MBE A-1
2a. Winning Strategies part 1
22/02/2011
Our Vision
To become the leading producer and supplier of small inflatable boats,
to the UK and European leisure and rescue markets.
Leadership and Excellence
UKFM-LE 10MB01
07/02/2011 to 25/02/2011
OV
The aim of the practical
plan for Wave Riders
Contents
1. Current situation of Wave Riders
a.
b.
2.
Financial Statements
SWOT analysis
Improved
Performance
Strategic Planning
Strategy Process
New Vision & Plan to revive
Goals that are:
Specific
Hard but realistic
Accepted by the person
Used to evaluate performance
Linked to feedback & rewards
Set by individuals or groups
Revival Plan
a.
b.
c.
d.
4.
Goal setting theory
Strategy
a.
b.
c.
3.
To review the current situation, especially the
strategy process.
To revive Wave Riders business in the next 5 years
using a winning strategy and Hoshin Kanri (Policy
Deployment).
Brief of Hoshin Kanri
Revival Plan using Hoshin Tenkai
Next Five years Plan
Pros & Cons of Policy
Deployment
Values
Conclusion & Development
DuBrion (1998)
MBE A-1
2
Current situation of Wave Riders
Sales
PBT
Current Situation
from Financial Statements
1.
2.
3.
4.
5.
6.
Declining profits
Falling Sales
High Stockholding
Overproduction
No effectively using Capital
Increasing Costs or inefficiency
↓


Resetting Goals
Restructuring Organisation
1000
8800
800
8600
600
8400
400
8200
200
8000
0
t-5
t-4
t-3
t-2
t-5
t-1
t-4
t-3
t-2
t-1
Inventory Turnover Ratio
Stock
2000
8800
1500
8600
1000
8400
500
8200
8000
0
t-5
t-4
t-3
t-2
t-5
t-1
t-4
t-3
t-2
t-1
t-2
t-1
ROS
ROCE
20.0%
8800
15.0%
8600
10.0%
8400
5.0%
8200
8000
0.0%
t-5
t-4
MBE A-1
t-3
t-2
t-1
t-5
t-4
t-3
3
Current situation of Wave Riders
Action Plan 2011 From
SWOT Analysis
(Strategy Three)
-Research European Market in order to
Develop the new Market
Strength
Weakness
•UK market leader
•Good cash flow
•Good product exists
•High operation cost
•Lack of strategy &marketing
•High inventory
•Lack of staff
•Less competitive advantage
in price
•Sales Volume balance (too
large in UK)
Opportunities
Threats
•Public spending up in 2
years
•New distribution channel
•New operation to produce
products
•Financial capability to invest
•Product range
•Competitors in the UK
market
•New safety regulation in EU
•Getting more competitive
•Unpredictable public sector
spending
-Sales Promotion (campaign) in
European Market to enhance the
business
-Price change, according to inflation
(increasing contribution)
-HR Allocation Change (shift from
Leisure Sales to European sales)
-Continue to invest in new tech to
advance in competitive market
-HR moving between Finance & HR, as
a kind of the reduction
MBE A-1
4
Strategy
Strategic Planning for
WAVERIDER 2011,
from Strategic leadership
1.
Analyse
internal &
external
environment
HR & QM of
Products
Cost reduction
SWOT Analysis
a. Sales costs
b. Operation costs
c. Salaries & Wages
2.
3.
4.
Analyse the
competitors
(price, Product,
strategy, etc)
Improvement of ITR
Improvement of ROCE
New Market Development
Action Plan
-New Market Development
-HR shift
-Price change
-HR reallocation
Mission Statement for
next 5 years
1. To review the current situation
2. To rebuild the winning
strategies using Hoshin Kanri
(Policy Deployment)
3. To revive Wave Riders Business
in next 5 years.
Adapted From DuBrion (1998)
MBE A-1
5
Strategy
The Strategy Process for
WAVERIDER 2011
Sales decreasing
High cost
Continuous
review
SWOT
Internal
Appraisal
Market development
Review the cost
HR reduction
Based on Strategy three
Restructuring in 5years
Market
development
Cost reduction
Increase market share in Europe
Action Plan (seen in as page-3)
Allocation
Financial
resource
Changing Orgs
Shift managers
Actual results & outcomes
MBE A-1
6
Adapted From Deming (1993), DuBrion (1998)
Revival Plan
5 Y vision
Briefing
Hoshin-Kanri
President
’s annual
Diagnosis
1 Y Plan
Plan
Audit
Execute
Hoshin = direction, a course, a policy, a
plan, an aim
Kanri = management, administration,
or control
Monthly
Diagnosis
Hoshin Kanri – A method of
implementing strategy to get the right
thing done.
Deploy to
departm
ents
Determine the organisation’s current
situation
Identify Core Matrix to improve the
vision elements
Implementing the plan
Establish Vision/Mission/Goals to
develop the future
Identify Base line & Benchmark
Performance
Review the plan, & Gap analysis to
develop the countermeasures
Select Vision elements for 3-5 Y
breakthrough
Deploy the Plan (catch ball)
Annual review & Develop 12 month
plan
Adapted From Akao (1991), Kondo (1997, 1998)
MBE A-1
7
Revival Plan
WAVERIDER
Policy Deployment 2011-2015
(Hoshin-Tenkai)
Target to
Improve
Annual
Objectives
5 year
Breakthrough
Objectives
a.
b.
c.
d.
HRs
Yanik Joshi
Michinori Fujita
Beverly Owusu
Elizabeth Kabagambe
Anna Zhu,
Muhammad Sardar
Improvement
Priorities
New Product Portfolio
Lead time cost reduction
Material expense reduced
Quality improve, by R&D
Research European Market
Sales Promotion in European
Price change, according to inflation
HR Allocation Change
Continue to invent
HR moving between Finance & HR
1.
2.
3.
4.
Cost reduction of £25K
Promotion £250K
Price increase to 2.5%
Inventing cost of £150K
1.
2.
3.
4.
5.
6.
1.
2.
3.
4.
A bundle of contracts called team
charters
A visual tool for planning
Can appear complex at first
Becomes simple quickly
The key is the Linkage of high and
low level action with people and
results
Mostly an aid to communication
Cost reduction of £125K
Promotion £250K
Price increase to 13.145%
Inventing cost of £650K
Adapted From Akao (1991), Kondo (1997, 1998), Tennant, et al (2001a &b)
MBE A-1
8
Revival Plan
WAVERIDER
Policy Deployment 2011
(Hoshin-Tenkai)
5 year
Breakthrough
Objectives
a.
b.
c.
d.
Cost reduction of £125,000
Promotion £1,250K
Price increase to 13.145%
Inventing cost of £650K
HRs
Yanik Joshi
Michinori Fujita
Beverly Owusu
Elizabeth Kabagambe
Anna Zhu,
Muhammad Sardar
Target to
Improve
Annual
Objectives
1.
2.
3.
4.
Improvement
Priorities
New Product Portfolio
Lead time cost reduction
Material expense reduced
Quality improve, by R&D
Research European Market
Sales Promotion in European
Price change, according to inflation
HR Allocation Change
Continue to invent
HR moving between Finance & HR
1.
2.
3.
4.
Cost reduction of £25,000
Promotion £250K
Price increase to 2.5%
Inventing cost of £150K
1.
2.
3.
4.
5.
6.
Start
Adapted From Akao (1991), Kondo (1997, 1998), Tennant, et al (2001a &b)
MBE A-1
9
Revival Plan
Pros & Cons of HoshinKanri
Strengths
Limitations
 Focuses organization on the vital few
 Communication of a shared vision
 Creates alignment through
participation
 Encourages cross functional
cooperation
 Planning is systematic
 A rigid implementation is necessary
 Requires a long term commitment
 Relatively Static – the breakthrough
objective must be stable during a 5 year
period
EFQM
BSC
Evolved because of a need to balance financial
measures with non-financial ones
None-financial ones are: e.g. Customer, Learning &
Growth, Internal Business Process, etc
Self-Assessment
Continuous Improvement (Learning)
Leadership criteria, incl. motivation
Adapted From Tennant, et al (2001a &b)
MBE A-1
10
Conclusion
Cost reduction of £125,000
Promotion £1,250K
Price increase to 13.145%
Inventing cost of £650K
Start
Results
People
Financial
People Results
Customer
Leadership
HRs
Yanik Joshi
Michinori Fujita
Beverly Owusu
Elizabeth Kabagambe
Anna Zhu,
Muhammad Sardar
5 year
Breakthrough
Objectives
4.
Target to
Improve
Annual
Objectives
New Product Portfolio
Lead time cost reduction
Material expense
reduced
Quality improve, by R&D
Improvement
Priorities
a.
b.
c.
d.
Enablers
Research European Market
Sales Promotion in European
Price change, according to inflation
HR Allocation Change
Continue to invent
HR moving between Finance & HR
2.
3.
4.
1.
Cost reduction of
£25,000
Promotion £250K
Price increase to 2.5%
Inventing cost of £150K
1.
2.
3.
4.
5.
6.
1.
2.
3.
Development &
Recommendation
Policy and Strategy
Processes
Partnerships &
Resources
Customer
Results
Vision & Strategy
Key
Performance
Results
Internal Business
Processes
Learning &
Grwoth
Society Results
Innovation & Learning
MBE A-1
11
Q&A
MBE A-1
12
References
Akao, Y. (1991). Hoshin Kanri - policy deployment for successful TQM. Cambridge, MA: Productivity Press.
Deming, W. E. (1986). Out of the crisis. Cambridge, Mass: MIT.
Deming, W. E. (1994). The new economics. Cambridge, Mass: MIT.
DuBrin, A. J. (1998). Leadership: Research findings, practice and skills. New York: Houghton Mifflin.
Kondo, Y. (1998). Hoshin Kanri - a participative way of quality management in Japan. The TQM Magazine,
10, (6), 425-431.
Kondo, Y. (1997). The Hoshin Kanri - Japanese way of strategic quality management. Proceedings of 41st
Congress, European Organization for Quality, Trondheim, Norway, 241-250.
Tennant, C. & Roberts, P.A.B.(2001a). Hoshin Kanri: Implementing the catchball process. Long Range Planning,
34, 3, 287-308.
Tennant, C.,& Roberts, P.A.B. (2001b). Hoshin Kanri: A tool for strategic policy deployment. Knowledge and
Process Management, 8,(4), 262-269.
Akao, Y. (1991). Hoshin Kanri - policy deployment for successful TQM. Cambridge, MA: Productivity Press.
MBE A-1
13