policies and processes (Gallimore & Goldenberg, 2001). The results and
findings of this study indicate that 78% of the survey participants disagreed with the
organization’s providing professional development that will assist in developing an expenditure-
reduction plan. Only 44% of the interview participants agreed that the organization advocates
and provides financial resources for training that will influence and affect the development of the
expenditure-reduction plan. The findings revealed that all participants were uncertain or unaware
of the organizations’ policy and procedures in pursuing management development training
courses related to lean manufacturing. Clark and Estes (2008) noted that organizational
performance increases and trust is promoted when individuals and leaders communicate openly
and constantly. The cultural setting influence identified showed there was a gap in managers
knowing whether they were supported by the organization in providing resources to enhance
their knowledge and skills. The recommendation is to align the allocation of resources with the
goals and priorities of the organization.
Effective change efforts ensure that everyone has the resources (equipment, personnel,
time, etc.) needed to do their job and that if there are resource shortages, then resources are
aligned with organizational priorities (Clark & Estes, 2008). Ensuring staff’s resource needs are
being met is correlated with increased learning outcomes (Waters et al., 2003). Clark and Estes
(2008) also mentioned that to effect change in an organization, leaders must communicate
constantly and openly with all stakeholders about their plans and progress for the organization.
Effective leaders are aware of their influence on communication and its impact on the change
process through enhancing knowledge and skills within the organization. Although there have
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been attempts to correct the organization’s setting, it is essential to focus on communicating and
developing a culture that supports growth for the managers and eventually strengthens the
expertise to meet objectives.
Integrated Implementation and Evaluation Plan
The model that guided the design of this implementation and evaluation plan is the new
world Kirkpatrick model (Kirkpatrick & Kirkpatrick, 2016), based on the original Kirkpatrick 4-
level model of evaluation (Kirkpatrick & Kirkpatrick, 2006). This framework identified the
following four levels of evaluation: reaction, learning, behaviors (or transfer), and results. In
recent updates, successors have updated this approach by proposing to design the evaluation
process backward from the organization's goals (Kirkpatrick & Kirkpatrick, 2016). Hence, when
creating an improvement integrated package or action plan, trainers should focus on the
following: the results expected from the plan and the leading indicators allowing to assess
progress toward these results (Level 4); the critical behaviors expected from the stakeholder
group of focus (Level 3); the degree to which participants acquire the knowledge and skills
imparted in the training (Level 2); and the degree to which participants find the training
favorable, engaging, and relevant to their jobs (Level 1). Too often, training strategies focus on
Levels 1 and 2 and forego Levels 3 and 4. By keeping the end in mind, this approach ensures that
resources and time are dedicated to all four levels within the evaluation process (Kirkpatrick &
Kirkpatrick, 2016).
Organizational Purpose, Needs, and Expectations
The mission of API includes being a leading, diversified, top 100 U.S. building supply
company that serves professional builders and vineyard operators on the West Coast. One of the
organizational goals is to reduce operational costs of premade builders’ production packages by
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50% of its current allocated budget. The stakeholders’ objective has decided to reduce the
department’s spending and delegate to the SVP. However, the organization’s leadership expects
the managers to have input when developing the expenditure-reduction plan. The managers have
not participated in the planning phase, yet they have been applying miscellaneous counter tasks
to cut costs. Therefore, this objective does not reflect on the organization’s mission.
Level 4: Results and Leading Indicators
Table 11 shows the proposed Level 4 results and leading indicators organized into
external and internal outcomes and the metrics and methods that could be used to evaluate them.
The outcomes are the lead indicators of continual, successful attainment of the long-range goal to
achieve a developed expenditure-reduction plan to reduce costs and the related stakeholder goals
to improve the managers’ knowledge and skills. Internal indicators are likely to occur if
managers’ critical behaviors could be taught by a supportive stakeholder group. External
indicators should follow upon successful attainment of internal outcomes.

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Table 11
Outcomes, Metrics, and Methods for External and Internal Outcomes
Outcome Metrics Methods
External outcomes
Established an
organizational online
learning environment and
outsourcing instructors.
Increased value in scheduling
industry-specific professional
development and certification
training.
Track the number of current
untrained managers and
newly hired untrained
managers.
Improved prospective
manager perception and
expectation of training.
Higher rate of “agree” and
“strongly agree” on a Likert
scale post-survey.
Send an email to the prospect
after the post-interview.
Increased
revenue/profitability.
Oversee increase of year over
year profit, statement
ratio/balance sheet.
Monthly financial report.
Internal outcomes
Increased managers’
awareness and
confidence that their
training and new skills
make a long-term impact
on the organization.
Number of operating expenses. Review of the financial impact
on the monthly and quarterly
income statement.
Reduced internal
operational waste.
Number of lean manufacturing
principles applied.
Monthly report from SVP,
indicating the number of
defects identified from each
section and monthly cost
savings.
Increased managers’
involvement in reducing
operational costs.
Monthly report from SVP,
indicating the managers’
applied steps used to reduce
operational costs.
Review during management
weekly meetings with
leadership.

Level 3: Behavior
Critical Behaviors
Kirkpatrick and Kirkpatrick (2016) defined Level 3, behaviors, as the extent to which
members of the organization who attended training apply what they learned when they are back
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on the job. Critical behaviors are specific actions that, if performed consistently while working,
will have the most significant impact on desired results and achieve organizational success
(Kirkpatrick & Kirkpatrick, 2016). Thus, Level 3 is the most important level because it requires a
comprehensive and continuous performance monitoring and improvement system that can
disrupt traditional training evaluation practices. Level 3 is accomplished by identifying the
critical behaviors that will most influence Level 4 and establishing the critical behaviors as the
bridge that connects learning to desired outcomes. The stakeholder group of focus in this study
was the managers having input in planning and performing operational cost reduction processes.
The first critical behavior identified is that managers will learn the skills with a focus on lean
manufacturing principles. Second, managers set organizational and personal goals aligned to
their skill development. Third, managers continue to develop their skills by providing input in
expenditure-reduction planning. Table 12 specifies the metrics, methods, and timing for
evaluating each of these critical behaviors.

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Table 12
Critical Behaviors, Metrics, Methods, and Timing for Evaluation of Managers
Critical behavior Metrics Methods Timing
Managers will learn
the skills of
expenditure plan
reduction with a
focus on lean
manufacturing
principles.

Number of managers
who enrolled in
professional
development
certification.
Managers will be
responsible for learning
to provide training on
lean manufacturing and
reporting their progress
to their leadership.
Managers will report
their progress
daily with their
reporting senior.
Managers set
organizational and
personal goals
aligned to their
skill development
for expenditure
plan reduction with
a focus on lean
manufacturing
principles.
.
Number of managers
that completed lean
manufacturing
certification.
The organization’s
database will track the
managers’ certification.
Notify managers
during the first
week of the
training plan and
evaluate
performance
monthly
thereafter.
Managers continue to
develop their skills
by providing input
in expenditure-
reduction planning
with a focus on
lean manufacturing
principles.
Number of managers
provided input in
expenditure
reduction to
achieve goals.
Senior leadership will track
operational performance.
Reports on
departmental
financial goals
reported to senior
and executive
leadership during
monthly meetings.

Required Drivers
Managers in the operations department need support from internal stakeholders in the
form of a commitment to critical behaviors and the application of required drivers that will
reinforce the knowledge, skills, and motivation that employees acquired from this performance
improvement program. Required drivers serve as an accountability mechanism that ensures
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proposed solutions are administered using reinforcement, encouragement, and the monitoring of
activities (Kirkpatrick & Kirkpatrick, 2016). Executive leadership and managers play a
significant role in strategy, cost savings, and planning; therefore, the use of identified required
drivers will support efforts to increase organizational commitment while at the same time
reducing waste operations and cost. Table 13 identifies the required drivers that will support the
critical behavior of internal stakeholders in the operations department.

Table 13
Required Drivers to Support Critical Behaviors of Managers
Methods Timing Critical behaviors
supported
Reinforcing
Assist management with training to learn core concepts
and skills they are expected to have and link it with
(if any) prior knowledge regarding financial
planning to reduce operational costs.
Once 1, 2, 3
Provide accurate feedback that identifies the skills or
knowledge the individual lacks, followed by the
steps to follow in applying these skills.
Daily 1, 2, 3
Provide opportunities for learners to check their
progress and adjust their learning strategies as
needed. Provide timely feedback that links the use of
learning strategies with improved performance.
Weekly 2, 3
Encouraging
Provide managers modeling of values, enthusiasm, and
interest in the expenditure-reduction plan for the
organization.
Weekly 2, 3
Use models that build self-efficacy and enhance
motivation. Provide instruction, controlled practice,
and immediate feedback that will create a positive
environment and encourage expectations of
successful plan development.
Ongoing 1, 2, 3
Use models that will build team efficacy and enhance
motivation. Use effective communication strategies
Monthly 1, 3
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Methods Timing Critical behaviors
supported
to build and maintain positive relationships with
employees.
Provide attributional retraining through feedback in
which success or failure is attributed to effort and
ensure the feedback is specific to career
development needed to meet organizational goals.
Quarterly 3
Rewarding
Public recognition of exceptional performance in
yearly appraisal reports by reporting seniors.
Quarterly 2
Public recognition of employees who model the value
and interest of the organizational tasks.
Monthly 1, 2
Monitoring
Implementation of core value decree of the
expenditure-reduction plan.
Once 2
Alignment of allocated resources to the goals and
priorities of the organization.
Quarterly 2

Organizational Support
Organizational support is necessary to ensure that the required drivers are implemented in
API’s operations department. Executive and senior management have an essential role in
supporting the lower-level managers in the operations department in advocating and supporting
them to execute their critical behaviors on the job. The executive leadership team will need to
participate actively and engage with the operations department to monitor their progress after
providing proper support to attain the required training resources. Proper support includes time
allocation and monetary resources for training managers. To support training efforts, the
organization must reinforce participation and involvement to reach the organizational goals. As
the managers train to gain new knowledge and develop new skills, there must be an emphasis on
the concurrent development of their values. The executive and senior management will need to
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enable and regulate a setting for API’s leadership to review the departmental progress of new
operational processes and protocols that are out of alignment with the organizational goals.
Lastly, the executive and senior management must provide clarity in direction, feedback,
evaluation, and encouragement for managers to develop a proper and effective expenditure-
reduction plan. And provide ongoing information regarding results to all stakeholders about the
continuous improvement of the organization’s expenditure reduction and enable the lean
manufacturing certification to remain aligned with organizational goals and succession planning
objectives.
Level 2: Learning Goals
The following learning objectives are recommended solutions based on the KMO needs
identified in Chapter Four. Following the implementation of the recommended solutions, the
stakeholder will be able to do the following:
• Know the organization’s core competencies for financial planning. (K-F)
• Know how to develop a financial plan for expenditure reduction. (K-P)
• Reflect on and adjust their knowledge when developing an expenditure-reduction
plan. (K-M)
• Consider an expenditure-reduction plan important for the organization. (M)
• Develop an expenditure-reduction plan. (M)
• Implement the lean principles (M)
• Know success in implementing lean principles is within their own control (M)
• Identify the organization’s values in developing an expenditure-reduction plan. (O)
• Ensure that adequate financial resources are in place to develop an expenditure-
reduction plan to meet organizational goals. (O)
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Program
The learning goals will be achieved through training and education that will increase
managers' knowledge, skills, and motivation and support their professional growth and goals. To
develop their knowledge and skills, managers will receive certification training. To receive
financial support in management development, managers will agree to remain with the
organization for a year after completion of achieving their lean manufacturing certification. The
certification training will be offered to current managers and immediately to newly hired
managers. The program will focus on API’s managers’ knowledge, skills, and motivation with
the expectation of providing input regarding their department’s expenditure-reduction plan.
To develop their knowledge and skills, API will provide managers with the financial
resources to attend (preferably) an online certification program on lean manufacturing principles.
Also, API will guide the managers’ process and understanding to align the organization’s
mission and values with their self-reflection of personal goals, abilities, and accomplishments.
This training will be a third-party formal online training, led by an instructor, and partly in
conjunction with API’s manager’s training and development criteria. A third-party instructor will
help with the facilitation of each training and provide demonstrations, practice and general
guidance. Agenda topics will be tied to the organization’s performance goal. The training site
will have access to the managers’ attendance, involvement, and progress. The SVP will have
access to monitor for managers’ status updates.
The program will further explore the strategies connected to each lean manufacturing
principle and engage the course in scenario-based training that utilizes demonstrations.
Demonstrations will allow managers to observe their role in each strategy. Managers will also be
introduced to performance indicators to track their progress towards achieving the organizational
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goals. The SVP will be available to assist managers until they become self-reliant. Furthermore,
managers will specifically train on recognizing and memorizing the lean manufacturing
principles and how they factor into their expenditure reduction development plans. At the end of
the training, managers will take an assessment with a minimum score of 90% to pass. This
training will summarize required and desired performance levels and show how to maintain high
levels of effective performance.
The learning goals listed in the previous sections will be achieved through job training,
management and team collaboration, leadership feedback, and providing resources to align staff
development with organizational goals. If the manager does not possess the required knowledge,
the manager will be informed of the certification course financially supported by the
organization. The course will be accessed through a computer provided at the job site. After
completing the program, senior management will provide feedback weekly (daily if needed) and
inform the managers of the application of their new knowledge and skill.
Financial assistance will be allocated for the managers’ development that will assist in achieving
the organization’s goals.
Evaluation of the Components of Learning
Throughout instruction, managers must be checked for conceptual, procedural, and
metacognitive knowledge. This action will ensure effectiveness and efficiency and serve as a
corrective measure if the course does not reach its objective. Additionally, continued assessment
of the managers’ value development will be critical to ensure the training is not preventing
learning. If there are gaps in the managers’ perceptions of the value of this program and a lack of
commitment to accomplishing any challenging goals and reflecting on progress, the cultivation
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of critical behaviors is less likely. Table 14 highlights the methods and timing for evaluating
these knowledge-based and motivational learning components.

Table 14
Evaluation of the Components of Learning for the Program.
Methods or activities Timing
Declarative knowledge “I know it.”
Knowledge checks indicating interpretation of the competencies of
lean manufacturing processes.
During the course
Knowledge checks through briefings of lean manufacturing
process results with senior management.
End of training
Procedural skills “I can do it right now.”
Perform the steps to develop an expenditure-reduction plan. During training
Observation of lean manufacturing processes application. During the course
Attitude “I believe this is worthwhile.”
Discussion about the value and relevance of completing lean
manufacturing processes training.
End of training
Manager survey on organizational commitment after receiving
professional development or certification training.
End of training
Senior manager’s observations. Daily
Confidence “I think I can do it on the job.”
Feedback and discussions following professional development or
certification training regarding barriers.
During training
Managers discuss in groups their confidence level related to
utilizing their training on the job to improve their performance.
Ongoing
Commitment “I will do it on the job.”
Likert scaled survey items related to commitment End of training
Quality of manager’s personal action plan. Weekly during the
training

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Level 1: Reaction
Kirkpatrick and Kirkpatrick (2016) describe Level 1, reaction, as the degree to which
participants react positively towards a training. Level 1, reaction, consists of three components:
engagement, relevance, and customer satisfaction. Kirkpatrick and Kirkpatrick describe customer
satisfaction concerning the training, engagement refers to how involved the participants are
during the training, and relevance refers to the ability to apply the training. Table 15 shows the
methods used to determine whether managers find their training favorable, engaging, and
relevant.

Table 15
Components to Measure Reactions to the Program.
Methods or tools Timing
Engagement
Track attendance During training
Reports on time spent on training During training
Observation by SVP of managers During training
Relevance
Manager survey End of training
Course evaluation End of training
Customer satisfaction
Manager survey End of training

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Evaluation Tools
The evaluation of the effectiveness of Kirkpatrick’s new world model for managers
participating in the lean manufacturing process training efforts to understand training will be
utilizing a survey that will be completed during post-training. The evaluation tool will allow the
training official or the SVP to conduct an immediate evaluation from the training participants to
understand the impact of the certification training.
Immediately Following the Program Implementation
During the lean manufacturing certification, the trainer or the SVP will collect data to
establish various levels of engagement relating to the training materials. The trainer will
individually administer an evaluation tool to record the manager’s perceptions of the learning
objectives and actual job performance. Individual check-ins and follow-ups will transpire during
the training to determine the acceptability and relevance to the managers and their respective
roles. Managers will have frequent checks for Level 2 evaluation to help understand the accuracy
of the information taught related to actual real-life managerial experiences in lean manufacturing
affects cost reduction, thus improving reliability. In this evaluation plan, Level
1 question were designed to reflect just the post-course reactions, measuring students’
perceptions of their engagement while learning, their satisfaction with the experience, and the
relevance of what they learned using a four-point, forced-choice, Likert scale. Level 2
evaluations incorporate declarative and procedural knowledge, commitment, confidence, and
attitude measures. This evaluation plan’s Level 2 rating items were designed to include both
post-course assessments and pre-course reflections using a five-point scale. These items strive to
measure the program’s effectiveness at achieving the intended learning goals while also
assessing students’ perceptions of their opportunities for growth in knowledge, confidence,
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commitment, and attitude. Appendix H provides examples of Level 1 and Level 2 rating items,
such as those that might be used on a course evaluation after a certification program.
Delayed for a Period After the Program Implementation
Immediately following the certification and two weeks after the training, administrators
(SVP, HR) will facilitate electronic surveys with scaled items using the Kirkpatrick and
Kirkpatrick (2016) model. Delaying the evaluation allows students to reflect more on the
learning during the certification training. The approach to measuring participants’ relevance and
satisfaction of Level 1 training will include evaluating procedural skills, attitude, and confidence
in applying their training. The surveys will also evaluate managers’ utilization of lean
manufacturing and resources for lesson planning and differentiation.
Data Analysis and Reporting
The Level 4 accomplishment of managers (the student) should be measured by the
frequency of the use of collaborative skills during weekly collaboration meetings with SVP and
other management (peers) and through the evaluation of lesson planning. After completion of
training, it is also necessary for the organization’s intranet to track the evaluation components
and facilitate a summary report of findings to the SVP and related administrators. The summary
report will include expected long-term results. Therefore, the terms will escalate from month-to-
month (within 12 months) outcomes, areas for anticipated immediate improvements moving
towards goal attainment plans for expenditure-reduction progress (Figure 12).

Figure 12
Reduction Plan by Month

114
115

Summary
Administering the new world Kirkpatrick model (Kirkpatrick & Kirkpatrick, 2016) to
plan, implement, and evaluate recommendations increases the probability of a successful
outcome. Level 4 of this model measures the results, level 3 focuses on participants’ behaviors to
reinforce learning, Level 2 corroborates participate learning, and level 1 confirms a positive
reaction by participants. This framework provides a thorough and proven lean manufacturing
process to help develop a cost reduction plan and an effective training strategy for leadership.
The new world Kirkpatrick model and how it supports the implementation plan allows leadership
to resource operations and anticipate additional ways to support management effectively. The
organization will be more effective if it has an adequately resourced management team and a
clear understanding of expectations and desired outcomes.
Evaluation of Level 4 will measure specific internal and external outcomes of the lean
manufacturing training. It is anticipated that enabling Level 4 will increase transparency with the
organization in completing efforts to improve the manager’s job performance in reducing waste
and cost. The SVP will articulate the necessary results to the relevant stakeholders. Level 3 is
intended to facilitate the training program, which evaluates critical behaviors essential to affect
the managers’ implementation of lean manufacturing principles to better assist in developing a
cost reduction plan. Leadership can respond to data and surveys to aggregate training reviews
and articulate whether there is a lack of effectiveness. Providing actual job operation scenarios
will improve managers’ collaborative knowledge and the trainer’s awareness of manager needs.
Declarative knowledge that managers possess for a more efficient Level 2 will help build
managers’ skills by connecting to their prior knowledge aided with creating learning objectives.
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The process of creating learning objectives will ensure that the trainers are aware of
managers’ prior knowledge (if applicable) and build a plan based on a foundational
understanding of related factors. Requesting feedback during and after training and facilitating
intermittent strategic dialog during training sessions will provide knowledge and skills and allow
managers to differentiate instructional strategies to meet the organization’s needs.
Additionally, just-in-time dialog with managers allows for feedback which may influence
subsequent training sessions. The facilitation of Level 1 will measure the managers’ reactions
following training. The training required to be evaluated during and following the course helps
understand content relevance and learner satisfaction. After reviewing the evaluation post, the
certification course will be able to ascertain levels of KMO influences that affect the
organization’s goals to improve management performance, leading to developing a cost
reduction plan.
Strengths and Weaknesses of the Approach
Clark and Estes’s (2008) gap analysis model provided strengths through the lens of KMO
due to the connections to management’s needs and development. There was a unique relationship
between theories of learning and motivation that was expanded for greater understanding through
the KMO lens. It was well aligned for the problem of practice and recommended solutions
mentioned throughout this chapter. Also, applying the mixed-methods approach served a
purpose, as several benefits were especially useful in understanding contradictions between
quantitative results and qualitative findings. The need was voided as the mixed-methods were
aligned with its results. By understanding the participants’ perspectives, mixed methods gave the
participants a voice and ensured that study findings were supportive of the participants’
experiences.
117

A disadvantage in this study was using multiple methods or data sources in qualitative
research to develop a comprehensive understanding of phenomena (Patton, 1999). Triangulation
was intended to be used in this research as a strategy to test validity through the margining of
information from different sources. With limitations of accessing and analyzing financial reports
and other documents for validating the qualitative and quantitative results were not possible.
Limitations and Delimitations
This study had several limitations to consider when evaluating its importance. Chapter
Three mentioned several of these limitations. First, the study was situated in a single
organization in the lumber industry with a small sample. The study was limited to one
organization due to the organizational culture, which will differ from other organizations in the
industry. Thus, this study does not reflect the lumber industry. Without analyzing and
determining other organizations’ cultural norms of, the results, findings, strategies, and solutions
for this study cannot be used for another lumber organization. Second, I considered adding
observations to collect data in the initial design stage. Third, the pandemic had a significant
impact which undoubtedly caused the organization to regulate that only essential personnel was
allowed on the premises. Eventually, all personnel was authorized to return while maintaining
strict guidelines for entering the facilities. Thus, visiting the location was not an option for safety
purposes, and using observations was no longer a consideration for data collection. Finally, time
constraints became an issue as the SVP wanted a quick resolution to his problem despite fully
agreeing and understanding that the research would be a lengthy process. During this time, the
SVP changed his instruction that he can only authorize any request to gain access or meet with
C-suite to no possibility. Not allowing me to speak to his leadership hindered a valuable data
source for the analysis.
118

Future Research
Future research can address the limitations identified in this study. Future research could
widen the scope of the study to include input from key stakeholders such as the C-suite
leadership and other departments such as sales and marketing. Increasing the scope to other
departments would give an advantage of evaluative input regarding the effectiveness of lean
manufacturing processes from a different perspective but still within the same organizational
goal of developing an expenditure-reduction plan. Additionally, future research could examine
all employees’ knowledge, motivation, and experience with lean processes throughout API to
uncover any needs that affect the entire organization regarding the improvement of expenditure
reduction and the need for the alignment or establishment of standardized processes and
procedures. Also, a broader scope within API could examine the impact of various job
classifications, roles, and experience levels pertaining to operations department staff members’
knowledge, motivation, and practice within organizational structures.
Finally, employees’ knowledge, motivation, and practice within organizational structures
should be studied before and after process and goal alignment to better understand the impact of
the recommended training and to provide additional information to identify and resolve
knowledge and motivation need, and improve organizational processes, policies, and procedures.
This research would provide more opportunities for further interviews, document review, and
data analysis.
Conclusion
The purpose of this study was to understand the organization’s leaders’ perspectives on
delegating managers in developing and implementing an expenditure-reduction plan in the
operations department. Overall, API is experiencing financial loss due to a lack of knowledge
119

and decreasing revenue, overspending, and failure to create financial cutbacks in operations.
Clark and Estes’s (2008) gap analysis framework was adapted as a needs analysis for improving
knowledge and skills, motivation, and organization. An in-depth understanding of the managers’
knowledge and motivation through investigation provided the opportunity to generate
recommendations supporting a new expenditure-reduction plan. The needs in KMO processes
were identified adequately through interviews and surveys.
Training courses on lean manufacturing processes were developed using the new world
Kirkpatrick model (Kirkpatrick & Kirkpatrick, 2016), and recommendations focusing on each
determined need were discussed and established through the model. The evaluation activities
were also developed throughout a range of performance outcomes. This study allowed gaps to be
identified in knowledge areas and motivation while also indicating possibilities for improvement
on manager values aligned with the organizational values. Thus, cultural models and settings
involving professional growth and a culture of organizational support were among the
performance gaps identified. This approach is expected to enable API to build the managers’
performance competencies, skills, and mindsets to reflect on the organizational expenditure-
reduction plan and achieve the desired financial goals.

120

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Appendix A: Survey Protocol
The purpose of this survey is to assess the knowledge, motivation, and organizational
needs that the leadership will need to develop an expenditure-reduction plan.
Please answer the following 10 questions. If you have any questions regarding the survey items,
please contact the researcher.

146

Table A1
Factual Knowledge Survey Items
Factual: Management needs to know the meaning of lean manufacturing principles.
Value Value is what customers are willing to pay for. Identify what the
value to the end customer is.
Map value stream A tool that employs a flowchart documenting all steps in the
process of taking a product or service from the beginning
until it reaches the customer. Used to identify waste, reduce
process cycle times, & implement process improvement.
Eliminate waste The core to anything related to lean. One of the most effective
ways to increase the profitability of any business.
Continuous improvement The ongoing improvement of products, services, or processes
through incremental and breakthrough improvements.
Creating flow Waiting is a waste. Flow is value, & the goal is to ensure
smooth delivery from the second you receive an order to the
moment you deliver it to the customer.
Level production Occurs when each process step works at a constant rate of
production equal to the rate of customer demand & ensure
safety stock is sold.
One-piece flow Moving one workpiece at a time between operations within a
work cell to increase efficiency and quality.
Establish pull A system that allows products to be created at the needed time
and with only the quantities needed. Always created from the
needs of the end customers.
Just-in-time production Focuses on working on a task to meet demand & nothing more.
Materials are delivered before they are required to minimize
inventory costs.
Pursuit perfection Lean thinking and continuous process improvement become a
part of the organizational culture.

147

Table A2
Procedural Knowledge Survey Items
Procedural: Managers need to know how to implement lean manufacturing principles.
Value Identify the value the customer places a product or service.
Map value stream Creates a flowchart documenting every step in the event’s
process.
Eliminate waste Minimizes waste in the production of a good or service.
Continuous improvement Execute the ongoing effort to improve products, services, or
processes.
Create flow Sustain a smooth flow from the beginning of the order until
delivery to the customer.
Level production Ensure the process works at a constant rate of production equal
to the rate of customer demand.
One-piece flow Control the process of only one workpiece moving at a time
between operations within work cells.
Establish pull Create the product after the customer places their order.
Just-in-time production Evaluate whether materials or components are not delivered
before they are required to minimize inventory costs.
Pursuit perfection Create the product after the customer places their order.

148

Table A3
Metacognitive Knowledge Survey Items
Metacognitive: Managers need to evaluate their progress in applying lean manufacturing
processes.
Value Design product to meet the customer’s value.
Map value stream Start and endpoints with a detail process are identified.
Eliminate waste Track the amount of waste hauled from your process and review
what is effective.
Continuous improvement Measure performance accurately.
Create flow Strategically organize the work floor to reduce production time,
inventory size and material handling.
Level production Output remains the same every day as the manager keeps
production consistent and avoids having to rush to meet a
particular order.
One-piece flow Efficiency and the quality associated with the end result will
increase.
Establish pull Overhead and optimize storage costs will reduce.
Just-in-time production Management strategy will minimize inventory and increases
efficiency
Pursuit perfection Management will constantly analyze each process for the increase
in value (reduced cost, time, resources used, space, etc.).

149

Table A4
Task Value Survey Items
Task value: Managers need to consider learning lean manufacturing principles as important for
themselves.
Value Not at all important
Low importance
Moderately important
Very important
Map value stream Not at all important
Low importance
Moderately important
Very important
Eliminate waste Not at all important
Low importance
Moderately important
Very important
Continuous improvement Not at all important
Low importance
Moderately important
Very important
Create flow Not at all important
Low importance
Moderately important
Very important
Level production Not at all important
Low importance
Moderately important
Very important
One-piece flow Not at all important
Low importance
Moderately important
Very important
Establish pull Not at all important
Low importance
Moderately important
Very important
Just-in-time production Not at all important
Low importance
Moderately important
Very important
150

Task value: Managers need to consider learning lean manufacturing principles as important for
themselves.
Pursuit perfection Not at all important
Low importance
Moderately important
Very important

151

Table A5
Self-Efficacy Survey Items
Self-efficacy: Managers must be confident in implementing lean manufacturing competencies.
Value Not confident
Slightly confident
Quite confident
Extremely confident
Map value stream Not confident
Slightly confident
Quite confident
Extremely confident
Eliminate waste Not confident
Slightly confident
Quite confident
Extremely confident
Continuous improvement Not confident
Slightly confident
Quite confident
Extremely confident
Create flow Not confident
Slightly confident
Quite confident
Extremely confident
Level production Not confident
Slightly confident
Quite confident
Extremely confident
One-piece flow Not confident
Slightly confident
Quite confident
Extremely confident
Establish pull Not confident
Slightly confident
Quite confident
Extremely confident
Just-in-time production Not confident
Slightly confident
Quite confident
Extremely confident
Pursuit perfection Not confident
Slightly confident
152

Self-efficacy: Managers must be confident in implementing lean manufacturing competencies.
Quite confident
Extremely confident

153

Table A6
Team Efficacy Survey Items
Team Efficacy: Managers must be confident in their personnel in implementing lean
manufacturing competencies.
Value Not confident
Slightly confident
Quite confident
Extremely confident
Map value stream Not confident
Slightly confident
Quite confident
Extremely confident
Eliminate waste Not confident
Slightly confident
Quite confident
Extremely confident
Continuous improvement Not confident
Slightly confident
Quite confident
Extremely confident
Creating flow Not confident
Slightly confident
Quite confident
Extremely confident
Level production Not confident
Slightly confident
Quite confident
Extremely confident
One-piece flow Not confident
Slightly confident
Quite confident
Extremely confident
Establish pull Not confident
Slightly confident
Quite confident
Extremely confident
Just-in-time production Not confident
Slightly confident
Quite confident
Extremely confident
154

Pursuit perfection Not confident
Slightly confident
Quite confident
Extremely confident

155

Table A7
Attribution Survey Items
Attribution: Managers believe success in implementing lean manufacturing principles is within
their control.
Value Strongly agree
Agree
Disagree
Strongly disagree
Map value stream Strongly Agree
Agree
Disagree
Strongly disagree
Eliminate waste Strongly agree
Agree
Disagree
Strongly disagree
Continuous improvement Strongly agree
Agree
Disagree
Strongly disagree
Creating flow Strongly agree
Agree
Disagree
Strongly disagree
Level production Strongly agree
Agree
Disagree
Strongly disagree
One-piece flow Strongly agree
Agree
Disagree
Strongly disagree
Establish pull Strongly agree
Agree
Disagree
Strongly disagree
156

Attribution: Managers believe success in implementing lean manufacturing principles is within
their control.
Just-in-time production Strongly agree
Agree
Disagree
Strongly disagree
Pursuit perfection Strongly disagree
Strongly agree
Agree
Disagree
Strongly disagree

157

Table A8
Cultural Model Survey Items
I share the organization’s values.
Cultural model: Managers share the organization’s
values in developing an expenditure-reduction
plan.
Strongly agree
Agree
Disagree
Strongly disagree

Table A9
Cultural Settings Survey Items
The organization provides me training in lean manufacturing principles.
Cultural settings: Managers need the
organization to provide professional
development in lean manufacturing
principles.
Strongly agree
Agree
Disagree
Strongly disagree

158

Appendix B: Interview Questions
Today’s date is and the time . Thank you for your participation in this
interview. My name is Ed Balderas. I will be conducting this interview as part of my dissertation
research at the University of Southern California on optimizing strategy & leadership to develop
an expenditure-reduction plan.
The interview will take approximately up to 20 minutes. I will be audio recording the
interview session. Please be assured that your comments will remain confidential. My objective
today will involve the experiences, perspectives, and opinions of leaders developing an
expenditure-reduction plan. There will be a total of 10 questions, but I may ask some follow-up
questions to provide more clarification if necessary. Please feel free to share your thoughts,
views, and experiences freely.
During the interview, I will be taking hand-written notes; I will need to refer to the
recording to ensure I have clear and complete notes. I will destroy the recording after collecting
my notes.
However, if you prefer not to be recorded, you are within your rights not to. Do you agree
to be recorded? Let’s begin.
1. Briefly explain your managerial experience. (managerial experience)
2. Describe your organization’s core competencies or principles used for financial
planning. (factual knowledge)
3. Describe how you would develop an expenditure-reduction plan. (procedural
knowledge)
4. Please explain your approach to your expenditure-reduction plan using the lean
manufacturing principles. (metacognitive knowledge)
159

5. Can you share with me the lean manufacturing principles you consider to be
important in your efforts to implement a cost reduction plan? (Motivation, task value)
6. Can you share with me how you feel about your ability to perform each of the lean
manufacturing principles? (Motivation, self-efficacy)
7. Can you share with me how you feel about your team’s ability to implement the
following lean manufacturing principles? (Motivation, team efficacy)
8. What do you believe are the reasons you experience success in applying
manufacturing principles? (Motivation, attribution)
9. Please describe the organization’s values in developing an expenditure-reduction plan
using the lean manufacturing principles. (Organization, cultural model)
10. What resources are needed to help develop the expenditure-reduction plan using the
lean manufacturing principles? (Organization, cultural settings)

160

Appendix C: Document Analysis Protocol
Area Document selected Data
analyzed
Knowledge, factual: Managers need to
identify lean manufacturing principles.
Review artifacts for evidence of
knowledge of skills.

Knowledge, procedural: Managers need to
know how to implement lean
manufacturing principles.
Review artifacts that managers take
to implement procedures.

Knowledge, metacognitive: Managers need
to reflect on their processing skills for
lean manufacturing with relation to
development of an expenditure-reduction
plan.
Review artifacts for evidence of
manager’s metacognitive
knowledge.

Motivation, task value: Managers need to
consider lean manufacturing principles
important for their development of an
expenditure-reduction plan.
Review the artifact for evidence of
the manager’s task value.

Motivation, self-efficacy: Managers need
confidence to implement lean
manufacturing principles in developing
their expenditure-reduction plan.
Review artifacts for evidence of
manager’s self-efficacy.

Motivation, team efficacy: Managers need
confidence that their team can implement
lean manufacturing principles in the
development of their expenditure-
reduction plan.
Review artifacts for evidence of
management’s team efficacy.

Motivation, attribution: Managers need to
believe they are in control of the
success/failure of their expenditure-
reduction plan development.
Review artifacts for evidence of
attribution.

Cultural Setting Influence 1: Leaders share
the organization’s values in developing
an expenditure-reduction plan.
Review documents to determine
whether managers share
organizational values.

Cultural Setting Influence 2: The
organizational culture provides
professional development.
Review artifacts for evidence to
determine whether the
organization provides training in
financial planning.

161

Appendix D: Information Sheet
University of Southern California Rossier School of Education

INFORMATION SHEET FOR EXEMPT RESEARCH

STUDY TITLE: Optimizing Leadership and Strategy to Develop an Expenditure-reduction
plan: An Improvement Study

PRINCIPAL INVESTIGATOR: Ed Balderas, EMBA, MSOL: ebaldera@usc.edu

FACULTY ADVISOR: Adrian Donato, EdD: adonato@usc.edu

You are invited to participate in a research study. Your participation is voluntary. This document
explains information about this study. You should ask questions about anything unclear to you.

PURPOSE
The purpose of this study is to conduct a needs analysis in the areas of leadership developing an
expenditure-reduction plan. The goal of the study is to provide research-based recommendations
for the development of a cost reduction plan for the benefit of the organization. You are invited
as a prospective participant because you fall into management criteria and have the most insight
and influence into this research.

PARTICIPANT INVOLVEMENT
A link to the survey questions will be emailed to all participants. Please allow 10 minutes to
complete the survey via Qualtrics. Additionally, eight participants will be invited to partake in a
15-minute one-on-one Zoom interview with the investigator. The interview is expected to take
no more than 20-minutes to complete. Interview responses will be audio/video recorded for
transcription purposes only. Participants may also decline to be recorded and continue with the
interview.

PAYMENT/COMPENSATION FOR PARTICIPATION
Participants will not be compensated for partaking in this research study.

CONFIDENTIALITY
The members of the research team and the University of Southern California Institutional
Review Board may access the data. The IRB reviews and monitors research studies to protect the
rights and welfare of research subjects.

Your survey responses will be collected anonymously via Qualtrics. Personal information such
as your name and email will not be recorded. At the conclusion of the study, all survey data will
be purged. Interview participants may request to review their audio/video transcripts, so long as
the transcripts are available. Personal information will not be collected, and all transcripts will be
purged at the end of the study.
162

INVESTIGATOR CONTACT INFORMATION
If you have any questions about this study, please contact Ed Balderas at ebaldera@usc.edu
and/or Adrian Donato at adonato@usc.edu.

IRB CONTACT INFORMATION
If you have any questions about your rights as a research participant, please contact the
University of Southern California Institutional Review Board at (323) 442-0114 or email
irb@usc.edu.

163

Appendix E: Sample Survey Items Measuring Kirkpatrick Levels 1 & 2
Table E1
Sample Survey Items for Level 1
Strongly
agree
Agree Disagree Strongly
disagree
I was fully engaged during the training (Level
1, engagement)
4 3 2 1
I acquired knowledge and skills to help me
grow professionally (Level 1, relevance)
4 3 2 1
I enjoyed the role-based approach to learning
(Level 1, customer satisfaction)
4 3 2 1

For the questions in Table E2, please circle the response that best characterized how
you feel about the statement.

Table E2
Sample Survey Items for Level 2

Strongly
agree
Agree Disagree Strongly
disagree
I am committed to applying the skills I
acquired from this course (Level 2,
commitment)
4 3 2 1
I can apply the content I learned to my work
(Level 2, declarative)
4 3 2 1
I know the steps to reach my objectives (Level
2, procedural)
4 3 2 1
I feel confident that I can apply what I learned
to my job (Level 2 Confidence)
4 3 2 1
I see the value in developing new skills for
work (Level 2, attitude)
4 3 2 1

164

Appendix F: Sample Survey Items Measuring Kirkpatrick Level 3 Drivers
Level 3 drivers should be assessed as a mid-course evaluation, as monitoring the drivers
at a specific milestone could help managers to adjust their training and development. Sample
Level 3 rating items for a manager (student) survey are shown in Table F1.

Table F1
Sample Survey Items for Level 3
Strongly
agree
Agree Disagree Strongly
disagree
I have received adequate training on the lean
manufacturing principles aligned with
expenditure-reduction planning (Level 3,
reinforcing).
4 3 2 1
I have opportunities for continuous practice
connecting lean manufacturing to
developing an expenditure-reduction plan.
(Level 3. reinforcing).
4 3 2 1
I have received frequent feedback from my
leadership about applying lean
manufacturing to develop an expenditure-
reduction plan (Level 3, encouraging).
4 3 2 1
I am capable of developing a expenditure-
reduction plan (Level 3, encouraging).
4 3 2 1
I am rewarded for achieving progress in
developing expenditure reduction goals
(Level 2, rewarding).
4 3 2 1
I am given feedback by my manager on my
career development (Level 3, monitoring).
4 3 2 1

165

Appendix G: Sample Blended Evaluation Items Measuring Kirkpatrick Levels 1, 2, 3, & 4
It is recommended to revisit Level 1 relevance and satisfaction and Level 2 knowledge
and skills in a delayed survey to managers that completed potential training to achieve skills for
management development. In addition, Level 3 critical behaviors and Level 4 indicators and
results should also be assessed in this measure administered no later than 1 month after the skills
training is completed. Sample items are shown below.
Open-Ended (Probing) Questions for Revisiting Level 1 and Level 2
What lessons from the lean manufacturing course continue to feel relevant to you in
developing an expenditure-reduction plan now? (Level 1, relevance)
Knowing what you know now, what would you change about the lean manufacturing
competency-based course for management development? (Level 1, customer satisfaction)
Scenario question: You are asked to develop an expenditure-reduction plan that utilizes
lean manufacturing principles. Explain the steps you would take in applying the lean
manufacturing approach. Discuss what hurdles, if any, you could anticipate and the strategies
you would use to overcome them to achieve success. (Level 2, procedural knowledge)
Four-Point Scale Questions for Evaluating Level 3 Critical Behaviors
For the questions below, identify the degree to which you have continued to practice the
behaviors that were cultivated in your competency-based management development training
course. (Level 3 Critical Behaviors)
1. No Application
2. Moderate Application
3. Strong Application
4. Very Strong Application
166

I developed skills sets and mindsets based on the expenditure-reduction plan. 1 2 3 4
I set personal goals aligned to the development of my skills and training. 1 2 3 4
I reflect on my growth in skills and competencies to build my confidence in
developing an expenditure-reduction plan.
1 2 3 4

Level 4 Indicators and Results Sample Metrics

1. I have noticed the following continued positive outcomes from my participation in
lean manufacturing courses that improve my skills to develop an Expenditure-
reduction plan. Check all that apply.
● I have more self-confidence in my skills in performing lean manufacturing.
● I have more self-confidence in developing an expenditure-reduction plan.
● I have strategies for improving operational flow to reduce waste.
● I am comfortable with constructive feedback from my managers and peers.
● I value the training made available by the organization.
● I can contribute towards achieving the goals of reducing operating costs.
● I can teach employees lean manufacturing to reduce operating costs.
● Other positive outcomes, please justify
● None of the above. I do not feel any continuous positive outcomes.
2. To what extent do you feel ready to utilize lean manufacturing to reduce operations
cost? Please explain your answer.
3. As a result of your lean manufacturing training, do you feel that employees (other than
the managers) should learn these principles to help reduce operational costs? Please
explain your answer.
167

4. As a consequence of my training, the organization now has an expenditure-reduction
plan.
5. If the organization does not have an expenditure-reduction plan on account of manager
training, to what degree is it in progress?

Abstract (if available)

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Asset Metadata

Creator Balderas, Eddie (author)

Core Title Optimizing leadership and strategy to develop an expenditure-reduction plan: an improvement study

School Rossier School of Education

Degree Doctor of Education

Degree Program Organizational Change and Leadership (On Line)

Degree Conferral Date 2022-05

Publication Date 04/18/2022

Defense Date 03/24/2022

Publisher University of Southern California (original), University of Southern California. Libraries (digital)

Tag expenditure-reduction plan,management development,OAI-PMH Harvest

Format application/pdf (imt)

Language English

Contributor Electronically uploaded by the author (provenance)

Advisor Donato, Adrian (committee chair), Canny, Eric (committee member), Yates, Kenneth (committee member)

Creator Email balderaseg@hotmail.com,ebaldera@usc.edu

Permanent Link (DOI) https://doi.org/10.25549/usctheses-oUC111014549

Unique identifier UC111014549

Document Type Dissertation

Format application/pdf (imt)

Rights Balderas, Eddie

Type texts

Source 20220419-usctheses-batch-929 (batch), University of Southern California (contributing entity), University of Southern California Dissertations and Theses (collection)

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