2a. Winning Strategies part 1

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. 2a. Winning Strategies part 1 MBE A-1 • Leadership and Excellence • UKFM-LE 10MB01 • 07/02/2011 to 25/02/2011 • OV

2. The aim of the practical plan for Wave Riders • To review the current situation, especially the strategy process. • To revive Wave Riders business in the next 5 years using a winning strategy and HoshinKanri (Policy Deployment). Contents Current situation of Wave Riders Financial Statements SWOT analysis Strategy Strategic Planning Strategy Process New Vision & Plan to revive Revival Plan Brief of HoshinKanri Revival Plan using HoshinTenkai Next Five years Plan Pros & Cons of Policy Deployment Conclusion & Development Goal setting theory Improved Performance Goals that are: Specific Hard but realistic Accepted by the person Used to evaluate performance Linked to feedback & rewards Set by individuals or groups Values DuBrion (1998) MBE A-1

3. Current situation of Wave Riders Current Situationfrom Financial Statements Declining profits Falling Sales High Stockholding Overproduction No effectively using Capital Increasing Costs or inefficiency ↓ Resetting Goals Restructuring Organisation MBE A-1

4. Current situation of Wave Riders Action Plan 2011 From SWOT Analysis(Strategy Three) -Research European Market in order to Develop the new Market -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

5. Strategy Strategic Planning for WAVERIDER 2011, from Strategic leadership Analyse internal & external environment Analyse the competitors (price, Product, strategy, etc) HR & QM of Products Cost reduction Sales costs Operation costs Salaries & Wages Improvement of ITR Improvement of ROCE New Market Development SWOT Analysis • Action Plan • -New Market Development • -HR shift • -Price change • -HR reallocation Mission Statement for next 5 years To review the current situation To rebuild the winning strategies using HoshinKanri (Policy Deployment) To revive Wave Riders Business in next 5 years. Adapted From DuBrion (1998) MBE A-1

6. Strategy The Strategy Process forWAVERIDER 2011 Sales decreasing High cost Continuous review SWOT Internal Appraisal Based on Strategy three Market development Review the cost HR reduction Restructuring in 5years Cost reduction Market development 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 Adapted From Deming (1993), DuBrion (1998)

7. Revival Plan BriefingHoshin-Kanri Hoshin = direction, a course, a policy, a plan, an aim Kanri = management, administration, or control HoshinKanri – A method of implementing strategy to get the right thing done. 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

8. Revival Plan WAVERIDER Policy Deployment 2011-2015 (Hoshin-Tenkai) A bundle of contracts called team charters A visual toolfor 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 Research European Market Sales Promotion in European Price change, according to inflation HR Allocation Change Continue to invent HR moving between Finance & HR HRs Improvement Priorities Yanik Joshi Michinori Fujita Beverly Owusu Elizabeth Kabagambe Anna Zhu, Muhammad Sardar Cost reduction of £25K Promotion £250K Price increase to 2.5% Inventing cost of £150K New Product Portfolio Lead time cost reduction Material expense reduced Quality improve, by R&D Target to Improve Annual Objectives 5 year Breakthrough Objectives 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

9. Revival Plan WAVERIDER Policy Deployment 2011 (Hoshin-Tenkai) Research European Market Sales Promotion in European Price change, according to inflation HR Allocation Change Continue to invent HR moving between Finance & HR HRs Improvement Priorities Yanik Joshi Michinori Fujita Beverly Owusu Elizabeth Kabagambe Anna Zhu, Muhammad Sardar Cost reduction of £25,000 Promotion £250K Price increase to 2.5% Inventing cost of £150K New Product Portfolio Lead time cost reduction Material expense reduced Quality improve, by R&D Target to Improve Annual Objectives 5 year Breakthrough Objectives Cost reduction of £125,000 Promotion £1,250K Price increase to 13.145% Inventing cost of £650K Start Adapted From Akao (1991), Kondo (1997, 1998), Tennant, et al (2001a &b) MBE A-1

10. Revival Plan Pros & Cons of Hoshin-Kanri Strengths A rigid implementation is necessary Requires a long term commitment Relatively Static – the breakthrough objective must be stable during a 5 year period Limitations • Focuses organization on the vital few • Communication of a shared vision • Creates alignment through participation • Encourages cross functional cooperation • Planning is systematic • 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 • EFQM • Self-Assessment • Continuous Improvement (Learning) • Leadership criteria, incl. motivation Adapted From Tennant, et al (2001a &b) MBE A-1

11. Conclusion Development & Recommendation Research European Market Sales Promotion in European Price change, according to inflation HR Allocation Change Continue to invent HR moving between Finance & HR HRs Improvement Priorities Yanik Joshi Michinori Fujita Beverly Owusu Elizabeth Kabagambe Anna Zhu, Muhammad Sardar Cost reduction of £25,000 Promotion £250K Price increase to 2.5% Inventing cost of £150K New Product Portfolio Lead time cost reduction Material expense reduced Quality improve, by R&D Target to Improve Annual Objectives 5 year Breakthrough Objectives Financial Enablers Results Cost reduction of £125,000 Promotion £1,250K Price increase to 13.145% Inventing cost of £650K Leadership Processes Key Performance Results People People Results Customer Vision & Strategy Internal Business Processes Start Policy and Strategy Customer Results Learning & Grwoth Society Results Partnerships & Resources MBE A-1 Innovation & Learning

12. Q & A MBE A-1

13. References Akao, Y. (1991). HoshinKanri - 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). HoshinKanri -  a participative way of quality management in Japan. The TQM Magazine, 10, (6), 425-431. Kondo, Y. (1997). The HoshinKanri - 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). HoshinKanri: Implementing the catchball process. Long Range Planning, 34, 3, 287-308. Tennant, C.,& Roberts, P.A.B. (2001b). HoshinKanri: A tool for strategic policy deployment. Knowledge and Process Management, 8,(4), 262-269. Akao, Y. (1991). HoshinKanri - policy deployment for successful TQM. Cambridge, MA: Productivity Press. MBE A-1