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Assessment 2 Role Play


Instructions:
This assessment consists of two parts. Trainer may decide whether this will be an individual or a group
assessment.

If you are not sure about any aspect of this assessment, please ask for clarification from your Trainer.

Duration:
Trainer will set the duration of the assessment.

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Procedure
Part A
Using the scenario 1 information supplied, the student will undertake a cost-benefit analysis for high-priority
change requirements, undertake a risk analysis, identify barriers, and develop mitigation strategies. The
student will develop a change management project plan, assign resources and develop a reporting process.
The student will then present his/her analysis and project plan to management for approval.

1. Review the simulated workplace information for Fast Track Couriers.

2. Develop a change management strategy for Fast Track, which you will present to management (your
trainer) for approval, by following steps 38 below.

3. Identify change goals and specify:

a. who/what is impacted

b. how they are impacted

c. when the impacts will be realised.

4. Identify the change goals you have identified are related to organisations strategic goals.

5. Undertake a cost-benefit analysis of the of the change requirements. Include:

a. the change requirements

b. the costs of changes

c. risks

d. the possible benefits of each change

e. assessment of the benefits against the costs and risks

f. categorised changes:

i. feasible (F)

ii. maybe feasible (MF)

iii. not feasible (NF).

6. Undertake a risk analysis of the change requirements:

a. identify the risks and barriers

b. analyse and evaluate the risks and barriers

c. identify mitigation strategy.

7. Develop a change management project plan. In order to justify your plan, include a brief explanation of
the change management theory/methodology followed to embed change. Your plan must reflect
theory and you must be prepared to explain to management how key elements of your plan, such as
stakeholder management, communication, education/training plans, show elements of a particular
theory.

8. Include the following components in your plan:

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a. Stakeholder management:

i. identify key stakeholders and roles

ii. identify commitment level

iii. identify concerns/issues (and how can these will be addressed)

iv. consultation methods for engaging identified stakeholders.

b. Communication plan:

i. audience

ii. message

iii. when this communication will occur

iv. how the message will be communicated (e.g. email, face to face, newsletter)

v. person responsible.

c. Education/training plan:

i. participants

ii. the skills the training will provide

iii. when the training will occur

iv. how the training will be delivered (e.g. class room, online, on-the-job)

v. person responsible.

9. Your project plan should also include a measuring/reporting strategy. Measurement and reporting
strategy should include:

a. how you will measure success

b. how you will report success including:

i. format of reports

ii. when will reports be produced (weekly, fortnightly, monthly)

iii. who will receive a copy of the report.

10. Finally, your project plan should also include a list of resources (tools, supplies, etc.)
11. Deliver a formal presentation (using PowerPoint) to management (your trainer) to gain approval for
your change management strategy. Your trainer will approve your strategy based on your completion of
this assessment task and satisfaction of specifications below.

12. Ask for authorisation to implement strategy.

13. Submit all documents to your trainer as per the specifications below. Ensure you keep a copy of all work
submitted for your records.

Part B
Based on the scenario 2 provided, you will develop a performance improvement strategy, brief a team of peers
on the strategy, develop the strategy and encourage innovation within the group session, and incorporate
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results of consultation into strategy. You will develop risk and cost-benefit analyses which you will submit to
your trainer for approval.
1. Read the case study A. C. Gilbert (Appendix 2). Assume no improvements have been made and the
company is still operating in the same way today as when it closed in 1967.

2. Consider the following scenario:

Your manager, as per organisational processes for continuous improvement, has asked you to develop a
performance improvement strategy, brief the management team, develop the idea with the team, seek
the teams approval and seek final approval from your manager.
3. Develop a one page performance improvement strategy related to competitiveness. Include:

a. strategic goals

b. description of proposed process or amendment to current process

c. brief explanation of how proposal will improve performance and competitiveness

d. KRAs, KPIs, targets.

4. Prepare to deliver a 2030 minute management team briefing and consultation session:

a. distribute your proposed strategies to team (team members may be other learners, or other
group approved by trainer)

b. ask team to consider strategy, including:

i. pros and cons

ii. changes or improvements to strategy

iii. preparing to discuss changes or improvements at team briefing and consultation session

c. agree time for session (agree time with trainer to ensure trainer can observe session).

5. Lead session.

a. discuss options and work through group suggestions

b. use creative techniques to generate or develop ideas

c. work through implications of suggestions to trial them

d. encourage group to point out issues or potential problems during trailing

e. if and when applicable, accept failure of ideas and recognise successful ideas.

6. Summarise results of session and seek groups approval for amended strategy.

7. Incorporate results of session into revised strategy.

8. Develop a risk analysis for strategy.

9. Develop a cost-benefit analysis for strategy.

10. Arrange a time to meet with trainer (as your manager) to discuss strategy, risk and cost-benefit
analyses. Explain costs and benefits. Seek approval for strategy.

11. Submit documents to your trainer as per the specifications below. Ensure you keep a copy of all work
submitted for your records.
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Your Tasks (Specifications)


Part A
You must present and then submit copy of:
One PowerPoint presentation containing analysis and change management project plan.
Your trainer will be looking for:
knowledge of change management process or cycle
knowledge of components of change management project plan
knowledge of specific organisational requirements
knowledge of potential barriers to change
knowledge of a range of strategies for embedding change
leadership skills to gain acceptance of plan and gain trust
planning and organising skills
problem-solving skills to identify and respond to barriers to change and analyse risks
verbal communication skills to describe and promote change management plan

Part B
You must provide a:
one page performance improvement strategy
2030 minute team briefing and consultation session (team members may be other learners, or
other group approved by trainer)
revised one page performance improvement strategy
written risk analysis
written cost-benefit analysis.
Your trainer will be looking for:
application of quality management and continuous improvement theories in improvement strategy
demonstration of creativity and innovation theories in group consultation
application of organisational learning principles
demonstration of cost-benefit analysis
demonstration of risk management
analytical skills to identify improvement opportunities
demonstration of creativity skills to think laterally and identify improvement opportunities that
come from group
demonstration of learning skills to develop options for continuous improvement
demonstration of teamwork and leadership skills to lead group session.

Appendix 2
Scenario 1: Fast Track Couriers Pty Ltd
You are an external change management consultant employed by Fast Track Couriers. You have been asked by
the General Manager to develop a change management strategy and present the strategy to management for
approval.
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Management has identified the following high-priority change requirements:


Goal A: Implement PDA/ GPS usage (productivity function) on truck fleet in the first quarter of the
2012 financial year.
Goal B: Implement one person/truck policy using automatic lift gates in the first quarter of the
2012 financial year.
Achievement of these goals should increase net profit in the next financial year by $200,000 due to increased
efficiencies and increased business.
Goal A is essential to the business to ensure (in priority order):
1. Most efficient use of resources to cover market needs. Management will look at more than the raw
hours spent on job and consider all factors such as job difficulty, traffic conditions in order to optimise
fleet usage.

2. Job performance measurement for training needs.

3. Recognition of outstanding performance (bonuses for exceeding targets; advancement/ leadership


opportunities).

Goal B is essential to the business to ensure:


Most efficient use of resources to cover market needs.
Reduced need to hire external truckers; use present employees as much as possible.
Reduced possibility of lifting injury.
The change management strategy, once approved by the General Manager, should be implemented
immediately.

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People/structure
Fast Track Couriers has implemented and recruited the people required to fill the roles in the following
organisational structure:

General
Manager/CFO

Human Resources
manager

Sales manager Trucking manager Office manager

Trucking team
Sales team (3) Accountant
(20)

Administrative
support/reception

Managerial duties/role description


General manager/CFO Oversees company; approves major business decisions such as
strategic goals, change management initiatives; reports to board
of directors; prepares financial reports.

HR manager Oversees and implements change management programs;


collect feedback, assessment results, and all other data
regarding change management; provides report to the General
Manager on implementation of major changes; oversees
recruitment.

Sales manager Coordinates sales team; provides sales team training; manages
performance of sales team.

Trucking /operations manager Coordinates activities of trucking team; manages performance


of trucking team; compiles productivity reports; manages
operations, authorises purchasing of operational equipment etc.

Office manager Coordinates activities of accountant and administrative support.

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Authorises payroll.

Resourcing/budget:
The budget for implementing the change strategy (excluding cost of new trucks, technology and lift gates, lost
productivity from truckers) is $25,000. Overruns must be approved by General Manager.
You will be employed for two weeks full-time (40 hrs/week) and 8 hours a week until end of the first quarter.

Resources:
The following resources are available for your use:

Resource Cost Availability

Project analyst/manager (you). $100/hour Length of project, as needed

Trucking manager (Bob Rogers). Length of project, as needed

Sales team member with high-level oral and Length of project, as needed
written communication skills to assist new
Human Resources manager (Jessica Smith).

New Human Resources manager Peggy


Anderson).

PDA/GPS trainer (Jack MacDonald). $150/hour Length of project, as needed

Lift gates trainer (Erin Mitchell) $150/hour Length of project, as needed

Head office training rooms equipped with 2nd week of July 2011 only.
training supplies for five participants.

PDA/GPS device, based at office. Length of project, as needed

One new truck with tail gate based at office Length of project, as needed

Other resources must be requested for approval by General Manager.

Education/ training
Goal A: Implement PDA/ GPS usage (productivity function) on truck fleet in the first quarter of the
2012 financial year. Requires a half-day training session.
Goal B: Implement one person/truck policy using automatic lift gates in the first quarter of the
2012 financial year. Requires a half-day training session.

Project management reporting


The General Manager would like you to report to her on a daily basis in the initial week of the project and then
weekly until the end of the first quarter. The HR manager should receive a copy of this report.

Template
Fast Track Couriers policy mandates the use of the following project management template.
Green: completed
Amber: in progress
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Red: not completed.


Reporting element Measures Status

Change goal

Project management Delivery of project activities Overall status:


as per project plan for each
stream

- People

- Process

- Technology

- Structure

Stakeholder Management Stakeholders engaged and


comfortable with current
position

Communication Communication plan activities


on schedule

Education Education plan activities on


schedule

Cost benefits Project budget on track

Cost benefits on track to be


realised
Risk Management Risk management plan
effectively managing risk

Background information: Fast Track Couriers Pty Ltd


About Fast Track Couriers
Fast Track Couriers is a courier company that has been operating in New South Wales for the last 15 years. Its
primary business function is delivering medium to large size packages across metropolitan Sydney.

Strategic plan goals


The organisations strategic goals are:
To expand business in the metropolitan area so that small to medium package deliveries market
share increases by 7.5%.
To expand the business to include small and medium package deliveries to regional NSW.
To develop an integrated approach to distribution management utilising technology such as PDA
devices and GPS.
To develop and maintain a cohesive and well-motivated workforce.
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Strategic goals are supported by the following operational and human resources goals.

Operational plan goals


Testing of the distribution management system is to cease and allow implementation within the
first quarter of the 2012 financial year.
The truck fleet will need to be expanded by 8 trucks within the 2012 financial year.
Small distribution hubs will be positioned at Maitland, Goulburn, Nowra and Bathurst each manned
by two employees within the next eighteen months.
Fast Track Couriers will complete 20% of deliveries to regional locations in the next three years.

Human resources goals:


To incorporate a Human Resources function to facilitate the changes in workforce management in
the first quarter of the 2012 financial year.
Introduce professional development and training to achieve organisational goals and promote
understanding of organisations strategic goals in the first quarter of the 2012 financial year.
Eliminate industrial relations problems in the 2012 financial year. Conclude negotiations with
employees and union.
Eliminate lifting injuries.

Employee profile (pre-changes)


Fast Track Couriers employee the following people:
General manager (GM) Generally on the road; never in office.
Chief financial officer (CFO) Reports to GM and keeps office hours; 95, MonFri.
Accountant Reports to CFO and keeps office hours; 95, MonFri.
Truck drivers (x20) Report to office.
Office team manager Reports to GM and keeps office hours; 95, MonFri.
Office team members (x5) Perform administrative, sales, customer relationship management
duties. Monitor truck drivers and handle enquiries. Report to office team manager.

Head office employees


Covered under individual contracts.
Salary range $32,000$75,000 annum.
Small team of mainly female employees, ranging in age.
Lots of opportunity to participate in learning and development programs due to management
support; however little desire to participate.
High employee engagement scores. Employees cite team work and opportunities as motivating
factors affecting the business success.

Drivers
Covered by an award.
Salary $45,000 per annum.
Heavily unionised.
Employee demographics are all male employees aged 2565.
Little opportunity to participate in learning and development programs due to being on the road;
however, little to no interest to participate in development opportunities.
Large number of workplace injuries due to heavy lifting.
Low employee engagement scores. Drivers cite pay as an issue.
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Currently experiencing low turnover.


History of industrial disputes regarding pay and previous change initiatives.

Background to workforce management and relations


The company communicates with employees via email for head office employees and a printed monthly
newsletter for drivers. The company provides information regarding policies procedures through documented
manuals that are held in each truck as an employee manual. Office-based staff can access copies of these
manuals at the office.
All trucks are fitted with a GPS system to assist drivers with navigating to each pick up and drop off location.
Trucks are also assigned a PDA that provides drivers with the details of each pick up and drop off and records
when a job starts and finishes. The data from this device is sent back to head office to monitor job progress but
is not used to complete productivity reporting. When this device was introduced, drivers were not happy as
they felt the organisation was saying that it did not trust the drivers to manually record the time spent on each
job. Many of the drivers also resented having to learn how to use the device and thought it was a waste of
time.
Head office employees work very closely together and are a very cohesive and motivated team. They are
positive about the organisations direction and respond well to change.
Drivers have historically reacted negatively to change. Change implemented in the past has met with
resistance and was therefore difficult to implement. Drivers have in the past done their best to block any
changes from being implemented, even going to the lengths of threatening strike action and having the union
involved to assist with resolving the issue.
Fast Track Couriers currently allocates two drivers per truck to ensure that drivers are able to load and unload
heavy packages. The strategy going forward is to remove the need for having two drivers per truck by installing
an automatic lift gate on the back of each gate at a cost of $10,000 per truck. This will mean that only one
driver is needed per truck as no heavy lifting will be required.
It is Fast Track Couriers intention to use these surplus drivers to drive the new trucks that will be purchased to
enable the company to extend its services to regional NSW.
Drivers are currently happy with the work environment as they enjoy working as part of a two-man team. The
organisation typically leaves the drivers alone and lets them do their job as this is what seems to make them
happy. Management has tried in the past to have drivers participate in organisational activities. These
activities were not received positively and the drivers complained and asked not to be involved. The drivers
view is that their preferred team is their two-man driver team and they only see the benefits of that specific
working arrangement. There is a high value placed on communication with trucking team members.

Scenario 2 A. C. Gilbert
History 19091961
Alfred Carlton Gilbert was an inventor and a toy manufacturer who invented the Erector engineering set. His
original company, The Mysto Manufacturing Company, was founded in 1909 to manufacture the Erector set. In
1916, Mysto became the A. C. Gilbert Company and gained a reputation for producing quality toys.
By the 1950s, A. C. Gilbert was one of the leading toymakers in the United States with annual sales regularly
topping $17 million. This was an outstanding achievement for a relatively small company.
In 1961, A. C. Gilbert senior died, leaving the company in the hands of his son, A. C. Junior. At the time A. C.
Junior took over the firm, the company was established as a traditional, reliable and profitable manufacturer
of educational toys.
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Product lines and rationale


A. C. Gilbert produced train sets but their most popular lines were chemistry sets, microscopes and their best
seller, the Meccano-like Erector engineering sets that had been popular with children for more than 50 years.
A. C. Gilbert toys were not cheap. They were high quality, solidly crafted and made to endure. Parts and
packaging were designed to last for many years, with the Erector set packaged in long-lasting metal boxes. The
focus was on educational toys, primarily aimed at boys rather than girls. The company had a limited range but
what they did manufacture was top quality and highly regarded.

Systems and processes


A. C. Gilbert was a small company. The following model demonstrates the systems and processes in place.

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Design
Toys are designed by a small group of
designers who develop the concepts for the
products.

Planning
The planning department translates the concepts
into designs and determines resource requirements,
including raw materials. Planning also projects sales
and develops production plans for each product,
timeframes for production runs and scheduling of
production runs.

Purchasing
Information gained from planning stage used to
purchase raw materials for products and packaging
from suppliers.

Manufacturing
Produces and packages toys for distribution.

Distribution
Delivers packaged toys to the warehouse for storage.

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Sales Team Distribution Retailers

Take orders Arrange for Sell the toys


from delivery of directly to end
customers goods to user
purchaser
using contract
transport

Note: These flowcharts have been included for assessment purposes only, and may not accurately reflect the
actual processes in place at A. C. Gilbert.

History 19611967
As the 1950s moved into the 1960s, there were huge cultural changes across the world. The fifties were a very
traditional era of family values and morals, conservative and staid. Then came the swinging sixties. The sixties
were a time of rapid change both technologically and culturally. Old fashioned values gave way to new moral
freedoms.
Where the fifties represented solidarity and familiarity, the sixties embraced change. Everything was bolder,
brighter and more daring. A new young president and rising social activism by youth saw changes in clothing,
music and interests. Young people rebelled against the values of their parents and embraced a more fast
paced, exciting and riskier lifestyle.

Changes to the toy industry


Cultural changes had a huge impact in western toy markets. Barbie and Action Man became must have toys.
Girls moved away from baby dolls and cots and wanted dolls that were more grown up, modern and trendy.
They wanted dolls they could dress in the latest fashions and who had exciting careers, boyfriends and cars of
their own. Boys were moving away from the traditional train sets towards exciting new slot-car racing sets and
action figures from popular movies and television shows.
Traditionally, toy advertising had been done via magazine promotions but the sixties brought in a new
phenomenon: television advertising. A hugely powerful medium, TV advertising became increasingly hard
sell, with toys heavily promoted, especially in the lead up to Christmas. Children wanted the latest and
greatest toys that they saw in these advertisements and put pressure on their parents to buy, which they did.
Retailing of toys during this period reflected a shift in retailing in general. Small, specialty retailers with
experienced and knowledgeable staff were going out of business, replaced by large discount stores catering
for the mass market. The goal of this type of retailer was to turnover stock. Heavily advertised lines were in
demand and that is what they would stock. Cheap was in and giant retailers were after a quick profit from
easily saleable, inexpensive products. They werent interested in catering to a niche market by stocking more
expensive, harder to shift lines.
Packaging was bright and colourful in order to attract children growing up in a world of colour TV, hypercolor
clothing and visual stimulation provided by the swinging sixties.

Affects on A. C. Gilbert
As a small, traditional company, A. C. Gilbert was slow to react to these changes. It may have been that they
were not aware of the changes or were overly confident that their good name and reputation was sufficient to
continue trading as before. The consequences of this short sightedness soon became apparent.

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1961 (figures approximate)


L/Y Sales Actual sales Difference Profit

$12.6 million $11.5 million ($1.1 million) $20,011.00

This drop in sales was also reflected in a fall in the share price of the company.

Outcomes
As a result of the falling profits and share price, the company became attractive to an opportunistic
businessman, Jack Wrather. Jack Wrather was an independent television producer who had made his money
producing the popular programs Lassie and The Lone Ranger. Jack Wrather wanted to purchase a successful
business and felt that in A. C. Gilbert, he had the opportunity to use his knowledge of popular entertainment
and apply it to the production of toys. He purchased 52% of A. C. Gilbert for $4 million and immediately set
about making his mark on the company. A. C. Junior stayed on as Chairman but his influence was minimal.

Actions taken by Jack Wrather


Set a goal to achieve sales of $20 million in 1963.
Replaced the top A. C. Gilbert executives with his own people.
Initiated a massive advertising campaign.
Increased sales staff by 50%.
Instructed sales staff to adopt an aggressive sales approach.
Introduced 50 new toy lines, raising the line to 307.
Changed the focus from traditional boys toys to ranges for pre-school children, dolls and other toys
aimed at girls between the ages of 6 and 14.
Spent $1 million on changing the packaging for all lines to brighter, more colourful boxes.

Performance report

Year Sales Difference from Profit


previous year

1961 $11.5 million ($1.1 million) $20,011.00

1962 $10.9 million ($600,000.00) ($281,000.00)

1963 $10.7 million ($200.000.00) ($5.7 million)

1964 $11.4 million $700,000.00 ($2.6 million)

1965 $14.9 million $3.5 million ($2.9 million)

1966 $12.9 million ($2 million) ($12,872,000.00)

1967 A. C. Gilbert closed 19091967

Key milestones
1962:
Jack Wrather purchased 52% of A. C. Gilbert.
Replaced existing executives with his own people.
Increased sales staff by 50%.

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Implemented extensive television advertising.


Set an organisational goal to achieve sales of $20 million for 1963.
Company recorded a loss of $281,000.00.
Introduced 50 new lines in less than 12 months, using existing engineers and production
departments who lacked training and experience in the new product range.
Repackaged existing lines at a cost of $1 million.

1963:
Sales and profits down on previous year.
Anticipated drop in profits due to expansion and cost of establishing new lines.
Sales fell short of expectations.
Decline in quality of toys feedback indicated products poorly made and designed (dolls did not
even come with a change of clothing).
New range perceived by customers as poor quality and over-priced not value for money nor
attractive to the target market.

1964:
Jack Wrather fired most of the top management team he hired two years previously.
Crisis management lead to multiple changes and dramatic measures being taken and then changed
often one measure contradicting the previous.
Jack Wrather hires new CEO Isaacson.
Isaacson fires the entire sales team.
Isaacson makes huge cutbacks in spending.
Sales are channelled through independent manufacturers reps, which was cheaper than
maintaining an in-house sales force.
Long-standing relationships soured as the independent reps worked on commission and pushed
sales, with no interest in maintaining or building relationships with customers.
A. C. Gilbert had built its success on personal service and building relationships that was
destroyed within 12 months.
A. C. Gilbert Junior dies and is replaced as Chairman by Jack Wrather. Isaacson assumes the role of
President.
Prior to Christmas, many of the previous years failed products were deleted and 20 new items
introduced.
Reduced the price of core lines such as the Erector set from $75 to $20 but quality also impacted
cardboard box instead of metal boxes, and brittle parts instead of sturdy long-lasting parts.
Sales increased and there was some degree of optimism.
1965:
Sought to capitalise on popular crazes such as James Bond and The Man from Uncle by introducing
action figures for Christmas.
Due to internal strife and staff cutbacks, the new lines were not delivered to the stores until after
Christmas.
Operating on a skeleton workforce.
Due to lack of staff, A. C. Gilbert is unable to implement changes or introduce new lines quickly
enough to capitalise on trends.
1966
Increased advertising spending to $3 million.
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T. +61 2 9283 4388 | E. info@wic.nsw.edu.au
Lower Ground, 101 Sussex St., Sydney NSW 2000 Australia | www.wic.nsw.edu.au

ABN: 19 080 559 600 | CRICOS CODE: 01856K | RTO: 90501

Introduced point of purchase display products supplied to dealers free of charge.


Borrowed $6.25 million, granted on the event that the company made a profit in 1996.
Company made a loss of $12,872,000.00.
1967
February A. C. Gilbert closed its doors after 58 years.

Source:
Tibballs, G., 1999, Business blunders, A. C. Gilbert: Toy Story, Robinson Publishing Ltd, pp. 43.

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