1. 2a. Winning Strategies part 1 MBE A-1 22/02/2011 Leadership and Excellence UKFM-LE 10MB01 07/02/2011 to 25/02/2011 OV Our Vision To become the leading producer and supplier of small inflatable boats, to the UK and European leisure and rescue markets.

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 Hoshin Kanri (Policy Deployment). Contents 1.Current situation of Wave Riders a.Financial Statements b.SWOT analysis 2.Strategy a.Strategic Planning b.Strategy Process c.New Vision & Plan to revive 3.Revival Plan a.Brief of Hoshin Kanri b.Revival Plan using Hoshin Tenkai c.Next Five years Plan d.Pros & Cons of Policy Deployment 4.Conclusion & Development 2 Values 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 DuBrion (1998) Goal setting theory MBE A-1

3. Current Situation from Financial Statements 1.Declining profits 2.Falling Sales 3.High Stockholding 4.Overproduction 5.No effectively using Capital 6.Increasing Costs or inefficiency ↓  Resetting Goals  Restructuring Organisation 3MBE A-1 Current situation of Wave Riders

4. Action Plan 2011 From SWOT Analysis (Strategy Three) Strength UK market leader Good cash flow Good product exists Weakness 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 Public spending up in 2 years New distribution channel New operation to produce products Financial capability to invest Product range Threats Competitors in the UK market New safety regulation in EU Getting more competitive Unpredictable public sector spending -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 4MBE A-1 Current situation of Wave Riders

5. Strategic Planning for WAVERIDER 2011, from Strategic leadership 1.Cost reduction a.Sales costs b.Operation costs c.Salaries & Wages 2.Improvement of ITR 3.Improvement of ROCE 4.New Market Development 5 Analyse internal & external environment Analyse the competitors (price, Product, strategy, etc) HR & QM of Products SWOT Analysis 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 Strategy

6. The Strategy Process for WAVERIDER 2011 Based on Strategy three 6 Sales decreasing High cost Continuous review SWOT Internal Appraisal 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 Shift managersChanging Orgs Actual results & outcomes Adapted From Deming (1993), DuBrion (1998) MBE A-1 Strategy

7. Briefing Hoshin-Kanri Hoshin = direction, a course, a policy, a plan, an aim Kanri = management, administration, or control Hoshin Kanri – A method of implementing strategy to get the right thing done. Plan Audit Execute 5 Y vision1 Y Plan Deploy to departm ents Monthly Diagnosis President ’s annual Diagnosis Determine the organisation’s current situation Establish Vision/Mission/Goals to develop the future Select Vision elements for 3-5 Y breakthrough Identify Core Matrix to improve the vision elements Identify Base line & Benchmark Performance Deploy the Plan (catch ball) Implementing the plan Review the plan, & Gap analysis to develop the countermeasures Annual review & Develop 12 month plan Adapted From Akao (1991), Kondo (1997, 1998) 7MBE A-1 Revival Plan

8. WAVERIDER Policy Deployment 2011-2015 (Hoshin-Tenkai)  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 1.Cost reduction of £25K 2.Promotion £250K 3.Price increase to 2.5% 4.Inventing cost of £150K 1.Research European Market 2.Sales Promotion in European 3.Price change, according to inflation 4.HR Allocation Change 5.Continue to invent 6.HR moving between Finance & HR a.Cost reduction of £125K b.Promotion £250K c.Price increase to 13.145% d.Inventing cost of £650K 1.New Product Portfolio 2.Lead time cost reduction 3.Material expense reduced 4.Quality improve, by R&D Yanik Joshi Michinori Fujita Beverly Owusu Elizabeth Kabagambe Anna Zhu, Muhammad Sardar HRs 5 year Breakthrough Objectives Annual Objectives Improvement Priorities Target to Improve 8MBE A-1 Adapted From Akao (1991), Kondo (1997, 1998), Tennant, et al (2001a &b) Revival Plan

9. a.Cost reduction of £125,000 b.Promotion £1,250K c.Price increase to 13.145% d.Inventing cost of £650K WAVERIDER Policy Deployment 2011 (Hoshin-Tenkai) 1.Cost reduction of £25,000 2.Promotion £250K 3.Price increase to 2.5% 4.Inventing cost of £150K 1.Research European Market 2.Sales Promotion in European 3.Price change, according to inflation 4.HR Allocation Change 5.Continue to invent 6.HR moving between Finance & HR 1.New Product Portfolio 2.Lead time cost reduction 3.Material expense reduced 4.Quality improve, by R&D Yanik Joshi Michinori Fujita Beverly Owusu Elizabeth Kabagambe Anna Zhu, Muhammad Sardar HRs 5 year Breakthrough Objectives Annual Objectives Improvement Priorities Target to Improve Start 9MBE A-1 Adapted From Akao (1991), Kondo (1997, 1998), Tennant, et al (2001a &b) Revival Plan

10.  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 10 Pros & Cons of Hoshin- Kanri StrengthsLimitations 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 MBE A-1 Adapted From Tennant, et al (2001a &b) Revival Plan

11. Development & Recommendation Leadership Processes Key Performance Results People Results Policy and Strategy Partnerships & Resources People Customer Results Society Results EnablersResults Innovation & Learning Financial Vision & StrategyCustomer Learning & Grwoth Internal Business Processes 11MBE A-1 Conclusion

12. 12MBE A-1

13. 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. 13MBE A-1