ASHBRIDGE
AUTOMOTIVE PARTS
INC.
Strategic Proposal for Re-Alignment
Wednesday November 26, 2014
Your BCG Team:
Michael Cunningham
Anchel Kumar
Marina Eckart
Ernest Mistica
Executive Summary
Main Issue
Misalignment of
HR & Business
Strategy
Symptoms
Weak
Compensation
System
Recommendation
Link mission
and vision to
HR strategy
Methodology
Implementation
No sense of
ownership
No formal
performance
management
system
7S Model
Balanced
Scorecard
Job Analysis
Staff Budget
Risk
Assessment
Next Steps
Main Issue Are you a cost leader?
Lack of alignment with HR and the business strategy
Department
budgets
Low impact
human
resources
programs
No
department
or individual
accountability
Misaligned
HR &
Business
Strategy
Cause and Effect Diagram
Human Resources Issues
Ineffective use of recruitment
and on-boarding practices
Production/Operation Issues
Ineffective inventory
system
Low employee morale
High turnover rate
Lack of alignment between
management and the
employees
Low production
Poor quality
Outdated Quality
Control process
Talent attraction and
retention issues
Lack of incentive system
Problems
Not anticipating changes in the market, and
adjusting the strategy to meet them.
Organizational strategy not linked to
business units
Influencing the nature of competition
through strategic actions
Lack of accountability for decision
making
Strategic Issues
Significant differences between actual
and projected results
Lack of action on negative variances
from budgets
Reductions in working capital and
cash flow
High departmental cost
Financial Issues
Positive Feedback Loop at Ashridge
Poor
Performance
Management
Ineffective
Compensation
and Incentive
Strategy
Lack of
Ownership
Prioritizing Matrix
Y
E
S
First Importance tasks. You
have to do them now.
U
R
G
E
N
T
Tasks you must plan or
they will become urgent.
N
O
IMPORTANT
Tasks to be delegated.
Not added value tasks
2
Tasks to be eliminated
or they will become 3
7S Model
Structure
Strategy
Systems
Shared
Values
Style
Skills
Staff
Balanced Scorecard
Financial
How do we look to
shareholders?
Business Process
How can we manage what
we have now more
effectively?
Do we have the right people?
What should we be best at?
What are the internal
efficiencies?
How can we improve
financial position?
Reduce cost structure
Improve returns
Customer
How do customers see us?
Vision and
Strategy
How can we increase
customer satisfaction?
Learning and Growth
How can we understand
our customers better
How can we carry on improving,
creating value and modernizing?
Which plans put us in the
difficult situation last time?
Develop strategic skills
Align personal goals
Job Analysis
Staff Budget
Position
Tasks
Budget
Consultant
- Goals
- Financial
$60,000
Analyst
- SWOT
- External Market
$50,000
Project Manager
- Communication
Channel
- Oversee Production
N/A
Administrative
- Support
$40,000
Risks and Mitigation
Financial
What will happen if no action is taken?
- Financial degradation
- Increased attrition
- Loss of clients
People
What if they dont buy into the new
programs?
- Project manager will be the change
agent
- Focus groups to get initial feedback.
- Constant feedback loop
Legal
What are some litigious issues that may
arise? Grievances? Lawsuits?
- Collaboration with the union
- Severance pay implications
Operations
What if there isnt a good culture fit of
new processes to the current workforce?
- Product quality training
- Natural attrition
Reputation
How will our customers react to an
increase in price?
- Communication on product quality
- Better branding to focus on premium
branding
Next Steps
Immediate (Present 4 months)
Intermediate (4 months 1 year)
- Doing job analysis
Long term (1 year+)
- Doing the balanced
- Training
scorecard
- Applying the 7S model
- Strategize new
compensation systems
- Consultation with the
union and stakeholders
- Roll out improved
compensation system
- Roll out new job
descriptions
- Roll out new
performance management
standards
- Gather program
feedback and implement
changes
- Logistics consulting to
create efficiencies
- Leadership development
with current managers to
maintain culture
THANK YOU
We would love to answer any questions you may have.
